Finance

	Finance
	With the median price of an existing home in Omaha at $124,100 in 2002, few people can afford to pay cash. According to the National Association of REALTORSŽ, nearly nine out of 10 buyers finance their purchase, which means that most buyers will be in the market for a loan. Borrowing the money is not the end goal in real estate financing ( anyone willing to pay lofty interest rates can find a mortgage ). Instead, the real issue is to get the loan that's right for you -- the mortgage with the lowest cost and best terms.
	How Much Home Can I Afford? According to the Mortgage Bankers Association of America, generally speaking, most people can afford to purchase a home that is between two and three times their yearly household income. This means that if your combined household income is $35,000 you can afford a home costing up to $105,000 maybe more if you qualify for certian federal programs. Lenders will figure your loan amount based on what you can afford for a monthly payment. That being, your principal and interest payment, taxes and insurance. This payment should be within 28 to 33 percent of your gross monthly income, That's income before taxes are taken out. For a payment of $840 you would need at least a $3000 monthly gross income.	Play with the numbers here using this simple loan calculator.
	Get Pre-Approval The National Association of Realtors wisely suggests that you get your home loan before finding that dream house. This may seem like putting the cart before the horse but there are practical reasons for gaining a financial commitment before looking for a home. First, as a buyer you will have a clear idea of how much house you can afford. This will prevent you from paying too much interest for a home you just fell in love with but is a little out of your price range. Second, pre-approval gives the buyer negotiating leverage because from the sellers point of view you have the money in hand. Lastly, pre-approval speeds up the whole process because getting the mortgage can often be the most confusing and complicated part of the home buying experience.
Get information from an experienced loan officer at a leading regional mortgage company here Vicki Chadd at First Mortgage Company	FIRST-TIME BUYERS TIP: A high debt load can curtail your ability to qualify for the size mortgage you may need to buy the home you want. One way to increase your purchasing power is to pay down your debt before you attempt to qualify for a mortgage. Another way is to consolidate your debt into one lower interest rate loan. This may make a big difference if you have high outstanding balances on several credit card accounts that each charge 18 percent interest.	Apply Online for your home loan, and get excellent personal service with Carolyn Hermsen .
	What Lenders Look For Lenders will be concerned with three things. Your ability to make payments. They will want to know your sources of income and what other obligations or debts you make payments on. Your willingness to pay your debts. They will run a credit check and see if you make payments on time etc. Don't worry if your credit is not perfect. Even if you have some blotches on your credit history good loan officers will tell you how to correct these so that you can qualify for a home loan. The value of the House that will be the collateral for the loan. they will want to know that the title is free and clear and that it has been appraised for an amount to cover the loan.
	Fair Lending Is Required by Law The Equal Credit Opportunity Act prohibits lenders from discriminating against credit applicants in any aspect of a credit transaction on the basis of race, color, religion, national origin, sex, marital status, age, whether all or part of the applicant's income comes from a public assistance program, or whether the applicant has in good faith exercised a right under the Consumer Credit Protection Act. The Fair Housing Act prohibits discrimination in residential real estate transactions on the basis of race, color, religion, sex, handicap, familial status, or national origin. Under these laws, a consumer cannot be refused a loan based on these characteristics nor be charged more for a loan or offered less favorable terms based on such characteristics.
	Want to get the best mortgage? Read this handy guide published by the U.S. Citizen Information Center - Looking for the best mortgage
If you are having difficulty with this site or have any questions or comments, please contact the Webmaster copyright © 2002, Ellie Bane