Tips for Finding a Rental Apartment

Finding a rental apartment is not always easy. Depending on occupancy rates in a particular area, it actually might be quite difficult to find available apartments that are also within your price range and meet all of your pre-determined requirements. However, even in areas where there is not a great deal of competition for the available apartments, renters may still have some difficulty finding the perfect apartment. This article will offer some tips for finding a rental apartment that suits all of your needs.

Figure Out Your Needs

The first step of any apartment search should begin with the potential renter carefully identifying all of their needs in an apartment. This list of needs will be different for every renter. While some renters are simply looking for a place to eat, bathe and sleep other renters may be looking for a living space which will serve a number of purposes including working, entertaining and participating in leisure activities or hobbies. When making this list of needs the renter should consider the options they cannot live without as well as the options they want to have but can live without. It is important to make this distinction because the renter will want to ensure the apartment they choose has all of the features they need and ideally a few features they want. However, an apartment which does not have all the required features may become an uncomfortable living situation very quickly.

Do Your Research

Once a renter has a good idea of the basic features he is looking for in an apartment, he should begin researching his options. Researching apartments can be done on the Internet, through the newspaper or through rental magazines. Renters may use one of these research methods exclusively or may combine a few of the methods to form a customized strategy for researching apartments. The research phase will give the renter an idea of the types of properties available for rent in the area.

Comparison Shop

The next step is the process of comparison shopping. This basically entails visiting several different rental properties and touring these facilities. During the tour the renter will get a good idea of available options as well as the costs associated with these options. This is helpful for two very important reasons. First it gives the renter a good idea of the types of apartments available within their budget. Second it gives the renter the ability to bargain regarding price. Renters who have proof of other apartment complexes offering more favorable rental terms, may be able to entice another complex to lower their prices slightly.

Ask for Recommendations

Renters can also help themselves in their search for an apartment by seeking recommendations from trusted friends and family members. These recommendations can be taken to be much more worthwhile than recommendations offered by the apartment complex from previously satisfied tenants. It is important to note the apartment complex is likely to only offer testimony from tenants who were happy with their rental agreement. For this reason, opinions offered by friends and family members are much more valuable because they do not have a vested interest in the rental property and simply offer their honest opinion. Friends or family members who share your interests and personality traits can be very helpful in offering recommendations for apartments because it is very likely you will be happy with the apartment they recommend.

Consult the Better Business Bureau

Finally, renters should consult the Better Business Bureau (BBB) before making a final decision and choosing an apartment complex. This can be very helpful especially if the renter finds a particular apartment complex has a number of unresolved complaints against them. While a lack of complaints is not necessarily an endorsement, it is a good sign if the complex has been in business for number of years without a slew of unresolved complaints.

What First Time Home Buyers Need To Know About The Mortgage Process

Buying a home for the first time can be confusing. There are so many things to consider and so many things that must be done the right way before you sign your name on the dotted line. Understanding the steps of the mortgage and home buying process can make it much easier to navigate. Here's a brief guide to what first time home buyers need to know about the mortgage process.

Before you look for a home:

* Decide if you're financially ready to buy a home. When you compare rents side by side with mortgage payments, buying a home may seem like a great bargain, but it's important to consider all the costs that come along with owning a home.

* Learn about the different mortgages available and figure out which is best for you. T

* Get your financial information together. In order to be approved for a mortgage, you'll need to document your income, your assets, your employment, your residence and your existing debt.

* Get pre-approved. A pre-approval letter will give you a firm idea of your prospective price range for a new home, and it will tell your real estate agent and home sellers that you are serious about buying a home and financially capable of managing it. Pre-approval is a more formal and in-depth process than pre-qualification. A pre-approval letter is a formal certificate from a lender saying that you are qualified for a mortgage up to a certain amount. While it is not an agreement to give you a mortgage, it is one step closer to having the cash in hand to buy a house.

* Find a real estate agent. Your real estate agent will work in your best interest and help guide you through the rest of the process.

Once you find your house:

* Work with your agent to determine a fair offer price. A written offer will include the price you'll pay, any conditions that must be met, amount of earnest money, complete legal description of the house, down payment and financing details.

Earnest money is included with your offer to show the seller that you are serious. If your offer is accepted, the earnest money becomes part of the down payment. If your offer is rejected, the earnest money is returned to you. If you pull out of the agreement for reasons other than those stated in the offer, you'll forfeit the earnest money.

* Once your offer is accepted, make a formal application for a mortgage. At this point, you will usually have to pay a mortgage application fee. If your mortgage is approved, it generally locks in the mortgage rate you are offered for 30 to 90 days.

* Your lender will arrange for a home appraisal to determine that the house is worth the amount you are asking to borrow in order to purchase it.

