Home Loan Info

By Guest Author Tom Beaty

Choosing a real estate agent can be a daunting task for the home buyer. With so many agents and agencies to choose from, it’s easy for a buyer to feel overwhelmed and unsure of what qualities they should be searching for. Is it best to work with a large agency or a small one? Will their chosen realtor follow through on all of their promises? How do they find a realtor with a good reputation and a commitment to serving their clients needs?

All of these questions are valid and should be fully explored. That is why it is so important to choose carefully and do your homework when searching for a realtor. When selecting the person who will help you to purchase the perfect home, it definitely pays to shop around.

A good realtor should be trustworthy

Finding a realtor you can trust should be of the highest priority when searching for a new home. You need to feel that your realtor is looking out for your best interests, and is dedicated to making your home purchase a pleasant experience. A good realtor takes the time to provide their buyers with the highest level of service, and is out for more than just a commission check.

A good realtor answers all of your questions

When searching for your realtor, you should be prepared to interview several potential candidates. You don’t want to simply call the first realtor you see on a billboard or in the Yellow Pages; this should not be a hasty decision. When interviewing potential realtors, look for an individual who patiently answers all of your questions, and never makes you feel like you are wasting their time. Weigh carefully whether you trust what this person is saying, or if it sounds like they are just telling you what you want to hear.

A good realtor can provide references

Realtors are like any other business person: they are happy to offer references from satisfied customers. If a realtor hedges on giving references, or disregards your request, it is best to move on to the next candidate. Word of mouth is powerful advertisement because only previous customers can tell you if a particular realtor can deliver on all they promise.

A good realtor has the full support of a good broker

Of course all brokers are going to want your business just as much as the realtor working under them. However, it is possible to determine a lot about an agency and the realtors working there by having a conversation with the broker. Do they take the time to answer your questions? Are you comfortable with their philosophy and sales record? Does the broker leave you with a sense of confidence?

A good realtor has excellent communication skills

Finding a realtor with excellent communication skills can save you a lot of time and hassle when you are searching for your new home. A good realtor is able to explain the home buying process in a way that is clear and understandable. They should listen carefully to your needs, and look to meet them appropriately. A good realtor doesn’t show their clients homes that are too large, too small, or out of the buyer’s price range.

A good realtor anticipates their client’s needs

As a home buyer, you share a certain amount of responsibility in making sure that your realtor knows what kind of home you are looking for. But to a certain extent, a good realtor should be able to anticipate their client’s needs through their knowledge of what their client is looking for, as well as what is available on the market. For example, a realtor should provide information on school districts and local activities for children if their clients are searching for a larger family home.

A good realtor goes the extra mile

Some realtors only do the bare minimum for their clients. They rush through the showings, and then pressure their client to quickly make an offer on a home without giving them time to think things through. This type of realtor is only concerned with collecting their commission check.

A good realtor focuses on all of the little things that help to improve their client’s home buying experience. They offer advice on loan officers, title companies, and reputable home inspectors. They make sure to appear on closing day to answer any of their client’s last minute questions and to address all concerns. A good realtor is concerned about building an excellent reputation as a trustworthy ally in the home buying process. This is the type of realtor you are searching for, and this is why it pays to thoroughly check out any realtor before hiring them.

Copyright 2006 All Right reserved by Tom Beaty

About the Author

Concrete Homes survive hurricanes - Tom Beaty a real estate broker and home builders in Palm Coast, Flagler and Volusia County. Visit: Florida real estate or Florida home builder

Bob Roscoe, Mortgage Marketing Associates, Minneapolis, Minneosta

Real Estate News

By Bob Roscoe

The fixed rate mortgage offers the certainty of a constant monthly payment, but an adjustable may seduce you with its lower payment. Security or affordability? Which do you choose? Just what is a home buyer to do?

Which loan you eventually choose may depend more upon your personality than a careful analysis of each loan’s advantages and disadvantages. People who generally seek security in other areas of their lives, such as occupations and relationships, will often opt for the security of a fixed rate mortgage. Those who are more adventurous will sometimes respond to the lure of an adjustable.

The attractions of a fixed rate mortgage are a principal and interest payment and an interest rate that remain the same for the entire length of the loan. That stable predictability is what entices so many people to choose it, and its safety and reliability will afford the homeowner peace of mind. You get your fixed rate mortgage and you forget about it. What could be easier?

An adjustable rate mortgage or ARM, on the other hand, is generally the opposite. An ARM usually has an interest rate and a monthly payment that are fixed only for a specific period of time, after which both rate and payment will adjust periodically.

The ARM’s initial low rate and monthly payment are its appeal, and it can offer that because its rate is based on the short term bond market while a fixed rate mortgage is pegged to long term bonds. The short term bond market generally features lower rates than the long term market. If you believe that interest rates will decrease by the time your mortgage rate begins adjusting, then the lure of an even lower rate and payment down the road may tempt you even further.

The foreboding most people have with the ARM involves its uncertainty. An element of fear is introduced because your rate and payment might increase once the rate starts to adjust. If interest rates in the bond market are higher once adjustment does begin, then your rate and payment will increase. None of us wants payments higher than they need to be, but some of us shrink from the risk more than others do.
 
But much of that risk aversion is needless hand wringing. Here’s why.

By deciding which ARM you prefer, you are also choosing the initial time period you want the rate and monthly payment to remain fixed. ARMs generally offer the following initial fixed time periods: one month, three months, six months, one year, two years, three years, five years, seven years and ten years. The shortest time periods will offer the lowest initial rates. A one month ARM may provide for a rate and payment guarantee of just one month before adjustment begins. A one year ARM is fixed for one year and then the adjustments start. A three year ARM is fixed for three years, and so on.

By picking a time period that best fits you and your situation in life, you can take advantage of the lower rate and monthly payment that an ARM provides at a substantially diminished risk. If you are a first time home buyer, for example, then a three year ARM might make the most sense because first time home buyers often stay in their home for only three or four years. Why get a 30 year mortgage if you won’t be in the home that long?

If you are middle age and your children are at the point in life where they go off to college or trade school, statistics suggest that they will soon move out and you will become an empty nester. Empty nesters frequently downsize to a smaller home once their kids depart, which means a different home and yet another mortgage.

The point is that our lives change frequently and predictably. We get married, have babies, relocate, get divorced, remarry, get sick, grow old, retire and die. All of these chapters in our lives will often occur in a span of only 30 to 40 years. When these joyous and not so joyous events arise, sometimes without warning, our housing and mortgage needs will oftentimes shift just as suddenly. Yet most homeowners rarely take such life events into account when choosing their mortgage.

The average mortgage lasts only about five years, sometimes because a major life event sprouts up inducing the homeowner either to move or refinance. Other times economic change may cause mortgage rates to drop, which, in turn, may influence people to enact changes themselves. They either refinance or perhaps decide that it’s an affordable time to invest in other housing. Despite all of this, people predictably embrace the 30 year fixed rate mortgage rather than an ARM because of the warm and fuzzy sense of safety that a fixed exudes.

The choice is yours to make. An informed decision will include considering all of the alternatives with the knowledge that your personality traits may be influencing your decision making process. While statistical analysis will often favor choosing the ARM, there is nothing wrong with selecting a fixed rate loan.

Copyright 2006. Bob Roscoe. All rights reserved.

Bob Roscoe, Mortgage Marketing Associates, Minneapolis, Minnesota

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