Getting Mortgage Quotes Online - 3 Tips for Internet Security

by Brandon Cornett

Thanks to the Internet, the entire real estate process has gotten a lot easier. You can find homes and research prices online, and you can even request quotes from mortgage lenders with less time and effort than in the past.

And while these are certainly good things, you must also exercise a bit of caution when getting home loan quotes via the Web. You need to protect your personal information at all times, and you need to learn about the various companies that offer this kind of web-based service. This calls for some light "detective" work on your part, and that's what I'm going to teach you in this article.

Before we get to the actual steps involved in this process, let me offer you some good news. With a little research and common sense, you can benefit from the convenience and efficiency of online mortgage quotes while protecting your identity at the same time. There are plenty of reputable companies that offer these services. Of course, there are some scams out there as well, but these will be fairly easy to spot once you read this article.

Without further ado, here are five ways to protect your identity while getting loan offers via the Web:

1. Go With the Names You Know

Generally speaking, it's best to use a company you've heard of before when requesting mortgage quotes through the Internet. Here's why. The fact that you've heard of them suggests that the company spends a lot of time, energy and money on their brand name. Such a company will go a long way to protect its reputation and brand, and they do this by providing a good service and looking after their customers. Personally, I would never offer sensitive information to an unknown company -- too much of a wild card for my comfort. I recommend you do the same.

2. Look for the 'S' in the Web Address

A website that is truly secure have the letter 's' in the prefix of the website address / URL. This means the site is encrypted to keep hackers and identity thieves out, as much as possible anyway. When you visit a lender's website -- and before you transmit sensitive information through the site -- check the web address that appears in your Internet browser. If it's truly a secure website, there should be an "https://" prefix before the "www" part. Note the all-important letter 's' in that prefix. If the address starts with "http://www" (lacking the letter 's'), then it's not a secure site.

3. Look for Third-Party Verification

Reputable mortgage companies will go the extra mile to have ensure their websites are secure for visitors. This will often include the use of third-party verification of site security. In other words, the company will hire another company to test and verify the secure areas of their website. You've probably even seen the certification seals on financial websites in the past. A common one is the "TRUSTe" seal of approval. In most cases, you can actually click on the image / seal to check the security status of the site you're on.

Conclusion and Going Forward

Using the Internet is a great way to get quotes for a home loans while saving time and energy in the process. You just have to exercise a little caution along the way. Follow the safety guidelines I've provided above when requesting mortgage offers via the Web, and you should be fine. And remember this mantra of Internet safety and security ... when in doubt, back on out!

* Copyright 2008, Brandon Cornett. You may republish this article if you retain the citation notes and hyperlink below.

Citation Note: This article was created by Brandon Cornett, publisher of the Home Buying Institute network of real estate websites. You can learn more or contact the author by visiting his mortgage refinance blog at http://www.mortgage-refinance-advice.com/blog/

Chris Farkas is a Realtor for EXIT Realty Associates

www.RealBellingham.com
www.WhatcomShortSale.com
www.ChristineFarkas.com
www.FreeWhatcomHomeSearch.com

Property Selling Tips

Selling a home today is very different than it was just a few years ago. In many areas it was as easy as putting a sign in the yard and then sitting back and waiting for multiple offers to choose from. But as the market has cooled down substantially you must make your property more exciting.

When a person buys a home it is a big emotional decision. People spend years of their life planning and visualizing their dream home, so when they actually come to view a prospective home they want it to be perfect. In order to make your house a home and stand out from the crowd, there a few things that you can do.

First of all, look at the outside. Remember the term “curb appeal.” When prospective buyers drive up to your home, what does it say? It needs to say “wow!” Make your yard stand out by pruning the trees, pulling out the weeds and keeping it mowed and trimmed. If you live in a snowy winter wonderland like I do, keep your driveway plowed and your walkways and stairs shoveled and swept. Buyers can and will imagine both the best and worst conditions. It is your job to make the best and worst seem acceptable.

You can also add colorful fresh plants to give it a fresh look. Make sure the exterior is in tiptop shape. Paint, as needed – especially the front door. If winter prohibits exterior painting, plan ahead if able. Painters have some options available for winter painting but they are not genies, and they are limited to available technologies for cold weather painting.

Inside the house make sure to fix any broken window panes, doors and leaky faucets. You should also check and make sure that all the electrical appliances such as the doorbell, fans, lights etc are functioning properly. You must keep in mind that buyers will look at every nook and cranny of the house, so you should take care of all the finer details. Nothing will turn off a potential buyer more than the feeling that the house has not been maintained.

Finally, look at the inside of your home through the buyer’s eyes. What will they see? Should you repaint the walls? Should you replace the carpeting? Will the buyer feel at home?

In order to be more accustomed to the buyer’s need all you have to do is to think like a buyer. Try to make a list of all the things you would want in your home if you were to buy it. This will give you a good idea of what you need to do in order to make your home the buyers perfect home.

Chris Farkas is a Realtor for EXIT Realty Associates

www.RealBellingham.com
www.WhatcomShortSale.com
www.ChristineFarkas.com
www.FreeWhatcomHomeSearch.com

Different Types of Housing

The time has never been better for apartment dwellers to stop making their landlords rich. No offense to landlords as I am one myself.

With that said, a discussion of home purchase options is in order. There are many types of homes out there and a basic discussion of home types is in order.

Are you familiar with the different types of housing that you can purchase? If you are in the market for a new home, it is important that you know the difference between a single-family home, a townhouse and a condominium. We have explained them below so you can familiarize yourself with the advantages and disadvantages of each.

Single Family Homes

The single-family home is the most common type of housing in the United States. This type of dwelling is designed for a single family and has its own land. The house and the land are purchased and sold together. Unlike townhouses and condominiums, single-family types of housing are not attached to other homes. Aside from regulations from your neighborhood, subdivision or municipality, you are free to do whatever you would like with your home.

With a single family home, you are responsible for the cost of maintaining and repairing the home, whether you do it yourself or pay someone else to do it. In addition, landscaping and lawn maintenance are also your responsibility. If you want to have a pool or playground in your backyard, you will have to provide such amenities.

The good thing about single-family homes is that you have the freedom to make whatever changes you like and the improvements to your home can greatly increase the resale value.

Townhouses

A townhouse is a cross between a single family home and a condominium. They share characteristics with both types of housing. In most cases, a townhouse is attached to at least one other house. When you own a townhouse you own the home as well as the property on which the home sits.

Since townhouses are a part of a larger community, you can usually find many of the amenities that you might find with an apartment. This includes swimming pools, fitness centers, tennis courts, etc.

While you are responsible for some of the maintenance and repairs, it will not be to the extent of that of a single-family dwelling.

