Tell a sales clerk in your favorite department store that you wish to
purchase a blouse or pair of slacks and they will ask: "Will that be cash,
check or charge?" Sounds like a simple choice, doesn't it? Tell homeowners
you wish to purchase their home, however, and you will find the payment
choices almost endless.

Many changes in mortgage financing took place in the 1980s, and the '90s
have continued that trend. Less than 5% of all homes are sold for cash, thus
there is a continuing demand for widely varied mortgage repayment plans
which meet the financial needs of buyers.

The many plans available vary with factors such as amount of downpayment,
term in years, interest rate and type (fixed vs. variable), discount points,
origination fees, loan-to-value and income ratios, length of loan
commitment, and more.

In the recent past, homeowners selling "by owner" could call a mortgage
lender, ask for a quotation on interest and points and be reasonably certain
they would remain constant until a buyer was found. Today, interest rates,
points and mortgage requirements change often, sometimes daily.

Wise buyers contact a real estate agent first, before beginning their home
search. In-depth knowledge of the local mortgage market is just one of many
valuable services available from an agent. To a buyer, being pre-qualified
for a mortgage means having the freedom to select a home without fear of
rejection. To sellers, buyer pre-qualification means added security that the
sale of their home will take place on time. Both buyer and seller benefit
from the financing expertise of a knowledgable real estate agent.