Archive for September, 2014

Are You Buying a Home?

Obtain a pre-approved mortgage:
Before house hunting, obtaining a pre-approved mortgage enables the homebuyer to determine how much money they qualify for, and how much they can afford to spend. With a pre-approved mortgage in hand, homebuyers can have confidence that adequate financing is in place before the hunt begins.
A pre-approved mortgage loan is a lender’s commitment to lend to the homebuyer, the loan amount and interest rate up front.
Determine how much you can afford:
Your pre-approved mortgage establishes the maximum amount of loan you’d qualify for, but there are other important considerations. You may need to adjust your lifestyle. You may think that you can handle a sizable mortgage payment, but keeping it up month after month may require cutting back on other expenses, such as clothing, travel, eating out, and entertainment! In addition to your mortgage, consider other related homeowner costs – property taxes/insurance, landscaping, and yearly maintenance/upkeep. Also, allow for a “contingency fund” to cover unexpected expenses – very important – often overlooked! Without such, life’s unexpected surprises can add an unwanted source of stress to your homeowner experience.
Wants vs. Needs:
Buying a home is fraught with emotion. Step back and determine what amenities you absolutely need to fit your realistic lifestyle, and search for a home that fits those needs.
Buy or Rent?
Consider your long term goals, your lifestyle desires/needs, and your employment stability. If you plan to move in less than 3 years, renting may be a better option. We are here to help you with these considerations.