TIPS FOR PURCHASING OR BUILDING A HOME

Purchasing a home is the biggest financial investment you will likely make. The decision to buy a home should be well thought out and planned. Here are some tips on making this process as smooth as possible.

 

 

 

Visit www.hud.gov for information regarding home-buying programs available in your area.

 

Optional Points and Interest Rates

 

Lenders often give you the option to pay an upfront fee in order to reduce your interest rate over the life of your loan. This is called points.

 

If you are planning on staying in your home for at least 3-5 years, it might be in your best interest to pay this initial cost in order to save yourself interest expense in the long run. This is optional. Without the purchase of points, you may pay a higher interest rate.

 

Adjustable-Rate Mortgages & Fixed-Rate Mortgages

 

Do your research.

 

Knowing the difference between a fixed- and adjustable-rate mortgage will help you in the financing process.

 

 

Should You

Hire a Realtor?

 

Having a realtor gives you an advantage in a competitive sales market. They do the research to find homes in the areas you are interested in and are respectful of any budget you set. Realtors often have the advantage and access to homes that may be coming up for sale but are not yet listed on the open market. When you hire a realtor, it is the job of this professional to advise you in all aspects of the home-buying process. A realtor often can tell you whether the sales price of a home is appropriate based on the surrounding market, the school district and other factors that can affect the value of a property. Realtors also have the power of negotiation; when you hire a realtor, you have a professional working for you to get you the best home for your money.

 

HOW WILL A MORTGAGE AFFECT YOUR FINANCES?

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