Buying your first home can be confusing. Securing a mortgage is one of the most important parts of the home buying process. Making sure that you have the right loan and have chosen the right loan officer are among the things a first time buyer has to do to start the process. Here are some more tips on how to ensure a successful purchase:
1. Make sure your deposit is in order. Talk to your loan officer about what amount of a deposit is required for the purchase and type of loan. You will also want to make sure the funds are accounted for and readily available. You can expect deposits to run anywhere between 3 and 20 percent of the purchase price.
2. Plan to have a cash reserve in addition to your deposit. You may want to have a reserve of at least two months mortgage payments.
3. Ask your lender to go over all the fees that apply to the purchase. It is better to be prepared and know how much the actual purchase will cost. These costs are typically added into your loan but there may be some out of pocket expenses too.
4. Consider how much you can comfortably afford not how much you have been approved for. These numbers may vary considerably. Your mortgage costs should not be more than 30% of your household income.
5. The lowest rate is not always the best deal. You will want to look at not only the rate but also the terms and fees associated with the loan.
The price is going up at the pump.Paying for gas is becoming more and more of a budget buster; Consumer Reports‘ tests show how to get the best gas mileage
The best way to burn less fuel is to buy a car that gets better gas mileage. Consumer Reports tests with a Toyota Camry and other vehicles show there are ways to minimize what you spend at the pump with your current car.
Drive at a moderate speed
This is the biggest factor. You may have to be a little patient, but driving at 55 mph instead of 65 or 75 will save you money. When we increased the Camry’s highway cruising speed from 55 mph to 65, the car’s fuel economy dropped from 40 mpg to 35. Speeding up to 75 mph cost the car another 5 mpg. One reason is that aerodynamic drag increases exponentially the faster you drive; it simply takes more fuel to power the car through the air.
Drive smoothly
Avoid hard acceleration and braking whenever possible. In our tests, frequent bursts of acceleration and braking reduced the Camry’s mileage by 2 to 3 mpg. Once up to speed on the highway, maintain a steady pace in top gear. Smooth acceleration, cornering, and braking also extend the life of the engine, transmission, brakes, and tires.
Reduce unnecessary drag
At highway speeds, more than 50 percent of engine power goes to overcoming aerodynamic drag. So don’t carry things on top of your vehicle when you don’t have to. Installing a large Thule Cascade 1700 car-top carrier on our Camry dropped its gas mileage from 35 mpg to 29 at 65 mph. Even driving with empty racks on the car reduces its fuel economy.
Don’t use premium fuel if you don’t have to
If your car specifies regular fuel, don’t buy premium under the mistaken belief that your engine will run better. The only difference you’ll see is about 20 cents more per gallon. Most cars are designed to run just fine on regular gasoline. Even many cars for which premium is recommended will run well on regular. We have found that the differences are imperceptible during normal driving. Check your owner’s manual to find out if your engine really requires premium or if you can run on other grades.
Minimize driving with a cold engine
Engines run most efficiently when they’re warm. In our city-driving tests, making multiple short trips and starting the engine from cold each time reduced fuel economy by almost 4 mpg. Engines also produce more pollution and wear faster when they’re cold. When possible, combine several short trips into one so that the engine stays warm.
Keep tires properly inflated
The Camry experienced a 1.3 mpg loss in highway fuel economy when the tires were underinflated by 10 psi. More important, underinflated tires compromise handling and braking, and wear faster. And they run much hotter, which can lead to tire failure. Check the pressure of your vehicle’s tires at least once a month with a tire gauge. The owner’s manual explains how to do it.
Buy tires with lower rolling resistance
A tire’s rolling resistance can add or detract another 1 or 2 mpg. In our tire ratings, look for high-rated tires with low rolling resistance. They generally won’t cost more, and replacing a worn tire could save you more than $100 a year in fuel.
Avoid idling for long periods
Think of it this way: When you’re idling, your car is getting zero miles per gallon. When we let a Buick Lucerne, with a V8, idle for 10 minutes while warming up, it burned about an eighth of a gallon of gas. A smaller engine would probably burn less, but idling still adds up over time. As a rule, turn off your engine if you expect to sit for more than about 30 seconds. An engine warms up faster as it’s driven anyway.
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