Tips for Saving Money towards Buying a Home

Money Saving Ideas to Save towards Buying a Home

Saving money for things like a downpayment, closing costs, or just moving expenses can sometimes be a challenge. When I saw this list provided in a Wells Fargo Home Mortgage newsletter, “The Mortgage Market Guide,” I thought I would share just to provide some great ideas for saving that extra money for you to buy a home.

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Boost Your Savings…Without Hardly Trying

These days most people would welcome the idea of having more money in their savings account. Here are a few ideas that can help make that possible. And the best part is…you’ll hardly feel it!

Bring Your Lunch to Work – Most people spend $6 (or more) when they buy their lunch, yet spend $2 when they pack it themselves. That’s a potential savings of $20 a week or $1,040 dollars a year.

Durable over Disposable – Using products like Handi-Wipes (semi-disposable rags) as opposed to paper towels, and a rechargeable razor rather than the disposable kind, can save about $200 per year.

Hold an Annual Yard Sale – You should have no problem making at least a hundred bucks. Besides, you’ll get rid of all that household clutter in the process. Whatever you don’t sell can be donated to charity and used as a tax write-off.

Ask for Discounts – From buying airline tickets to paying a medical bill, always ask if there’s a discount to be had. The worst that can happen is you’ll be told no.

Get a Library Card – As opposed to buying a book for $20 or renting a DVD for $4, get it for free. If you average 3 movie rentals a month, you’ll save yourself over $140 a year.

Watch Those Utilities – Changing over to energy-saving light bulbs and low-flow showerheads is a great start. Also, most utility companies offer a home audit you can complete online. If not, go to http://hes.lbl.gov for a virtual inspection of your home. You may be surprised to learn how much energy (and money) you could be saving.

The good news is that suggestions like these are merely a start. Taking the time to discover inefficient habits in your household and making a few minor adjustments can lead to more savings opportunities than you may realize! And that’s great news, both today and in every kind of economy!

 

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Additional Home Buying Resources

Watch – 9 Steps to Ownership Video

First Time Home Buyers

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Search Washington State Real Estate MLS Listings

The Trey Affolter Team at Keller Williams Realty always welcomes comments and is available to answer questions about Tacoma Real Estate and the surrounding cities within Pierce County Real Estate, South King County Real Estate, and North Thurston County Real Estate.

253-222-6000

http://www.TreySellsHouses.com

Trey Affolter * Realtor * 253-222-6000 * www.treysellshouses.com * treyaffolter@kw.com

Your Tacoma Real Estate Professional

 

BEWARE OF HOME FORECLOSURE SCAMS

Caution: FORECLOSURE SCAMS

There are many “Foreclosure Rescue” scams beginning to surface in light of the government’s moves to help prevent foreclosures. 

 

Here are some things to remember:

1. There is never a fee to get assistance or information about the government’s Making Home Affordable program.
2. Beware of anyone who says they can “save” your home if you sign or transfer over the deed to your house.
3. Never submit your mortgage payments to anyone other than your mortgage company without their approval.

For more information on how to get help please click:

www.makinghomeaffordable.gov  
Beware of Foreclosure Rescue Scams – Help Is Free

OR CALL 1.888.995.HOPE(4673)

source: Golf Savings Banks

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Additional Real Estate Resources:

Help me to Avoid Foreclosure – Foreclosure Prevention Tips 

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The Trey Affolter Team, Keller Williams Realty, always welcomes comments and is available to answer questions about Tacoma Real Estate and the surrounding cities within Pierce County Real Estate, South King County Real Estate, and North Thurston County Real Estate. 

 253-222-6000

http://www.TreySellsHouses.com

 

 Trey Affolter   *   Realtor   *   Keller Williams Realty   *   253-222-6000   *   treyaffolter@kw.com 

Mortgage Interest Rates & 5 Things a Home Buyer Should Know

If you are considering purchasing a home in the Tacoma Real Estate area…or in Pierce, south King, or north Thurston Counties, like most buyers you will need to attain a home mortgage loan. Mortgages can be a little scary, so edcuating yourself a bit, and finding a reputable lender are steps you can take to make the process more comfortable.

