What’s to Love about Parker, Colorado?

There’s something to love about Parker, Colorado which offers plenty of reasons to purchase real estate that is much more than ideal communities. Parker is in a prime location just 20 miles from downtown Denver, Colorado and features outstanding communities that include horse properties, amenities, tall grasses, green spaces, and city convenience without the hectic pace.

There is plenty to love about Parker, CO- The Cherry Creek Bike Trail which runs just north of Castlewood Canyon State Park into downtown Denver. Parker features plenty of events and festivals which include horse drawn carriages, parades, wine festivals, food festivals, music concerts, art festivals, holiday events, carnivals, and more that offer residents something to do at all times of the year.

The Parker Arts, Cultural Events center is another feature of Parker and one that is an amazing 250 seat amphitheater featuring state of the art technology and comfortable seating. Truly magnificent! The Denver Tech Center is about a 15 minute drive from Parker. The fabulous Castlewood Canyon- also called the mini Grand Canyon, is just 20 minutes south of the town, and features magnificent trails and Cherry Creek.

Hospitals and medical care are just a few miles away, the Rocky Mountain views are magnificent, and sunsets glorious! Parker, CO offers light rail transportation that conveniently takes residents into downtown Denver. The Douglas County School System, which is ranked among the highest in the Nation offers a stellar education for children. Residents are friendly, communities are family friendly, and crime rates are low. The lifestyle is relaxed with plenty of activities offering a lifestyle filled with options.

Parker, CO is the perfect mix of nature with wide open space, close-knit communities, fantastic real estate that includes golf communities, retirement communities, lakefront communities, equestrian properties, mountain properties, luxury homes, condos, townhomes, and more. Lifestyles are pleasant, the people friendly, recreation grand, and living affordable. What’s not to love about Parker, CO?

US Housing Market in a Slow and Modest Recovery Heading Back to Normal

According to a Fiserv (FISV) Case-Shiller forecast the market will experience a rise in home prices at an average of 3.3% annually in the coming five year period ending Sept. 2017.

The past five years have been anything but close to normal for the housing market.  2012 was the start to a slow and modest recovery with the year ending in a positive light.

During the past 15 years the housing market has been unpredictable with home sales and prices being crushed by crash psychology or boosted by a bubble mentality.  Since the bubble burst in 2006, home prices fell by 30.5 percent through Sept. 2012’s end.  This was a hard hit for the market, and one that hasn’t looked encouraging until this past year, and the forecast for the coming years.

Late in 2011, markets began to stabilize with a rise in home prices of 3.6 percent between Sept. 2011 and Sept. 2012. According to Fiserv out of 384 metro areas tracked, 62 percent reported a rise in home prices during the same period a year earlier with a rise from just 12.5 percent.

Among price gains some of the biggest were experienced by the hardest hit areas during the housing bust.  For instance, Sa Jose, California experienced jumped 12.5 percent, Detroit jumped nearly 16 percent, and Phoenix jumped nearly 21 percent.

Other areas were not so fortunate.  Long Island, N.Y., for instance experienced a price fall of 8.1 percent.  The median income also lagged in comparison to the rest of the US.  Valdosta, Georgia and Brunswick, Georgia were also down.

The year is expected to continue with an upswing in the housing market.  Home prices are expected to continue to climb in almost all metro areas.  Syracuse, New York is expected to climb 5 percent, Billings, Montana 5.5 percent, Santa Fe, and New Mexico 8.1 percent.

There are some big gains forecasted for the year, which is another contributor to the rise in home sales.

Market trends are positive.  Prices are still affordable.  Interest rates are at an historic low.  Home buyers and investors’ are more confident and housing inventory is in higher demand.

Selling Your Durango, Colorado Property

Whatever the reason may be for you choosing to sell your Durango, Colorado property, it is a big decision, and one that you want to consider wisely.  Following, we’ve listed a pleasant guide to help assist you in your sale.