Townhouses are often part of a Home Owner’s Association too, which you are required to be a member of. These associations typically charge a monthly fee to maintain the various amenities provided and common areas.

Condominiums

A condominium, condo, for short, is a type of housing that is best described as an apartment that you are able to own. When you purchase a condo, you own everything inside your walls and share ownership of common areas with your neighbors.

Often condo ownership requires you to pay a monthly fee that covers repairs and maintenance to the common area. The condo association handles exterior maintenance and repairs, but in many cases, you contribute to the cost through dues or assessments.

Condo prices are often more affordable than those of single-family homes and townhouses. There are often a number of amenities available for you to use. You have minimal responsibility for exterior maintenance and repairs.

Condo’s have become a popular form of ownership for young professionals as well as empty nesters.

The type of home you purchase depends on many factors. Let our team of professionals assist you in choosing your perfect home!

Chris Farkas is a Realtor with EXIT Realty Associates

www.YourWhatcomRealtor.com
www.RealBellingham.com
www.WhatcomShortSale.com

11 Great Reasons To… LIST YOUR HOME DURING THE HOLIDAYS!

1 People who look for a home during the holidays are more serious buyers.

2 Serious buyers have fewer houses to choose from during the Holidays and less competition mean more money for you.

3 Since the supply of listings will dramatically increase in January, there will be less demand for your particular home. Less demand means less money for you.

4 Houses show better when decorated for the Holidays.

5 Buyers are more emotional during the Holidays so they are more likely to pay your price.

6 Buyers have more time to look for a home during the Holidays than during regular weekdays.

7 Some people must buy before the end of the year for tax purposes.

8 January is traditionally the month for employees to begin new jobs. Since transferees cannot wait until spring to buy, you must be on the market during the Holidays to capture that market.

9 You can still be on the market, but you have the option to restrict showings during the six or seven days during the Holidays.

10 You can sell now for more money and we will provide for a delayed closing or extended occupancy until early next year.

11 By selling now, you may have an opportunity to be a non-contingent buyer during the spring when many more houses are on the market for less money! This will allow you to sell high and buy low.

Chris Farkas is a Realtor with EXIT Realty Associates

www.YourWhatcomRealtor.com
www.RealBellingham.com
www.WhatcomShortSale.com

When is the ARM Loan a Good Idea for Home Buyers?

by Brandon Cornett

This is one of the most frequently asked questions we receive at the Home Buying Institute. But despite the frequency, I'm always happy to answer. A failure to understand the inner workings of the adjustable-rate mortgage loan is what got many homeowners into foreclosure trouble over the last few years.

Let's start with a quick definition. The adjustable-rate mortgage (commonly known as the ARM loan) has an interest rate that will adjust or "reset" at a predetermined frequency -- every three years, every five years, etc. This is very different from the fixed-rate mortgage loan, which holds the same interest rate over the entire life of the loan.

The interest rate is one of the factors that determines the size of your monthly mortgage payment, so when the rate increases or decreases the size of your monthly payment changes up or down with it.

Many of the adjustable-rate mortgages given out these days are actually "hybrid" in nature. They start with a fixed interest rate for a certain period of time. After that initial period, the rate will reset or adjust -- and it will continue to adjust with regular frequency. This is where the uncertainty comes into the picture, because you never know exactly how the rate will adjust. It typically means an increase, but you don't know how much of an increase.

ARM Loans, Bad Credit and Payment Shock -- A Common Pattern

These types of loans were favored by the subprime lenders you've heard so much about lately. When a person has bad credit, they have trouble qualifying for a mortgage loan. And if they do get approved for a loan, they will usually end up paying a higher interest rate than somebody with good credit. This can make the mortgage payments unaffordable for the home buyer, unless ... the lender can find a way to reduce the interest rate for the first few years.

And that's where the ARM loan came in. Subprime lenders would often use some version of the adjustable-rate mortgage to minimize the interest rates for the first few years of the loan. This would make the loan payments seem more affordable to the borrower -- at least initially. When you hear the phrase "teaser rate" used to describe mortgage loans, it usually refers to this type of lending practice.

So, John and Jane (both of whom have bad credit) purchase a home through an ARM loan. The rate is relatively low for the first three years, so everything seems fine. While the mortgage payment is a significant chunk of change for John and Jane, they can afford it for now.

After three years, the interest rate resets to a higher rate. And in the case of a subprime mortgage loan given to borrowers with bad credit, the rate usually increases significantly. The next thing John and Jane know, they are suddenly unable to afford their new payment. So they have three options -- (1) refinance the loan, (2) sell the home, or (3) suck it up and try to manage the new / larger mortgage payment.

Many people in this situation over the last few years were unable to pursue option #1 (refinancing) because their property values dropped since the date of purchase. So their options were reduced to just two -- sell the house or try to handle the new payment. We know from history that a lot of people took the latter route, whether it was by choice or not. We also know that this type of scenario contributed to the record-breaking numbers of home foreclosures we've seen over the last two years.

How to Safely Use an ARM Loan

The scenario described above is an example of how not to use an adjustable-rate mortgage / ARM loan. If you plan to keep the home for many years, the fixed-rate mortgage is usually your best bet. As we have seen, you cannot count on being able to refinance the loan before the interest rate adjusts. Nor can you predict how much larger the payment is going to be after the adjustment period.

But there is a smart way to use the ARM loan. I have used one myself in the past, and it worked out perfectly for my wife and I. It worked out well [and here's the key to all of this] because we knew we would only be in the home for three years, at the most. This was my last tour in the military, so we bought the house knowing we would be moving again in a few years. The ARM loan was ideal for this scenario. We saved money while we owned the home (because of the introductory period of low interest), and then we sold the home and moved before the rate adjusted.

This is not the only scenario where an adjustable-rate mortgage can be used wisely. But it is the most common scenario. The key here is that you (A) understand how this type of mortgage works and (B) choose the best loan type for your particular home-buying situation.

Do plenty of research before picking a type of home loan. This article is only the beginning of your research. Don't let a mortgage lender tell you what's best for you -- take their advice, sure, but make your own decisions based on thorough research. It's your financial future, after all.

* Copyright 2008, Brandon Cornett. You may republish this article if you retain the citation notes and hyperlink below.

Citation Note: This article was created by Brandon Cornett, publisher of the Home Buying Institute network of real estate websites. You can learn more or contact the author by visiting his mortgage refinance blog at http://www.mortgage-refinance-advice.com/blog/

Chris Farkas is a Realtor with EXIT Realty Associates

www.YourWhatcomRealtor.com
www.RealBellingham.com
www.WhatcomShortSale.com

The Home Needs A Lot of Work? GOOD! What an Opportunity!

