1. How long do plan to live in the home?

If you are going to live in the home for more than about 5 - 7 years, you should purchase it rather than rent it. Even with today’s fickle housing market, you can bet that a home purchased today will hold it’s value over this time period.  To get exact details for your area consult a licensed real estate agent that has experience in your market area.

2. Buying a home doesn’t always mean a down payment

That’s right! You don’t always have to fork over a hefty down payment before moving in. While zero down programs are a thing of the past, there are many down payment assistance programs available.  Complete the form on this site and we will have a mortgage specialist contact you to discuss your options.

3. Get Pre-Qualified

People often underestimate how important it is to get pre-qualified. Pre-qualification gives you the buying power and makes it possible for you to make an offer on your dream home the moment you’ve found it. Also, getting pre-qualified lets you know the true cost of your home in monthly payments. Qualifying can actually be a very simple process and doesn’t have to require a lot of work on your part.

4. Consult a Realtor

Though some people steer clear of realtors when searching for a home because they worry about high-pressure sales, realtors are knowledgeable of the housing market and can walk you through the entire process. They also have access to the Multiple Listing Service which features about 99% of the homes on the market.

5. Make a List of Things you Want in a Home

Begin your search by taking a systematic approach to home-buying. Create a list of the features your home must have or things you and your family want in order to find the perfect home. Whether it’s the location, the surrounding schools or the number of bedroom in the home, it’s important to know exactly what you’re looking for.

Federal loans and grants. Before you do anything else, it’s important to check out Government funding programs and fill out the necessary paperwork. Depending on the student’s financial need, grants such as Pell grants and FSEOGs can award amounts anywhere from several hundred to many thousand dollars a year.

Federal Stafford loans. As the backbone of the self-help aid program by the Department of Education, Federal Stafford loans are a popular choice for people who can’t pay for college. They have a lower interest rate than loans from a private lender, but higher than a Federal Perkins loan.

Federal Perkins loans. These loans are given to a specific number of students each year at each school. They are awarded on a first-come, first-serve basis, so it’s important to fill out your FAFSA early if you’re interested.

Federal work-study programs. Work-study programs allow undergraduate and graduate students to earn money while they’re in school. Though usually on-campus, some schools are able to find work-study programs through non-profit organizations or public agencies. 

Parent loans. Many people opt to apply for a parent loan to pay for their child’s college education. A parent Loan for Undergraduate Students or PLUS, could be the best decision for many people because it allows them to borrow up to the full cost of their student’s education.

Private scholarships. Whether you’re teen is a straight-A student or not, researching scholarships is always a good idea. Talk to the experts to learn how to find private scholarships that are offered by businesses, organizations and groups so your student can learn how to properly apply.

1. The Appraisal: Getting your home appraised by a certified professional has and will always be important when finding your home’s value. However with the changes in the housing market, don’t be surprised if the appraiser spends extra time in your home to make sure their appraisal is as accurate as possible.

2. Price Reductions: Lenders will also look at home’s in your area that are on the market that have been reduced in price. If many of the home’s on the market in your area have had a price reduction, the lender might determine that your home is in a market that is declining in overall value and may decide to lend you less money.

3. Time on the Market: Lenders are also likely to take a look at how long comps in your area remain on the market before the closing of the sale. The faster homes in your area sell, the better the market, so if home’s in your area have been on the market for a while, it could decrease the value of your home

4. Comparisons of Sales Transactions: Often, lenders will run comparisons on the number of sales transactions that were completed in your area in the last few months, the last year and currently in order to predict future market values. For instance, your home’s value may be considered lower if last year, 10 homes in your area sold within a month, while only a couple have sold within recent months of the current year. The result of this process is subjective and can differ from lender to lender.

5. Default and Foreclosure Numbers: Due to the current housing market, default and foreclosure numbers are playing a larger role in determining a home’s value. Lenders are looking closer at how many of the homes in your area have received a notice of default (the result of not paying your mortgage) as well as the number of homes that are in foreclosure. Either of these numbers will have a negative impact on your home’s true value.

1. Choosing too many upgrades or choosing upgrades with low return on investment: This is probably the single most common mistakes people make when buying a new home. As they build their home, people tend to spend money on upgrades that will give them little to no ROI or they will choose too many upgrades that will only mean more money and won’t increase the value of the home. When buying a home, stick to essential upgrades only.

