Most real estate companies use only 3 or 4 traditional types of home loans - most with higher down payments.

Then why do they say that?

• Because most real estate agents don't know that these special government home loan programs exist!
• Special low-down-payment home loans are difficult to understand. On top of that, it's hard to keep informed about all the different rules and loans offered by all the different home lenders.
• Big real estate companies have a difficult time keeping their agents up to date about the many low-down-payment home loans.
• Many Big Real Estate Companies Consider Special Home Loans An Annoyance.
• Some companies feel that all the regulations and paperwork involved with low-down payment home loans are too much "fuss and muss." Besides, they're selling enough homes without using these special loans, so why bother.

Another problem - these special home loan programs come and go. Most are offered for only a very limited time. When the funds run out, they're gone. By the time many agents become aware of these great home loans it's too late!

Insider's Tip: To see for yourself, try calling any real estate company and ask how much money down you will need to purchase a $100,000 home. They will probably tell you that unless you are a veteran and can get a VA loan, you will need $8,000 - $10,000 to buy this type of home.

This just isn't true

Many of these great home loans have income limits, but they're all different. Some "limits" are very high. For example, the income limits for one of the zero-cash-to-close loans we offer is $63,120/year for a family of three or more. In other words, if you earn less than $63,120/year you may qualify for this zero-cash-to-close home loan!

Insider's Tip: There are many different types of special loans. These loans come and go, each with different rules and requirements. You may qualify for one or more of these programs. We can stack programs. In other words, use more than one type of program to help you.

The "Problem" With Government Home Loans

• The problem with these special home loans is that they come and go in a fairly short "window period." For example: a $500 down payment home loan program may become available in April and be out of funds by mid June. To obtain one of these loans, you have to know about them before the funds are gone -- and act fast!

• Insider's Tip: The average real estate agent, busy with all phases of realty, often doesn't learn about these money saving home loans until it's too late!

Who pays the real estate agent's commission? Normally, the buyer doesn't pay anything to the agent in any way.

Usually, the seller pays a commission to the agent listing the home, and a commission to the agent that brings a buyer. These agents must then share their commission with their respective broker.

But, basically we work for the buyer, for FREE!

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Once you have chosen the agent who you feel can do a good job of representing you, you need to decide what kind of contractual relationship you will have. It used to be that agents always "represented" the seller of the home. Nowadays, things are much different and you can choose what kind of relationship you will have with your real estate agent.

• Buyer's Agent: This is clearly the best choice if you are buying a house. The buyer's agent works only for the buyer and is bound to represent you above all other interests.
• Seller's Agent: The seller's agent works only for the seller of the home. This means that they essentially look out for the seller's interest and not yours.
• Disclosed Dual Agent: In this type of arrangement, the agent works for both the buyer AND the seller. This often happens when an agent sells a property they have also listed for sale. The problem here is obvious. The agent is serving two masters and can not put the interest of one above the interests of another. As a home buyer, you're better off working with an agent who is bound to look out for only you.

One mistake many inexperienced home buyers make is to call real estate offices based only on a sign in the front yard of an advertised property. What they often don't realize is that whichever agent shows them that house becomes their agent for the sale. Cold calling a group of real estate offices is a poor way to select the professional who will help you through the biggest purchase of your life.

Selecting the agent first--based upon the agent's experience, reputation and your personal comfort level--is the best way to be certain your agent truly represents you!

As a buyer, you are entitled to know exactly what you are getting. Don't take for granted what you see and what the seller or the listing agent tells you. A professional home inspection is something you MUST do, whether you are buying an existing home or a new one. An inspection is an opportunity to have an expert look closely at the property you are considering purchasing and getting both an oral and written opinion as to its condition.

Not only should you never skip a home inspection, but you should meet the inspector during the last hour of the inspection. This gives you a chance to ask questions about the property and get answers that are not biased.

In addition, the oral comments are typically more revealing and detailed than what you will find on the written report. Once the inspection is complete, you will review the inspection report with your Realtor ® and discuss the results.

You have to demand an inspection when you present your offer. It must be written in the contract as a contingency; if you do not approve the inspection report, then you don't buy. Be sure your real estate contract provides an inspection contingency.

Don't go on a spending spree using credit if you are thinking about buying a home, or in the process of buying a new home. Your mortgage pre-approval is subject to a final evaluation of your finances.

Every $100 you pay per month on a credit payment could cost you about $7,000 - $8,000 in home eligibility, depending of course on the type of loan you’ll be using. For example, a car payment of $300/month could mean that you qualify for $24,000 less in a mortgage.

Even if you have accumulated enough savings, you should considering not making any large purchases until after closing. The last thing you want is to know that you could have purchase a new home had you curbed the urge to spend.

Yes. If you are not sure, please consult with a professional. Your first step should be to contact a lender. A professional lender will spend some time exploring your options without obligation. Then you will truly have the facts that you need to make your decisions. Until then, it’s all speculation and if your best friend says don’t bother – DON’T LISTEN!

Maybe you're a potential first-time buyer wishing you'd taken the home buying plunge while rates were low, it's not too late to dive into the market. In fact, even with interest rates on the rise, waiting to purchase a home could end up costing you money.

Let's say you're interested in buying a house that costs $200,000, but you believe interest rates might go back down if you waited one year to purchase. Would you really save by waiting?

Probably not. If you were to purchase today, principal and interest payments on an $180,000 loan (after a 10% down payment) would be $1,079.19 at 6.0% interest.

But if rates did fall over the next year, say by one-half percent to 5.5% interest, you would have lost money by waiting. Even if appreciation slows to a meager 3%, this annual increase has now elevated the cost of the home by $6,000 to $206,000. That means that you'll need $600 more for the down payment for a 90% loan. And a larger loan could mean more closing costs plus a higher mortgage amount, which could make loan qualifying tougher. Don't forget that, based on the type of home you wish to purchase, it might not be as readily available later--especially if you purchase in a strong seller's market.

Financially, the bottom line is that even though your principal and interest payments would be $26.51 per month less with the lower interest rate, it would take you more than eighteen years to recoup the additional $6,000 it cost you to wait ($6,000 divided by $26.51 = 18.86). That figure doesn't take into account the increase in property tax, the lost tax benefits, or even the value of the monthly rent you're pouring down the drain as a tenant. It's been said that if you're not buying a home for yourself, you're purchasing one for someone else. Why let your landlord be the financial winner just because rates are edging up?

Perhaps you're one of those would-be buyers wanting to pay off debts before taking on a mortgage. While that is a very prudent undertaking, it may not make financial sense--especially if your debt-load is not excessive for your income. The flexibility in today's extensive menu of mortgage programs allows credit-worthy buyers carrying significant debt a variety of ways to secure the type of loan they need, even if qualifying ratios are outside of the usual parameters. Loans include low-documentation, no-documentation--even stated-income loans (where you state, but do not prove, your gross monthly income).

First-time buyers should not overlook the importance of employment in the home buying process. Many buyers hesitate making their first home purchase because they're afraid of being downsized, right-sized, or otherwise having their income cut. But since lenders want to see a work history of approximately two years employment (which could include formal job training/education), it makes sense to purchase once that track record is established.

Purchasing a home is not for everyone but for those who do, timing is important. If home ownership is in your future, don't let fluctuating interest rates dampen your enthusiasm--or, worse yet, end up costing you money by waiting to purchase.