Smart Home Financing Blog

Today,  I got a call from a very upset home buyer.  I will call her Ms. X

Ms. X found the perfect home, she negoitated the perfect price and shopped for a bank that offered  the perfect loan with the perfect rate . This perfect payment fit perfectly into her family's budget. She even found the perfect furniture to go in her new perfect home.

Today Ms. X got the perfect surprise from the perfect bank with the perfect rate. The rate of 5.875%  had changed  to 6.75%( almost 1% higher).    Why?

What Ms. X wasn't informed about is that the best rates are for borrowers with perfect credit, perfect down payments and perfect savings.

Banks lend based on risk (better credit = less risk = best rates). Wouldn't you.

One of the main factors in pricing a home mortgage is your credit score.  Having an optimal score saves you thousands in interest, insurance, credit card interest, etc.  Wouldn't it be smart to know how your credit rates before you buy a house?   Mmm something to think about.

If you want to see how banks would rate your score click here. Yes show me how the banks are classifying my credit.

If you are thinking about buying a house or in the middle of a mortgage transaction, it is in your best interest to have you credit reviewed and maximized. 

A few easy steps now can save you thousands of dollars.  

To receive a free report on how to maximize your credit, please click here   www.maxmycredit@fahomefunding.com

   Maxmycredit

Spring has sprung and traditionally this is the time of year  homebuyers shop.  Buyers want to get in the house for the summer and definitely before school starts.

With so much bad financial news, many buyers are not sure if they should buy. Let me assure you, if you have your personal finances in order, Spring 2008 will be a great time to find your dream house ON SALE.  

Prices have dropped, sellers are ready to negotiate and interest rates remain low.   

Take a look and compare last year's prices and payments.  Last year an average starter home in Queens NY cost  $400,000; today the same home cost $360,000.  A 10% savings ,and depending where you are looking in the country prices have dropped even lower.

Compare the payment savings on the same house.

year	price	rate	payment	Savings
2007	$400,000	6.25%	$2464	$333.00
2008	$360,000	5.875%	$2131	14% savings

To get a payment this low last year, you would have had to acquire a loan at 5%, which did not exist.

I have a co-worker that goes crazy  when Macy's has a sale this big.  

Call your local realtor to find out what is on sale and get yourself ready to buy and save.

Happy House Hunting