Tired of Paying Rent



Tired of Paying Rent? Having thoughts of buying a home?

If you’ve never looked into home ownership, it can seem like a involved and confusing process. But, with help, buying a home can be pleasant and rewarding.

Here are some tips you can use to better prepare for purchasing your first home:

1. Think carefully about your buying goals. For most people, homeownership is an integral part of the American Dream, and the advantages (tax benefit, sense of community, financial investment) far outweigh any drawbacks. Talk to a financial planner, mortgage broker, or Realtor® to understand the financial benefits you can achieve with having a home.

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2. Check your credit. Your credit history is one of the first things a mortgage lender will review, so request a copy of your credit report from one of the major credit reporting agencies (Equifax 800-685-1111, Experian 888-397-3742, TransUnion 800-888-4213). You can also ask your Realtor® to connect you with their financial officer, who can easily pull your credit report and review it with you. Review it carefully and if you find discrepancies, work with the credit agencies to resolve them. Try to do this three months before you apply for a home loan. Once you have started addressing any financial weaknesses, do not make any other significant purchases until after you have closed escrow on your home.

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3. Save for your down payment and closing costs. The down payment is seemingly one of the biggest barriers, but many mortgage lenders now offer low down payment loans. Three to five percent down payments are commonly available, and there are some loans that require no down payment. Ask your Realtor® about closing costs and other expenses, such as inspections. As a first time homebuyer, you may qualify for one of the many programs and grants available to first time buyers.

4. Get pre-approved for a home loan. Ask your financial officer to pre-approve you for a mortgage. This service is usually free and it lets you know how much house you can afford before you start your home search. Ask for a monthly mortgage amount for your pre-approval – this is usually easier to understand when looking at your finances. Also be aware that the mortgage quotes are usually limited to principle and interest. You may also be required to escrow your taxes and insurance, which will increase the monthly amount. CAUTION: Many people start their searches for mortgage brokers on the internet. While they may advertise low rates, they may in the long run not be worth the savings. Ask for an estimate of ALL expenses associated with the loan and whether they will attend your closing with you to review your loan papers.

5. Investigate where you want to live. The more you know about your likes and dislikes, the easier the home search will end up being. Think about which areas you spend most of your time, where your friends, family, job, church and favorite restaurants are. If you have a family or are planning one, check into the school districts or options for private schools. Your Realtor® can provide you with area demographics and school reports to help you in your search.

6. Learn as much as you can. Many mortgage lenders, non-profit organizations, and real estate companies offer home buyer education classes to prepare you for owning a home. Classes normally walk you through the basics of home buying and how to manage the responsibilities of homeownership.

7. Use a Realtor® Did you know that as a buyer, it may cost you nothing to use a Realtor in purchasing your home? The sellers pay the commission on the home sale. Buying or selling a home is a complicated and time consuming process. Your Realtor® can help you objectively evaluate homes and put together a strong and fair offer. This initial agreement is only the beginning of a process of appraisals, inspections and financing -- a lot of possible pitfalls. Your agent can help you write a legally binding, win-win agreement that can be successfully executed.

IF YOU HAVE QUESTIONS,

CALL ME

Diane Beppler

484-431-8693

Diane Beppler, Realtor

484-431-8693

Keller Williams Real Estate

Brandywine Valley Office

610-399-5100

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