Billy Florence - Tips For Buying A Home
Now is a good time to buy a home if you are ready and you don't already own a home that you need to sell. It is certainly a buyers market. There are plenty of homes to choose from and you can find a great deal as there are people out there who need to sell.
There are some good things you need to know if you are house hunting. I read this article from CNNMoney.com. I agree with most all of the points that the article makes. But there is one that I do not agree with. It says "not to worry" if you can't put down the usual 20%. I understand that it is no longer the norm to pay down 20% when buying a home but it is still a good idea for many reasons. You may have excellent credit and be able to qualify for a loan without paying the 20% but it is still a good idea to pay money down. And 20% is still best.
Here are a few points made that can help you as you are looking for a home:
Don't buy if you can't stay put.
If you can't commit to remaining in one place for at least a few years, then owning is probably not for you, at least not yet. With the transaction costs of buying and selling a home, you may end up losing money if you sell any sooner.
Start by shoring up your credit.
Since you most likely will need to get a mortgage to buy a house, you must make sure your credit history is as clean as possible. A few months before you start house hunting, get copies of your credit report. Make sure the facts are correct, and fix any problems you discover.
Aim for a home you can really afford.
The rule of thumb is that you can buy housing that runs about two-and-one-half times your annual salary. But you'll do better to use one of many calculators available online to get a better handle on how your income, debts, and expenses affect what you can afford.
Do your homework before bidding.
Your opening bid should be based on the sales trend of similar homes in the neighborhood. So before making it, consider sales of similar homes in the last three months. If homes have recently sold at 5 percent less than the asking price, you should make a bid that's about eight to 10 percent lower than what the seller is asking.
You can read the complete article at CNNMoney.com:
http://money.cnn.com/magazines/moneymag/money101/lesson8/
© 2007 Florence News reprint permission to Billy Florence Team Dream Chasers site.
There are some good things you need to know if you are house hunting. I read this article from CNNMoney.com. I agree with most all of the points that the article makes. But there is one that I do not agree with. It says "not to worry" if you can't put down the usual 20%. I understand that it is no longer the norm to pay down 20% when buying a home but it is still a good idea for many reasons. You may have excellent credit and be able to qualify for a loan without paying the 20% but it is still a good idea to pay money down. And 20% is still best.
Here are a few points made that can help you as you are looking for a home:
Don't buy if you can't stay put.
If you can't commit to remaining in one place for at least a few years, then owning is probably not for you, at least not yet. With the transaction costs of buying and selling a home, you may end up losing money if you sell any sooner.
Start by shoring up your credit.
Since you most likely will need to get a mortgage to buy a house, you must make sure your credit history is as clean as possible. A few months before you start house hunting, get copies of your credit report. Make sure the facts are correct, and fix any problems you discover.
Aim for a home you can really afford.
The rule of thumb is that you can buy housing that runs about two-and-one-half times your annual salary. But you'll do better to use one of many calculators available online to get a better handle on how your income, debts, and expenses affect what you can afford.
Do your homework before bidding.
Your opening bid should be based on the sales trend of similar homes in the neighborhood. So before making it, consider sales of similar homes in the last three months. If homes have recently sold at 5 percent less than the asking price, you should make a bid that's about eight to 10 percent lower than what the seller is asking.
You can read the complete article at CNNMoney.com:
http://money.cnn.com/magazines/moneymag/money101/lesson8/
© 2007 Florence News reprint permission to Billy Florence Team Dream Chasers site.
Labels: Billy Florence, Billy Florence Finance
posted by Billy Florence at
11:53 AM
