Buyer's Information
What not to do before purchasing your new home:
1. No Major Purchases - Major purchases, like a car, can affect your credit rating/score and make your less attractive to mortgage lenders. New purchases like a car, or something that requires you to open a new line of credit, should wait until after your home purchase is complete.
2. Keep your money in one place - Lenders need to feel assured that they're making a safe investment. They will look closely at the source of your down payment and closing costs. You will most likely be asked to provide statements from any and all accounts that the funds will be drawn from. Moving money between these accounts will make that paper trail longer and harder to follow.
Why you should buy a home:
1. Investment - Homes appreciate at a rate of two to five percent a year on average. That number fluctuates based on many economic factors and also the neighborhood, home itself, and many other reasons. That appreciation is safer and more stable than almost any other investment. Stocks rise and fall on a whim and other foms of investment can be just as unsure.
2. Tax Breaks - All of the interest and property taxes you pay on your home is tax deductible. Owning a home is a great way to significantly lighten your annual tax burden.
3. Stable monthly housing costs - When your rent a place to live, you can certainly expect your rent to increase each year or even more often. If you get a fixed rate mortgage when you buy your new home, you have the same monthly payment amount for thirty years. Even with an adjustable rate mortgage, your payment will stay constant within certain range for the entire life of the mortgage.
4. Freedom from the landlord - Renters are forced to live by the terms of their lease agreements, you usually need a landlord's permission to paint, hang shelving, or maybe even improve the landscaping. And what is the sense in spending money to improve someone else's home in the first place? When you own a home, you can do whatever you choose. Not only will you enjoy the changes, but the odds are they will only increase your home's value in the long run.
What affects your offer price:
1. Property condition - How does the property rate as compared to the rest of the neighborhood? Is it below average, average, or above average? Structural condition is one of the most important factors to take into account. Items such as walls, ceilings, floors, doors, and windows.