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Showing posts from September, 2013

Are you financially ready to buy a home? Your cash

Are you financially ready to buy a home? Your cash
There are several expenses incurred when buying a home. These are expenses that must be paid before, at closing and after. It’s important that you have these funds ready and available once you start the process.
Some of these funds may be gifted but check with your lender. Some lender will ask for a letter stating that the funds are a gift and not a loan.
Below you will find the closing costs for a home purchased for $150,000.00 and using an FHA loan.* This is just an estimate. Exact figures will vary based on your closing date, lender and title company.

Home Price - $150,000Down Payment - $5,250Interest Rate - 3.750%PITI (principal, interest, taxes and insurance) - $1,238

Prepaid costs:Prepaid items are always required at loan closing, whereas escrow accounts are only required in certain cases. Even if you close your loan right before the month's end, you owe your lender at least a few day's worth of mortgage interest. This is be…

Are you financially ready to buy a home? Your credit

Are you financially ready to buy a home? Your Credit
The first and most crucial step to buying a home is to get your finances in order. This is very important because it will affect you for many years.
Most home buyers op for a 30 year fixed rate mortgage. What this means is that you will be paying the same mortgage payment for 30 years. The amount you pay is calculated using the home price but also the interest rate you lock in. It’s to you advantage to lock in the very lowest rate.
The difference between a 3% interest rate and a 5% interest rate on a $150,000 loan is approximately $170 extra a month; that is $2,000 extra a year on just interest! Consider this money lost because it does not go towards the price of the home.
See it for yourself, enter your own numbers in this mortgage calculator
Before you go to the bank to get pre-approved, you need to check your credit history and credit score. These two are different. Your credit history is just that, a list of places where you have e…

Are you ready to be a homeowner?

Are you ready to be a homeowner?
Buying a home is a big scary commitment. I waited until I was in my thirty’s to even consider taking on that financial burden. The entire process was overwhelming. I felt sick to my stomach for weeks and I thought I would pass out the day I had to close.
Was this the right house? Can I pay the mortgage? Is there a better property out their for me? Do I really need a house? ...and on and on and on for days.
I have now been a homeowner for 6 years and in hindsight I wish I had done it sooner. Owning a home gives you a sense of stability and privacy like nothing else. It’s your space and you can do with it as you please. I now have 3 dogs, 1 cat and two large aquariums. There is no turning back now!

I am now a proud home owner and my doggies love it :)

Financially there are several benefits as well. When renting you can’t predict how much you will be paying a few years from now. Rents are higher than ever in the Houston Metro area. I have friends that pay mo…