Buyer Tips & Tools
Benefits to Owning a Home
The key benefits of investing in a home include appreciation, home equity, tax deductions, and deductible expenses. A home can be a great long-term investment if you are able to build equity. That is key. Real estate generally appreciates not just because of the home itself, but also because of the property it is located on. Location is always considered a key factor in home prices and values.
Preparation of Purchase
Things to prepare for when buying a home or property:
Setting a Budget
- You will need to know how much you can afford.
- You will most likely need to have a down payment.
- Know what your current credit score is. This determines your interest rate.
- Know what your debt-to-income ratio is.
Get Pre-Approved /
Find a Lender
- Be sure to get more than one loan quote to ensure you are receiving the best interest rate and loan terms for your mortgage.
- Make sure you check the daily rates before you lock in your rate to ensure you are getting the lowest rate possible.
- Interest rates will determine how much a mortgage will cost each month.
- Make sure you are aware if this is a fixed or adjustable term loan.
- Make sure you know the term or mortgage length (ex; 15 years, 30 years, etc). The longer the repayment term, the lower the payments will be. Also, the longer the loan the interest being paid will be higher.
Finding a Home
- First, find a Realtor. Make sure they are an expert, and trustworthy, and knows the area(s) you are looking in.
- Provide your Realtor with a list of needs and important things that you want in your new home. This will help them weed out anything that doesn’t meet your criteria.
- Visit many different homes before making your choice.
Making An Offer
- This is where you let your Realtor do their job. Your Realtor will be looking for signs of problems in the home, or current market trends that may influence or affect the price of the home. Listen to your agent, as this is their specialty and what they do every day. They are representing you to protect you.
Home Inspections
- A home inspection is a vital part of the home buying process. These ensure the homes foundation, ceiling, heating, electrical, wall, plumbing, roofs, drainage systems and entryways are all up to certain standards. Sometimes the lender will require a home inspection, but usually they leave it to they buyer to purchase. A home inspections is typically done 10 days from an accepted offer to get the home inspected.
Home Insurance
- Is required by the Lender at the time of closing. Once you have chosen a company to insure your home or property, the cost is normally added into your closing costs and new monthly payment and sent into an escrow account to be paid to the insurance company each year by the lender.
