Frequent Buyers Questions

A home is an investment. When you rent, you write your monthly check and that money is gone forever. But when you own your home, you can deduct the cost of your home mortgage loan interest from your federal income taxes, and usually from your state taxes. This will save money each year, because the interest will make up most of your monthly payment for several years of your mortgage. You can also deduct the property taxes you pay as a homeowner. In addition, the value of your home may go up over the years. Finally, you’ll enjoy having something that’s all yours; a home of your own that you can decorate and design to fit your own personal lifestyle.

Using a real estate agent through a qualified broker, like Coldwell Banker, is the best option when looking to buy a home. All the details involved in home buying, particularly the financial ones, are difficult to understand and complicated with legal terms. A good real estate professional, like Julie,  can guide you through the entire process and make the experience much easier. A real estate agent will be well-acquainted with all the important things you’ll want to know about a neighborhood you may be considering…the quality of schools, the number of children in the area, the safety of the neighborhood, traffic volume, and more. He or she will help you figure the price range you can afford and search online through the MLS for homes you’ll want to see. With immediate access to homes as soon as they’re put on the market, the agent can save you hours driving around looking for homes and open houses. When it’s time to make an offer on a home, the agent can point out ways to structure your deal to save you money. He or she will explain the advantages and disadvantages of different types of mortgages, guide you through the paperwork, and be there to hold your hand and answer last-minute questions when you sign the final papers at closing. And 98% of the time you don’t have to pay the agent anything! The payment comes from the home seller – not from the buyer.

Use Julie’s simple mortgage calculator to see how much mortgage you could pay – that’s the perfect place to start. If the amount you can afford is significantly less than the cost of homes that interest you, then you might want to talk to Julie about other home options. She will help you evaluate your loan potential with her mortgage advisors and what kinds of mortgages the lenders are offering and can help you choose a lender with a program that might be right for you. Another good idea is to get pre-qualified for a loan from Coldwell Banker Home Loans before you actually start looking for a home. Then you’ll know exactly how much you can afford to spend, and it will speed the process once you do find the home of your dreams.

You’ll definitely have property taxes, and you also may have city or county taxes. Taxes normally are rolled into your mortgage payment.  In addition, you’ll have your monthly utilities. If your utilities have been covered in your rent, this may be new for you. Your real estate agent will be able to help you get information from the seller on how much utilities normally cost. In addition, you might have homeowner association or condo association dues.  Again, your agent will be able to help you anticipate these costs.

There are several things you should consider:

1) Is the asking price in line with prices of comparable homes in the area?

2) Is the home in good condition or will you have to spend a substantial amount of money making it the way you want it?

3) How long has the home been on the market? If it’s been for sale for awhile, the seller may be more eager to accept a lower offer.

4) How much mortgage will be required? Make sure you really can afford whatever offer you make.

5) How much do you really want the home? The closer you are to the asking price, the more likely your offer will be accepted.