In the following article, Brandon Cornett, offers some guidance to home buyers shopping for a mortgage loan. Additional resources below article.

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by Brandon Cornett

There’s plenty of homework involved when buying a home for the first time. The terminology alone can make your head spin. But one of the most important concepts you should understand is the concept of mortgage interest rates and how they are applied.

Specifically, you need to know how you can get the lowest interest rate on a mortgage loan by reducing your debt and improving your credit. These are the things we will discuss in this lesson.

Let’s start with some general terminology. When you buy a home, you will hear the terms “mortgage rate” and “interest rate” used quite often (especially when you start dealing with lenders. Within the context of home buying, these terms mean the same thing. They both refer to the interest rate the lender gives you when approving you for a mortgage loan.

This is a key concept to grasp, because it will partly determine the size of your mortgage payment. Obviously, you want to get the lowest mortgage interest rate possible, because this in turn will reduce the size of your monthly payment.

Getting the Lowest Interest Rates on a Mortgage

Now that you understand the core principles at work here, we get to the million-dollar question that every home buyer wants to know: “How do I get the best interest rate on my mortgage loan so I can save money?” The answer to this question lies within the five key points listed below:

1. Interest is the first ‘I’ in the acronym PITI, which refers to the four parts of a mortgage payment — principal amount, interest, taxes and insurance. PITI. So by getting the lowest possible rate on your home loan, you are reducing one of the four key components of the loan.
2. The mortgage interest rates offered by lenders will vary from one borrower to the next — often significantly. This has a lot to do with a person’s credit score. In order to qualify for the best rates on a mortgage loan, you need to have excellent credit. This is something to keep in mind when you see a “teaser rate” offered in an advertisement. There’s probably an asterisk with some fine print that says “for qualified borrowers.” This means they are only offering their lowest interest rate to a select group of people above a certain credit range. So it may or may not apply to you.
3. To get the lowest rate on a mortgage loan today, borrowers need even better credit than they did a few years ago. This comes as a result of the subprime mortgage crisis that spread throughout our economy. Lenders have stricter requirements. It’s harder to qualify for a loan, and it’s a lot harder to qualify for the lowest mortgage interest rates on your loan. To get the best rates in the post-mortgage-crisis economy, you will probably need a credit score of 750 or above.
4. As a home buyer, you should learn the advantages and disadvantages of fixed-rate and adjustable-rate mortgages. The adjustable mortgage (ARM) gets its name because it starts off with a relatively low interest rate, but after a few years it will adjust or “reset” to a higher rate. Many of the people who had their homes foreclosed upon in 2007 – 2008 were people who had adjustable / ARM loans that they held onto past the adjustment point (instead of refinancing). The mortgage interest rate shot up after a few years, and they could no longer afford their homes. Learning the difference between these loans will you avoid becoming a statistic.
5. If you plan to stay in the home more than a handful of years, then you might want to consider the fixed-rate mortgage. As you can probably guess by the name, this type of mortgage keeps the same interest rate over the life of the loan, regardless of whatever ups and downs happen in the economy. So you have a greater level of certainty over the long haul. A common (but somewhat risky) strategy among home buyers is to start of with an ARM loan in order to secure the lowest mortgage interest rate possible, and then to refinance into a fixed-rate loan a few years later before the ARM adjusts. If the value of your home drops during that initial period, you may not be able to refinance. We are seeing a lot of this right now. So be realistic about your long-term plans, and choose your mortgage accordingly.

This article will help you understand what it takes to get the lowest mortgage interest rate when buying a home. But your research and education should not stop here. To be a smart consumer, you must continue learning about the topics covered above. In particular, I recommend that you read up on the differences between adjustable and fixed-rate mortgages, the pros and cons of each type, etc. This is a key area of research that many home buyers skip over … much to their detriment.

