First Time Home Buyers - What You Need to Know
Here are some quick tips to help in your decision to become a homeowner or to remain a renter.
Home prices are way down, there are multitudes from which to select, and mortgage interest rates are at an all time low. There can be a major tax advantage: Your mortgage- loan interest and property taxes are deductible. In the early years of repayment, your mortgage is mostly interest and property tax. As you pay down your loan, you automatically build equity in your property that could appreciate over the years of ownership.
Home ownership is a commitment. If you anticipate moving in the next few years or if you or a spouse plans to take maternity leave & your family income is significantly reduced, this may not be the right time for you to make this leap. Selling a home in this market is time consuming and costly.
Save yourself a lot of time and agony - find out what you can afford. Before you can make a formal offer on a property, you must have a Loan Status Report (an LSR). During this pre-approval process, take your time and interview several lenders. Finding the loan officer that can provide you with a suitable loan and examining their loan rates and fees can take several weeks. This process not only provides you with the LSR document, it also demonstrates your seriousness and willingness to perform. A good loan officer will take the time to explain the process, which can feel daunting & overwhelming with terminology! A smart realtor will save themselves and you a lot of frustration and can help you stay within your budget by demanding this document before you ever set foot in their car.
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