Buying my first house!!!

[Marquoz]

If you haven't signed the paperwork yet, make sure to check a few things. YSP - Yield Spread - This is what the loan originator makes for jacking your interest rate up. ARM - Adjustible Rate Mortage - do NOT get one of these pure and simple, you WILL have to refinance it in two years, another way to milk you for money. Do not fall for a bait and switch at the closing table, make sure that the quote on the rate you got initially is the same as the one at the closing table, do NOT be afraid to walk, they can and will be able to get it lowered within 24 hours and reclose. Ask as many questions as you want at the closing table, do NOT let the lawyer rush you through it saying sign sign sign. You are signing something that is 10-30 years worth of you paying, make SURE you 100% understand EVERY little detail. This can and will screw up your credit if you don't understand it completely. Escrows are a great thing! You pay your taxes and insurance monthly versus having this huge single lump sum every year. Homestead Exemption is also great depending on the city you live in. Where I live, you deduct $75,000 off the value of your house if you file for the exemption come tax time. It is a huge saving.


That said, CONGRATS! It's a great thing owning your first house. As people said, if you are paying enough the tax deduction is awesome!