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There are some great tips in this video, like:
if possible, take photographs of each house: the outside, the major rooms, the yard and extra features that you like or ones you see as potential problems.
Write things down as you go. And don’t hesitate to return for a second look.
Use the HUD Home Scorecard (www.hud.gov/buying/checklist.pdf) to organize your photos and notes for each house.
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As we show you in this video, in addition to comparing the home to your minimum requirement and wish lists use the HUD Home Scorecard and consider the following:
Bring a tape measure to better answer these questions and write down your measurements.
Imagine the house in good weather and bad and in each season. Will you be happy with it year-round? Take your time and think carefully about each house you see. Keep the scorecard and notes for each one.
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The video puts this in more visual terms, but basically, contact the local Chamber of Commerce for promotional literature or talk to your real estate agent about welcome kits, maps, and other information.
You can get information about school systems by contacting the city or county school board or the local schools.
You may also want to visit the local library. It can be an excellent source for information on local events and resources and the librarians will probably be able to answer many of the questions you have.
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Like the video says, the two don’t really compare at all.
The one advantage of renting is being generally free of most maintenance responsibilities. But by renting, you lose the chance to build equity take advantage of tax benefits and protect yourself against rent increases.Also, you may be at the mercy of the landlord for housing.
Owning a home has many benefits. When you make a mortgage payment, you are building equity increasing YOUR net worth.
Owning a home also qualifies you for tax breaks that assist you in dealing with your new financial responsibilities like insurance, real estate taxes, and upkeep which can be substantial. But given the freedom, stability, and security of owning your own home they are worth it.
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As you’ll see in the video, the lenders consider your debt-to-income ratio, which is a comparison of your gross (pre-tax) income to housing and non-housing expenses.
Non-housing expenses include such long-term debts as car or student loan payments, alimony, or child support.
According to the FHA, monthly mortgage payments should be no more than 29% of gross income, while the mortgage payment, combined with non-housing expenses, should total no more than 41% of income.
Lenders also consider cash available for down payment and closing costs credit history and the rest of your financial picture when determining your maximum loan amount.
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Remember these pointers from the video: start by thinking about your situation.
After you answer these questions, make a “To Do” list and start doing casual research. Talk to friends and family, drive through neighborhoods, and look in the “Homes” section of the newspaper, or online.
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Watch this video and take a few notes! There are three major credit reporting companies:
Obtaining your credit history is as easy as calling and requesting one. Once you receive the report, it’s important to verify its accuracy.
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As we show you in this video, a credit bureau score, or “credit score” is a number based upon your credit history that represents the possibility that you will be unable to repay a loan.
Lenders use it to determine your ability to qualify for a mortgage loan.
The better the score, the better your chances are of getting a favorable loan.
Know your score and ensure that lenders have current information about it.
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Like the video shows, your home should fit the way you live, with spaces and features that appeal to the whole family.
Before you begin looking at homes make a list of your priorities – things like location and size.
Establish a set of minimum requirements and a ‘wish list.” Minimum requirements are things that a house must have for you to consider it while a “wish list” covers things that you’d like to have but that aren’t essential.
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Every house is unique; appraisers are trained and licensed for expertise in putting a value on properties.
Appraisers don’t work for the buyer or the seller; their primary mission is actually to protect the lender who’s risking money against the home’s value.
Appraisers have to weigh factors about the property and location – including size, condition and comparable properties – to appraise its current value.
They know how to focus on conditions that affect value; dishes in the sink don’t; damage and neglect do.
Appraisals lower than the proposed purchase price can affect transaction details. The seller might have to lower the price or the buyer might have to increase down payment or fund additional escrow.
Appraisal seems a lot like inspection, but they’re not the same.
You can think of it this way:
So – expect both appraisal & inspection in your transaction.