If there ever was one thing that dissuades people from purchasing a home it would be the necessity to perform a multitude of repairs. After all, who wants to purchase a home and then invest tons of money into repairing the property as well as making the requisite time commitment that such repair work would entail? Now, while this situation may sound dreadful on the surface it is actually a great opportunity for an industrious person.

If you think this is an idealized description of the situation, then look at it this way: say the average market value of a similar home in the area is $250,000. The home you are considering purchasing is valued at $190,000 due to extensive repair work that is required. So, before making a decision as to whether or not this home is a viable investment purchase it may be wise to examine what the cost of the repairs will be. If the repair work will cost $30,000 then this is not a negative…it is a huge positive! If you do not believe so then simply do the math: $190k plus $30k equals $220K. Remember, the value of the home after repairs will be in the neighborhood of $250K. So, even with $30k in repair work you will end up with acquiring the home at a $30k discount! This is to say nothing of the equity appreciation the home will eventually accrue.

Of course, no one wants to purchase a home that is falling apart, but if the required repairs can be overcome by the equity one can acquire then this is far from a bad real estate investment venture.

Chris Farkas is a Realtor with EXIT Realty Associates

www.YourWhatcomRealtor.com
www.RealBellingham.com
www.WhatcomShortSale.com

The Right Time of the Year to Sell

Many people who wish to sell their home have to face the question of when is the right time of the year to do so. The truth is that there is no clear answer to this question because the answer depends on too many factors and all of them are of a subjective nature. People who are looking to buy a home do so based on many factors. Are they being relocated due to a job transfer? Have they been waiting for their home to sell? The only clear trend is that during spring and summer the number of homes sold is higher.

There are, however, other factors to consider. Do you want to sell in a busy market or a slow market? A busy market means there will be a lot more competition. If you feel that you home may not position well to stand heavy competition then it would be better to wait till the market slows down a bit. If, on the other hand, you position your home so that it is competitive in the market then time of year is less of a consideration.

While seasonal trends are important they not the most important thing. The most compelling factor in selling a home are your own needs. There has to be a reason why you are selling your home and there is probably a deadline by which you have to have done so. Focus on those rather than on the time of the year. Also pay attention to current market conditions. You may not be able to wait for early spring for the market to get busy, so do not damage your position by waiting for months. 

Apart from current market conditions you should also understand where the market is going. This involves a bit of research to figure out future trends from past ones. Though you cannot accurately predict the future of the market you can get a reasonably close picture. Talk to your real estate agent. They have the expertise you need to help make a well-informed decision. If the market is beginning to slow down and turn into a buyer's market then obviously you are better off the sooner you sell your home. Waiting in a slowing market will only lower the market value of your home. If your home is in an area of rising property values, price your home to reflect the direction of the market. Again, talk to your real estate agent for advice and guidance.

There are many factors to consider when selling your home. The time of year is less important than making sure your home is priced correctly and marketed properly.

Remember that you only need one buyer!

Chris is a Realtor with EXIT Realty Associates
www.YourWashingtonRealtor.com
www.RealBellingham.com
www.WhatcomShortSale.Com

4105 Byron Avenue Bellingham, WA 98225

3442 McLeod Road Bellingham, WA 98225

4755 S. Golf Course Drive Blaine, WA 98230

7943 E. Golf Course Blaine, WA 98230

Five First Time Home Buyer Mistakes

Five First Time Home Buyer Mistakes

Buying a home for the first time is an exciting process. At the same time, it is one that
is filled with many steps and details. Deciding which home and which mortgage are decisions that have lasting consequences. As you embark upon your home-buying excursion we suggest you keep in mind
these common mistakes of first time homebuyers.

#1 Purchasing a home too

fast. Perhaps it’s the excitement of buying your first home.
Or maybe it’s a fear that the “perfect” home will be purchased
by someone else. Whatever the reason, many first time homebuyers make
the mistake of rushing through the home purchasing process. They
tend to spend too little time searching for the right home. Often
first time homebuyers end up dissatisfied with the home they’ve purchased.
Keep your options open and continue to search for new homes that come
on the market.

#2 Buying too much home.

Another mistake made by first time homebuyers is purchasing a home that’s
right at, or even a little beyond, their limits. Many times this
leaves the new homeowner with little or no disposable income.
What good is a large home if you are unable to furnish it? None
at all! Purchasing a smaller home and leaving yourself some wiggle room
is much better than eating up your monthly income with a large mortgage
payment.

#3 Holding out for the dream

home. First time homebuyers might pass up several houses they
like because they believe that there is a better house out there for
them – one that is complete with everything they want and need.
In the meantime, houses that have most of the items they are looking
for are being taken off the market by other buyers. If a significant
period of time passes, market prices could go up and the first time
homebuyer ends up paying more for a home than expected. Even worse,
the buyer ends up so worn out from house shopping that he, or she, ends
up settling.

#4 Not getting pre-approved

for a mortgage. A pre-approval will do wonders for the first time
homebuyer’s shopping experience. Being pre-approved for a mortgage
lets you know what you can afford and what your payments will be.
Some first time homebuyers, not realizing the importance of this, forgo
pre-approval to get a head start on home shopping. What’s the
worst that could happen? You could find a home you absolutely
love and fail to obtain financing for it. Also, being pre-qualified
is NOT the same as being pre-approved. We have seen many families
not get their dream home because they were just pre-qualified.

#5 Not comparing mortgages.

Shopping around for a mortgage is just as important as shopping around
for the home. Many first time homebuyers do not realize that mortgages
from different lenders have different costs and different terms.
There are so many factors of that can vary from one lender to the next.
It only makes sense to shop around for the best deal.

Be informed of the steps thatyou must take and the decisions you must make as a first time homebuyer.Information and education are the best tools to equip you during the process of purchasing your first home.

Chris is a Realtor with EXIT Realty Associates

www.YourWashingtonRealtor.com
www.RealBellingham.com
www.WhatcomShortSale.Com

Active Rain Real Estate Professional

2507 Elizabeth

Rare opportunity to affordably own a classic 1900s farmhouse style charmer in the desirable Columbia neighborhood. This larger Elizabeth Park home's open floor plan offers the flexibility of a master bedroom on the main floor or upstairs. The location can't be beat just a few blocks from Elizabeth Park! The private fenced in landscaped backyard gives you the feel of a secluded garden in the middle of town, close to all amenities.

Understanding The 1031 Tax Exchange

Real estate investors looking to sell an investment property and purchase a new one can greatly benefit from the Internal Revenue Code Section 1031. Section 1031 is one of the most powerful tax deferral tools currently available for taxpayers.