Steps to Selling Your Property

Selling Objectives

There is a lot of preparation required in selling a property and knowing your objectives in selling your property is important.  Perhaps you are relocating, downsizing or upsizing, or perhaps you just wish to move to a different climate or atmosphere.  It is important to know your objectives- what is your asking price, what is necessary to make your property “sell ready”, how soon do you need the property to sell?  These are all important questions.

Also, it is a wise idea to consult with your tax advisor or attorney in order to understand the ramifications of the sale of your property.

Select a Real Estate Broker

When you consider a real estate broker you don’t want to just consider one.  Interview several brokers.  The interview is to evaluate the broker, their experience, their abilities, their professionalism, and how they will market your property.  You should have a list of questions ready for the interview which will help guide you in selecting a broker.

The realtor should provide you with a comparative market analysis during the interview, which will show you properties that have recently sold, as well as, active properties and ones that have been withdrawn from the market or expired listings.

The broker should also discuss a strategy to sell your property which will include how he will market and advertise the property.  Lastly, the realtor should recommend a selling price.

Seller Representation

Colorado State offers two ways in which sellers can be represented- a seller’s agent or as a transaction broker.  Because of the close relationship of a realtor and seller it is recommended that a seller’s agent (realtor) be the preferred choice.  Transaction brokers are not the advocate that the seller has in a realtor.

Pricing Strategy

One of a seller’s most challenging decisions is the list price of the property.  Too high, and you risk losing the valuable first few weeks on the market.  Too low, and you are concerned that you are giving away your property.  Selling price is a tough decision for the seller and this is where your experienced real estate broker is the expert in the situation.  Real estate brokers are more objective than buyers, as they are not emotionally attached to the property, and they are the area and market experts.  Today’s buyers know the market and market values and are turned off by homes that are priced over market value.  If your property is on the market and you aren’t getting showing, or you are showing the property but no offers are coming in, you likely have the property overpriced.

When you determine the list price you will also want to consider the home’s condition, age, location, and features that make your property stand out from others on the market.

Evaluate your local market and position yourself ahead of the market.  For instance if you are in an area with a low supply of housing inventory, then consider setting the list price slightly above recent comparable sales.  If the market is a buyer’s market then you want to consider listing your home at market value or slightly below.

Property Staging

Prepping your property for sale is an important part of your marketing strategy.  Here you want to consider every inch of the property, and to make every inch sparkle and shine!

Curb Appeal

First impressions are everything and you want that first impression to start from the moment your potential buyers drive up to your home.  Here you want to use your real estate agent, as well as, all your own senses- what will potential buyers see, hear and smell?  From the curb to the home, your home should say “welcome home”.

Improve your landscape- mow your lawn, prune all bushes and shrubs weed the garden and plant flowers.  Everything about the exterior of your home should be immaculate. Power wash the home’s siding, the driveways, and the walkways.  Get a ladder out and clean the gutters.  Add a fresh coat of paint to the front door, a nice welcome mat, and a new knocker.

Make Repairs

For a quick and top dollar sale you want your home in the best possible condition; therefore, make all the minor repairs that give the impression that the home has been well cared for and is move in ready.

De-clutter, Organize and Depersonalize

Part of the potential buyers’ appeal to a home is their visualization of them living in the home.  Consider renting a storage space and pack up all the clutter, the treadmill, and all things that clutter the home and hinder its appeal.  Also pack away personal effects.  Organize the entire home.  Everything should have a place and every nook and cranny of the home should be appealing, including the junk drawer.

Bathroom

Your bathroom is a selling feature in your home and it should sparkle and shine.  Start with cleaning and adding a fresh paint of coat to the walls.  Clean the tub and shower to remove all soap scum (nothing makes a buyer run like soap scum!).  Clean the floors, countertops, lights, sinks, and fixtures.  If your bathroom is outdated, then consider sprucing it up with new lights, new faucets, and fixtures. If you are trying to give the illusion of a larger bathroom space, then consider a pedestal sink and adding a border at the top of the bathroom walls.

