Finding The Right Home 
and Mortgage For You

Finding the right home can be easier by following a few hints from professionals.

When looking for a home, contact a real estate licensee who's an Accredited Buyer Representative (ABR). You will relieve yourself of numerous and often confusing details of the transaction.

For example, an Accredited Buyer Representative will:

1. Help you shop for the neighborhood before you shop for the house and advise you about examining schools, shopping, recreational opportunities and other amenities.

2. Determine whether you pre-qualify for a mortgage and in what amount. Such a move can speed up the mortgage process considerably.

3. Discuss with you if you are about to become a homeowner for the first time, whether it is advisable to start small in a good area. Often a less expensive home in a good neighborhood can be a better buy than an expensive house in a dubious neighborhood.

Finding the right real estate person to work with, one who has undergone comprehensive training on serving buyers, is the first step. An ABR has been trained by the Real Estate Buyer's Agent Council, an affiliate of the National Association of Realtors, to evaluate the specific needs and wants of buyers and locate properties that fit.

Research has shown that when an ABR was used, prospective buyers found their homes one week faster and examined three more properties than those consumers who did not use a buyer's representative. ABRs have been trained to create a database of opportunities for future clients.

An ABR will visit an open house, inquire about expired listings or listings that were withdrawn from the market, ask about homes for sale by owners, follow up on auctions and estate sales, talk to divorce attorneys and human resource directors, stay in touch with moving companies, check the Internet and establish ongoing relationships with probate attorneys.

In any given week, an ABR may send information about dozens of new buyer-client profiles, (including information about the type of property these clients are seeking) to a large group of various people in the know about real estate.

To locate an Accredited Buyer Representative and receive a complimentary copy of The Home Buyer's Kit, filled with essential information for today's buyer, contact the Real Estate Buyer's Agent Council at (800) 648-6224.

Get the "Points"
on Closing Costs
When Buying a Home

Many first-time home buyers are shocked by the high closing costs involved in a home purchase. There are three ways to reduce closing costs, but each has its trade-offs.

• Points. Each point is 1% of the mortgage amount. You can avoid points by paying a higher interest rate, but that will increase your monthly payment. If you plan to keep the house, it’s better to pay the points or shop for a lender who charges less.

Sometimes you can get the seller to pay all or a part of the point charge. He or she may pay a point or two and add that amount to the price of the house.

• Time Of Closing. It’s better to close near the end of the month. The interest for money borrowed during the month is charged through the end of that month and paid up front when you sign the mortgage. Obviously, that amount will be far less for two or three days than for 20.

• The Escrow Account. Lenders will collect a substantial amount of the year’s property taxes and insurance at closing. Check to see if the lender will let
you pay taxes and insurance yourself. If so, you won’t need the money up front and you can save it with interest.

• Watch For Junk Fees. Andrew Turnauer in his book Navigating the Mortgage Maze, says, while most fees are standard, a lender may hit you with a few courier and wire fees that are unjustified. They think you are anxious to close and won’t object to paying $20 or $40 extra. Check each item you are asked to pay.