2. Not evaluating the surrounding community: When buying a new home you are shopping differently than if you were shopping for clothes or even a new car. Finding the right place to buy a new home means assessing your lifestyle requirements in order to find the right community. For example, it’s important to research the schools in the area to determine if they will be a good fit for your children.

3. Neglecting the “inspection” clause found in some builder contracts: One of the dirty little secrets in the new home industry is that some builders, including some national builders, send out contracts that contain a clause stating that they will not allow home inspections by an independent, third party home inspector until after you close on the home. Though these builders will often offer to do a walk-through of the home with you before you close, unless you have a licensed home inspector do a walk-through, chances are you will miss some important red flags

4. Not using a buyer agent: When buying a new home, make sure you find a buyer agent who specializes in new homes. With all the steps that come along with buying a new home, it’s important to have a buyer agent that can help with price negotiation, choice of lot, assessing the pros and cons of building materials and researching future development in the surrounding community. Lucky for those who are interested in buying a new home in the near future, buyer agents services are now paid for with of the marketing budget of the builder.

5. Using the builder-endorsed financing company because it’s convenient: Many of the larger building companies have their own in-house financing company and often make incentives on their products available to buyers. Though it may be more convenient to take advantage of this simple financing, you might find that the builder’s in-house lender financing and incentives will cost more money in the long run. Sometimes financing your purchase through an outside lender will save you money, so it’s important to check your financing options before settling with an in-house finance company.

1. Get a coin jar – and use it! Collecting your coins in a jar something the whole family can participate in. Simply have everyone save daily change in a glass jar somewhere in a main area of the house. Not only does this help you save money for a rainy day (or even that trip to Disneyland the kids have been pleading for), but it will help keep you from spending the excess cash that’s left in your purse, wallet or pockets! Once the jar is filled, have some fun rolling the coins with free coin sleeves from the bank to count just how much you’ve saved up. You can even create multiple coin jars that go towards anything from a new video game to buying a home!

2. Tech junkies beware. Ok so we all love technology one way or another, but one way of blowing your hard earned cash faster than you ever though possible is to get addicted to the latest and greatest gadgets. That new surround sound system that just came out last week may be amazing (especially once you pop in the Top Gun DVD), but will you really be able to afford all the new hardware that is upgraded down the line? With the ever-changing world of technology, it’s easy to get sucked into the habit of always buying new item, but if you were to take a step back and rethink your purchases, you could save hundreds of dollars a year. Consider passing on this year’s upgraded technology and wait for the next batch to come out – that alone could save you a lot of cash.

3. Automate it. By automating your savings, you’re more likely to have a savings amount you are comfortable with. Begin by switching to direct deposit for your paycheck so your money goes directly into the bank. Before, when you deposited your check yourself, you had to make a decision about how much to deposit, meaning you were more likely to end up with less money in the bank. When you direct deposit, however you’re making the decision about how much to withdraw and are less likely to go overboard with withdrawals. In addition to direct deposit, you can also set up an automatic transfer of money from your direct deposit account or checking account to your savings account, which will help you grow your savings in the long run..

4. Cut spending on hobbies and other entertainment. From beading to stamp collecting to attending Major League Baseball Games, hobbies big and small can really cost you. Though there’s no need to give up your favorite things in life, it’s simply a good idea to cut your spending as much as possible. Consider cutting down your hours at the bead store so your less likely to find something you “just can’t live without” or cut down on the snacks and beer at the baseball game. Don’t have a hobby? Consider reviewing your monthly magazine subscription costs as well as things like Netflix and extra cable channels. You’d be surprised how much money you can save each year by cutting down on subscriptions.

First of all, it’s important to weatherize your home as much as possible. For example, if your home has an attic, that is a great place to begin cooling things down. Make sure your attic is insulated as much as possible and if it’s not already there, install a foil radiant barrier to the underside of the roof rafters. As you do this, allow air space between the roof sheathing and the foil as this will help keep the cool air in and the heat out.

Another way to cool down your house without buying a home air conditioner or spending a lot on electric bills is to install heat-reflecting film on any windows in your home that face the sun. Not only will this keep your home cooler, but it will also reduce overall glare and keep ultraviolet rays from damaging the floors or furniture. There are a variety of reflective films you can use depending on the climate you live in. For instance, those who live in hot climates should use sun-controlling film to decrease the amount of light that comes in through the windows, while combination films are available for people who live in colder areas of the country. You can also reduce heat by keeping drapes or shades closed as much as possible on the south and west-facing sides of your home as well as utilizing patio overheads, awnings or overhangs.