Set out nice soaps and fresh new hand towels.

Master Bedroom

Your master bedroom should be comfortable for either sex.  If your room is pure flowers, than the eyes will roll of male home buyers.  Try to have a neutral color and décor that will attract both sexes.  In other words, remove gender specific items and colors!

Kitchen

Kitchens are a main selling point in a home and another priority in preparing your home for the market.  Clear all clutter- get all the clutter off the counters, clean the refrigerator, go through the drawers, and de-clutter and organize EVERYTHING!  Clean every inch from the ceiling fixtures to the walls to the floor and everything between.

If your kitchen cabinets are dull then consider a fresh coat of paint or refinishing them.

Place two or three decorative items on your kitchen counters, such as, a basket of fruit, flowers or a plant and fresh cookies.

Closets

Organize all closets and add lights to the closets if possible.

The Day of Your Showing

On the day of your showing your home should look immaculate- rooms should feel spacious, and it should have a move in ready appeal.  Let as much light in as possible.  If the showing is at night, turn on the lights to illuminate the home.

If your home has any smells that you are having a difficult time with, brew some strong coffee to cover the smell and bake a fresh batch of cookies to place on the counter.

Real Estate Tips

It’s not just about finding perfect home, it is about doing everything in your power to be the accepted offer.  There are a few basic rules to pay attention to so that you don’t end up making a mistake.

Real Estate Basic Rule Tips

Avoid Large Purchases While in the Buying Process

If you have planned your purchase, then you’ve cleaned up your credit to secure the lowest interest rate possible.  Your credit score is now favorable, you owe nothing or next to nothing or you have a maintainable monthly debt.  You’ve made an offer and the buyer has accepted that offer and you feel it’s now time to go purchase that new furniture for your new home.  STOP!  Even if you are paying cash, you don’t want any big changes to any of your accounts- you don’t want your credit debt to change, you don’t want any shuffling of money out of your bank account, or between bank accounts and so on.  If you do purchase, you may run the risk of securing the loan.  Mortgage lenders take a very dim view of adding to or changing your debt structure during the loan process.

Don’t Commit to a Mortgage Loan Based on the Interest Rate

When you shop for a mortgage loan you want to shop interest rate, but, you don’t want to necessarily select the lowest rate mortgage loan.  There are other things to consider aside from the interest rate of the loan and that includes the cost to obtain the loan i.e. points and the monthly payments.  If the loan has an escalating interest rate it can destroy your comfort zone down the road.

Always Have Representation When You Purchase a Home

Always have a professional realtor represent you.  Real estate purchases are a legal process and the role of the realtor is to ensure that every legality is covered and that you thoroughly understand each step of the process.  Your realtor will help you to find your home, negotiate a price, and close the deal.

Have a Property Inspection

A property inspection is essential.  A property inspection will disclose any issues with the property which include sewage systems, HVAC systems, and anything that has to do with the structure of the home and buildings, its safety and livability.  If there is a high risk fire threat then visit the local fire department to discuss any issues.

More Homes Coming on the Market

 

At February’s end, there were only 6,786 homes available on the market in the Denver, Colorado area.  This is the lowest number in available homes for sale in memory.

The start of 2013 was favorable with more new homes coming on the market.  The January and February 2013 new home listing amounted to 8,258 new listings.  The year prior 8,111 new active listings were recorded for January and February.  When looking at unsold home comparisons for January and February 2013 from 2012, figures are down by 32.7 percent.

While the unsold homes on the market are off when compared to the prior year the market is bringing more homes on the market in 2013.   A jump in contracts for homes of 23.9 was reported in January and February 2013 with a total figure of 9,464 when compared to that of 2012, which had a total figure of 7,636.

