Forget about saving three hundred dollars by hiring a cheap
mover. You want to save thousands by making thoughtful
decisions, following your intuition, and staying focused on
goals.

1. Hire the pros. Resist the temptation to save a few bucks
by hiring Uncle Larry and his pickup. You need a genuine
receipt to deduct moving expenses and you do not want to
be liable if somebody drops a box. One crushed toe can be
very expensive.

If you can afford the expense, let the movers pack for you,
too. They pack faster: they don't spend time wondering if
Aunt Gertrude's crocheted lampshades are worth keeping. And
if they break, they buy.

2. Find a temporary place to live. I get calls from people
who fret about moving costs, but it's housing that will eat
a hole in your budget. You may not find your dream home
right away - and your home may not be ready when you arrive.

You'll feel less pressured if you can say, "No problem. We
can camp out for a few months at the Sumptuous Suites Inn."
If you get lucky, you can always cancel.

3. Get clear on what you want. Before you move, visualize
your perfect new home. Include as many details as possible.
If you can't visualize the entire house or apartment, focus
on details: "a fenced yard for the dog," "wide sunny
windowsills for the cats to sleep and the plants to thrive,"
"a door wide enough to accommodate my couch." You'll be
more likely to make the right decision the first time.

4. Don't rush to sign a lease or offer. Better to lose an
opportunity than to be saddled with an unliveable house or
apartment six months down the road.

My rule is, "Sleep before signing." If it is truly your
home, it will still be there tomorrow. Breaking a lease or
just moving to a different address will be expensive and
time-consuming.

5. Have a friend -- or coach -- on call. If you are alone,
or feel alone, ask a friend to stand by the phone. Your
friend will be able to say things like, "Don't rush. If you
feel uncomfortable about signing, don't do it." Or, "That
house doesn't sound like you. Are you sure?" Or even, "Hang
in there!"

A coach can offer even more objectivity and you won't have
to worry about imposing on someone's good nature.

6. Lost in a new town? You have ten addresses and a map. You
feel like taking the first place you see just because it's
such a hassle to find your way. Well, search no more.

Find a taxi or car service. Nearly all will allow you
to hire them for two or three hours.
You may have to pay $100 or more,
but you may get by with a lot less. Call ahead and ask for
an experienced driver who knows the area.
Ask the driver questions like, "What kind of fares do
you get in this neighborhood?" Cab drivers know a lot.

7. Take time for yourself. Moving is exhausting. On a
physical level, you are packing boxes and running all over
town. Mentally, you face conflicting opinions from
self-proclaimed experts and well-meaning friends.

Stop! Treat yourself to a leisurely walk with the dog, a
nice lunch or dinner, even a movie. Use all the
stress-busters: meditation, exercises, music, phone calls to
your favorite people. A two-hour break can restore your
perspective and save you two years of grief.
And who knows?
You might discover your sacred space in the new city.

When it comes to choosing professionals to assist you with your real estate needs...Experience is Priceless! Andre' Shambley & Miami's Best REALTOR®. Team, The Keyes Company, 305-788-6643. AndreShambley@Keyes.com,
http://www.OnePlaceOpenHouse.com


Ready to refinance or looking for a better rate? For your complimentary rate quote visit Jacinta Shambley, APEX Lending, Inc. JShambley@APEXLending.com . http://www.JShambley.ApexLending.com

Have you spent years renting homes or apartments and have grown tired of paying all that rent money to someone else? If so, then it might be your time to consider purchasing a home, and keeping that cash for yourself. However, you do need to ensure that you are prepared on more than one level before jumping into the equity market. There are many financial considerations to make note of before you start looking for a home. But, if you can arrange your finances into a sensible plan and secure a mortgage then this can ultimately be the most rewarding purchase you have ever made or will make.