I hope this tutorial helps you secure a low interest rate on your mortgage loan, and I wish you all the best in your home buying experience.

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* Copyright 2008, Brandon Cornett.

About the Author: Brandon Cornett publishes a number of educational websites for consumers. He is the creator of this real estate information website as well as the Home Buying Institute.

 

Additional Featured Real Estate Articles:

Types of Mortgage Lenders – Tacoma Real Estate

Locking in Your Mortgage Rate – Tacoma Real Estate

3 Tips for Getting the Best Mortgage Rate – Tacoma Real Estate 

 

Is the Real Estate Market Tide Turning?

Seattle Real Estate Market Best for Speedy Rebound

Top 10 Reasons to Buy Tacoma Real Estate Now…FREE Report

Myths About Selling Your Tacoma Real Estate Home in a Slow Market

Down Payment Assistance Programs for Washington State Home Buyers

 

The Trey Affolter Team, Keller Williams Realty, always welcomes comments and is available to answer questions about Tacoma Real Estate and the surrounding cities within Pierce County Real Estate, South King County Real Estate, and North Thurston County Real Estate. 

 

253-222-6000

http://www.TreySellsHouses.com

 

Types of Mortgage Lenders

What Types of Mortgage Lenders Are There?

There are a number of types of primary mortgage lenders that you may encounter when shopping for your mortgage loan. To give you a better understanding of these service providers, a brief explanation is provided below.

• Mortgage Bankers typically originate loans and then sell these loans to the secondary mortgage market shortly after funding. (The mortgage banker may or may not sell the servicing of the loan.) Often mortgage bankers have attractive loan programs and rates.

• Portfolio Lenders make loans with the institution’s own funds and keep the loan on the institution’s books rather than immediately selling it to the secondary mortgage market. Many institutions engage in mortgage banking as well as portfolio lending.

Since portfolio lenders fund the loans, they are not confined to Freddie Mac/Fannie Mae guidelines. After a portfolio loan has reached its one year anniversary date without any late payments, it is considered seasoned and may be sold to the secondary mortgage market even if it does not meet Freddie Mac/Fannie Mae guidelines.

If a portfolio loan is sold to the secondary mortgage market, the portfolio lender may continue to service the loan.

• Direct Lenders fund their own loans. Direct lenders usually fall into the category of a mortgage banker or portfolio lender.

• Correspondents act on behalf of one or several lenders (sponsors) throughout the origination and closing. The loan is usually underwritten by the sponsor. The correspondent acts as the lender’s agent. The correspondent may also service the loan for the lender.

• Mortgage Brokers work as intermediaries between lenders and borrowers. Mortgage brokers have access to a number of lenders and often offer the most variety in loan programs. Brokers assist the borrower in filling out the loan application, obtaining the credit report and appraisal, selecting a loan program and finding a lender to fund the loan. In general, brokers do not make the decision to extend the loan and do not fund the loan.

The mortgage broker may be paid by the borrower or the lender. Payment to the broker is typically included in the closing costs as either fees or points.

• Wholesale Lenders underwrite and fund mortgage loans. Wholesale lenders may also service the loan payments and ensure the loan’s compliance with underwriting guidelines.

• Banks, Credit Unions and Savings & Loans use funds gathered from their customers through checking, savings and certificates of deposit to make mortgage loans. The institution may hold the loan in its portfolio or sell it to a secondary mortgage market.

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Secondary Mortgage Market

When you apply for a home mortgage, you may be under the impression that the mortgage lender will be servicing the loan until it is paid off. This may not be the case. It is common practice for the mortgage loan to be bought and sold to a secondary mortgage market investor, sometimes more than once in the life of a loan.

These transactions will not affect your mortgage amount or your mortgage payment. The secondary mortgage market is comprised of investors like Fannie Mae and Freddie Mac. Selling loans to the secondary mortgage market provides primary lenders with funds needed to issue new mortgage loans.

