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Purchasing a home is a very exciting time.
Being well prepared helps ensure the process runs smoothly and decisions are made to serve your best interest. When we conduct your purchase settlement, you will have the benefit of an experienced Attorney working on your behalf to negotiate and close your transaction.
Here is some helpful information to help you with the purchase of your new home.
Am I really ready to buy?
Buying a home offers many advantages. One of the most significant is that it allows you to build equity (ownership) when you pay your mortgage each month. A common myth is that monthly mortgage payments are more expensive than rent. In many cases, mortgage payments are even less than rent. When considering home ownership for the first time, you need to decide whether buying makes financial and practical sense for you right now or if you are better off renting. Consider both the advantages and disadvantages to renting as well as buying, and weigh the pros and cons for your particular situation.
How much “house” can I afford?
The first step toward finding the right home is to quickly compute your purchasing power and determine how much you can afford to pay each month. This saves you time by allowing you to focus on homes in your price range.
In addition, you should consider both the up-front and ongoing costs associated with purchasing a home in the planning stage.
Some up front costs include:
- Down payment: Typically ranges from 3-30% of the cost of the house. The more you can put down, the greater equity you will have in your home and the lower your monthly payment will be. For down payments less than 20%, you may also need to pay mortgage insurance.
- Closing Costs: Typically range from 2-6% of the loan amount depending on your area.
- On-going Costs include:
- Monthly mortgage payment
- Mortgage Insurance, if applicable
- Flood Insurance, if applicable
- Property taxes
- Utilities
- Homeowners insurance
- Maintenance
How much can I get pre-qualified for?
Before you look for a home, know if you are financially able to get a mortgage and have an estimate of what you pre-qualify for from a lender. If you are working with a real estate agent, getting pre-qualified lets them know you are a knowledgeable and serious buyer.
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