Other stats show that closings rose to 5,920 from 4,966 resulting in a 19.2 percent increase.

The market has been in a slow and modest recovery.  Now, we are experiencing a record number of sales.  There are a significant number of homes that are being brought to the market and the inventory is quickly picking up.  Homes are being purchased nearly as fast as they are listed.

According to Denver Coldwell Banker’s broker, Chuck Fetterhoff, a client listed his home with their office just under $200K and by the end of the day the house was shown 40 times and had a cash offer of $240K on it.

Lower priced homes are going nearly as fast as they hit the market for substantially more than the asking price.

There are homes that are failing to sale, however, and for these home sellers it is discouraging.  Buyers are grabbing what’s not over-priced and looks good.  Home sellers that appear to be taking advantage of the rise of home prices are often the ones left disappointed.

Those that are pricing their homes at market value or slightly below seem to be getting the quick sale.  Home owners that have their homes listed and they are not selling are finding it beneficial to take the home off the market, spruce them up, and re-list them.

How Do I Find a Buyer’s Agent?

“How do I find a buyer’s agent” is a common question among homebuyers.  Representation in the legal process to purchase a home is crucial for a majority of home buyers.  With that in mind, we thought that we would offer a few top suggestions regarding how to find a buyer’s agent.

How to Find a Buyer’s Agent

•    Ask your family, friends, or co-workers for suggestions about any real estate agents that they may know who they would recommend.
•    Look for realtors in your local area.  Your local paper, the Yellow Pages, and the Internet are all ideal sources to find local agents.  Consider the company’s advertising, their history and professionalism, and any testimonials that are offered.
•    Select a few companies with a solid reputation.  Let the company know what you are looking for in a real estate agent and ask them to make a few recommendations.
•    Interview agents.  Ask questions, and determine their skills.  You should feel comfortable with the agent.

What to Ask a Prospective Agent

Q.  How long have you been a real estate agent?
Real estate agents with experience are typically the best choice.  They have experienced the real estate market’s ups and downs and have acquired the skill to negotiate.  However, you want to be certain that they have the time available to dedicate to your home search- which is often a benefit of a fresh real estate agent.

Q.  Are you a full-time real estate agent?
The benefit of a full-time real estate agent is that their focus is 100% on real estate.  Full-time agents typically utilize the latest technological advancements and developments, as well.

Q.  Have any clients ever filed a complaint?
If you find that a complaint has been filed against them, then ask for all the facts.

Q.  Do you have referrals I can contact?
Ask for references and by all means, call them.

Q.  How much time will you spend with me?
If you are only available on certain days of the week, or certain hours, than you need to ensure that the real estate agent works those hours.

Q.  Do you work as part of a team?
If the real estate agent is part of a team, ask if other agents will be showing you homes, as well.

Q.  How many buyers have hired you in the last year?
If you find that the agent does not have a high volume of buyers he / she has worked with, then this may be an indication that they prefer to work with sellers, which may be where they are best.

Q.  Are you a specialist in the area I want to shop?
Agents that specialize in the area where you are shopping for a home, will be a benefit.  Ask the agent if he specializes in the area and what is his specific knowledge.

Q. Do you work in my price range?
Ask the agent if they work in the price range that you are shopping for.  For example if you are looking for a home in the $200K price range, and the real estate agent work in the high end price range, the agent won’t likely be a good fit.

When you interview agents you should be attracted to their experience, communication, and personality.  Communication throughout your real estate experience is vital.
With the right agent, the buying process is less stressful.

Why Buy a Home Boulder County, Colorado in 2013?

2012 ended with a bang!  The housing market has been making a recovery and statistics show that 2012 has been the best year in years, and the prediction is the upswing in the housing market will continue.  What does this mean for 2013?  It means that 2013 is considered to be the year to get back into real estate.  Going forward, the economic state is in less stress, and real estate is less of a gamble.  In fact, it is on the rise, with many states in a recovery.  This is all good news, and, news that has been long anticipated. The stage is set for a fantastic year for the real estate industry in Boulder County, Colorado and other Front Range areas.

