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First Time Home Buyer?

Mon, Feb 25, 2013 at 9:45AM

Buying a home for the first time can be overwhelming. It’s important to have knowledgeable professionals by your side to guide you through the process. Be sure to contact a REALTOR®, mortgage lender, and an experienced title company early in the process.

As you decide whether you want to purchase, here’s a few questions – and answers – that might help.

Should I buy instead of rent?

Although real estate has gone through a value adjustment, in most markets values are on the rise and a home is still a good investment. When you rent, you write your monthly check and that money is gone forever. When you own your home, you can deduct the cost of your mortgage loan interest from your federal incomes taxes. 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, building equity for you. Consider how long you might be staying in your home and consult with a tax professional if you have additional questions.

How do you know when you are ready to buy a home?

Do you have a steady source of income? Have you been employed on a regular basis for the last 2-3 years? Is your current income reliable?

Do you have a good record of paying your bills? Do you have few outstanding long-term debts, like car payments? Do you have money saved for a down payment? Do you have the ability to pay the mortgage every month, plus additional costs.

Do you need title insurance?

A title insurance policy from Southern Title protects the policy holder from disputes over ownership and places the financial strength of one of the nation’s leading title insurance companies behind the policy. An Owner’s Policy of title insurance protects the buyer against loss for title threats undiscovered at the time of closing and provides a defense in the event of claims against the title pursuant to the terms of the policy.

How much money do you need to buy a home?

In general, you need to come up with enough money to cover three expenses: the earnest money deposit (variable), the down payment (depending on the property between 3% and 20%), and the closing costs (usually between 3% and 10%).

What other costs?

Monthly utilities, property taxes, homeowners insurance, and maintenance costs are a few of the expenses to be considered. There may dues from homeowner or condo associations.

Are pre-qualifying and pre-approval different?

Pre-qualification is an informal way to see how much you may be able to borrow. A pre-approval is the lender’s commitment to lend to you.

Buying a home for the first time is a huge responsibility that offers tremendous rewards. The more knowledgeable you are about the process, the better prepared you will be to make an informed decision. Once you have found the home of your dreams, contact our office at 866-297-5535 so we can provide the protection you need and the service you deserve.

Southern Title Holding Company, LLC, makes no express or implied warranty respecting the information presented and assumes no responsibility for errors or omissions.

Buying a home for the first time can be overwhelming. It’s important to have knowledgeable professionals by your side to guide you through the process. Be sure to contact a REALTOR®, mortgage lender, and an experienced title company early in the process.

As you decide whether you want to purchase, here’s a few questions – and answers – that might help.

Should I buy instead of rent?

Although real estate has gone through a value adjustment, in most markets values are on the rise and a home is still a good investment. When you rent, you write your monthly check and that money is gone forever. When you own your home, you can deduct the cost of your mortgage loan interest from your federal incomes taxes. 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, building equity for you. Consider how long you might be staying in your home and consult with a tax professional if you have additional questions.

How do you know when you are ready to buy a home?

Do you have a steady source of income? Have you been employed on a regular basis for the last 2-3 years? Is your current income reliable?

Do you have a good record of paying your bills? Do you have few outstanding long-term debts, like car payments? Do you have money saved for a down payment? Do you have the ability to pay the mortgage every month, plus additional costs.

Do you need title insurance?

A title insurance policy from Southern Title protects the policy holder from disputes over ownership and places the financial strength of one of the nation’s leading title insurance companies behind the policy. An Owner’s Policy of title insurance protects the buyer against loss for title threats undiscovered at the time of closing and provides a defense in the event of claims against the title pursuant to the terms of the policy.

How much money do you need to buy a home?

In general, you need to come up with enough money to cover three expenses: the earnest money deposit (variable), the down payment (depending on the property between 3% and 20%), and the closing costs (usually between 3% and 10%).

What other costs?

Monthly utilities, property taxes, homeowners insurance, and maintenance costs are a few of the expenses to be considered. There may dues from homeowner or condo associations.

Are pre-qualifying and pre-approval different?

Pre-qualification is an informal way to see how much you may be able to borrow. A pre-approval is the lender’s commitment to lend to you.

Buying a home for the first time is a huge responsibility that offers tremendous rewards. The more knowledgeable you are about the process, the better prepared you will be to make an informed decision. Once you have found the home of your dreams, contact our office at 866-297-5535 so we can provide the protection you need and the service you deserve.

Southern Title Holding Company, LLC, makes no express or implied warranty respecting the information presented and assumes no responsibility for errors or omissions.


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