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Buying The Best Home - Quick & Easy Route
12:16 PM on May. 23, 2008
| |  |  |  | Introduction: Buying A Home
Buying a home can be an exciting experience. Understanding what to do and what move to make next is key. I have organized some short explanations to help you understand the process to help you learn quick and easily. Buying a home can be one of the most rewarding and yet one of the most stressful experiences of your life. I hope that you find this series helpful and easy to read. There are several ways to make home ownership a reachable goal. Hopefully this series will guide you as you learn and understand the home buying process and that your experience will be as satisfying as the experience of living in your new home. If you have any questions or Real Estate needs, please don't hesitate to contact me.
| | Series 1: BEFORE YOUR SEARCH BEGINS Understanding the basics of home buying and being prepared for all the steps involved will make your search easier, faster, and more enjoyable. | | | | |   | BORROWERS:
A Borrower is the party in a loan agreement which receives money or other instrument from a lender and promises to repay the lender in a specified time. Most home buyers need to borrow cash to pay home sellers in full. In the world of mortgages, a home owner's mortgage payments often become an investor's income. The lenders rarely meet the borrowers, so they rely on a system of detailed documentation to assure that you can the home you're considering are worthy of their investment. | | LENDERS:
Various institutions lend money for mortgages. Among them are mortgage banks, savings and loans, banks, and credit unions. Lenders may keep loans and profit from interest and fees, or sell loans to other investors, profiting from the up-front fees and monthly payments from the actual lender. | | PACKAGERS:
Huge financial institutions such as Fannie Mae (FNMA) and Freddie Mac (FHMC) (the two primary originators of home loans) are packagers. They buy loans from lenders (the ones you deal with), then either keep them or bundle them into large packages of $500 million or more. These packaged loans, called mortgage-backed securities, are sold with guarantees to large investors. In other words, if a home owner fails to repay a mortgage, the packager will pay the investors and take the loss. | LARGER INVESTORS:
The large investors, such as insurance companies, pension funds, and mutual funds, buy the packages to earn the interest paid on mortgages. Investors come from all over the world because American homeowners are considered to be among the most reliable groups of borrowers in the world. The reliable stream of payments is a source of steady income, and helps these investors plan their cash flow. | | SMALL INVESTORS:
The large investors may attract small investors (people like you) by offering the prospect of sharing in the steady income and low-risk investments. One type of mutual fund, for example, is a Ginnie Mae (GNMA) fund, where the main portion of the income earned comes from home mortgage investments. So if you invest in an insurance policy or a mutual fund for its income, you may actually be receiving income paid from your own mortgage payments! | | IT'S A FACT
For 2006, a total of 67,035 resale homes were recorded, in contrast to 110,835 sales for 2005 and 102,115 recordings for 2004. While the market slowed appreciable, 2006 is the fourth best resale market year on record, falling between 2002 (62,625 sales) and 2003 (73,785 sales) numbers.
| | Candace Robinson is an Arizona Licensed Real Estate agent with HomeSmart Real Estate in Gilbert/Tempe. As a member of our local Arizona Association of REALTORS® and the National Association of REALTORS®. I work with both Buyers and Sellers serving the East Valley and surrounding areas including Gilbert, Chandler, Tempe, Mesa, Fountain Hills, Apache Junction, Ocotillo, Scottsdale, Cave Creek, Phoenix, Queen Creek, Casa Grande, Maricopa, Ahwatukee and more. Providing a full range of real estate services HomeSmart is the Smart Move for all your real estate needs. If you are looking into buying or selling a home in the Phoenix metropolitan area, hire a REALTOR® like myself, who wants to win your business and trust. I will be honored to share with you an educated idea of what your home's value is based on experience, local knowledge, and comparable actual sales in your neighborhood! To get a FREE no-obligation Home Evaluation specific to your needs be sure to contact me. If you have any general questions about buying or selling real estate with my HomeSmart marketing plan please don't hesitate to contact me at CRobinson@HSmove.com ArizonaHomeCentral.com Copyright © CKR2007-2008 | | Series 2: TO RENT OR TO BUY? What are the benefits and limitations? When will you be ready to buy a home? Be sure to contact Candace Robinson Before Your Search Begins for all the Basics of Home Buying in Arizona! | |
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