BUY A HOME FAQ	MORTGAGE LOANS
1. Should I be a homeowner? 2. What kind of home is right for me? 3. How can I find a home to buy? 4. I've found a home that I like, now what? 5. How can I make an offer for a home? 6. What can I expect after I make an offer?	1. What types of loans are there? 2. What loans can I qualify for? 3. How should I pick a lender and loan program? 4. What can I expect during the loan process.

Additional Questions?: www.fanniemae.com

1. Should I be a homeowner?

A: 1 YEAR RULE.

Generally speaking if you are not planning to stay in a certain location for atleast a year, the cost of buying and selling a home will probably outweigh the return on your investment This does not mean that you cannot be successful doing this, but it does take careful planning and is not a good idea for someone new to the real estate market.

123 Easy Street.

If you maintain a high credit rating by paying bills ontime you will reap HUGE benefits from it. You may be able to decrease the cost of owning a home which will decrease your cost of living tremendously. For Example: If your home costs 175,000 (National Average) and your interest rate is 2% higher (It is probably atleast this) because of a low credit score you will pay an extra $3,500.00 more a year in interest!!!!! ouch!! On the other hand, imagine what you could buy if you had an extra $3500.00. Avoid falling behind on your bills at all costs. Careful planning and budgeting is the key. If you have a poor credit history, don't worry, it is never too late to get on track. Keep in mind you are doing yourself a huge favor by maintaining good credit Keep it up!!

2. What kind of home is right for me?

A: Know what you need.

Advertising, television, movies, even family and friends all exert a tremendous pressure on all of us to 'Keep up with the Jones'es' and to own the newest and best. Very few people have the income that allows them to satisfy all of their wants and desires. Almost everyone has to settle for what they can afford and make the most of it. Although you may not have granite countertops in your first home to show off to your friends that visit, you also won't have to worry about them getting chipped or scratched either. And you might just have enough money left over from your smaller mortgage payment to rent a movie and buy yourself a half gallon of Rocky Road for Sunday night (woo hoo!!) =o). Likewise, you might consider giving up owning a home on the waterfront so that you can save for your child's education. If your friends really care about what you own, they aren't friends. The money that you make is very precious so spend it wisely on what you really need, but buy a home that you are cofortable with. Take the Middle Road.

3 Bedrooms? Deck? Patio? Garage? Basement? You decide!!!!

Besides the actual components of the home you are choosing you will also want to consider some other things. The type of neighborhood, the school system, proximity to parks, venues, stores ect. Those are things that people commonly consider when buying a home. Although a unique home may be perfect for you, you may want to consider what other people may want if you would like to sell the home in a few years. Also try and consider if the area that you are buying in is a growing (or contracting) area, as that tends to affect resale value.

3. How can I find a home to buy?

A: There are two ways that you may go about purchasing a home. You may buy directly from the owner or buy a home using a real estate broker.

Working With A Real Estate Agent

A Real Estate Professional can be of great help to you in locating a home. Real Estate Agents have many tools available that can help you move quickly in your search and can answer many questions that you may have about buying a home. It is their job to help you determine what type of home is best for you and to guide you through the transaction. A good real estate agent will be your consultant in your decision, not a salesperson trying to sell you a particular home. Remember, ultimately you are seeking to satisfy yourself and your needs not anyone else's, so listen to their opinions carefully and make your own decision.

There is no fee for using an agent to buy a home. The seller pays for your agent's commission fee so there is no cost to you. Your agent may ask you to sign a commitment agreement stating they will be acting on your behalf and that they will receive a commission if you decide to buy a home. The agreement exists primarily because the agent is going to invest a considerable amount of time in helping you locate a home before they receive their commission.

If you do decide to sign an agreement make sure that you are comfortable with your agent and that they are comfortable with you. You will want to make sure that they are knowledgeable about the area that you are shopping and familiar with the market enough to satisfy your questions and concerns. Try and talk with a few agents and see whom you feel most comfortable working with. The agent that you choose is going to be instrumental in helping you find a home and complete your transaction, so choose someone you would enjoy working with.

If you use an agent to help you locate a home, they can use what is called the MLS (Multiple Listing Service) to help you search through homes. The MLS is the premier searchable database of homes for sale that is available for real estate professionals to use. To use this tool effectively, you will want to tell your agent what features you are looking for in a home and in what area you want to live. They can perform a search for you and generate a list of homes for sale that match your criteria. You can then have your agent take you on a tour of those homes and start your selection process. Often they can create a web page for you to view with the listings that you've selected.

Tip: Another essential component of selecting a home is knowing the market and what is available to you. Just like in any decision having many different options and knowing them well will offer you the best opportunity to make a sound purchasing decision. Visit atleast 20 houses before you choose to buy one. The more homes you visit the better.

For Sale by Owner

If there is a home that is listed For Sale By Owner that you are considering and you wish to buy it directly from the owner, you must be very careful that the process is executed properly and that your interests are protected. For Sale By Owner homes will often be advertised in the newspaper and online. The reason people want to sell their home themselves is they are unwilling or unable to pay a real estate broker to sell it for them. There is nothing wrong with buying a home this way, but since you will not be having a professional look out for your best interest it may be more difficult for you and you may run into problems. If a house is listed For Sale By Owner you can still hire a real estate agent to work with you, and you can ask your agent to search for some For Sale By Owner homes in your area. Talk to you agent for more information about FSBO's.

