Interest Rates as of October 14, 2011 – Conventional 3.875% and FHA 3.75%.

• Interest Rates fluctuate daily
• You can lock in at any time after your purchase agreement has been accepted, and prior to closing.

Know your legal rights and use them. You have a legal right to know:

• The total cost of borrowing the money (fees and interest)
• The annual percentage rate (APR)
• The number of payments and the payment amounts
• How long you have to pay back the loan
• The total amount you have borrowed

Know your credit rating and credit score. 
Sometimes people who have good credit are charged higher rates and fees for loans because they don’t know that their credit is good. Getting your credit report and credit score may help you negotiate the best loan for you, don’t pay more than you should have to pay. You’ll want to look for any mistakes in your credit report and take steps to correct them. You can get your credit score on the internet, usually for a fee, or a lender can give you a free copy when you apply for a loan. Avoid lenders who won’t give your score to you. Most credit scores range from 300-850, and the higher the score, the better your credit. Most lenders consider scores over 700 as “good” to “excellent” scores.

The three major credit reporting agencies are:
Equifax: (800) 685-1111, www.equifax.com
Experian: (888) 397-3742, www.experian.com
TransUnion: (800) 916-8800, www.transunion.com

Warning Signs
Be cautious if anyone:

• Advertises or says,”Poor credit? No problem!”
• Calls on the phone or comes to your door offering you a “bargain loan.”
• Rushes you to sign that day.
• Asks you to pay a fee “up front” to cover a first payment or other expenses.
• Offers you a loan with small monthly payments and a balloon payment that you’ll have difficulty paying when it comes due.

Closing Costs
All of the “other” costs that you have to pay when borrowing money. They could include fees for credit reports, land survey, appraisal, title search, title insurance, document preparation, notary, points, credit life insurance, and attorney fees. 

What is an Earnest Money Deposit?
It’s a good faith deposit, not to be confused with a down payment. When buyers execute a purchase contract, the contract specifies how much money the buyer is initially putting up to secure the contract, to show “good faith,” and how much money will be deposited as a down payment. The balance is generally financed as a mortgage or a combination of mortgages. An earnest money deposit says to the seller: “Yes, I am serious enough about buying your house that I’m willing to put money down.”

How Much is Enough? 
Because there is no set amount, it varies from market to market and across the country. Buyers here do not often put down more than 3% since most sign a liquidated damages clause that limits the seller to 3% of the purchase price as damages in the event of a default. But it’s not unusual for a buyer purchasing a $300,000 home to put down $1,000, especially if the buyer is obtaining 100% financing. In those scenarios, the deposit is most often refunded to the buyer and subsequently used as a credit toward closing costs because the financing makes up the entire purchase price. If it’s a seller’s market, with many buyers fighting over limited inventory, it makes logical sense for the buyer to put down a much larger earnest money deposit to entice the seller to accept the offer. In buyer’s markets, a larger earnest money deposit might entice a seller to accept a much lower purchase price.