Finance plays a huge role in the decision to purchase your first home. This is to be expected as if you are purchasing your first home you will not likely have a few hundred thousand dollars sitting around and will have to find a mortgage of some sort. You should really make sure that you are prepared for the application for a mortgage as it will involve a thorough investigation of your past credit history. If there are any issues that you know of with your credit then you should take care of them before you apply for the mortgage. Sometimes this is a simple case of oversight, some things have been taken care of and not recorded as such, and sometimes there can be some debts that you will need to see to. Once these are taken care of, be sure to get a letter of release that you can show to the mortgage broker or company if necessary. If there are no issues with your credit then that will only make the process easier.

There is no stronger tool in the home buying process than having all your financing in line before you start shopping. This is a great attraction for sellers as they want their homes to sell quickly and without incident or trouble in the money phase, a buyer with ready-to-go financing's offers will hold greater favor with almost any seller. If you are mindful of these things then when the time comes to make your offer, the whole affair will go much more smoothly and you will be able to dedicate your time to what is important. How to decorate your new home.

When it comes to choosing professionals to assist you with your real estate needs...Experience is Priceless! Andre' Shambley&Miami's Best REALTOR®. Team, The Keyes Company, 305-788-6643. AndreShambley@Keyes.com, http://www.OnePlaceOpenHouse.com

Ready to refinance or looking for a better rate? For your complimentary rate quote visit Jacinta Shambley, APEX Lending, Inc. JShambley@APEXLending.com . http://www.JShambley.ApexLending.com  

When most homeowners wish to sell their property, one of the first things they do is to secure a real estate agent. However, when many people who set out to purchase a home often start to do so by themselves, without representation. Many buyers go online to look for great deals, or visit open houses themselves, without applying for a buyer's agent first. Unfortunately, this approach can cost home buyers a great deal of money and can lead to house buying disasters that take buyers years to recover from -- both financially and emotionally.

It is true that buyers are becoming more Internet savvy and more money smart. Many get estimate values of homes from web sites such as Zillow, or spend their time looking at County Assessor websites to find the assessed value of properties, as determined by the local taxing authority. However, this information, while valuable, will often not provide a buyer with the information they need to make a truly smart purchase. Many buyers, for example, do not realize the high rate of errors and mistakes that occur on these web sites.

Many buyers assume that they can save 3% immediately by negotiating the 5% to 7% selling commission that is often built into the list price of a property. However, many buyers quickly realize that developers will often not negotiate much with an unrepresented buyer, even if they had actually planned on paying additional money for a commission. The same is true of many sellers -- they are not always willing to negotiate with a buyer who is unrepresented, even if they were planning on negotiating with a buyer's agent. In many cases, where a homeseller is using an agent in order to sell the property, that agent may accept a lower commission than was originally agreed upon. In this case, the unrepresented buyer does not get any sort of discount. The seller simply pays less commission to the listing agent, and the price remains the same.

For all these reasons, getting a buyer's agent is simply a necessity in today's real estate market. A good buyer's agent can have access to accurate and detailed information about the market value of the property. A good buyer's agent will also have the well-developed negotiation skills that can get a buyer an actual discount on a property. This negotiating skill alone is often enough to pay for the price of a buyer's agent in the first place. A buyer's agent is also often able to complete extensive research on the MLS. For example, a good buyer's agent will use this database to compare recently sold properties with the property that a buyer is interested in buying. This can help the agent determine whether the price compares favorably to current market conditions. More importantly, an experienced buyer's agent is also invaluable in helping a buyer negotiate the entire buying process. From helping to locate a good lender, to helping in the inspection and assessment process, to helping the buyer determine what their needs are, a buyer's agent can take a buyer from initial desire to buy a home right down to negotiating the contract. Simply put, having a professional, experienced buyer's agent on your side ensures a good house buying experience.


When it comes to choosing professionals to assist you with your real estate needs...Experience is Priceless! Andre' Shambley & Miami's Best REALTOR®. Team, The Keyes Company, 305-788-6643. AndreShambley@Keyes.com,
http://www.OnePlaceOpenHouse.com


Ready to refinance or looking for a better rate? For your complimentary rate quote visit Jacinta Shambley, APEX Lending, Inc. JShambley@APEXLending.com . http://www.JShambley.ApexLending.com

Here is your opportunity:

You may be able to get a discount on a home if look closely and are ready to buy quickly.