* You or the lender will order a home inspection, which is not the same as a home appraisal. A home inspection will point up any problems with the home that may have been missed by a casual inspection.

Insurance Policies that You Will Need

* Get home owners insurance and provide proof of coverage to your lender.

* Private mortgage insurance is a policy that will pay off your mortgage if you should default on the loan under specific circumstances. Most lenders require that you carry PMI if you make a down payment of less than 20%. Generally, the cost of PMI is added to the amount financed.

* Title insurance is a policy that guarantees a clear title to the house. When you purchase title insurance, the insurance company will do their own title search. If any issues of ownership related to title arise after you have taken over the house, the insurance company will pay all legal and other costs related to the title issue.

Closing on Your New Home

* Your lender will let you know in advance how much the closing cost will be. This is generally a "good faith estimate", and may vary slightly from the actual amount when all costs are totaled.

* You will be expected to bring valid identification and certified funds or a cashier's check for the amount of the closing costs.

* The closing costs will include any loan fees, prepayment of interest (points), copying fees and administrative fees charged by the lender.

* You will have a chance to read over all the documents concerning your mortgage and your home. The closing attorney will give you concise explanations of each document that you are asked to sign, but you have the right to read each one over yourself as well.

* Once all the papers are signed, you will endorse the check to the closing attorney, and receive the documents that make the home yours. The closing attorney will see to the disbursement of funds - paying off any remaining mortgage, payment to the current owners, and any other associated costs.

by Shawn Thomas

How A Mortgage Rate Is Calculated

One of the most important parts of your mortgage is the mortgage rate - the rate of interest that you'll pay on the money you borrow to buy your house. Often, ads for mortgage lenders make it sound as if they offer a single mortgage rate to all lenders. If that were the truth, it would be easy to find the right mortgage - just shop around for the lender advertising the lowest interest rate and apply for a mortgage with them. Unfortunately for simplicity, calculating a mortgage rate is far more complex than that. The truth is that the mortgage rate that you're offered is influenced by many different things.

Prime Lending Rate

Mortgage lenders generally base their calculations of their mortgage rates on the prime lending rate. That's not to say that the prime lending rate is the mortgage rate that they'll offer to customers. Rather, it's the starting point of their calculations for their mortgage rates. The prime lending rate is the interest rate that most commercial banks charge their most creditworthy customers. It is adjusted up or down, usually in increments of 1/8 or ¼ of a percentage point. It responds to both the availability of money to loan and the demand for loans in the marketplace. Because those things tend to be the same across the board, most of the major banks will be offering the same prime lending rate.

First time borrower?

If you're a first time home buyer and your credit is good, banks and lenders will often offer mortgages at a discounted rate - one that is below the prime lending rate - in order to attract your business. First time home buyers who meet certain income guidelines may also qualify for first-time home buyer loans guaranteed by the federal government. One of the conditions of those loans is a very low interest rate, usually several points below the prime lending rate.

Your credit rating

One of the major factors that affects the mortgage rate a bank or lender will offer you is your credit rating or your credit score. Lenders use your credit score to determine whether or not they'll lend you money, and how much they'll charge you in interest for the money that you borrow. The better your credit rating, the lower the mortgage rate you'll be offered.

The type of mortgage

Different types of mortgages carry different risks for lenders. The higher the perceived risk to the lender, the more interest they'll charge you for your mortgage. Adjustable rate mortgages (ARMs) present the lowest risks to the lenders because your mortgage rate can rise if the interest rates rise. Fixed rate mortgages are riskier for lenders. They're making the gamble that interest rates won't rise above the mortgage rate that they charge you. Thus, fixed rate mortgages nearly always carry higher interest rates than adjustable rate mortgages. This can be affected by the size of the loan, and how adjustments are calculated.

The amount and length of the mortgage

It's a general but not a hard and fast rule that the larger the amount borrowed, the lower the interest rate will be. In addition, the longer the term of your mortgage, the lower the rate will be. These differences can be very slight up front, but they add up over the life of the loan. A difference of an eight of a percent can save you tens of thousands over the course of thirty years.

The amount of your down payment

In many cases, the amount that you can offer up as down payment will affect your mortgage rate. The reason is simple enough - the more you put down on your house, the more likely it is that you will not default on your mortgage. Zero-down mortgages generally carry mortgage rates that are considerably higher than the prime lending rate. Depending on the lender and the state of the economy in general when you take out a mortgage, a down payment of as little as 5% or as high as 20% may make a difference in the amount of mortgage rate that you're offered.

What about the APR?

The Annualized Percentage Rate is the total cost of the loan expressed as an annual percentage rate on the amount borrowed. The APR includes any fees that are paid in addition to the interest rate, so it may differ from the mortgage rate advertised by the lender. In the United States, lenders are required by law to disclose the cost of the loan as a standardized APR in order to make it easier for consumers to compare loans.