First Time Homebuyers Questions Answered Part 1
September 14, 2008
Buy or Rent?
While you are renting you are giving your hard-earned money to a landlord. If you are paying a mortgage, you are actually investing in a home. You can even deduct the interest you pay on your loan from your federal income taxes and in some states your state taxes. As a homeowner, even your property tax can be deducted from your taxes. The value of your home go up each year and you will be investing in your future.
Can I purchase a home with bad credit?
The answer to this is more than likely yes, however, you will normally have to pay a much higher down payment and interest than a person with good credit. In most cases, lending companies will tell you how to improve your credit rating so you can find a better loan with a lower interest rate. Paying off bad debt or even applying for credit cards can help with bad credit as long you as make regular monthly payments and do not have more the credit cards over half of the credit limit.
How Much Money Do I need Upfront to Buy a Home?
The answers to this question can be a huge amount to very little according to the price of the home you wish to buy and the type of mortgage loan you receive.
The three major money amounts you will need include earnest money, down payment, and the portion of the closing costs you will pay.
Earnest money is the money that you submit when you submit an offer to purchase the home. The money is given to the seller or his agent to show that you are really serious about purchasing the home.
The down payment various according to your mortgage loan but can be as much as 10% to 20% of the price of the home.
Closing costs are the costs that are included as part of the processing to buy the home such as all the paperwork. Closing costs on average are around 3% to 4% of the price of your home.
At the beginning of the loan process while you are talking with your lending company they can give you a ball park figure that you will need, however, remember this price can go up should you should be prepared to have at least $2,000 more than their estimate.
Can I find a loan?
The best way in which to learn if you can get a loan is by using a mortgage calculator. You should be sure that your house payment is affordable after you add such things as taxes and insurance to the monthly payment of the loan. The best place to start is with a Tulsa real estate agent. They can guide you in the right direction for finding a lending company that will work with you and your finances to ensure you can find a home that will be affordable.
We will work hard to be YOUR Tulsa Real Estate Agent! We are the Tulsa Homes experts and will work hard to find the home of your dreams. Call Toll Free Direct at 1 (877) 738-8572 today.