Start today by working with a professional Real Estate Agent. Interview 2 to 3 agents find the one who will serve you best by:


1)Signing a Buyer Agent Agreement where they actually represent and work for you, the buyer, in your real estate transaction and not the seller.

2)Will place you in a VIP Buyer Program where their team will research the MLS daily for new listings that meet your criteria and email them to you with complete descriptions and photos.

3)Will allow you to go out and preview neighborhoods and subdivisions on your own without the agent dragging you around.

4)Will assist you in getting a Mortgage Pre-Approval (puts you in drivers seat when making an offer to a seller) not just pre-qualified (which is not worth the paper its written on)

5)Will prepare a CMA and review all current listings and time on the market before helping you structure your offer.

6)Will review tax records, title documents, survey, and seller disclosures for any discrepancies before helping you structure your offer.

7)Has a Team Approach to the Real Estate Business so you never get lost or dropped because your single agent can't keep up with all the paperwork, phone calls or any other buyers or sellers.

8)If needed, will help you sell your existing home fast and for top dollar.


Your job as a Home Buyer is:

1)Be open to the Market.

2)Determine a general location and with your agents help define your home buying criteria.

3)Be prepared to make solid non-contingent offers that work for you.

4)Be ready to close quickly if necessary.

5)Be willing to look at homes that meet 80 to 85% of your buying criteria not 100%.

6)Always have options for other homes, don't get stuck on the, I must have this home and only this home mentality.

7)Start today.

When it comes to choosing professionals to assist you with your real estate needs...Experience is Priceless! Andre' Shambley&Miami's Best REALTOR®. Team, The Keyes Company, 305-788-6643. AndreShambley@Keyes.com,
http://www.OnePlaceOpenHouse.com



Ready to refinance or looking for a better rate? For your complimentary rate quote visit Jacinta Shambley, APEX Lending, Inc. JShambley@APEXLending.com . http://www.JShambley.ApexLending.com

Ingredients

• 2 large eggs
• 1/2 cup canned evaporated milk
• 1 cup Italian-style bread crumbs
• 1 1/2 cups good-quality marinara sauce
• about 4 cups vegetable oil for frying
• 24 fresh bite-size ravioli, thawed if frozen
• 1/4 cup freshly grated Parmesan

In a shallow bowl beat together eggs and evaporated milk. Put bread crumbs in another shallow bowl. In a small saucepan heat sauce over moderate heat until hot and keep warm, covered.

In a small heavy kettle (about 5 quarts) heat 1 inch oil over moderate heat until a deep-fat thermometer registers 350°F. While oil is heating, dip ravioli in egg to coat, letting excess drip off, and dredge in bread crumbs, knocking off excess. Arrange ravioli as coated on a tray.

With a slotted spoon gently lower 4 ravioli into oil and fry, turning them occasionally, until golden brown and cooked through, 2 to 3 minutes. With slotted spoon transfer ravioli as fried to paper towels to drain. Return oil to 350°F. before frying remaining ravioli in same manner.

Transfer hot ravioli to a platter and sprinkle with Parmesan.

Serve ravioli with warm marinara sauce for dipping.

Traditionally, real estate has been viewed as a sales industry. But perceptions are beginning to change.
Agents around the country are coming to believe that the key to real estate success is service, not sales.

Competition and technology now give customers almost unlimited choices, so agents are having to work harder
and spend more to win listings. They're discovering that business success comes from repeat business and
word-of-mouth.

And customer service is the key!

Loyalty and good-will can't be bought, not even with the sale of a house. Customers like to be treated with honesty,
respect, and integrity. They want a realistic and accurate property appraisal. They want an agent who commits to
action. They want to be able to speak to someone who can help them when they call. They want to feel welcome when they walk into the office. They don't want their intelligence insulted by advertising. They don't want to be
fed a line (even if it is what they'd like to hear).

Agents with business sense know that if they can provide this customer service and pioneer great customer
service in real estate they'll have a real edge over their competitors. Far from being an impediment to success, they
see today's marketplace as an opportunity to flourish.

