Can I Purchase A Home? Questions To Ask Before You BuyCan I purchase a home? This great guide will help you answer that question and quickly get you on the road to home ownership! 1. Why should I buy, instead of rent? Your home is an investment. When you are renting, you write a monthly check, and that money is gone forever. However, when you own your home, you have the ability to deduct the cost of your mortgage loan interest from your federal income taxes, and usually from your state taxes. Doing this saves you a a considerable amount each year, since the interest you pay makes up most of your monthly payment for a large amount of the years of your mortgage. You can also deduct the property taxes you pay as a homeowner. In addition to these benefits, the value of your home may go up over the years. Finally, you'll enjoy having something that's completely yours--a home completely belonging to you.
2. Should I use a real estate broker? How do I find one? Using a real estate broker in the search for your home is a great idea. There is a myriad of details involved in home buying--particularly the financial ones. The process can feel mind-boggling, especially to new homebuyers. Having a skilled real estate professional can guide you through the entire process and make the experience much easier. They can help you determine the price range you can afford and search the classified ads and multiple listing services for homes you'll want to see. With immediate access to homes as soon as they're put on the market, the broker can save you hours of wasted search time. When it's time to make an offer on a home, the broker can point out ways to structure your deal to save you money, and will explain the advantages and disadvantages of different types of mortgages, guide you through the paperwork, and be there to hold your hand and answer last-minute questions when you sign the final papers at closing.
3. Can I become a home buyer if I have had bad credit, and don't have much money for a down-payment? Yes. In fact, you might be a good candidate for one of the federal mortgage programs. You can start by contacting one of the HUD-funded housing counseling agencies that can help you sort through your options. Also, contact your local government to see if there are any local home buying programs that might work for you.
4. How much money will I have to come up with to buy a house? It depends on a number of factors which include the cost of the house and the type of mortgage you get. Keep in mind though that in general, you do need to come up with enough money to cover three costs. Earnest money, which is 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; the down payment, which is a percentage of the cost of the home that you must pay when you go to settlement; and closing costs, the costs associated with processing the paperwork to buy a house.
5. How do I know if I can get a loan? It's easy--just use our simple mortgage calculators to see how much mortgage you could pay, which is a good start. If the amount you can afford is significantly less than the cost of houses that you're interested in, then you might want to wait a bit longer. A mortgage broker will know what kinds of mortgages the lenders are offering and can help you choose a lender with a program that might be right for you. You may also choose to get pre-qualified for a loan, which will speed the process once you do find the home of your dreams. Lender 411 has many options for every homebuyer to get you into the home of your dreams--and fast! Browsing our toolbox will prepare you for homeownership before you buy. |
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