Get a pre-approved loan
You need to know how much the lender will lend you (very important). How much down payment, 3%, 10%, especially if you are getting .lowest interest rate try for NO MONEY DOWN, (the money you saved for home buying keep it for emergencies).
Once the offer is accepted by the seller, check thoroughly, check the house in and out, make sure the home is structurally sound, roof is not lacking and with
No other problems, If the inspection team reports any problems (even though you gave a deposit) you are off the hook. Move on to the next one, don’t stop there or discouraged. You have the right to cancel your purchase, demand your deposit back immediately.
Usually lenders such as FHA mortgage required inspection. In other terms if the seller agrees to fix all the problems or give you the credit for the repair, then still you like the terms go for it by all means.
Advantage of Buying a Home
- Pride of home ownership (American Dream)
- Home is your own; you can do anything with it
- Tax write off (Mortgage interest deductions, taxes, if you use a room for business more write off, consult your tax adviser)
- Appreciation, you may be building equity, net worth,(real-estate moves in a cycles)
- Capital Gains Exclusion
- More room for your family
- If you take a fixed mortgage you know each month your payment
- If you buy at the end of the term (or whenever) sell the property and keep the money in your pocket
Disadvantage of home ownership
- Yard work
- Fixing roof
- Utility costs
- Insurances expenses
- Property taxes
- Mortgage debt
- When repair comes you have to spend money
- Difficulty to sell immediately if you to move
Advantages of Renting
- When cash flows are considered renting costs less
- If you rent there are no ownership responsibility
- No taxes to pay, no expenditures
- There are more facilities such as, swimming pools, gym, and playground kids in the vicinity. All free
- Renting is only temporary, any time after lease term ends, you can pack and leave
- You know each month your rent payment
- Zero maintenance, No repair costs
- Flexible living apartment may be safe
- Elderly people renting relives them of real-estate burdens
Disadvantage of home ownership
- Each month you throwing money away
- Little privacy
- Rent may increase
- There may be various restrictions that landlords impose on you from time to time
Applying for a mortgage loan
Here is the main part, (Money), Even though you are pre-approved still need to shop around for the best terms, speak at least 3 different lenders,
Including your credit union (if you have one), On-line companies, such as lending tree, FHA, . There are many lending institutatios, many loans at a different rate, and terms available you can get the mortgage.
I personally speaking get a 30 year home mortgage. You pay each month if you have extra money pay an extra payment any time, the more you pay you can pay off your mortgage sooner than you think.
- Ask you for your W2 or 1099 forms
- Tax return for the past few years,
- Your bank statement
- Remember your credit score is very important, If you have an A plus
- You can walk away with best rate.
- Credit check
This information varies from lender to lender.
- Home owner’s insurance policy
- You must complete a loan application and provide above details for loan approval.
Final step closing the loan, this may be the last step, then your mortgage are recorded you will receive your KEY for your new home…DONE.
There are many resources available; Home buying process involves a number of specialized people with specific task
Housing consular, real-estate agent, the lender, appraiser, surveyor, Title Company, inspector, credit reporting agency, insurance agent escrow
Company, contact each of them and get as much information needed to make educated decision If you do all the that you can enjoy your new home years to come.
Make it shopping for a new home is fun, exciting for everyone, however if can be pain taking stressful. You can make it a positive experience.
Get as much help from the following,
- Housing education agencies,
- Forecloses prevention
- Rental consulting,
- Pre-purchasing consulting
- Post purchase consulting
- Family education,(loan packaging)
If they cannot help you ask for other agencies that can help you
If you are facing a four-closers don’t let that happen, soon call any of the then ask for help, these either government agencies or non-profit organization.
This this may cost you nothing for these valuable services from them
Do not pay any money for any of the services yoy receive.