Obviously, the sale is still critical, but it's part of a greater whole, almost like a critical KPI (Key Performance
Indicator). It's based on the simple premise - serve and you will sell. The premise holds true because all the
pre-requisites of a sale are intrinsic to good customer service: The price is realistic, the marketing is
intelligent, the advertising appropriate, and commitments are made and kept. Vendors, buyers, landlords, and tenants
alike receive the same high level of customer service.

5 Quick Tips for Finding a Service Oriented Realtor

1) Ask to see references. It's not that much different from
a job interview. Think of the agent as the job seeker, and
encourage them to prove their customer service
qualifications. The right agent will be only too happy to
provide as many references as you'd care to see.

2) Analyse their business growth. Assuming their references
are in order, ask after their business growth. References
provide you with qualitative evidence of customer focus. You
should supplement this with something quantitative. If the
agent is still growing rapidly in today's environment, then
they must be doing something right.

3) Analyse their market share. Like growth, market share
can be an indicator of customer focus. Ask what their share
of the target market is.

4) Observe their behavior. Do they return phone calls? Do
they commit to action? Do they meet their commitments? Are
the punctual? Do they keep you informed? Do they remember
important details you provide them?

5) Gauge access to staff. When you first called, did you
get to speak to someone who could help you? If not, did they
took your name and number and told you they'd get someone to
call you back, this might be indicative of their customer
service approach.


As always when it comes to choosing professionals to assist you with your real estate needs...Customer Service is Priceless! Andre' Shambley&Miami's Best REALTOR®. Team, The Keyes Company, 305-788-6643. AndreShambley@Keyes.com, http://www.OnePlaceOpenHouse.com.

Ready to refinance or looking for a better rate? For your complimentary rate quote visit Jacinta Shambley, APEX Lending, Inc. JShambley@APEXLending.com . http://www.JShambley.ApexLending.com

Moving to the "Sunshine State" is a dream for many retirees, families and singles. With tropical weather in most parts of this giant peninsula, and miles of beaches, it's easy to daydream about a home with orange and palm trees, Spanish moss, and friendly neighbors. As the fourth most populous state, the dream is a reality for more than 16 million residents. If you're wondering how to pick out your dream property in Florida, then keep some of these tips in mind.

1. Florida is eclectic. It's true that some Floridians are living the lifestyle stereotype, but most residents will tell you that every community is completely different. Be sure to research the different areas of Florida to make sure you are selecting a development or town that has the atmosphere you are looking for. Life in Miami is completely different than life in Pensacola, which is more like a southern town. Gulf Coast towns and cities are known for being more relaxed, while the East Coast of Florida is a little more fast-paced. Central Florida will vary greatly on whether one chooses South-Central or smack-dab Central, and of course, inland properties are going to be more affordable than their coastline cousins.

2. Choose river and lake properties over pure beach ones. To keep from spending phenomenal amounts on insurance and property, try to live a little further inland. It's always easier to rent a beach house for a week or two, than to pour money into a beach property year-round. Buying Florida properties five miles or more inland will save you thousands.

3. Basements and extra space are rare. Wet weather and sandy soil make it almost impossible to build homes with below-ground footage. Many Florida real estate agents will suggest that their clients, who are relocating from out-of-state, trim down their belongings before arriving. Winter necessities are unnecessary for most of Florida. This is usually the first kind of belonging an agent will tell you to scale down.

4. Homeowner associations. The stereotype of the hyperactive condo board or homeowner association is a reality for many planned and gated communities, and condo complexes in Florida. If it is possible to talk to a few of the residents before purchasing a property in one of these structured developments, then do so. Try to get a feel for how the governing board conducts itself. Always read all the fine print on the homeowner association agreement, so you know what your responsibilities might be. Remember, homeowner associations are your friends not your enemies. They exist to protect your property value by enforcing the rules. Should you find the rules to be too strict for your comfort, there are always non-deed-restricted communities in which to live in Florida.

5. Get familiar with some common terminology. Most properties in Florida are built out of CBS, or concrete block and stucco that protect homes from humidity, wind and pests. Also, be sure to ask your real estate agent about Florida's Homestead Property Tax Exemptions. Many residents qualify for serious deductions on their property tax, but they have to make sure they are proactive to get them. Look for properties with school districts that have the grade rating of 'A' or 'B'. Schools in Florida are graded just like the students.

