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Dream Locations for Your Vacation Home
By: Roger Munns

If you are looking for a second or vacation home, you may be surprised that prices for homes on Spain's Canary Islands are looking good for investors in 2008.

The newest statistics show that prices on the islands of Tenerife and Gran Canaria have never been more appealing for those seeking a permanent home or just a home away from home. Can you imagine living in a lush tropical paradise, permanently, with a price tag that is within reach?

Experts have stated that the tourism industry for this area dropped slightly in 2007. There were nearly 250,000 fewer tourists to the islands than anticipated. This drop, as slight as it may be, has created an excellent opportunity for the potential property owner.

Tenerife is the largest of the islands and offers full amenities for both visitors and residents. Many are shocked that prices for property on this beautiful island remain well below the national average. The property values are increasing on Tenerife, as is the popularity of this vacation island, but Tenerife is still a viable option for potential residents.

Whether you're looking to buy or just want to visit a tropical locale, consider another of the Canary Islands - Lanzarote.

The island is unique from any other in the world. The volcanic activity that swept the island through the 18th and 19th centuries created a vast island that has almost lunar qualities. The volcanic surface of the island may appear strange and lifeless, at first, but the visitor quickly discovers the power of residents ingenuity.

A vineyard would be the last thing many people would expect to see on an island seemingly covered with volcanic residue, however, La Geria offers an inspiring look at how nature can triumph over the harshest circumstances. The workers of the vineyards learned to dig deep, below the volcanic ash, and plant their vines within the soil below.

Lanzarote was an incredibly fertile and productive island until the volcanic activity began. The enriched soil below the crust of ash helps roots develop, and the unique soil content gives Le Geria wines a distinctively delicate taste. Visitors are welcome at the wineries of the island and can taste and purchase the wares.

Lanzarote also offers many facilities for both residents and visitors. The Contemporary Art Museum celebrates the more traditional history of the island. Residents are also delighted to see a lack of commercialism on the island.

Tegise in Lanzarote is the former capital city, and remains one of the oldest cities along these archipelagos. Visitors and residents alike will enjoy the Sunday markets and the shops offering a variety of unique goods and products.

If you are interested in purchasing property on any of these islands, the Internet provides an impressive platform for learning more about the islands, their customs and culture and just how affordable life can be there.

Choosing the Right Mortgage
By: Jim Pow

Remember you would not buy the first house that was offered to you, so why go with the only mortgage that is offered to you. Ask for more than one good faith quotes. See what options different lenders will give you. Be sure to ask the lender to not pull your credit report, but to give you a good faith quote based on the paper credit report you will have brought to him.

Understand what your credit report says. And don’t order your credit report online. Most people order their credit report on the internet, sometimes they even get their free report. What they don’t realize is that by doing this, they worsen their credit history because when your credit score is pulled more than once, your score will lower. And it will be pulled more than once if you pull it and then the mortgage company pulls it again. Instead what you should do is order your credit report through the credit bureaus by calling their 1-800 numbers. Be careful, because they will try to tell you to obtain in on the internet, be patient, stay on the line and ask for a written copy. This copy will be your true credit report. This is what will actually be pulled up by the mortgage company.

Consider using a mortgage broker. Sure you will have to pay an additional fee, but in many instances that fee will be worth it when you get the right type of mortgage loan. A mortgage broker will help find you several loan options to choose from. You can then choose the option that best suits your needs.

When you go to a mortgage broker or a bank make sure that the bank or mortgage broker does not sell you a higher interest rate than what you qualify for. Many banks will pay a broker to sell his customer a higher mortgage rate. This is called Yied Spread Premium or YSP. So if you qualify for a 6% interest loan but your broker or bank is selling you a loan with an interest rat of 6.5% then the bank is making more money. Look for a line on your documents one that’s says YSP. If it is positive that means that you are not getting the lowest interest rate you qualify for.

How do You Avoid This?

Be upfront with your broker or banker, and negotiate. If you negotiated the price of your home, you can definitely negotiate your mortgage. Every fee on the mortgage is negotiable. The only thing you cannot negotiate on are the taxes, the filing and the insurance fees. Before deciding, get a copy of your good faith estimate, take it home and start investigating all the fees the bank or broker is trying to collect. Explain to him, what you have found out. You will soon learn that he changes things pretty fast. When you use a broker tell him that you are willing to pay up to a half point in origination fees, but that you don’t expect to pay an back end fees. He will understand what you are talking about.

Finally read your closing documents very carefully. In fact you should ask an attorney to be present. It is always better to be safer than sorry later. It is better to spend a few hundred dollars to consult an attorney now, and not find out later that you are spending thousands of dollars paying what you should not have to. Many brokers and banks feel somewhat uncomfortable and too time consuming. Generally speaking and in most cases the attorney does not find anything wrong with the closing arrangements. But you know the principles of Murphy’s law. Something may go wrong if you don’t do things the right way.

In this type of arrangement it is not wise to penny pinch. In fact be sure to always have a home inspection done. If you don’t do things you will regret it. It is always best to have spent a few hundred dollars up front. But what you want to avoid is having something BIG go wrong halfway down the loan.