1. Pay your bills on time, and don’t carry balances. Poor credit means higher interest rates. These days, poor credit can mean the difference between being an owner and a renter.
2. Don’t forget taxes. In addition to your mortgage payment, you’ll have to pay taxes and insurance. Sometimes this is excluded from your mortgage payment, so when you get your loan make sure it includes an escrow account for taxes and insurance.
If you file a Section “A” and take deductions, you can deduct your mortgage interest and property taxes. Owning might seem to cost more than renting, but what you save in taxes may make up the difference.
***Check with your tax professional ***
3. Know your REALTOR®’s role. Typically you pay nothing to your agent – the seller does.
4. Get a professional home inspection as part of any offer you make. You’ll learn the condition of the property and what repair bills you might face down the road.
5. Get pre-approved by a lender so you know how much you can buy and borrow. A formal pre-approval document marks you as a serious buyer.
6. Save. You’ll need money for a down payment and closing costs.
7. Look at FHA, VA, and state-backed loan programs.
8. Hit up your family. 22% of first time home buyers receive gifts from relatives and friends. Some companies offer grants and incentives to workers who are buying a first home.
9. Look at bank owned properties for extra credit. Current law provides for a credit of $7500 that has to be paid back over 15 years. Pending legislation may up that amount and change it from a loan to a straight credit so check with your agent or lender before closing.
10. Act now but be patient. If you have the down payment and can afford the payments, buying now makes a lot of sense. There’s tons of inventory for you to choose from, interest rates are low and sellers (mostly banks) are ready to deal. On the other hand, because you’ll be dealing with a bank instead of a seller it’s going to take longer to get your offer accepted and you may need to go through the process on a couple of properties before it all come together. It will take about 30-45 days from when the bank accepts your offer until you close and move in.
Always enjoy your communications. You have very good topics and always helpful. Keep up the good work and look forward to seeing you alll at the Family Reunion. I will send any referrals for LV to you only. You deserve them.
I just had a client move to LV and he is living with him brother temporarily. Hopefully he will need a home soon.
Bill Anderson