6. Check the air conditioning system. In order to counteract mold and humidity, Floridians have to make sure that their A/C system is powerful and durable. Many residents purchase service contracts with A/C specialists. Also, make sure you understand the system's warranties, and consider getting additional environmental inspections for air quality in your potential new property.

7. Florida homes are not filled with pests. We don't like bugs as much as you don't. If you keep a reasonably clean house and a regular pest control routine, you will not have a problem with pesty bugs.

Florida has a town, a coastline, and numerous attractions for people of every age, occupation and background. Consider the characteristics of each area of Florida, and then try to narrow things down to a few areas. With the right research, you can find the perfect Florida real estate property in the right community for you!

When it comes to choosing professionals to assist you with your real estate needs...Experience is Priceless!  Andre' Shambley & Miami's Best REALTOR®. Team, The Keyes Company, 305-788-6643.  AndreShambley@Keyes.com,  http://www.OnePlaceOpenHouse.com    

Ready to refinance or looking for a better rate?  For your complimentary rate quote visit Jacinta Shambley, APEX Lending, Inc. JShambley@APEXLending.com . http://www.JShambley.ApexLending.com      

The flexibility afforded by a "zero-commute" combined with the skyrocketing price of gasoline has strengthened the case for full time teleworking and telecommuting. According to an Environmental Protection Agency (2006) study:


"Americans spend an average of 46 hours per year stuck in traffic. Gridlock produces more than $63 billion in congestion costs per year"


The artist community has been well acquainted with the use of work/living spaces for years, but improvements in technology have made the benefits of teleworking and occasional telecommuting more attractive to general consumers. According to the key findings form the International Telework Association & Council (ITAC) Telework America (2005) study:


"Home-based teleworkers also have larger homes, on average, than non-teleworkers; the difference amounting to about 500 square feet. The most popular place for an office in these larger homes is a spare bedroom, with the living room a distant second. The primary home telework activity is computer work (55% of total activities), followed by telephoning, reading, and�averaging 7% of the time�face to face meetings."


As you purchase your next home, there are certain factors to consider if you need to set up a new home office:

Make sure that your high-tech needs can be met. Have a qualified electrician inspect the wiring of the house to see if the system can handle the extra power load that your home office requires. Older homes may need significant upgrades to handle the extra power, while newer homes are built with more energy-efficient systems to handle the additional power along with heating/air conditioning requirements. If you use cable, DSL or satellite internet access, check with your local service provider to see if access is available in your new neighborhood. Shop around for your telephone provider�in some cases, business service bundles may be more cost effective than regular residential service.

Designate where your office space will be. Determine the amount of space you will need to accommodate your work style and space. In many cases a spare bedroom or living room space can be used, if a formal den option is not available. If your work requires heavy telephone usage or just heads-down concentration, you may want to consider utilizing a room with a door. Doors can be closed to reduce interruptions from other family and household noises.

Plan your office blueprint to include all required furniture, bookcases, computers, fax, and printers. Make sure to allow for filing and storage space for files and extra office supplies. Lighting is critical for computer or assembly work, so make sure to allow for direct sunlight along with any specific task lighting that may be necessary. Select flooring options that will allow you to work comfortably�you may wish to go with hardwood or laminate flooring to allow for your chair to move smoothly across the floor. Install enough phone lines to cover your home, business and fax machines needs.

Is the office easily accessible? If you will expect regular package deliveries, make sure that your designated office is easily accessible to the front door of the home. This is also necessary if you will need to meet clients or visitors in your office and would like to ensure a professional appearance for your business.

Find out about local business requirements. Some cities have zoning restrictions and guidelines for work/living spaces along with tax implications. Make sure to check with your local government to determine if special restrictions exist.