Why Buy a Home in Boulder County, Colorado in 2013?

Boulder County offer residents top rate amenities, lifestyle options that vary, beautiful surroundings, city service, and endless recreation.  Boulder is tucked into the foothills below a rock formation known as The Flatirons.  The town features plenty of unique shops. 45K acres are designated to hiking and biking, kayaking, mountain climbing, and fishing.   Historic structures and modern construction combine to make a town that has retained its roots while entering present day without sacrificing its uniqueness to offer residents a lifestyle that is fresh, with crisp air, and enjoyment.

Every type of individual is welcome.

The community features many annual events like the Colorado Music Festival and the Colorado Shakespeare Festival.  Boulder is considered to be one of the top startup communities in the US.  Boulder has one of the top ranking schools in the nation, a vibrant nightlife, more than 300 days of sunshine annually, world renowned skiing, a variety of restaurants and kid-friendly neighborhoods.  Summers and winters are picturesque, and there is something in real estate for every lifestyle.

With rents increasing, now is the ideal time to purchase a home.  Real estate values are on the rise, interest rates are still low, and the picture is that the housing market will continue to improve, making it a great time to invest.

Homebuyers and investors can still take advantage of low prices that are on the climb.   Unlike the past five years, equity will build much faster in a home, provided the recovery continues.   At the end of December mortgage rates averaged 3.35%.  Rates are rising, and are expected to continue to rise as the housing market continues to improve.  Purchasing a home now can mean thousands of dollars saved in interest and a lower monthly payment.

Home prices posted the biggest percentage gain in over two years. While the prices are rising, great deals are still to be found- and, the projection is that they will continue to rise, so now is a good time to purchase, as home prices are low and mortgage rates are low.

Boulder offers all types of experiences, real estate, and recreation that make life enjoyable.

Boulder County offer residents top rate amenities, lifestyle options that vary, beautiful surroundings, city service, and endless recreation.  Boulder is tucked into the foothills below a rock formation known as The Flatirons.  The town features plenty of unique shops. 45K acres are designated to hiking and biking, kayaking, mountain climbing, and fishing.   Historic structures and modern construction combine to make a town that has retained its roots while entering present day without sacrificing its uniqueness to offer residents a lifestyle that is fresh, with crisp air, and enjoyment.  Every type of individual is welcome.

The community features many annual events like the Colorado Music Festival and the Colorado Shakespeare Festival.  Boulder is considered to be one of the top startup communities in the US.  Boulder has one of the top ranking schools in the nation, a vibrant nightlife, more than 300 days of sunshine annually, world renowned skiing, a variety of restaurants and kid-friendly neighborhoods.  Summers and winters are picturesque, and there is something in real estate for every lifestyle.

With rents increasing, now is the ideal time to purchase a home.  Real estate values are on the rise, interest rates are still low, and the picture is that the housing market will continue to improve, making it a great time to invest.

Homebuyers and investors can still take advantage of low prices that are on the climb.   Unlike the past five years, equity will build much faster in a home, provided the recovery continues.   At the end of December mortgage rates averaged 3.35%.  Rates are rising, and are expected to continue to rise as the housing market continues to improve.  Purchasing a home now can mean thousands of dollars saved in interest and a lower monthly payment.

Home prices posted the biggest percentage gain in over two years. While the prices are rising, great deals are still to be found- and, the projection is that they will continue to rise, so now is a good time to purchase, as home prices are low and mortgage rates are low.

Boulder offers all types of experiences, real estate, and recreation that make life enjoyable.

Should You…or Shouldn’t You? Things to Consider when You Sell Your Home

There are many factors homeowners consider when it comes time to put their home on the market- should you list the home “For Sale by Owner?”  Should you put a lot of work into the home in order to improve its value before you place it on the market?  Should you wait until peak season to put your home on the market?  There are many things to consider.  Let’s take a look at a few.

