Buying a home in Peters Township

Posted by Julie | Comments Off

Create a budget

Creating a budget can not only help you when you are thinking of purchasing a home but it can keep you on track for other financial goals.  You would be surprised to know how much money you spend on miscellaneous items each month.  Don’t forget to include monthly utilities when considering what you feel comfortable in spending each month towards your home.  Try to have a safety nest in case things break or need fixed.

Spending a few dollars here and a few dollars there can seem innocent.  Then it adds up to tons of money everywhere.  A job loss or a sudden change in health can affect the best laid financial plans.  You will need to monitor your finances each month to keep family affairs running smoothly.  The best way to understand your family’s cash flow needs is to create a budget.

Get your finances in order

Do you think your financial history is squeaky clean?  Credit reports are kept by the three major credit agencies, Experian, Equifax, and TransUnion. Among other things, they show whether you are habitually late with payments and whether you have run into serious credit problems in the past.

You can get a free credit report at www.freecreditreport.com.

Talk to a financial advisor.  You might be able to pull some funds from existing accounts for a down payment without a tax penalty.  There are all kinds of unique situations and a financial/tax advisor could help.

Look locally for a reputable Credit Investigation Service.  They can help you clean up your credit so that you can qualify for a loan or even a better rate.

Shop around

Talk to a mortgage advisor.  They can help you understand what it means to pull credit for the purposes of a loan.  When you do decide to take out a home loan, weigh all the options to find the best solution for you.  Shop around with different lenders to check that the interest rate and fees are competitive and fair.

1.  What types of loans are available to me?
2. What are the costs associated with getting a loan (origination costs)?
3. What are points (discount points)?
4. What is seller assist & how much can I get?
5. How much should I put down?
6. What is PMI?
7. What is the interest rate versus the APR?
8. What are the fees associated with the appraisal, credit report, lenders title insurance, escrow, recording fees, and taxes?

Lastly ask questions…ask your real estate agent, ask your financial advisor, ask your mortgage representative but ask a PROFESSIONAL.  They will know the actual answer.  They do this for a living and they will be more than happy to help.

These simple steps can make all the difference in your home buying experience.  A little preparation often goes a long way.

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