Buying can seem daunting, especially when there are so many little things to do. So, let’s talk about what to expect. Before you begin looking at homes, you will need to do 2 important things.
1) Talk to a Lender. A mortgage lender will run your credit against your income and tell you how much you qualify for.
2) Save your money!! You will need to make an investment in your future home. This up front fee is known as a downpayment, but there are other items you’ll want to pay for to make sure you’re buying the best home you can afford.
Once you have these two items, you can call a realtor to begin looking inside homes. When you go under contract (that means you’ve made an offer on a place that has been accepted), you will submit something called Earnest Money.
This is typically a couple thousand dollars written in a check, that gets held by the local title company. These funds apply toward your downpayment.
You’ll have two other upfront costs once you’re under contract and these are very important.
1) Home Inspection: In our area, a home inspection can run anywhere from $300-700 based on the square footage of your house. It’s a good idea to have at least $500 saved for this. And believe us, it’s always a wise idea 
to have a home inspection.
2) Appraisal: Your lender will order an appraisal, which is a report of valuation on your home. Depending on your type of loan and how big your down payment is, there will be a certain value your home needs to meet to close the loan. Expect to pay $750 for this report.
How much do I really need for a down payment?
Most first time home buyers qualify for FHA loans, which require 3.5% of purchase price as a down payment. So, on a $150,000 home, an FHA down payment would be $5,250. In our area, there is also a Rural Deve
lopment loan that you can qualify for with as little as 2% down. Every buyer has a unique financial map, so be sure to ask your lender about all of your options.
Now that you know what to expect, you should not make any huge changes while under contract. Changes such as getting married or divorced, quitting your job, buying a new car, or overdrafts on your bank accounts can all disqualify you from your home loan.
Once you’re prepared, the home buying process is less daunting, and you’ll impress your realtor. Happy hunting!
We all still have time to begin and finish those things that we thought we would prior to the end of year!
If you have a personality like me I encourage you to MAKE YOUR PLAN NOW! Decide on what you want to happen before the year is over and get busy on your plan. There is still time….. Here is a list of some things that you still have time to do!
Winter is approaching and the bitter cold will be here before we know it. Winterizing your home has many benefits and will save you money in the long run. Fall is an excellent time to get prepared and make repairs before the big storms hit. Here are a few simple, low cost tips that will protect your home from the elements.
1. Keep the drafts out! An easy and cost efficient fix is a draft snake or stopper! You can purchase them or easily make one yourself out of a rolled up towel or fabric filled with sand. All you have to do is slide that under the door and the draft will disappear. Pre-made draft stoppers can be purchased for as low as $5.00. Now that’s a cheap way to keep your heating bill down!
ways check the windows, doors and walls for any holes. If you can feel a breeze then it is time to get them sealed! Caulk can be purchased for as low as $4.00! Come on, you can’t beat that over an outrageous energy bill!
er think twice about it. Try setting it to 120 degrees and see if your bill is slightly lower.