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Search Washington State Real Estate MLS Listings

 

The Trey Affolter Team, Keller Williams Realty, always welcomes comments and is available to answer questions about Tacoma Real Estate and the surrounding cities within Pierce County Real Estate, South King County Real Estate, and North Thurston County Real Estate.  

253-222-6000

http://www.TreySellsHouses.com

Tips for Getting the Best Mortgage Rate

Tips for Getting the Best Mortgage Rate

In the following article, Brandon Cornett shares 3 tips for acquiring the best mortgage rate. I recommend consulting with a professional mortgage lender to discuss your financing options. Often the best way to find a lender is ask around for a referral. 

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by Brandon Cornett

As a home buyer, it only makes sense to try and obtain the lowest interest rate when applying for a mortgage. After all, that rate is a primary component of the mortgage payment, so it has a direct bearing on the amount of money you’ll pay each month.

But how do you get a low rate when applying for a home loan? This is the question many home buyers want to know. So in this article, I’ll explain three important concepts you should keep in mind when seeking the best rates from mortgage lenders.

Concept #1 – Your Credit Score Plays a Role

The first thing to realize is that the interest rate you are offered will be partly determined by your credit score and financial history. In other words, the best mortgage terms are usually reserved for those home buyers with the best credit scores.

What does this mean to you when buying a home and applying for a loan? It means that your credit score will often dictate the type of interest rates you are offered. So if you have a bad credit history, and your score illustrates this to the lender, then there’s little chance you’ll be getting the best interest rate. If this is the case, you should focus on improving your credit score before you go shopping for a mortgage online.

Concept #2 – The Mortgage Type Makes a Difference

The type of home loan you select also plays a role in determining the interest rate you receive. So it’s important for home buyers to understand this concept as well. For example, an adjustable rate mortgage (ARM) loan will generally come with a lower interest rate than a fixed-rate loan — but that is only for the first few years. Of course, the rate on an ARM loan will also adjust at some predetermined point in the future, and typically this adjustment means a higher interest rate! That’s another thing to keep in mind when mortgage shopping.

Concept #3 – You Must Compare Lenders on Key Factors

There is one last thing I want to touch on, and that is the need to shop around in order to get the most favorable rates from a lender. Shopping for a loan is just like shopping for anything else — you have to compare multiple lenders in order to find one that offers the best rates and terms on the loan.

Many buyers don’t realize that ten different lenders may offer you ten slightly different mortgages. The interest rate will vary, the terms will vary, the closings costs will vary … you get the idea. And these make a big difference in the amount of money you pay over the long haul. That is why it’s so important to compare lenders and to carefully review the information they present to you, ideally with a financial advisor of some kind (or at least someone who is mortgage-savvy).

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* Copyright 2008, Brandon Cornett.

About the Author: Brandon Cornett publishes a number of educational websites for consumers. He is the creator of this real estate information website as well as the Home Buying Institute.

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Additional Real Estate Articles:

Is the Real Estate Market Tide Turning?

Seattle Real Estate Market Best for Speedy Rebound

Top 10 Reasons to Buy Tacoma Real Estate Now…FREE Report

Myths About Selling Your Tacoma Real Estate Home in a Slow Market

Down Payment Assistance Programs for Washington State Home Buyers

 

The Trey Affolter Team, Keller Williams Realty, always welcomes comments and is available to answer questions about Tacoma Real Estate and the surrounding cities within Pierce County Real Estate, South King County Real Estate, and North Thurston County Real Estate.  

253-222-6000

http://www.TreySellsHouses.com

Tips To Find Down Payment Assistance Programs

How To Find Down Payment Assistance Programs – Washington State

Identify down-payment assistance programs at the federal, state, and local level.

Down Payment Assistance Programs are available for Tacoma Real Estate…

…and homes in Pierce, King, and Thurston Counties.