Home Improvement Tips

Home improvements are one of those “Should I, or Shouldn’t I” questions. The real estate market has been improving steadily with many predictions that the recovery will continue this 2013.  Home improvements will help your home to stand out above others on the market.  It is important that you carefully calculate high dollar improvements, repairs and upgrades and weigh to ensure that they will add value to your home (your real estate agent can help you here).   Following are the top home improvement projects that attract buyers.

1.    Painting.  A fresh coat of paint is one of the easiest and cheapest home improvements you can make that will attract buyers.  A fresh coat of paint gives the appearance that the home has been well cared for and gives the home a fresh smell. To attract the largest volume of buyers, paint in neutral colors.
2.    Clean or replace the carpets.  Stained carpets and / or carpets with odors diminish the value of a home, the appearance of the home, and don’t sit well with potential buyers.  Dirty carpets are not welcoming, and give they give the impression that the home was not well-kept.
3.    The kitchen is one of the biggest factors in a home for home buyers.  No matter what the layout or appliances in your home, your kitchen should be updated.  A fresh coat of paint, or finish to the cabinets, updated fixtures, and new lighting will all enhance the appearance of the kitchen to attract more buyers.  If your appliances are outdated, then consider new energy efficient, stainless steel appliances.
4.    The exterior of your home should be in stellar condition as this is the first impression of your home that homebuyers will have.  Power wash the exterior of the home, the sidewalks, and the driveways.  Paint and repair the exterior if necessary.  Mow the lawn and have all trees and bushes trimmed.  If your home has decks and patios, consider refinishing the deck and staging it for the homebuyer.
5.    Bathrooms are another room in the home that should be immaculate.  Re-caulk and re-grout the showers, sinks and tubs.  Also stage the bathroom with fresh scented soaps and personal hand towels.

Should You Wait Until Peak Season to Sale?

Peak season is during the summer and fall, and a common question among homeowners is whether they should wait until peak season to sell their home.
One factor that home sellers have to consider is that there are buyers at all times of the year.  While many real estate agents may advise to wait if the home seller is not in a rush to sell their property, with the right agent, anytime of the year can be beneficial.

Should You List Your Home For Sale by Owner?

Selling a home “For Sale by Owner” means a substantial savings.  The process is a legal process, and there is a lot of money involved, and it will be necessary that the seller has specific knowledge before he / she places the home on the market.

Home sellers will need to possess market knowledge in order to ensure that they properly price the home and use marketing strategies to sell the home.   The home seller will need to have good communication skills to interact with potential home buyers and will need to have good negotiating skills.  They will also have to detach themselves emotionally from their home, as an emotional connection to the home can stand in the way of one’s ability to sell the home.

The advantages of a real estate agent are that the agent is an expert in market knowledge and expertise.  Agents specialize in local real estate markets and have the tools to market the property in multiple channels thus bringing in high volumes of potential buyers.  Real estate agents act on behalf of the seller in each step of the process, from helping to stage the home, to setting a price, to showing a home, to negotiating the deal, to closing the deal.  Sellers who don’t have specific knowledge, or the necessary time or skill to show the home, will benefit from the assistance of a real estate agent.

Low Cost Home Improvements

Most homeowners feel as though their home is their sanctuary.  It’s much more than a sanctuary, however.  It is an asset and it is important to not only maintain your home, but, also to occasionally spend some time and money on low cost improvements. Home improvement projects not only add to the enjoyment of the home, they add to the value of the home.

Low Cost Home Improvement Ideas

Replace the carpet.  Old carpet or carpet that is an ugly color or in poor condition is definitely worth replacing.  The cost of new carpet isn’t as much as you think that it would  be.  In fact to replace the carpet in a home, the cost is generally about $300 per room.  The benefit is a home that is updated, and one that offers a new sense of comfort.