In short, this section allows for a tax-deferred exchange. This means that taxpayers do not have to pay income taxes when they sell an investment property and reinvest the proceeds from that property into a like-kind or similar asset.

A 1031 Exchange comes with numerous advantages for taxpayers and paves a road of encouragement for real estate investors so that they might continue to invest. First and foremost, Section 1031 gives the taxpayer the ability to sell business, investment and income property and not pay federal income taxes on it if they replace the sell with a like-kind property.

According to the IRS, like-kind properties must be the same in character or nature. They can, however, be different in quality or grade. Real estate investment properties that qualify under this IRS code include rental houses, retail and commercial properties, apartment buildings, office and industrial buildings, ranches and undeveloped land.

Properties that do not qualify under a 1031 Exchange are personal residences, interests in partnerships, business inventory, and property owned by dealers.

While Section 1031 obviously presents a big perk for real estate investors, there is a disadvantage. Because the exchange reduces the basis for depreciation on the replacement property, the replacement property will then include a deferred gain that will be taxed in the future when the taxpayer sells his or her investment.

There are four types of exchanges made possible through Section 1031. First, is a simultaneous exchange. This type of exchange occurs when the taxpayer closes both properties on the same day. This is usually a back-to-back transaction with no lapse of time between the closings.

Second is a delayed exchange, also known as a "Starker Exchange." This type of transaction refers to the closing of the replacement property after the closing of the relinquished property. A delayed exchange does not take place on the same day. The delayed exchange is mandated by strict time frames pursuant to Section 1031. Specific timelines are in place to allow the taxpayer a certain amount of time to search for a replacement property and sign a contract to purchase it.

Next is the reverse exchange also known as the title-holding exchange. This is an exchange that occurs when the replacement property has been closed on prior to the selling of the relinquished property. When entering into this type of an exchange, the intermediary will retain the replacement property's title until the taxpayer closes the relinquished property.

Lastly, is the improvement exchange which also serves a title-holding exchange. This type of exchange refers to a situation that involves the taxpayer purchasing property and arranging improvements for it before it is actually received as the replacement property.

Since Section 1031 does not allow the taxpayer to improve the property, a mediator is employed to retain and close on the title of the replacement property until it is ready to enter as an exchange. Once the improvements are complete the liaison then passes on the title to the taxpayer.

As you can see, there are several situations applicable to Section 1031 that benefit real estate investors. To learn more about IRS Code Section 1031 and how to profit from it, contact your financial advisor or accountant.

Omar Johnson is a real estate investor and author of the home study course "The Real Estate Investors Guide To Finding Motivated Sellers" For more info visit http://www.findingthemotivatedsellers.com

Chris Farkas is a Realtor with EXIT Realty

Choosing the Debt Consolidation Service That's Right for You

Isn't Debt Consolidation a Good Thing?
Debt consolidation, which is the process of bringing together all accounts of debt into one whole account (consolidating), would be considered a good thing to take advantage of to many people. How can anyone go wrong with choosing to apply for debt consolidation? Look at all the pros from choosing to consolidate debt:

There are the benefits of having reduced interest rates, one Morgul low monthly payment, one person to deal with (as opposed to creditors for each debt), and chances of having a better credit history in a shorter amount of time. What can possibly be wrong with applying for debt consolidation? There are some cons that many people do not consider.

Cons of Debt Consolidation
One major thing to consider is getting back into the habit of spending above budget. With only one low monthly payment to worry about, a person may be tempted to spend the extra money on other unnecessary items (the money that is now being saved from now making only one monthly payment toward all bills). Even worse, with a person paying their credit cards down through debt consolidation may begin to get back into the habit of reusing their credit cards again and repeating the same mistake; the one that got them in that situation of needing debt consolidation in the first place.

Also, the application fees for a particular debt consolidation program may be unreasonable. With so many companies or organizations that supply debt consolidation programs, they have to compete. A person should carefully research the different companies and organizations that offer debt consolidation, and choose one that does not have unreasonable fees. Also, beware of those that offer promises of free service. The free service could apply to the initial consultation, but then fees may kick in after the fact.

What's a Debt Consolidation Service to Begin With?
You'll better understand what a debt consolidation service can do for you if you understand what debt consolidation is. And a good definition of debt consolidation is the process of combining all of the "balances due", on which you make monthly payments to your creditors, into a single larger debt that enables you to make a single monthly payment.

And generally in this situation, the kinds of debts you're combining are your unsecured debts, i.e. you credit card debts, medical bills, and personal (signature) loan debts. Debt consolidation typically doesn't include mortgages, car loans, boat loans, or any other kind of secured debt secured, or taxes or utilities.

So, a debt consolidation service is an organization that can help you do just that, combine multiple unsecured debts into a single larger debt. But these services can also help with other things as well. Reputable debt consolidation services will work with you creditors to help reduce your total debt, reduce the interest rate you'll pay, and possibly have them waive late fees and other charges. They'll also work with both you and your creditors to come up with a repayment plan that both you and your creditors can live with.

Are There Any Alternatives to a Debt Consolidation Service?
But before diving in and selecting a debt consolidation service to help you out of your current financial dilemma, you need consider other alternative. This is especially the case since when you start working with the debt consolidation service to help lower your debt and come up with a repayment plan, your creditors will report this fact to the credit reporting agencies and your credit history becomes, well, be-smirched. No single solution, including using a debt consolidation service is right for all people.

Chris Farkas is a realtor for EXIT Realty in Bellingham, WA

Bellingham Fall Youth Soccer Season Comes To An End

Another Bellingham fall youth soccer season comes to an end. Coach Jen and coach Christian did a marvelous job and put in a lot of hard work and time. On behalf of myself and my family we offer you many thanks. As a tribute to the girls and coaches of the team, my husband Mike created a small photo collage video and placed it on YouTube for your enjoyment.

The link is www.youtube.com/watch?v=42d_HDh3aBI&feature=related
or go to www.purplepiratemovie.info

For any parents interested in Bellingham and Whatcom County soccer leagues check out the Northwest Soccer Park web site at www.whatcomsoccer.com

Latest Mortgage Rates Current Last Week 30 Year Fixed 15 Year Fixed 5/1 ARM Zillow Mortgage Marketplace Get this widget See local rates

Finding Your Dream Home

Many people believe that it is impossible to find the home of their dreams unless they have very large amounts of money available to buy the home that they want. This common belief is not necessarily true, if you know the right places to look, you will be able to find your dream home and not spend a fortune on it.