4. I've found a home that I like, now what?

Design A Rating System

In order to make a successful decision when purchasing, you must understand your priorities. Use these priorities to design a rating system that you can use to help you understand how different homes would fulfill your needs and desires. You will want to include how far the home is to your work, grocery stores, schools, highways, airports, and virtually everything else that you care about!!! It is a lot to consider, so take you time and figure out what really matters to you.

Other things that you may want to consider if you are new to an area are the community facilities and parks, crime rates, and taxes associated with a particular area or home. These will be equally important to you as well as the person that will be buying your home when you decide to sell it.

Choose What's Right For You

When purchasing a home the most important thing and one that people can overlook is how they feel about a particular home. If you have been living on a farm for your whole life, even though a home in a very urban area may seem the best for the money ect. Ask yourself if you are going to feel comfortable living there. If you are used to peace and quiet and having your own big yard then choose accordingly. If on the other hand you like being in the middle of it all, then get the home downtown.

Meet Your Future Neighbors

No matter what time of day you schedule your visit, there will probably be a passer-by taking a walk or working outside. Take a minute and go talk with them, ask them some questions about the neighborhood. See if they have any information that you would like to know. It won't hurt to make a new friend who knows the area well.

Also when you visit a particular home take a minute and drive around the block, and through the general area. It is important to know what other things exist around a particular home you are considering. An airport or a freeway for instance, can cause a lot of noise that you may not like. Know the area that you are buying. A park may be more what you are looking for.

5. How can I make an offer for a home?

A: Making an Offer

When you finally find a home that you would like to purchase it is time for you to make an offer. The listing price of the home is the price that the seller thinks their home is worth; you may have a different opinion and consequently make a lower (or higher) offer than what they are asking. Offer what the home would beworth to you. If you will be obtaining a mortgage loan (as opposed to paying cash for the house) It is adviseable and expected that you have consulted a mortgage professional and have obatined a pre-approval letter. This letter is submitted with you offer.

If you decide to work with an agent they will have information about the listing history of the home, you will be able to see what the last sale price was, how long it has been on the market, and the price history (if they have started at a higher asking price and have lowered it.) If a home has been on the market for a longer time then a seller may consider a lower offer than what they are asking.

Searching for the perfect for a home IS a very emotional and stressful process!!!

But you can make it easier on yourself by learning what to expect. Remember to consider your decisions thoroughly and carefully, especially when it comes time to make an offer. You may be faced with a seller that refuses to consider your offer or is simply asking too much for their home. It is very easy to get your heart set on a particular house which will weaken your decision making ability. KEEP LOOKING. You will find the house that you want.

6. What can I expect after I make an offer?

A: When you make an offer on a home there are three things that can happen:

•  The seller can accept your offer.
•  The seller can make a counter offer.
•  The seller can reject your offer.

If the seller accept your offer, CONGRATULATIONS!!!, your search is over!! Usually an offer is contingent upon a satisfactory inspection and your ability to secure financing for the home, make sure that your offer contains those stipulations. The inspection will help you make sure you know exactly what you are getting. And if you are unable to secure financing you will secure the return of your deposit on the sales contract if you chose to make one.

If the seller makes a counter-offer you have engaged in bartering with them. If you set your limit that you are willing to pay and you originally made a lower offer, then you have an opportunity to make a second offer that is closer to or at the limit you are willing to offer for that house. Under no circumstances should you pay more than what the house is worth to you. (You will better know what a house is worth to you with every house that you look at.) There will always be other homes available for you to choose from, keep your chin up and keep looking!! If the home that you want doesn't sell, you can come back to it after a while and present your offer again. The second time the seller may be more willing to work with you.

To sum up this section in a few words: GET A GREAT DEAL ON THE HOME YOU WANT!! It won't always be that the seller will accept less than their listing price. By knowing what you want and what you are willing to pay you will surely get a great deal on any home that you should choose.

MORTGAGE LOANS (Home Loans)++++++++++++++++++++++++++++++++++++++++++++

1. What types of loans are there?

A: Financing Your Home

After you have gone through the processes of selecting an agent, visiting homes, selecting one, having an inspection, making an offer you will need to secure financing for your new home with a mortgage, unless you are paying for the home in cash or with a land contract.

Types of Mortgages

There are many thousands of mortgage programs available through hundreds of lending institutions that you can select from when choosing financing for your home. Fliploans.com is a great portal for working with mortgage brokers who have access to programs from many different banks. The reason that there are so many programs available is there are so many different types of people with different backgrounds and circumstances that deserve credit. Lending institutions have designed specialized programs that make financing available for almost every type of borrower imaginable. It's never been easier to own a home.

2. What loans can I qualify for?

The primary determinig factor of loans you can qualify for will be your FICO credit score (this is the standard credit rating) It is best to have your credit checked and to complete the pre-approval process .

3. How should I pick a lender and loan program?

There are many ways that you can obtain a mortgage loan. Fliploans.com has partenered with select mortgage brokers that work with hundreds of banks to provide you with program slection, low rates, and discount transaction costs. While choosing a loan program be sure to ask about potential benefits and drawbacks of each. (an example might be a pre-payment penalty)

4. What can I expect during the loan process?

The above is a chart which outlines the homebuying process. When applying for a mortgage loan you will complete an application, review, and sign the Fair Lending Act and HUD disclosures. The disclosures make it easy for you to understand the loan you are choosing and the costs associated with it, so review them carefully. You will be asked to provide documentation to support your application (bank statements, W2, paystub etc.). The file with be submitted for review and additional documentation may be requested during that time. After all documentation has been provided and reviewed you are ready to schedule the closing and move into your new home. The whole loan process usually takes about 2 weeks.