When it comes to choosing professionals to assist you with your real estate needs...Experience is Priceless! Andre' Shambley & Miami's Best REALTOR®. Team, The Keyes Company, 305-788-6643. AndreShambley@Keyes.com,
http://www.OnePlaceOpenHouse.com



Ready to refinance or looking for a better rate? For your complimentary rate quote visit Jacinta Shambley, APEX Lending, Inc. JShambley@APEXLending.com . http://www.JShambley.ApexLending.com

Adjustable or floating rate, 15-year or 30? How much mortgage can you afford? These are just a few of the many questions home buyers will find information on in this report.

Before You Start:

Take a fresh look at your household budget to determine how much you can spend on a mortgage each month.
Request free copies of your credit report. (You're entitled to receive a free one annually from each of the nation's main credit reporting agencies.)
Familiarize yourself with all of the variables generally associated with financing a home, such as interest rate policies, terms, points, fees, etc.

Financing the American Dream
Buying a home is the biggest financial investment most of us will ever make. As with any large project or goal, it requires dealing with a variety of complex issues. The best approach is to divide the process into manageable tasks. The following deals with the first steps of gathering your records, determining what you can afford, and understanding mortgage options.

Put Your Own Financial House in Order
Before you go looking for a home, you should determine how much home you can afford. Most lenders will prequalify you to borrow up to a certain amount. Prequalification allows you to focus in on a realistic price range and makes you a more attractive buyer. Whether or not you want to prequalify, eventually you'll need to complete a loan application and it may take some time to gather and assemble the required information.

It's also a good idea to review your credit report. Contact local lenders to determine which credit bureaus they use. Then contact the credit bureaus and request a copy of your credit report (in most states, credit bureaus are required to provide individuals with a free copy of their report). Review your report to ensure that all information is correct. If you have past credit problems, don't lose hope. Be prepared to present a rationale for each slipup, and demonstrate an improvement in your ability to pay bills on time.

How Much Mortgage Can You Afford?
The Federal National Mortgage Association (Fannie Mae) is a government-sponsored organization that purchases mortgages from lenders and sells them to investors. Two income-to-debt ratios established by Fannie Mae are standard requirements for conventional mortgages. The first requirement is that monthly mortgage principal and interest payments (P & I), plus insurance and property taxes, cannot exceed 28% of the buyer's gross monthly income (some exceptions may apply to increase this limit to 33%). The second requirement limits total monthly debt payments (housing, credit cards, car payments, etc.) to 36% of gross monthly income. In addition to these requirements, you may have to pay 10% to 20% down on the total purchase price to qualify for a conventional mortgage.

Mortgage Rates and Minimum Incomes Needed to Qualify
Interest Rate Monthly Payment Minimum Annual Income

4% $454 $21,770
5% $510 $24,479
6% $570 $27,340
7% $632 $30,338
8% $697 $33,460
9% $764 $36,691
10% $834 $40,017
11% $905 $43,426
12% $977 $46,905

Mortgage companies use ratios to analyze your mortgage payment. The above example shows the monthly payments of principal and interest, and income needed to qualify for a $95,000 mortgage at various interest rates, amortized on a 30-year schedule, assuming a payment ratio of 25%.
Source: National Association of Home Builders, Economics Division


Types of Mortgages
How much house you can buy also depends on your mortgage's term and interest rate. The term is the length of time (usually 15 or 30 years) over which payments will be paid. The rate can be fixed (meaning it doesn't change over the loan's term) or adjustable (it fluctuates with market conditions). Thirty-year fixed-rate mortgages remain the most popular. The longer term lowers the monthly payment, while the fixed rate provides stability over the life of the loan. Given relatively low interest rates, these mortgages are attractive to buyers planning to stay at least six or seven years in their new home. The drawbacks are low principal payments in the early years, and the risk that market rates will decline over the term. However, if your credit history is sound and you have sufficient income, you can usually refinance your mortgage when rates decline.

