Why do I need to check my credit prior to buying a house?

The lender will obtain a credit report. If you look at it prior to a loan application, you have a chance to clean up detrimental items before you have to explain them to the lender. Also, if your score is low, you can do specific things to increase your score such as paying down debt, increasing cash in the bank, and making payments consistently on time, over a period of time.

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Is it more expensive to rent or to own?

Owning a home is often considered the better deal, but keep these considerations in mind:

• Many home buyers do not build any equity in the first few years-the bank takes it all in interest-and many move before they begin building equity

• Purchasers costs often increase due to mortgage interest adjustments, payment adjustments, increased property taxes, insurance premium increases, and maintenance costs

• The tax break for owning a home only kicks in if the deductible expenses (such as interest) are higher than the standard deduction

• There are other reasons that may make renting a better option:

• Many maintenance and repair costs belong to landlord

• Easier relocation for job opportunities without having the cost and hassle of reselling your home

• Often, more convenient access to transportation, employment, retail entertainment, and other common facilities

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How do I know how much house I can afford?

Generally speaking, you can purchase a home with a value of two or three times your annual household income. However, the amount that you can borrow will also depend upon your employment history, credit history, current savings and debts, and the amount of down payment you are willing to make. You may also be able to take advantage of special loan programs for first time buyers to purchase a home with a higher value. Give me a call, and we I help you find out exactly how much you can afford.

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How much cash will I need to purchase a home?

The amount of cash that is necessary depends on a number of items. You will need to supply:

• Earnest Money: The deposit that is supplied when you make an offer on the house

• Down Payment: A percentage of the cost of the home that is due at settlement

• Closing Costs: Costs associated with processing paperwork to purchase or refinance a house 

 

What does my mortgage payment include?

For most homeowners, the monthly mortgage payments include three separate parts:

 

• Principal: Repayment on the amount borrowed

• Interest: Payment to the lender for the amount borrowed

 

Taxes & Insurance: Monthly payments are normally made into a special escrow account for items like hazard insurance and property taxes. This feature is sometimes optional, in which case the fees will be paid by you directly to the County Tax Assessor and property insurance company.

 

How do I know which type of mortgage is best for me?

Generally speaking, you can purchase a home with a value of two or three times your annual household income. However, the amount that you can borrow will also depend upon your employment history, credit history, current savings and debts, and the amount of down payment you are willing to make. You may also be able to take advantage of special loan programs for first time buyers to purchase a home with a higher value. Give me a call, and I can help you find out exactly how much you can afford.