If you want to invest in real estate and stop wasting your money paying rent, it is possible and you can even find a home that will cost about the same as your monthly rent payment. All you have to do is find the right resources and know how they will work together. One place that you can look is at home auctions or in areas where there have been bank foreclosures. Many of these homes will be ones that the previous owners could not pay for and the bank was forced to foreclose on them. Because there is no one paying for the house, the bank is having to pay for it and often times the bank will lower the price of the home so that they will not have to keep paying for it.

If you do not know where to look for bargain homes, you can just browse through locations and do some investigating on your own. Many times, the Internet and local real estate magazines are designed to show you the market and they will also include the lowest priced homes in their listings. If you search local resources, you will be able to compare the homes that are available and you will also be able to see the homes that are lower priced because of things such as foreclosures.

When it is time to look for the home of your dreams, you do not even have to set a foot outside. You can instead search what is available using the Internet and real estate magazines and find a home that will fit both your individual style and your budget.

Chris Farkas is a Realtor with EXIT Realty in Bellingham, WA

Selling Your Home FSBO? Three Tips for a Quick Sale!

If you are considering selling your home FSBO (For Sale by Owner) you'll need to think ahead and have a solid plan of action. It is also necessary to put in a good deal of legwork in order to sell your own home, but the money you’ll save on real estate agent commissions can make it well worth your time.

Tip Number One: Timing is Everything

Did you know that more homes are sold in the spring than any other time of year? If at all possible, arrange to put your house on the market in early spring for the best chance of a quick FSBO sale. Of course, this will mean that you will need to have your home appraised, or at least estimate an appropriate price for your home in late winter before it hits the market. In fact, much of the legwork of selling your home will need to be done before you put it on the market. Remember, "prepare in late winter -- sell in early spring."

Tip Number Two: Marketing, and Why the Internet is Your Friend

You'll need to establish a marketing plan right away if you're planning on a quick FSBO sale. Without a doubt, the easiest way to get your home out on the market place quickly is online. Face it, simply throwing up a few signs in your front yard with a contact phone number won't cut it these days. There is simply too much real estate competition out there, and the only way to really get the exposure you need is online.

Online classified ad sites are a great choice. They tend to be inexpensive, and can put you in touch with highly motivated buyers in your area. There are even sites with free classified ads online to sell real estate.

But just because you take advantage of the Web to sell your home doesn't mean you should ignore the "old-fashioned" methods. Local newspaper classified ads can also be a cost-effective method of exposing your home to potential buyers. Using a combination of online and off-line ads is a great strategy for most FSBO home sales.

Tip Number Three: Prep Your House for the Sale

From the moment a potential buyer enters your home, every detail will make an impression upon them. Think about the old saying, "you never get a second chance to make a first impression." With this in mind, make sure your home is clean and appealing at every showing. A fresh coat of paint on interior walls is one of the most inexpensive ways to give your house that "new home feel."

Additionally, don't forget to ensure that your home smells nice when your potential buyers enter. Real estate agents have long used the technique of baking bread, apples or cinnamon in the oven when a client arrives, giving the home and fresh "homey" scent that is very appealing. It may be a cliché, but it works.

Also, having soft, pleasing music playing at a low volume in the background can add a certain "ambience" to your home. For a really quick FSBO sale, just keep in mind that you need to appeal to all of your buyer’s senses, not just their sense of sight.

Chris Farkas is a Realtor with EXIT Realty in Bellingham, WA

The Housing Crisis Explained - A Guide for Home Buyers

by Brandon Cornett

What is going on with the U.S. economy right now, and how does it affect people who are trying to get a mortgage and buy a home? This explanation will give you a better understanding of the economic and housing crisis in this country, as it pertains to people who are trying to buy homes.

This article was written in October 2008, a time of economic hardship and uncertainty in the United States. The housing crisis has grown into a full-blown economic crisis, and it has changed the "rules" of home buying. As a result, home buyers in this country have become increasingly confused and frustrated. Many are having trouble qualifying for mortgages, even when their credit scores are decent.

But based on the emails we receive at the Home Buying Institute, the biggest frustration among consumers in general (and home buyers in particular) comes from a lack of understanding. Many people simply don't know how we got to this point, what the housing crisis means to them, and where we are headed in the future.

I can't help with future aspect of it -- my crystal ball is broken at the moment. But I can help you understand the history of our housing crisis and how it affects you in the present. Let's start by taking a look back...

Planting the Seeds of a Crisis

Real estate is a perpetual cycle of ups and downs. But once in a while, certain factors combine to create a "perfect storm" of housing bust. This is what we are seeing now. But while many factors have led to our housing crisis, most economists point their fingers at one cause above all others -- the subprime mortgage market.

As the name implies, a "subprime" loan is one given to a person with a bad credit score. Because of this low score, the borrower will not qualify for the best interest rates and will be given a rate that is below prime, hence the term subprime mortgage.

Now take this concept and multiply it many thousands of times over, and you will begin to see what caused the housing crisis in this country. Despite warnings from economists in the mid 1990s and early 2000s, these subprime loans were given out in staggering numbers.

Often, the lenders would downplay the risks associated with them, and would offer a low "teaser" rate for the first few years of the loan. After the adjustment period, however, the interest rate on the loan would skyrocket. Many people found they could no longer afford their mortgage payments. So then we saw record numbers of home foreclosures sweeping across the country.

This is not an article about who's to blame. But, if forced to point a finger at somebody, I would say the blame could fall equally onto three groups:

1. The home buyers / borrowers who did not do enough research (blinded by the desire to own a home).


2. 2. The lenders who downplayed the risks of subprime ARM loans (blinded by greed).


3. 3. The federal government who looked the other way (blinded by all of those campaign contributions from the lenders).

What This Crisis Means to Buyers

So we have explained the primary causes of this crisis. But what does this housing crisis mean to you, if you're planning to buy a home soon. For one thing, it means you will need a better credit score to (A) qualify for a home loan and (B) get the best rate on that loan. Tougher regulations were put in place as a result of the housing crisis, and these regulations do what should have been done years ago -- they discourage banks from lending to people with bad credit (among other things).

On top of that, we are seeing financial institutions fail because of all the bad loans they made in the past. So banks today are a lot less inclined to make what they feel is a risky loan.

Let's assign some actual numbers to this explanation so it makes more sense:

I recently saw Jean Chatzky, the financial editor for the Today Show, describing how the housing crisis has affected borrowers, in terms of their credit scores. She explained something we have already talked about. Home buyers today need better / higher credit scores to qualify for mortgage loans. She then backed this up with numbers that were derived from polls of the lending industry.

• In May of 2006, a borrower needed a credit score of 620 or above to qualify for the best interest rates on a mortgage.


• Two years later, after the housing crisis and all of its fallout, borrowers would need a score of 760 or above to qualify for the best rates.