A 15-year term lowers the interest rate, reduces total interest payments, and increases principal payments. But it also increases monthly payments. If you can't afford the higher payments now, you might opt for a 30-year mortgage. If there are no prepayment penalties, you can make additional principal payments as your income increases. Making just one extra monthly payment a year will pay off a 30-year mortgage in less than 22 years and can save tens of thousands of dollars in interest costs. If you plan to stay in a home no more than three years, you might want an adjustable-rate mortgage (ARM). ARMs offer initial rates that are lower than fixed mortgages. At some point, usually after the first year, rates are tied to market conditions and are subject to potential rate increases. Most ARMs include a cap on rate increases in any given year, as well as over the life of the loan. Some ARMs offer initial rates at least 2% below fixed rates and limit increases to 1% annually and 5% to 6% over the life of the loan. Many home buyers are attracted by the affordability of an ARM during the initial period. However, you should be confident that your future income will be sufficient if both interest rates and your monthly payments increase.

Another popular mortgage involves a balloon payment. A balloon is a lump-sum payment that pays off the loan in full after a fixed period of time. Generally the rates on balloon mortgages are 1/4% to 3/4% less than on 30-year fixed mortgages, but during an initial period of between 3 and 15 years, payments are similar. After this period, the remaining outstanding principal balance is either due in full or subject to refinancing. This is a good option for home buyers who plan to sell before the final payment is due. But because property values fluctuate, you may not be able to sell when you want. You may also face higher payments if you are forced to refinance at a higher rate, and there is also a risk that you may not be in a position to refinance when the balloon becomes due.

Three Steps to Finding the Right Mortgage

Estimate how long you expect to live in the house. If the answer is less than three to five years, consider an Adjustable Rate Mortgage (ARM), which typically starts out with a lower rate. If you plan to live in your new home longer than five years, a fixed-rate mortgage offers protection against rising interest rates.
Shop around for mortgage rates. Banks, credit unions, and mortgage companies all offer mortgages. Compare at least six lenders in your area.
Add up all the costs for each lender. Include fees, points, closing costs, etc., to arrive at the total mortgage cost for each lender.

Interest Rate Points

Points are interest paid in advance to reduce the rate on a loan. One point is equal to 1% of the mortgage amount. The general rule is that 1 point is worth 1/8 of 1% off the loan rate. The decision to pay points for a lower rate is based on how much the seller is willing to contribute to points, how long you plan to stay in the house, and how important lower payments are compared to higher closing costs. You will need to calculate the long-term value of points based on these factors, keeping in mind that points are generally tax deductible in the year paid.

Other Alternatives

If you cannot afford a conventional mortgage, there are a variety of alternatives. An anxious seller will sometimes offer owner financing. Federal Housing Administration (FHA) loans offer down payments as low as 3%, but may require the buyer to purchase mortgage insurance. (The FHA is a government agency responsible for insuring affordable housing mortgages.) The Veterans Administration (VA) offers no-money-down mortgages to qualified veterans of the U.S. military. Finally, there are local affordable housing advocates that offer low-cost, low down-payment loan alternatives. For further information, contact the FHA, VA, Fannie Mae, or your local mortgage lender or real estate broker.

Summary:

The first step in acquiring a home mortgage is to gather the information you'll need to include in a mortgage application.
Review your credit report by ordering a copy from the credit bureaus used by local mortgage lenders.

Prequalifying for a mortgage lets you know how much you can afford and makes you a more attractive buyer.

Conventional mortgages limit housing costs to 28 percent of gross income and total debt payments to 36 percent of gross income.

Mortgage terms are usually 15 or 30 years. The longer the term, the lower your monthly payment, but the higher your overall interest costs.

Thirty-year loans often permit additional principal payments. One additional monthly payment per year will reduce a 30-year loan to 22 years.

Interest rates are fixed or variable over the term of the loan. Variable rates may be best for buyers who plan to sell within three years.
Generally speaking, one point is worth 1/8 of 1 percent off the loan rate.

A balloon payment is a lump sum payable at the end of a specified term.

Points and interest on mortgages or home equity debt are usually tax deductible.


Checklist:

When your credit reports arrive, review them for accuracy. Correct any mistakes immediately.
Get pre-qualified for a loan. Paying off debts ahead of time might qualify you for a better mortgage.
If you're a veteran, contact the U.S. Veterans Administration to find out whether you're eligible for a no-money-down mortgage.