Ways to find down-payment assist programs:

1. Contact your lender partner – Lenders will be familiar with programs in your community.
2. Contact your non-profit housing counseling agency – Housing counseling agencies know about down-payment assistance program resources in your community.
3. Visit your local government website – By researching the web pages of your local government’s housing or community development department, you can learn what kind of financial assistance is available for buyers in your area. Usually this information is in the single family or home buying section of the public sector website.
4. Check federal and state government resources – Some of the key agencies that provide down payment and closing cost assistance include:

• US Department of Housing and Urban Development (HUD) at www.hud.gov.

• State and Local Housing Finance Agencies. Each state has a housing finance agency that operates programs to assist buyers in purchasing a home. To find your state housing finance agency check the National Council of State Housing Agencies (NCSHA) website at www.ncsha.org.

• Local governments also have housing financed agencies. Check your local government website to find a local housing finance agency.

• Federal Reserve Board at www.federalreserve.gov. There are 12 banks in the Federal Reserve System. A number of the Federal Reserve Banks operate down-payment assistance program. Each Bank individually determines its programs so visit the website of the Federal Reserve Bank for your region to find out what is available. There are links to all 12 Banks on the Federal Reserve website.

• Federal Home Loan Banks at www.fhlbanks.com. There are 12 Federal Home Loan Banks and their primary purpose is to provide loans to banks, which allow the banks to extend long-term financing for housing and economic development. A number of the Home Loan Banks have down-payment assistance programs. Visit the website for the Home Loan Bank for your region to find out what is available. There are links to all the Home Loan Banks on the Federal Home Loan Bank website.

    NEXT STEP – Call The Trey Affolter Team  

 

Current Home Buyer Down Payment Assistance Programs:   

• $7,500 Tax Credit for Homebuyers     (Expires June 30, 2009)

• VA Home Loans (100% Home Loan Program)

• Washington State’s HOUSE KEY Home Ownership Program

• House Key Plus Down Payment Assistance

• HomeChoice Assistance for Persons with Disabilities

• House Key Veterans Program

• USDA Rural Development Home Ownership Program

• City of Tacoma Down Payment Assistance Program

• Pierce County Housing Programs Down Payment Assistance Loan

• City of Lakewood Down Payment Assistance Loans 

  

Call The Trey Affolter Team @ 253-222-6000 to learn more and to take advantage of the Down Payment Assitance Programs!

 

The Trey Affolter Team always welcomes comments and is available to answer questions about Tacoma Real Estate and the surrounding cities within Pierce County Real Estate, South King County Real Estate, and North Thurston County Real Estate. 

253-222-6000

http://www.TreySellsHouses.com

* resource: realtor.org & http://www.treysellshouses.com

Pierce County Washington Down Payment Assistance Program

Down Payment Assistance…buy with ZERO Down.

Pierce County Housing Programs Down Payment Assistance Loan offers down payment assistance for home buyers in Pierce County Washington.

The Down Payment Assistance Loan program makes funding available to assist lower income residents purchase an affordable home in Pierce County. The First-Time Homebuyers Program is another type of homeownership program available through Housing Programs.

The program provides a loan up to 6% of the sales price for down payment or loan closing costs on a home.

For more details on the Pierce County Down Payment Assistance Program, visit here.

Current Home Buyer Down Payment Assistance Programs:

• $7,500 Tax Credit for Homebuyers     (Expires June 30, 2009)

• Washington State’s HOUSE KEY Home Ownership Program

• HomeChoice | Assistance for Persons with Disabilities

• House Key Veterans Program

• USDA Rural Development Home Ownership Program

• City of Tacoma Down Payment Assistance Program

• Pierce County Housing Programs Down Payment Assistance Loan

• City of Lakewood Down Payment Assistance Loans 

  

Call The Trey Affolter Team @ 253-222-6000

to learn more and to take advantage of the Down Payment Assitance Programs!

 The Trey Affolter Team always welcomes comments and is available to answer questions about Tacoma Real Estate and the surrounding cities within Pierce County Real Estate, South King County Real Estate, and North Thurston County Real Estate. 