That's a significant change, and it shows you how this crisis affects buyers who need mortgage loans. The bottom line is that banks are not taking any risks with subprime loans or borrowers with bad credit these days. As a result of the housing crisis, the bar for mortgage qualification has been raised.

What Can You Do?

I frequently get emails from people who say something like this: "I have bad credit but I want to buy a home. How should I go about it?" In other words, these people are asking how to get a subprime loan. Evidently, they do not watch or read the news.

My response to such questions is always the same -- don't do it! Buying a home with bad credit is virtually impossible right now. And even if it were possible, it would be the worst financial move you could make in this economy. People with bad credit should "hunker down" and focus on improving their credit scores before they do anything else. Wait until the housing market shows signs of recovery. Wait until you have the kind of credit score that will allow you to qualify for a loan, and to get a decent interest rate on that loan.

Good Deals for Buyers With Great Credit

But what about home buyers who have excellent credit? Ah, now we are getting to the ray of light in all of this gloom. If you have solid credit, you could actually benefit from the effects of the housing crisis explained previously.

As we discussed, there are fewer buyers today because of the tighter lending standards. People are having trouble qualifying for mortgages. There are also more homes on the market, because so many homeowners have to sell in order to avoid foreclosure. High supply and low demand creates a buyer's market, and this is exactly what we are seeing in many cities across the U.S.

So if you are a buyer with excellent credit, you could get a good deal on a home right now. Of course, no one can predict what will happen to the value of the home after you buy it. But at least now you can go into it with a better understanding of how the housing crisis affects you.

* Copyright 2008, Brandon Cornett. You may republish this article if you retain the citation notes and hyperlink below.

Citation Note: This article was created by Brandon Cornett, publisher of the Home Buying Institute. HBI offers consumer advice on mortgage loans, home buying, credit information and more. Learn more by visiting: http://www.homebuyinginstitute.com

Chris Farkas is a Realtor with EXIT Realty in Bellingham, WA

Home Inspection Tips for Home Buyers

by Brandon Cornett

The home inspection is an essential part of the home buying process. In this article we will talk more about the home inspection, how it works, how to find an inspector, and related topics.

What Does a Home Inspector Do?

In short, an inspector checks the safety and functionality of your potential home. He will focus primarily on the structural and mechanical aspects of the home (as opposed to cosmetic or aesthetic items).

It's a good idea to get a home inspection as soon as possible after the seller accepts your offer. This will help you determine if there are any major problems with the property -- and sooner is better than later. You should also make the purchase agreement / contract contingent upon the home inspection. That way, if the inspection uncovers a major flaw that you're unwilling to accept, you have a legal way out of the contract.

Don't confuse this process with the home appraisal process. The appraisal protects the lender's financial interests in the property. The home inspection protects your interests, as the buyer. The appraisal is the bank's way of determining whether or not the house is worth the price you've agreed to pay for it. The inspection is your way of identifying structural or mechanical problems with the house. Two different things entirely.

Where to Find an Inspector

Finding a qualified home inspector is usually fairly simple. Here are some ideas:

• Ask a friend or coworker who has recently bought a home in the area.



• Ask your agent if he or she can recommend a qualified person for the job.


• Visit the American Society of Home Inspectors website at ASHI.org.


• Visit the National Association of Home Inspectors website at NAHI.org.

When you find a candidate, ask how many home inspections he has done. Also ask what certifications he carries. The person you choose should be certified by one of the national associations.

Who's Fixing What?

So you've found someone to inspect the property, and he has come back with a list of discrepancies. Now what? When you review the inspector's list with your agent, you'll have to decide which items (if any) you want the sellers to repair. Like nearly everything else in the home-buying process, the fix-it list is negotiable. When you submit your list of requested repairs to the sellers, you face one of several outcomes:

1. The sellers will agree to fix all of the items.


2. They will only agree to fix some of the items.


3. They will refuse to fix anything (most common in a seller's market).


4. The seller will reduce the price in lieu of certain repairs.

How you proceed in light of the seller's response is up to you, with your agent's input. A good rule of thumb -- don't ever turn a blind eye to a major repair issue just because you're excited about getting in the house. If you're an experienced investor and you're buying the house specifically to fix it up, that's one thing. But if you're buying your first home, be conservative and carefully consider each item on the inspector's list. It will benefit you in the long run.

* Copyright 2008, Brandon Cornett. You may republish this article if you retain the citation notes and hyperlink below.

Citation Note: This article was created by Brandon Cornett and has been published with permission by the Real Estate Articles Center. Find similar articles by visiting the center online at: http://www.armingyourfarming.com/articles/

Chris Farkas is a Realtor with EXIT Realty in Bellingham, WA

FHA Home Loans to the Rescue - Help for Homeowners

by Brandon Cornett

You can't turn on the TV these days without seeing a news story about the U.S. economy in general and the housing market in particular. Starting in 2007, we began to see record numbers of home foreclosures, a trend that continued into 2008 (and one that shows no sign of slowing).

But for many homeowners, help is on the horizon. And it comes in the form of FHA refinance loans. Let's take a closer look at this new program and what it promises to do.

Housing and Economic Recovery Act

The recently passed Housing and Economic Recovery Act of 2008 will help "at least 400,000 families" who are struggling with their mortgage payments and facing foreclosure. It will do this by providing FHA-insured refinance loans to switch the homeowners from high-rate ARM loans to lower fixed-rate mortgages. For those accepted into the program, the end result will be a lower monthly payment and more desirable fixed rate that will no longer adjust / increase.

History of the FHA

The Federal Housing Administration was created in 1934, during the Great Depression, to make home financing available to a greater number of Americans. The FHA does not actually make home loans to consumers. Instead, they insure certain loans made by private lending institutions.

You've probably heard the term "government-backed financing" before. The FHA program is an example of this. By having government insurance in their favor, private lenders are more willing to offer mortgages to borrowers they normally wouldn't qualify (due to credit problems or other qualification issues). The lender is assured of getting their money back on the loan, even if the homeowner defaults and stops making payments. That's what the FHA insurance does.

The Refinancing Angle

Traditionally, the FHA program was focused on helping buyers in the purchase of a home. But as a result of the aforementioned Housing and Economic Recovery Act, the program is being opened up to homeowners who want to refinance. According to the HUD website, "an estimated 400,000 borrowers in danger of losing their homes will be able to refinance into more affordable government-insured mortgages." The program is slated to begin in October of 2008. To find out if you are eligible, visit the HUD website or refer to the Home Buying Institute resources mentioned at the end of this article.

