(3) Your Mortgage

Your options for financing the home you find depend on your personal financial situation and your unique needs. Check with a CENTURY 21® agent for guidance about contacting mortgage lenders and getting a Mortgage Pre-approval. This will help you gauge how much you can afford to spend on a home and the financing options available to you. Here's an overview of typical financing options available:

• Adjustable Rate Mortgage (ARM): This is a mortgage in which the interest rate is tied to a specific economic index and may adjust at specific times. Overall, your monthly payment may go up or down at intervals specified in the disclosure associated with this type of mortgage, depending on the current interest rate.
• Fixed Rate Mortgage (FRM): This is a mortgage with an interest rate that does not change during the entire term of the loan. This means the monthly payments for principal and interest are also fixed for the life of the loan.
• Conventional Mortgage: This is mortgage that is not part of a government-housing program, typically has a limit of $322,700, and is not insured by the federal government.
• Jumbo Mortgage: This is a mortgage that typically exceeds $322,700 and is not insured by the federal government. These loans usually have higher interest rates.
• Government Backed Loans: There are two types of government-backed loans -- FHA and VA. FHA loans are insured by HUD (the Department of Housing and Urban Development of the United States) and VA loans are insured by the Veterans Administration.

  
  (4) Closing and Other Additional Costs

  After you find a home and receive mortgage approval, the closing is when ownership of your new home officially transfers from the seller to you. In some cases, sellers pay the closing costs. If not, you need to be prepared to pay this additional cost. This can add another two to five percent to the home purchase price. These costs also can vary from state to state. For specifics, ask your CENTURY 21® agent. Other additional costs may include:

   

• Good faith deposit: This deposit reassures the sellers you are genuinely interested in buying their home and are willing to make them an offer. A good faith deposit can vary between 1% and 10% of sales price depending on the market and can be applied to the down payment.
• Mortgage application and credit report fees.

  
  Finding A Home
  Your Search

  Where do you start when you're ready to find a home? Find the CENTURY 21 office nearest you by visiting Century21.com, calling 1-800-4-HOUSES, or registering online at My Century 21. Narrowing your home search based on how much you can afford is one factor.

  You'll want to have an idea of the features you "want" versus "need" in a home to help your CENTURY 21 agent guide you in a successful home search. Then the fun begins! Your CENTURY 21 agent will provide you with information on houses for sale and take you to visit the ones that interest you. You'll have the chance to discuss the pros and cons of each house with someone who has real estate knowledge and experience. And don't be afraid to ask questions. Remember, one of these houses you visit could be your future home and a major financial investment.

  Throughout the process, your CENTURY 21 Agent will help you fine tune your search criteria to find the home of your dreams. As part of the search, you'll probably visit "Open Houses." Visiting an open house includes personally touring a house that's for sale to get a first-hand view of the home and property. You may want to visit open houses on your own or with your CENTURY 21 Agent. Either way, it's a chance to get a better feel for the market, neighborhood, and styles of homes available.

  With each house you tour, ask yourself these questions:

   

• What features are most important to me? Number of bedrooms? Number of bathrooms?
• Does it have special features like a garden, a fireplace, a yard or a garage?
• Do I want a newly constructed house or a house that has been lived in before?
• Is it most important that the house be near a specific school, my job, or public transportation?
• What is the school district like?
• Are there kids in the neighborhood who are the same age as my own?
• Does this house need a lot of repairs?

  
  

  << Start < Prev 1 2 3 4 Next > End >>