Are you a 1st Time Homebuyer?
The following information is for you
Why should I buy, instead of rent?
A home is an investment. When you rent, you write your monthly check and that money is gone forever. But when you own your home, you can deduct the cost of your mortgage loan interest from your federal income taxes, and usually from your state taxes. This will save you a lot each year, because the interest you pay will make up most of your monthly payment for most of the years of your mortgage. You can also deduct the property taxes you pay as a homeowner. In addition, the value of your home may go up over the years and you are building equity. Finally, you'll enjoy having something that's all yours - a home where your own personal style will tell the world who you are.
Where do I start?
Find a qualified buyers representative. A buyer's representative is an advocate for the buyer - not the seller - in a real estate transaction, providing you the expertise you need through the entire process. According to NAR research, buyers who work with a buyer's representative find their homes quicker; while viewing more properties in their search, than buyers who do not engage a buyer's representative. I am a quakified Buyer's Representative willing to offer you all my expertise in finding your dream home.
Do I need to assess my credit and finances?
Yes! In the beginning of your home search, it is wise to check your credit rating even if you're sure you have an excellent credit rating. The Fair Credit Reporting Act allows consumers to obtain one free credit report from each of the major reporting bureaus every 12 months. To obtain a report, visit www.annualcreditreport.com - the only authorized source for consumers to access their credit report online for free. Or call 877-322-8228.
| The 3 Major Credit Bureaus are:
Information Service Center
P.O. Box 740241
Atlanta GA 30374-0241
National Consumer Assistance Center
P.O. Box 949
Allen TX 75013-0949
|Trans Union Corporation|
Customer Disclosure Center
Springfield PA 19064-0390
How much money will I have to come up with to buy a home?
Well, that depends on a number of factors, including the cost of the house and the type of mortgage you get. In general, you need to come up with enough money to cover three costs:
- earnest money - the deposit you make on the home when you submit your offer, to prove to the seller that you are serious about wanting to buy the house.
- down payment - a percentage of the cost of the home that you must pay when you go to settlement.
- closing costs - the costs associated with processing the paperwork to buy a house.
When you make an offer on a home, your real estate broker will put your earnest money into an escrow account. If the offer is accepted, your earnest money will be applied to the down payment or closing costs. If your offer is not accepted, your money will be returned to you. The amount of your earnest money varies.
The more money you can put into your down payment, the lower your mortgage payments will be. Some types of loans require 10-20% of the purchase price.
Closing costs - which you will pay at settlement - average 3-4% of the price of your home. These costs cover various fees your lender charges and other processing expenses. When you apply for your loan, your lender will give you an estimate of the closing costs, so you won't be caught by surprise.