Getting Away from ARM Loans

The goal of this new program is two-fold. It is designed to help struggling homeowners who have adjustable-rate mortgages (ARMs) convert to fixed rates. It's also designed to lower their mortgage rates in the process. Lower rates and less uncertainty -- a double win.

* Copyright 2008, Brandon Cornett. You may republish this article if you retain the citation note below.

Citation Note: This article was created by Brandon Cornett and has been published with permission by the Real Estate Articles Center. Find similar articles by visiting the center online at: http://www.armingyourfarming.com/articles/

Chris Farkas is a Realtor with EXIT Realty in Bellingham, WA

No-Nonsense Guide to Home Buying - 12 Steps to Success

by Brandon Cornett

In the last few years, the process of buying a home has been altered by the so-called mortgage crisis and the continued evolution of online real estate tools. So in this article, we will take a fresh and modern look at the process of buying a house. More specifically, I will outline the general process in twelve clear steps.

1. Check Your Credit

Credit scores have always been important for home buyers, but they are more in the wake of the mortgage meltdown of 2007 - 2008. According to industry experts, home buyers in 2006 needed a credit score of at least 620 to qualify for the best interest rates on a loan. Two years later, borrowers needed a score of 760 or higher to get the best rates. That's a much stricter requirement!

So your first step should be to review your financial situation. Order your credit reports from Experian, Equifax and TransUnion, and check them for errors. Order your credit score (different from your reports) to see how you stack up against the national average. If necessary, focus on improving your score by paying down credit card balances, making all future payments on time, etc.

2. Determine Your Budget

Don't make the mistake of letting a mortgage lender tell you what you can and cannot afford, in terms of a monthly mortgage payment. In reality, the only thing a lender can tell you is the amount you qualify for -- not the amount you can realistically afford. In other words, you should determine your home buying budget for yourself. There are a lot of free mortgage calculators online that can make this process easier for you.

3. Research and Choose a Type of Mortgage

Do you know the difference between a fixed-rate mortgage and an ARM? This is just one of the things you need to understand before applying for a mortgage loan. Because of increased competition in the lending industry, there are more types of home loans today than ten years ago. The key to success when choosing a mortgage is to consider your long-term plans and find a loan that matches those plans. To do this, you must learn the pros and cons of the primary loan types.

4. Get Pre-Approved for a Loan

Pre-approval is a process in which the mortgage lender reviews your financial and credit history to determine your "creditworthiness" ... an industry term that means: "How much of a risk is this person, and how much are we comfortable lending?" When you get pre-approved for a certain loan amount, there's a good chance that you'll receive final approval for that amount as well, when the time comes.

Having a pre-approval letter in hand also shows sellers that you are serious about (and capable of) purchasing their home. This can make a big difference in hotter real estate markets, where the seller may receive multiple offers from competing buyers.

5. Find a Real Estate Agent

If you are buying a home for the first time, or in a new city you're not familiar with, it's wise to hire a professional real estate agent. When you compare the amount of money you'll pay for a new home with the size of the agent's commission, you'll see that it's worthwhile to hire an agent. Choose an agent who specializes in helping buyers, as opposed to sellers.

6. Narrow Your Search

The neighborhood you choose is nearly as important as the house itself, because both have a direct bearing on your quality of life -- not to mention the future resale value. For these reasons and more, it's always best to live in a city for a while before buying a home, even if it means renting an apartment for a while. That way, you can discover which areas you like best before committing to an area.

7. Begin House Hunting

This is where you and your agent visit properties in order to find one that matches your needs. Here are some helpful tips. Take a digital camera with you to get pictures of each home. This will help you recall the details later on. Bring a notepad as well, and for the same reason. While you're at it, you might want to bring a friend along for an unbiased opinion of each property -- you know, that outspoken friend who calls it like it is.

8. Evaluate the Asking Price

It's referred to as the "asking price" for a good reason. Just because a property is listed at $250,000 doesn't necessarily mean it's worth that amount. This is another area where it helps to have a real estate agent. Most agents are expert at validating sale prices against recent sales in the area, and that's the best way to find out if the price is realistic or inflated.

9. Make an Offer

Once you've determined that the price is fair and reasonable, you are ready to make an offer on the property. Always make the offer contingent upon the home inspection (see next item). That way, if the inspector uncovers an issue that you consider a deal breaker, you have a way out of the contract. Ask your agent about contingencies.

10. Get a Home Inspection

Most inspections only cost a few hundred dollars. That's a small price to pay for the peace of mind you get in return. A home inspector will review the structural and mechanical aspects of the house, including (but not limited to) the roof, foundation, electrical, and heating / cooling system.

11. Attend the Closing / Settlement Process

So, you've made it through all of the inspections and the process is still on track. Great! The next step will be the closing / settlement process (it goes by different names in different parts of the country). Actually, you can prepare for this process early on by putting extra money aside. This is when the title to the property is transferred from the seller to the buyer. You'll also be signing a lot of paperwork and paying any other fees that are due.

12. Tie Up Loose Ends

After your move, you'll have a few more things on your task list. Transfer your utilities if you haven't done so already. Complete a change-of-address form with the post office. Get a safe deposit box for your home insurance policy and other important documents. Set up a mortgage payment schedule or an online auto-pay system. And give yourself a pat on the back ... you're now a homeowner!

About the Author: Brandon Cornett is the publisher of many consumer-education websites, such as the Home Buying Institute and the Software Learning Center. To reach the author, please visit his software website at www.LearnAboutSoftware.com

Chris Farkas is a Realtor with EXIT Realty in Bellingham, WA

Mortgage Loan Rates - 5 Things a Home Buyer Should Know

by Brandon Cornett

Buying a home requires plenty of homework (no pun intended). There are new concepts to grasp, unfamiliar terminology to learn, and plenty of decisions to make along the way.

The mortgage loan interest rate is one of the topics that confuse a lot of home buyers, especially the first-time buyers who are new to the process. So in this article, I'll explain how an interest rate gets applied to a home loan, and how it affects you as the borrower.

5 Things a Buyer Should Know

• The rates offered by a lender will vary from one person to the next. It's largely based on a borrower's credit score. The higher your score, the better the rates you'll be offered when applying for a loan. This is why you see so much fine print on the advertisements of mortgage companies -- there's a lot of variance involved. So when they offer a "teaser rate" in their marketing materials, it may or may not apply to you.



• The interest rate is one of four factors that will determine the size of your monthly mortgage payment. Collectively, these factors are referred to with the acronym PITI. The 'P' stands for the principal amount you borrow. The first 'I' stands for the interest you pay on the loan. The 'T' is for taxes on the home. Lastly, the final 'I' is for insurance (i.e., the homeowner's policy you are required to have before closing.)



