June 24, 2011

House Buying Questions

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House buying questions can be overwhelming, but if you break them into small chunks and consult your professional you’ll find your house buying questions can be answered easily and with much clarity.

One question in particular that seems to be asked often, “is it possible that prices will continue to decrease, if so, why should I buy now?” Answer- Price is a major concern for anyone wanting to purchase a home, but you have to remember the interest rate that is attached to mortgage, is that increasing?  Waiting for home prices to hit rock bottom while the interest rates are increasing means you’ll actually pay MORE over the life of the loan.

Question #2

“Does buying a home make better sense than renting?”  Answer –  Most people want a place that is “theirs,” and they want to raise a family and have them attend certain schools.  You want a place where your family will feel “safe.” You want enough space and have control over that space. When you rent, your landlord has rules that must be followed and they have control over your space. A home loan is a 15 or 30 year commitment and it’s not always about the money. It’s more as to “why you want to buy a home” Your reasons are powerful.

Question #3

“Should I look for a home first and then call a lender?”  I strongly suggest calling a local lender first because it’s so important to know what your budget is, and what your interest rate & payment will be. Your local lender will match you with the best program available. This way you’ll know exactly what to expect from the lending side of the home buying process.  Lastly you view homes within your budget and stay within your means.

Question #4

“What are my expenses when I buy the home?” There are of course your loan fees. Sometimes the seller will pay for your pre-paids & closing cost. Your home inspection & radon tests etc. are a buyers expense.

For more tips on house buying questions and the home buying process call me directly at 262-770-7367 or email

 

Posted by:  Mary Petersen

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