Though it would not give you immediate protection from the sun, planting trees, large bushes or vines can create wonderful shade in the future. So, if you plan to stay in your house for a few years or more, consider planting a variety of plants that will thrive in your area.

Remember to keep portable fans or ceiling fans on to keep the cool air moving throughout your home and turn off incandescent lights and heat-generating appliances whenever possible. Keep an eye on the indoor and outdoor temperature so you can open up windows or doors to ventilate if it’s cooler outside. This will also increase the air flow and could decrease your need for buying a home air conditioner.

The New York Times has reported yet another blow to today’s fickle housing market. The financial loan giants Fannie Mae and Freddie Mac, who own nearly half of the nation’s mortgage market, could be in jeopardy. Though policy makers are rushing to assist the two companies and the federal government is working towards a rescue, loan rates continue to rise.

Home loan rates are approaching their highest levels in five years. For example, the average interest rate for 30-year fixed-rate mortgages rose from 6.44 percent last Friday to 6.71 percent this Tuesday. Bond investors are driving up interest rates even more due to Fannie Mae and Freddie Mac’s decreased support to the market, thus making it harder for the average person to find a reasonable loan rate.

If you’re concerned about interest rates for a new home loan, a home equity loan, debt consolidation or refinance, LowestRate.com can help you find the lowest rate possible. Find your lowest rate online now at LowestRate.com.

Read more about rising loan rates at the New York Times official online news source.

To decrease your chances of losing money in a refinance, check out these refinance scam warning signs so that you can better identify a scam if you happen to come across one.

1. The Lender doesn’t disclose rates, terms and costs of the refinance: The law demands that lenders provide you with the rates, terms and fees on a variety of mortgages. Therefore, it should be a big red flag if the lender does not disclose the relevant loan information you need.

2. The lender requests that you sign a blank form: Signing a blank form gives the lender free reign to put down any loan terms he/she wants and will most likely end very badly for you.

3. Raising your payments : If you’re lender attempts to talk you into borrowing more than you can afford, beware! By signing up for something you can’t afford means you could end up in foreclosure. Your lender will collect the large amount of interest up to the point where they take away your home.

To ensure that you are not the victim of a refinance scam, make sure to check your lender’s overall profile and service background. You should also review the lenders’ past client testimonials, and be sure to ask questions that will help you make the best decision for you.

First of all, you can prevent financial crisis by only paying for a mortgage you know for sure you can afford. Even though you qualify for a mortgage doesn’t mean you should sign on the dotted line. Also, be sure you have enough money in savings to tide you over should something happen. The general rule of thumb is to have at least three to six months worth of funds available in case your income ceases unexpectedly.

If you do come into financial hardship and are concerned about being able to pay your mortgage premium, you should consider refinancing. Read about refinancing and let LowestRate.com help you find your lowest rate by filling out this <a href=”http://www.google.com/”>online form</a>.

1. Tax credit for first-time homeowners. Thanks to the housing bill, new homeowners can look forward to a tax credit of up to $7,500 or for 10 percent of the purchase price. Not to be confused with a tax deduction, this credit will simply reduce the tax bill within the tax year the home was bought. Homeowners must then repay the money over the next 15 years. .

 2. Refinancing into FHA allowed. The housing rescue law aims to help people who have fallen behind on their mortgage payments due to the increase in rates for adjustable-rate mortgages (ARMs). It encourages lenders to forgive some debt so people may refinance at lower amounts. However, those who decide to use this program will have to share their home-priced appreciation with the FHA.

 3. No more down payment assistance. As of October 1st, down payment assistance programs at places like Nehemiah and AmeriDream will no longer be allowed.

 4. Property tax deductions for all homeowners. The new law makes it possible for homeowners who can’t itemize and who pay property taxes to receive an increase in deductions.

 5. Increased reverse mortgage regulations. Due to the fact that more and more dishonest lenders are taking advantage of borrowers for reverse mortgages, the new law requires counseling before they are allowed to lend. The law will also limit origination fees on reverse mortgages.