Update your bathroom.  Yes, a complete bathroom remodel is costly; so, consider updating one or two features in the bathroom.  A new sink, the addition of shelves and sconces, a floor replacement, new mirrors and faucets, a jetted tub, a new showerhead, and heated towel bars are all low cost updates.

Paint.  Paint is one of you most affordable and most transforming improvements to a home- not to mention, it is a project that is simple to do.  A new coat of paint can take a room from dull to dazzling.

Organize your home.  An organized home is a comfortable home and it makes a huge difference in the appearance of the home.  Consider closet organizers, pantry organizers, and storage in the garage and attic.

Install wainscoting.  Raised wood panels add sophistication and style and they update the home in a truly attractive manner.

Have your cabinets face lifted.  A cabinet facelift is a budget solution to updating many rooms.  Consider new finish or paint, and new knobs.

Update the lighting.  The perfect touch of ambience can be achieved through lighting, and this is a project that can be done room by room.

Update the windows.  While this can be a costly makeover, it is one that will not only add value and attractiveness to your home, it is one that will save on energy costs should you go with energy efficient windows, and a makeover that can be done room by room.

Home improvements can be simple or complex and are a means to bring about more pleasure in the home, as well as, add value to the home.

Top 4 Mortgage Myths

When you shop for a mortgage, you definitely don’t want to be among the million consumers who fall for mortgage myths.  Familiarize yourself with the following myths to help ensure that you obtain the best mortgage possible.

Myth 1

The best mortgage loan is the one with the lowest interest rate.

It is always tempting to pick the loan with the lowest interest rate- BUT, beware!  This could be a mistake.  When you shop loans, there are many things to consider.
Start with the comparison rate, which will help you to understand the true cost of the loan.  The comparison rate will provide you with the information on any upfront fees as well as any ongoing fees that you are responsible for during the life of the loan.  For instance, some loans may offer a low interest rate for a specific period of time, and then increase, while others are initially low and then require a balloon payment.

Myth 2

The best mortgage loan is a 30 year loan.

Among homeowners a 30 year loan is the most popular choice and many homebuyers naturally assume it is the best.  With a 30 year loan the monthly payment is lower than that of a 15 year mortgage, and therefore is most often a more attractable type of loan.  This doesn’t mean that they are or not the best.  It all depends on your situation.  Consider the time that you will be staying in your home.  Most homeowners typically stay in their home for an average of nine years.  Statistics for first time homebuyers show a shorter period of time.  For some homebuyers, an adjustable rate mortgage may be the best choice in a loan.  With an adjustable rate mortgage the loan begins with a fixed rate period and after a set amount of time, the interest rate resets.  Many times the interest rate is lower than a 30 year mortgage rate at the start of the loan, which makes the monthly payments lower.   When the interest rate is adjusted, the monthly payment is determined by the balance of the loan.  If money is applied to the principal then the monthly payment may be lower.

Myth 3

My credit is terrible, no lender will grant me a loan.

Granted, your credit score and rating will influence your eligibility and your loan type, but, bad credit does not mean that you will automatically be denied a loan.  With bad credit you are a higher risk to the lender and chances are the loan you are offered will not be at a great interest rate.  The best situation here is to be honest with your lender prior to them pulling your credit report.  Lenders are typically willing to help their clients to obtain a loan and willing to work with borrowers of all levels.

Myth 4

I’ve been preapproved for my mortgage loan, I am guaranteed the loan.

This is definitely a myth and one that is a common mistake among homebuyers.  Just because you are preapproved for a loan does not mean that the loan is a sure thing.  Why?  A lot can happen from the time that you were preapproved to the time of the actual loan.  If your credit has been negatively impacted in some manner, this could result in denial of the loan.  Once you have been approved don’t make any major purchases or apply for new credit accounts.  Also, be sure to keep your credit as clean as possible.