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Financing Tips for Real Estate

If buying a home is in your future there is some information you may want to know before stepping out into the real estate world.

The steps to successful financing

Examine your finances.  Before you begin sit with a lender on your finances, make sure you have a good understanding of them yourself. You don't want any surprises when you get a credit report back with bad marks on them. First, order a copy of your credit report which you can get free once every year from each of the three main companies; Equifax, Experian and Transunion. Once you know about your credit you can take the time to repair any issues before a lender sees them.

Get A Pre-approval letter Once you know your own finances, sit down with a lender of your choice and review your options for a loan. You can choose a bank, mortgage broker or private lender and each has their advantages and disadvantages. A bank has a small amount of programs for you but usually has less fees. A mortgage broker has access to hundreds of loans and programs but  you will be paying them a fee for doing this research. A private lender is just that. An individual willing to loan you money for a home. This is not usually recommended. Once you have a loan in place you will need a pre-approval letter to submit to sellers when presenting an offer. This shows the seller you have done your homework and are a serious buyer.

Consider what type of loan is best for you.   Compare fixed-rate with adjustable rate mortgages. Look down the road. Where will you be in 15 years, 30 years?  What obligations might you have? Take those things into consideration as you choose a loan.

While you're shopping for a loan, also look for the best loan costs.
These may include:

• Interest rates  
• Broker fees
• Points (each point is one percent of the amount you borrow)
• Prepayment penalties
• Loan term application fees
• Credit report fees
• Appraisal costs

Ask about Pre-payment.   You can shave years off the length of your mortgage by restructuring the way you pay back your loan. Simply paying more frequently can save thousands in interest. So can making a lump payment toward the principle - or paying a little more each month. These methods are called pre-payment. 

When you are ready to proceed with your real estate buying venture, don't forget to contact us for all your buying services. It cost buyers NOTHING to use the aid of a buyers agent and you have the protection of knowing we are on your side only. Buyers agents only have the interest of the buyer at heart and not one particular seller. Consider Coldwell Banker United Brokers for all your  Clark county real estate needs.