January 24
SHOP AROUND TO SAVE MONEY ON A MORTGAGE
The best time to purchase a home is whenever you are guaranteed an appreciation rate that is a few points above inflation and the monthly costs of renting are the same as the cost of buying a home. Whenever this time comes, there are a few things that you should know. First of all, you should always remember that the listing price is negotiable. This means that you can continue to make counter offers until both you, as the buyer, and the seller reach an agreed upon price. Your realtor works for you and should help you with this.
Another important thing to remember whenever you are purchasing a new home is that it is important to shop around to see what the various mortgage prices are that are available to you. Never simply take the first available price. Instead, look for a mortgage that is flexible. You will want one that will allow you to increase your cash flow while also being able to pay down the principal faster. Also, make sure that you are getting the best price possible. By opting for a shorter amortization period, you will be able to reduce the amount of interest that you will need to pay over the life of your mortgage. Even just a 1% difference in mortgage rates can mean thousands of dollars saved in interest payments.
Remember to negotiate these things before you sign on the dotted line. Of course, you will also want to make sure that you get all of these things in writing.
