many people, the thought of buying a home can be frightening.
But it is only frightening when you are alone in an unfamiliar
place. Well, here's some good news. Home ownership in America
is at record levels, with many of them first time buyers, just
like you. And the best news, you are not alone. Your MAINGATE
associate will lead you through the home buying process, helping
you every step of the way. We know what to expect on most occassions,
and we will share that experience with you.
probably have many questions. And every question is a good one.
Questions like should you buy now or just keep renting, how much
cash will you need, can you do this yourself or do you need a
REALTOR, just to name a few. Well, we are glad you asked.
should I buy, instead of rent?"
With every rent check you write, you're helping to build equity
in someone else's property, most likely your landlord. That money
could be going toward building equity in a home of your own. Today's
interest rates are low enough that your house payment could be
lower than your current rent payment!
are many advantages to owning a home, including:
Satisfaction - Home ownership offers special
advantages that make life more enjoyable - backyard barbecues,
large family gatherings during holidays, a home workshop, a chance
to enjoy your family's companionship in the privacy of your own
home. You'll love the feeling of having something that's all yours
- a home where your own personal style will tell the world who
you are. A thriving vegetable garden in the backyard, a tiled
entryway, a yellow kitchen...when you own, you can do it all your
way! But there's more to owning a home than personal satisfaction…
Security - A feeling of security that comes from
owning a home and the knowledge that your home is a safeguard
Investment - Payments on your mortgage loan mean
you are acquiring a major possession; instead of rent, you own
more and more. The garden you plant, the permanent improvements
you make - all enhance your way of living as well as the value
of your home. Another financial plus in owning a home is the possibility
its value will go up through the years.
Tax Advantage - Your real estate taxes and the
interest on your mortgage are deductible from your income tax.
You can deduct the cost of your mortgage loan interest from your
federal income taxes. And interest will compose nearly all of
your monthly payment , for over half the number of years you'll
be paying your mortgage. This adds up to hefty savings at the
end of each year. And you're also allowed to deduct the property
taxes you pay as a homeowner. If you rent, you write your monthly
check and it's gone forever.
Financial Independence - Most people start on
the road to financial independence through home ownership. Your
principal and interest payments remain the same for the full term
of your mortgage while your rent usually goes up as the cost of
Environment - Your children grow up in the neighborhood
of your choice.
Cash Equity - Better than a savings account,
your home can appreciate to keep pace with inflation.
much money will I have to come up with to buy a home?"
Well, that depends on a number of factors, including the cost
of the house and the type of mortgage you get. In general, you
need to come up with enough money to cover three costs: earnest
money - the deposit you make on the home when you submit your
offer, to prove to the seller that you are serious about wanting
to buy the house; the down payment, a percentage of the cost of
the home that you must pay when you go to settlement; and closing
costs, the costs associated with processing the paperwork to buy
When you make an offer on a home, your real estate broker will
put your earnest money into an escrow account. If the offer is
accepted, your earnest money will be applied to the down payment
or closing costs. If your offer is not accepted, your money will
be returned to you.
The more money you can put into your down payment, the lower your
mortgage payments will be. Some types of loans require 10-20%
of the purchase price. That's why many first-time homebuyers turn
to HUD's FHA for help. FHA loans require only 3% down - and sometimes
Closing costs - which you will pay at settlement - average 3-4%
of the price of your home. These costs cover various fees your
lender charges and other processing expenses. When you apply for
your loan, your lender will give you an estimate of the closing
costs, so you won't be caught by surprise. If you buy a HUD home
(http://www.hud.gov/offices/hsg/sfh/reo/reobuyfaq.cfm ) HUD may
pay many of your closing costs.
"Do I Need a REALTOR® ?"
A real estate transaction is complicated. In most cases, buying
or selling a home requires disclosure forms, inspection reports,
mortgage documents, insurance policies, deeds, and multi-page
government-mandated settlement statements. A knowledgeable guide
through this complexity can help you avoid delays or costly mistakes.
and make the experience much easier.
Finding the right home is time consuming. With immediate access
to homes as soon as they're put on the market, your REALTOR can
save you hours of wasted driving-around time.
Real estate has its own language. If you don't know a CMA from
a PUD, you can understand why it's important to work with someone
who speaks that language.
REALTORS® have done it before. Most people buy and sell only
a few homes in a lifetime, usually with quite a few years in between
each purchase. And even if you've done it before, laws and regulations
change. That's why having an expert on your side is critical.
REALTORS® provide objectivity. Since a home often symbolizes
family, rest, and security, not just four walls and roof, home
selling or buying is often a very emotional undertaking. And for
most people, a home is the biggest purchase they'll every make.
Having a concerned, but objective, third party helps you keep
focused on both the business and emotional issues most important
to you. If you would like more information on the benefits of
having a Realtor represent you in the purchase of a new home,
contact MAINGATE @ 407-354-1159 or click here!
specific questions about the home buying process, ask your MAINGATE