Should I buy a house today?
A Home Is a Better Place to Raise a Family
Don’t take my word on this. When Fannie Mae asked current renters for the major reason to buy a house in their National Housing Survey 2010, these were the answers renters gave (they could pick multiple answers):
* 78% said it was a good place to raise children
* 75% said because they would feel safe
* 70% said because you have control of your own space
With interest rates under 4.5% you can own some homes for less than renting. Call me today and see how you can become a home owner.
Saturday, July 31, 2010
Friday, July 23, 2010
Do you have cash reserves?
Cash Reserves
Buyers, when you apply for a mortgage loan, the lender is going to request your bank account information. They will check again just a few days before your closing date. They want to know how much money you have in the bank, and whether or not you can afford your closing costs. They also want to make sure you have enough to cover your first couple of mortgage payments. This is referred to as “cash reserves.” The amount needed will vary based on lender and loan program. Just know that the lender is going to scrutinize your liquid assets.
Buyers, when you apply for a mortgage loan, the lender is going to request your bank account information. They will check again just a few days before your closing date. They want to know how much money you have in the bank, and whether or not you can afford your closing costs. They also want to make sure you have enough to cover your first couple of mortgage payments. This is referred to as “cash reserves.” The amount needed will vary based on lender and loan program. Just know that the lender is going to scrutinize your liquid assets.
Monday, July 12, 2010
QUESTION: Should you focus more on your rate or getting a price reduction?
QUESTION: Should you focus more on your rate or getting a price reduction?
ANSWER: Price swings are sign of the times. For potential buyers who are waiting to see if home prices come down a little more, that means the wait could well cost you more money in the long run.
Let's look at an example: A homebuyer wants to buy a home that costs $300,000. But the buyer wants a better deal on the home, so he/she delays a transaction until the home is reduced by $10,000. If, in the meantime however, rates were to rise .75% to 6.00% and the buyer financed 90% of the purchase price, the amount of total payments over a 30-year term would be over $35,000 more than paying the $300,000 purchase price and locking in the 5.25% interest rate. In other words, the buyer would save $10,000 only to end up paying $35,000 more.
Now these prices and rates are just for the sake of example. But the point is that home prices are already very affordable...and rates are still at historic lows for now. So in the end, waiting for a home price to reduce may end up costing you much more than you expect if rates rise.
ANSWER: Price swings are sign of the times. For potential buyers who are waiting to see if home prices come down a little more, that means the wait could well cost you more money in the long run.
Let's look at an example: A homebuyer wants to buy a home that costs $300,000. But the buyer wants a better deal on the home, so he/she delays a transaction until the home is reduced by $10,000. If, in the meantime however, rates were to rise .75% to 6.00% and the buyer financed 90% of the purchase price, the amount of total payments over a 30-year term would be over $35,000 more than paying the $300,000 purchase price and locking in the 5.25% interest rate. In other words, the buyer would save $10,000 only to end up paying $35,000 more.
Now these prices and rates are just for the sake of example. But the point is that home prices are already very affordable...and rates are still at historic lows for now. So in the end, waiting for a home price to reduce may end up costing you much more than you expect if rates rise.
Friday, July 9, 2010
Save for Closing costs
Closing Costs
Closing costs are the various fees, taxes and other costs associated with buying a home. They include such things as attorney fees, property survey fees, title insurance, recording fees, home appraisal and more.
Depending on where you live, your closing costs could add up to $3,000 or more.
In some cases, the seller may contribute money toward the buyer’s closing costs. This is often the case in a buyer’s market, when sellers are more motivated. But even in such cases, you’ll have to pay something toward your closing costs. This is another reason why it’s so important save money.
Closing costs are the various fees, taxes and other costs associated with buying a home. They include such things as attorney fees, property survey fees, title insurance, recording fees, home appraisal and more.
Depending on where you live, your closing costs could add up to $3,000 or more.
In some cases, the seller may contribute money toward the buyer’s closing costs. This is often the case in a buyer’s market, when sellers are more motivated. But even in such cases, you’ll have to pay something toward your closing costs. This is another reason why it’s so important save money.
Thursday, July 8, 2010
Save up for your home-buying
Saving, Why is this so important? Here is good reason to save up for your home-buying process:
1. Down Payment
When you buy a home, you’ll have to make a down payment of some kind. The days of “no money down” ended when our economy collapsed. Almost 100% of lenders today will require you to put some money down. The amount needed will vary, based on the type of loan you are using. With an FHA home loan, you can put as little as 3.5% down. With a conventional mortgage (one that’s not backed by the government), you’ll need to put even more money down. Many buyers aim for a 20% down payment, to avoid paying private mortgage insurance.
1. Down Payment
When you buy a home, you’ll have to make a down payment of some kind. The days of “no money down” ended when our economy collapsed. Almost 100% of lenders today will require you to put some money down. The amount needed will vary, based on the type of loan you are using. With an FHA home loan, you can put as little as 3.5% down. With a conventional mortgage (one that’s not backed by the government), you’ll need to put even more money down. Many buyers aim for a 20% down payment, to avoid paying private mortgage insurance.
Wednesday, July 7, 2010
Save even More with lower intrest rates
Buyers who jumped to get the tax credit most likely received an interest rate of 5%-5.25%. That $8,000 is mild in comparison to the payment savings a 4.5% 30yr rate will generate over the life of a mortgage. Call me today to see some great homes. 608-214-9844
Why can't I buy a home?
First-time home buyers are often surprised by the total costs associated with buying a home. Some buyers don’t even realize that a lack of cash reserves can hurt their chances of getting a loan. But it happens all the time. In fact, a lack of up-front cash is one of the most common reasons for mortgage rejection. That’s why it’s important for future home buyers to start saving money early on.
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