• In order to qualify for the best rates on a mortgage loan, borrowers need a higher credit score today than they needed just a few years ago (a 750 or higher in many cases). If you've been watching the news lately, you can probably guess why. The subprime mortgage mess of 2007 - 2008 has led to tougher restrictions on lenders. In turn, the lending institutions have tightened up on their loan criteria for qualification, rate assignments, etc.



• Every buyer should study the key differences (and pros and cons) between adjustable and fixed-rate home loans. With an adjustable mortgage, or ARM, the interest rate will typically start out low for an introductory period. This period commonly lasts for three to five years, after which the loan will adjust or "reset" to a higher rate. In many cases, this increase can be significant and will therefore lead to a bigger mortgage payment each month.



• For buyers who plan to remain in a house longer than three to five years, the fixed-rate mortgage is usually the best option. As the name suggests, this type of loan will carry the same level of interest for the entire time you're paying it (regardless of what the economy does). This offers a level of financial certainty, which for many borrowers is all the reason they need to choose this option over the ARM.

Clearly there is much more to learn about interest rates, as they apply to buying a house. But I hope the points I've made above give you a better understanding of this subject. I recommend you learn more about each of the items covered above, particularly the pros and cons of adjustable versus fixed mortgages. Being an educated consumer is the first step toward success in the real estate world.

About the Author: Brandon Cornett is the publisher of many consumer-education websites, such as the Home Buying Institute and the Software Learning Center. To reach the author, please visit his software website at www.LearnAboutSoftware.com

Chris Farkas is a Realtor with EXIT Realty in Bellingham, WA

6 Reasons to Stage Your Home Before Selling

by Brandon Cornett

Why should I bother staging my home? What do I get back for all the time and effort I put in? This is one of the most common home staging questions among sellers, especially those who are selling in a seller's market.

Here's the bottom line: Staging your home can benefit you regardless of what type of real estate market you are in.

In a buyer's market, you will need every advantage you can get in order to sell your home for a decent sale price, so it's extra important to stage your home effectively. But even in a seller's market staging can help you achieve a quick sale for the maximum sale price.

So no matter what kind of real estate market you are in, it's always wise to stage your home for the market.

Here are some of the primary benefits you will get out of it:

Home Staging Benefits

• Forces you to organize and de-clutter. Clearing away shelves, closets and cabinets is a big part of the home staging process. It also helps with moving, because you'll have to pack things away at some point anyway. So when you stage your home, you will also get a head start on packing to move.



• Forces you to think like a buyer. When you set out to stage your home for the market, you will be looking at the home as if you were a buyer. Adopting this perspective early on will help you in many ways when preparing your home for the market.


• Increases likelihood of a sale. When selling your home, you must do everything within your power to increase your chances of selling -- and I mean everything. Professional home staging techniques can give you an extra edge in selling the home quickly.


• Reduces the home's time on market. When you put in the extra effort to stage your home effectively, you will move closer to a quick sale. Anyone who has sold a home before can attest to the fact that the least time the home is on the market, the better. This is especially important if you will be paying two mortgages until the home sells (as is the case when you buy a new home before selling the old one).


• Helps justify the asking price. If you are in a seller's market and you price your home correctly, you probably won't have to haggle over the asking price. But in a market that leans toward the buyer, you need everything in your favor to justify the asking price. Proper home staging can help you justify the asking price by positioning the home more favorably in the buyer's mind.


• Staging can be fun! It may sound like all work and no play at first. Granted, you will certainly be putting some elbow grease into the process. But staging a home can be a creative process as well, and many people find they enjoy it once they've begun.

With so many benefits to staging a home, the question isn't why should you stage your home. The question is why wouldn't you?

About the Author: Brandon Cornett is the publisher of The Staging Bug, a website that offers home staging advice advice for sellers. For more great tips and ideas, visit http://www.stagingbug.com.

Chris Farkas is a Realtor with EXIT Realty in Bellingham, WA

How to Lower Your Home Insurance Costs

by Brandon Cornett

When you buy a home, your mortgage lender will require a homeowners insurance policy in order to protect their interest in the home. In most cases, the lending institution owns most of the home during the first years of the home, until the homeowner gains equity. So it only makes sense that lenders want to protect their investment in the home.

But this policy protects your investment in the home, as well. It gives you peace of mind that, in the event of a loss, you will be covered in some form or fashion. So you should make sure you get solid coverage from a reputable insurance provider.

With that being said, it sure is nice to save money wherever possible. And this goes for insurance policies as well. Here are some of the ways you can lower the overall cost you pay for a homeowners insurance policy.

Compare Insurance Companies

When you compare one provider to another, you are doing two important things at once. First, and most obvious, you are finding out who offers the lowest rates for a comparable level of coverage. Secondly, you are learning about the different types of coverage these companies provide, including the many components that make up a policy, the terminology associated with it, etc. Both of these items are important when trying to lower the cost you pay out of pocket.

Save Time by Using the Internet

The good news is that you can conduct much of the above-mentioned research fairly easily, just by using the Internet. In the past, you had to make a lot of phone calls (or even office visits) to compare insurance companies and policies. There are many big insurance websites that allow you to do this. But as always, watch out for scam websites that ask for too much personal information up front.

Another benefit to getting a home insurance quote online is the speed factor. Using the Internet, you can accomplish in a few hours what used to take a few days or even weeks.

Improve Your Credit Score

These days, in the wake of the subprime mortgage crisis of 2007 - 2008, it's more important than ever to have a good credit score. For one thing, mortgage lenders require that borrowers have higher scores these days to get the best loan rates. But there's another good reason to maintain good credit. Many insurance companies are beginning to use this factor when determining the price for policies.

Raise Deductible to Lower the Costs

The deductible is the money you would pay toward a loss before your insurance policy would cover the rest. If you have coverage on your car, you are probably familiar with the concept of deductibles. It's the same basic concept with a homeowner policy.

You can lower your premium by raising your deductible amount. Many financial experts recommend doing this as a way of lowering premium costs. The logic is that you know for certain that you'll pay the premium on your policy, but there's only a small statistical chance of suffering a loss and having to file an actual claim. So this approach seeks to lower the amount you know you're going to pay (the premium) by increasing the amount you may never have to pay (the deductible).

Purchasing insurance for your home can be a balance between cost and coverage. You want to control the former without sacrificing the latter. I hope this article has given you the knowledge and confidence you need to accomplish these goals.

About the Author: Brandon Cornett is the publisher of Homeowners Insurance World (a new service of the Home Buying Institute). To learn more about this important topic, or to get online quotes, visit the author's website at http://www.homebuyinginstitute.com/insurance

Chris Farkas is a Realtor with EXIT Realty in Bellingham, WA