First Time Homebuyers Questions Answered Part 3
September 15, 2008
Finding a mortgage loan that is best
There are several different types of Tulsa Real Estate mortgages and you should do your homework before you apply for a mortgage just so you know what you are getting into beforehand.
Fixed Rate Mortgages – The interest rate you pay will be the same amount over the life of the loan whether you have a 15-year mortgage or a 30-year mortgage. The benefit of a fixed rate loan is that you will always know the amount you will have to pay each month on the mortgage loan. This way you can plan your budget without any surprises.
Adjustable Rate Mortgages – The monthly payment with an adjustable rate mortgage normally starts lower than a fixed rate mortgage loan, however, the payment can go up or down sometimes quarterly or twice per year. The adjustment in interest is joined to the financial index like the US Treasury Securities Index. The benefit with an adjustable rate mortgage is that you may be able to purchase a more expensive property due to the fact that your beginning interest rate will be lower.
Other mortgage loans that you should also investigate include FHA, Fannie Mae, Freddie Mac, and Veteran’s Administrations. All of these have various mortgage loans available with different criteria’s in order to receive a mortgage loan.
If you are unsure about the various mortgage loans available for you in your situation, you can talk with a real estate agent. They can help guide you in the correct direction and in many cases to the perfect lending company or real estate broker.
How much to Offer
When you find the perfect home, you may be wondering how much to offer. The best way to decide how much to offer is by talking with your real estate agent. You should talk with your realtor and find the answers to these questions prior to making an offer.
- Is the asking price in the range with other homes in the area?
- What is the condition of the home?
- How long has the home been on the market?
- How much do you want this home?
If the home has been on the market for a long time, you must look at the reason. Are there several homes for sale in the area? Why are there so many on the market? If the asking price way over other homes in the area? Is the home in good condition? Could there be underlying problems? Do you want the home so much that you do not care about a few cosmetic problems?
The closer you are to the asking price with your offer the more likely it will be that that seller will accept your offer. If your offer is rejected, you can still negotiate. This does not mean you out of the bidding process. You can always raise your offer and ask the seller to pay more closing costs or repair things that might be wrong with the home.