253-222-6000

http://www.TreySellsHouses.com

City of Tacoma Down Payment Assistance Program

Buy a home in Tacoma with ZERO Down…

If you wish you could own your own a Tacoma Real Estate home, but do not have the money for the down payment and closing costs, this program may be the answer you are looking for. Funds are available to provide loans up to 6% of the selling price of the home to assist with the down payment and closing costs needed to buy a home.

For more details on the Tacoma Down Payment Assistance Program, visit here.

 

Current Home Buyer Down Payment Assistance Programs:

• $7,500 Tax Credit for Homebuyers     (Expires June 30, 2009)

• Washington State’s HOUSE KEY Home Ownership Program

• HomeChoice | Assistance for Persons with Disabilities

• House Key Veterans Program

• USDA Rural Development Home Ownership Program

• City of Tacoma Down Payment Assistance Program

• Pierce County Housing Programs Down Payment Assistance Loan

• City of Lakewood Down Payment Assistance Loans 

 

 

Call The Trey Affolter Team @ 253-222-6000

to learn more and to take advantage of the Down Payment Assitance Programs!

 

The Trey Affolter Team always welcomes comments and is available to answer questions about Tacoma Real Estate and the surrounding cities within Pierce County Real Estate, South King County Real Estate, and North Thurston County Real Estate. 

253-222-6000

http://www.TreySellsHouses.com

USDA offers Down Payment Assistance for Washington State Home Buyers

Buy a Home with Zero Down

Down Payment Assistance Programs are available for Pierce County Real Estate…

…and homes in Pierce, King, and Thurston Counties.

USDA Rural Development Home Ownership Program:

Under the terms of the program, an individual or family may borrow up to 100% of the appraised value of the home, which eliminates the need for a down payment. Since a common barrier to owning a home for many people is the lack of funds to make a down payment, the availability of the loan guarantees from HCFP makes the reality of owning a home available to a much larger percentage of Americans. 

For more details on the USDA Rural Development Home Ownership Program for Washington State home buyers visit here.

Current Home Buyer Down Payment Assistance Programs:

• $7,500 Tax Credit for Homebuyers     (Expires June 30, 2009)

• Washington State’s HOUSE KEY Home Ownership Program

• HomeChoice | Assistance for Persons with Disabilities

• House Key Veterans Program

• USDA Rural Development Home Ownership Program

• City of Tacoma Down Payment Assistance Program

• Pierce County Housing Programs Down Payment Assistance Loan

• City of Lakewood Down Payment Assistance Loans 

 

Call The Trey Affolter Team @ 253-222-6000

to learn more and to take advantage of the Down Payment Assitance Programs!

 

The Trey Affolter Team always welcomes comments and is available to answer questions about Tacoma Real Estate and the surrounding cities within Pierce County Real Estate, South King County Real Estate, and North Thurston County Real Estate. 

253-222-6000

http://www.TreySellsHouses.com

House Key Down Payment Assistance in Washington State

House Key Home Ownership Programs in Washington St.

Possible ZERO Down Programs with fair interest rates.

Washington State Housing Finance Commission Homeownership Programs help low- and moderate-income first time homebuyers purchase their first home. The program also offers assistance for Persons with Disabilities and Veterans.

Click here for more detailed information on the House Key State Bond Program

 

Current Home Buyer Down Payment Assistance Programs:

• $7,500 Tax Credit for Homebuyers     (Expires June 30, 2009)

• Washington State’s HOUSE KEY Home Ownership Program

• HomeChoice | Assistance for Persons with Disabilities

• House Key Veterans Program

• USDA Rural Development Home Ownership Program

• City of Tacoma Down Payment Assistance Program

• Pierce County Housing Programs Down Payment Assistance Loan

• City of Lakewood Down Payment Assistance Loans 

 

Call The Trey Affolter Team @ 253-222-6000

to learn more and to take advantage of the Down Payment Assitance Programs!

 

The Trey Affolter Team always welcomes comments and is available to answer questions about Tacoma Real Estate and the surrounding cities within Pierce County Real Estate, South King County Real Estate, and North Thurston County Real Estate. 

253-222-6000

http://www.TreySellsHouses.com