A home purchase is one of the most important financial decisions you will make in your lifetime. Here are FIVE tips to help you get started in your home buying journey.
As your Mortgage Agent, I will work with you figure out all of your mortgage options and get the right combination of mortgage features, privileges and rate to suit your needs. The right mortgage goes beyond just the rate –it’s important to also consider term, prepayment options, refinancing penalties, restrictions, and fees. I’d be happy to help you build a strong Home Buyer’s Resource Team so that all aspects of your home buying experience are efficient and professional. In addition to myself as your Independent Mortgage Agent, your team will include a realtor, lawyer, an insurance professional, a home inspector, and even a home design consultant, should you need one.
Before you start shopping for a home – and before you consider making an offer – build a realistic budget. Remember that home ownership involves costs beyond the monthly mortgage payment, heat, property taxes, and your credit card payments. Using the Real Debt To Service Ratio, a formula I created, you will be able to figure out exactly how much house you can afford based on your income and your financial obligations. Don’t get into a mortgage without getting clear with your numbers!
Your dream house may be priced too high, and offer way more house than you need right now, so consider a starter home as you begin your journey as a home owner. You can take advantage of today’s low interest rates to get you into the market, and use the equity you build over time to buy that dream home down the road.
There are additional costs that come with buying a home – legal fees, land transfer or similar tax, an appraisal, a home inspection, title insurance, moving expenses, etc. – so you’ll need to have some extra funds set aside to cover these costs. Generally, you can expect to pay between 1.5% and 2% of the home purchase price in total closing costs. For more clarification on these costs, and even some hidden ones, request my Free Report entitled “9 Mistakes Home Buyers Make & 5 Secrets They Need To Know To Avoid Making Them”
A mortgage is the largest debt you will probably ever take on, and paying it down faster can mean large savings on interest costs over the long-term. Get in the habit of making lump sum payments whenever possible, and consider making accelerated bi-weekly payments as a way to decrease the life, or amortization, of the loan. As your Mortgage Agent, I can also provide strategies to help you pay your mortgage off faster and shave thousands off of your interest costs. Learn more.
9 Mistakes Home Buyers Make, and 5 Secrets You Need To Know To Avoid Making Them
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