Buying a new home is the biggest investment you will make. There are many misconceptions when it comes to purchasing a home. I have listed 10 things you NEED to know when buying a home. When working with a mortgage professional you should have more than one loan option to choose from. It is always best to talk to a mortgage professional before looking for a home. This will allow you to get pre-approved so that you know what payments are comfortable for you, and can look at home in that price range.
10 things you NEED to know when Buying a Home
- You do not need perfect credit - There are loans for almost every type of credit.
- You do not need 20% down to purchase a home - There are many loan programs that do not require a down payment at all.
- Using a Realtor to find the home of your dreams will not cost you money - When you use the help of a Realtor to find a home, the Realtor is paid by the seller of the property.
- A home inspection is not required - However, an inspection by a certified inspector is HIGHLY recommended. The inspector will do a complete inspection of the home and could save you thousands of dollars in the long run.
- You can ask the seller to help pay closing costs - The seller of the home you are purchasing may be willing to contribute to your closing costs to decrease the amount of money you will need at closing.
- Mortgage Insurance (PMI) is not always required when you put down less than 20%- There are different loan programs that do not require you to have Mortgage Insurance (PMI), check with your mortgage lender.
- An escrow account is not always required if your down payment is less than 20% - You may be able to pay your own taxes and insurance for your property if you do two loans
- You can use child support, social security income, and disability income to help you qualify - If you are able to show at least 3 years of continuance of any of these types of income, they can be used
- FHA is not only for First Time Home Buyers - You can purchase a home with an FHA loan even if you have purchase a home before.
- The house that has been on the market for a while will not go for ten of thousands of dollars less - Even though this is a buyers market, typically the asking price for the home is based on the current sales. A seller will not always be receptive to a much lower offer just because the house has been on the market for several months.
Kim Murphy ~1st Advantage Mortgage~ Helping you purchase the home of your dreams in DuPage, Kane, Lake and Cook Counties for over 10 years.
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