If you are a first time home buyer here are a few tips that will help you make the right decisions on what house will be the smart choice and fit your budget.
My number one thing for any home buyer to do seems to be #4 on other lists but here is my list:
1. See what you can afford. Create a budget for your household to see what monies you have
available in your budget for a mortgage payment and still have money left over to continue
putting some money in savings with a bit left over for a hamburger. Remember that a
mortgage payment consists of principal, interest, property taxes, and insurance. Once you
know how much payment you can stand and lender or Realtor can tell you how much house
you can afford.
2. Check comparable sales prices for the neighborhoods you like through an MLS search...
your Realtor can help with this. Your Realtor will also be checking the comparables on sold
homes in the neighborhood you choose to help advise you on the offer price that makes the
most sense.
3. There will be closing costs involved you must prepare for which is separate from the
down payment you have saved up.
4. Don't forget that there will be maintenance costs associated with owning a home...light bulbs,
AC filters, wear and tear on the home and appliance break down.
For more information on buying your first home please email me at hollyg@kw.com or go to my website www.HollyGHomes.com
Monday, June 22, 2009
Thursday, June 18, 2009
Time is Money...Even When Buying a Home
Surely you have all heard the phrase "Time is money"...well it is true even when you are trying to pick the moment to purchase a home and it's all about interest rates and home values.
Currently we are in a buyer's market where there is an abundance of homes on the market and not enough buyer's to buy them...which has done a number on home values and pricing. Interest rates have also plummeted to all time lows making home mortgage payments more affordable.
As you know the pendulum swings both ways and the market will recover....house values will recover and interest rates will rise (no one knows exactly when this will take place) and we are beginning to see the start of that here in our San Antonio Real Estate market.
So what does this mean to you in dollars if you wait too long to purchase a home? Extra dollars spent each month on interest...how much? For example a note on a $100,000 home with a 3.5% down payment and 30 year fixed rate of 5.5% would have a P&I payment of $547.92....after waiting if the rates increase to 6% with everything else being the same the P&I payment will be $578.57....a difference of $30.65 per month (every month).
This does not take into account the probable rise in home values.
If you are a first time home buyer, you also need to consider the deadline of December 1st to close on your home purchase to be able to take advantage of the $8K tax credit(that you don't have to pay back).
Get with your Realtor to discuss what time frame would be in your best interest if you are considering buying a home but sitting on the fence. Please feel free to email me hollyg@kw.com for more information or go to my site for a free San Antonio Home search www.HollyGHomes.com
Currently we are in a buyer's market where there is an abundance of homes on the market and not enough buyer's to buy them...which has done a number on home values and pricing. Interest rates have also plummeted to all time lows making home mortgage payments more affordable.
As you know the pendulum swings both ways and the market will recover....house values will recover and interest rates will rise (no one knows exactly when this will take place) and we are beginning to see the start of that here in our San Antonio Real Estate market.
So what does this mean to you in dollars if you wait too long to purchase a home? Extra dollars spent each month on interest...how much? For example a note on a $100,000 home with a 3.5% down payment and 30 year fixed rate of 5.5% would have a P&I payment of $547.92....after waiting if the rates increase to 6% with everything else being the same the P&I payment will be $578.57....a difference of $30.65 per month (every month).
This does not take into account the probable rise in home values.
If you are a first time home buyer, you also need to consider the deadline of December 1st to close on your home purchase to be able to take advantage of the $8K tax credit(that you don't have to pay back).
Get with your Realtor to discuss what time frame would be in your best interest if you are considering buying a home but sitting on the fence. Please feel free to email me hollyg@kw.com for more information or go to my site for a free San Antonio Home search www.HollyGHomes.com
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