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Getting Started
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| Am I ready to buy a home? |
You can find out by asking yourself
some questions:
- Do I have a steady source of income? Is my current income reliable?
- Do I have a good record of paying my bills?
- Do I have few outstanding long-term debts, like car payments?
- Do I have money saved for a down payment?
- Do I have the ability to pay a mortgage every month, plus additional
costs?
If you can answer "yes" to these questions, you are probably
ready to buy your own home.
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| What do I do first? |
| Start by
thinking about your situation. Are you ready to buy a home? How much can
you afford in a monthly mortgage payment? How much space do you need? What
areas of town do you like? After you answer these questions, make a 'To
Do" list and start doing casual research. Talk to friends and family,
drive through neighborhoods, and look in the "Homes" section of
the newspaper |
| Is buying better than
renting? |
The two don't
really compare at all. The one advantage of renting is being generally
free of most
maintenance responsibilities. But by renting, you lose the chance to build
equity, take advantage of tax benefits, and protect yourself against rent
increases. Also, you may not be free to decorate without permission and
may be at the mercy of the landlord for housing.
Owning a home has many benefits. When you make a mortgage payment, you are
building equity. And that's an investment. Owning a home also qualifies
you for tax breaks that assist you in dealing with your new financial
responsibilities - like insurance, real estate taxes, and upkeep - which
can be substantial. But given the freedom, stability, and security of
owning your own home, they are worth it. |
| How much can I afford? |
| The lender
considers your debt-to-income ratio, which is a comparison of your gross
(pre-tax) income to housing and non-housing expenses. Non-housing expenses
include such long-term debts as car or student loan payments, alimony, or
child support. According to the FHA, monthly mortgage payments should be
no more than 29% of gross income, while the mortgage payment, combined
with non-housing expenses, should total no more than 41% of income. The
lender also considers cash available for down payment and closing costs,
credit history, etc. when determining your maximum loan amount.
Of course, these are only general guidelines. There are plenty of
exceptions as well. Your best bet is to call our office and arrange for a
FREE review of your financial situation. The entire process takes just a
few minutes and, when we are done, you will know exactly how much you can
afford. |
| How do I select the
right real estate agent? |
| Hire a
professional. Look for an agent who listens well and understands your
needs, and whose judgment you trust. The ideal agent knows the local area
well and has resources and contacts to help you in your search. Overall,
you want to choose an agent that makes you feel comfortable and can
provide all the knowledge and services you need. Please contact us. |
| What's the right home
for me? |
| Your home
should fit the way you live, with spaces and features that appeal to the
whole family. Before you begin looking at homes, make a list of your
priorities - things like location and size. Should the house be close to
certain schools? your job? to public transportation? How large should the
house be? What type of lot do you prefer? What kinds of amenities are you
looking for? Establish a set of minimum requirements and a "wish
list." Minimum requirements are things that a house must have for you
to consider it, while a "wish list" covers things that you'd
like to have but aren't essential. |
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