Townhouses: Pro's and Con's
reprinted courtesy of Our Family Place
Townhouses often make an excellent "middle ground" between a detached single family home and a full fledged condominium because, to some degree, they offer attributes of both.
For our definition, we will describe a townhouse as a home that is attached to one or more other houses, but which sits directly on a parcel of land that you also own (if you don't own the land, it is a condominium). For this discussion, townhouses can range from duplexes and triplexes all the way through huge townhouse communities consisting of hundreds of similar homes.
There is a good degree of variance in the way townhouse communities are structured. It may be a simple agreement (as is often the case of duplexes and triplexes) that each parcel of land and the home that sits on it is separately owned. In the case of larger townhouse communities, you will generally have an additional shared ownership in the common areas of the complex as well as any amenities such as swimming pools, park areas, etc. This ownership you will share jointly with all other townhouse owners in the complex.
In any townhouse purchase that involves a Homeowners' Association, it is vitally important to get as much information as you can, since the association can have a considerable impact on your ownership experience!
Advantages of Townhouses
* May have less exterior maintenance and repairs to be responsible for.
* Having a neighbor's home attached to yours may bring a higher level of security.
* There may be amenities in the community (for example, pools, tennis courts, playgrounds and the like).
Disadvantages of Townhouses
* You will be responsible for payment of Home Owner's Association fees.
* You give up privacy when compared to single family homes.
* Your options for changing the exterior look of your house will be limited.
Is a Townhouse for You? It is if...
* You like the idea of your "space" but not having to deal with most exterior maintenance has even more appeal.
* A small backyard "retreat" or deck is just about all the yard you need.
* The idea of having neighbors close doesn't really bother you - you just don't want them above and below as well as next to you!
http://real-estate-agents.com/tips/buying-house/townhouses.shtml
Friday, May 18, 2007
Buying a House: Mistakes to Avoid
Avoid Common House Buying Mistakes!
reprinted courtesy of Our Family Place
Buying a house covers a lot of ground - including legal, financial and emotional considerations. To not educate yourself and learn from the mistakes of others only sets you up to be at best disappointed and at worst finding yourself living in the wrong house. We have listed some of the most prevalent - and potentially dangerous and expensive - mistakes made by first-time home buyers.
Running before walking
This is easy to do once the decision to buy a home has been made. It means rushing off looking at homes, surfing the web or calling on advertisements before doing some up-front preparation. Not spending time doing this preparation, though, can be a disaster. We get a number of emails from buyers who have contracted to purchase a home and want to know the easiest way of getting out of the purchase. Let it be known loud and clear: If you contract to purchase a home and "change your mind," the chances of getting released from the contract are almost non-existent. Still we hear "We found another home!" Sorry, too late. Maybe next time. "We are buying too much house!" Okay, maybe you will be able to rent out a room or two. " It's not what we want!" Maybe you can paint the house, or add on to it or replace the carpeting, but you will almost certainly will be living in it!
Over-buying the first time
Being "house poor" is an uncomfortable existence. A large and beautiful home with little or no furniture tends to be empty and cold. A life where almost every dime of your earnings goes to support your house wears thin very quickly and is a frequent cause of family stress. Pushing yourself right up to - or beyond - your limits leaves you highly exposed when the inevitable changes to the national or your personal economy occur. Leave yourself some breathing room!
Finding out too late that you have no representation
This can be a nasty surprise when you assume that the Agent with whom you are working represents you when they actually represent - and owe complete allegiance to - the seller. How does this happen? By not taking the time to investigate and familiarize yourself with the laws regarding Agency. Or, by rushing out to look at homes, whether in person or on the Internet, and contacting the Agent who has the house advertised (who will be the listing Agent and will absolutely represent the seller). Another pitfall occurs when you try to represent yourself in the purchase of a home, thinking that you will save money. This may be the case, but it is just as - or more - likely that you will run into a savvy seller who is looking to keep the commission savings in their pocket rather than give it to you. In addition, without representation and the use of a Comparative Market Analysis, how do you determine a realistic selling price for a property?
Not comparing mortgages
There are far too many variables - type of mortgage, term, lender and amount of points to mention a few - not to investigate your options carefully. Don't simply accept the first plan presented to you, whether it is from a mortgage broker, an Agent or the recommendation of a friend or relative. Spend time comparing to get the most advantageous plan for your requirements and financial situation.
Not getting mortgage preapproval
In the past it may have been different, but today prequalification and preapprovals are a necessary part of the home buying process. Not only will it give you an exact price range for your purchase, preapproval will add a great deal of strength to your offer.
Waiting for the "perfect" home
Many first time buyers make the mistake of thinking that they will, if they look around long enough, find a home that meets 100% of their needs and wants. With the thousands of variables available in housing, including location, style, size, amenities and condition, this is almost always an unrealistic goal. There are two potential problems with this strategy: First, these buyers pass by homes that meet 90% or more of their requirements only to eventually give up (often purchasing homes that meet fewer of their requirements because they are worn out!). Second, while they are waiting for the "perfect" home, housing market prices (and often mortgage rates) continue to rise, adding expense to their purchase. Instead, it makes sense to determine the most important of your needs and the most desired of your wants, then select a home that meets the majority of them.
Shortcutting the house inspection process
This can involve skipping a whole house inspection completely in order to save the relatively small cost involved or it may involve using a friend or relative with limited experience to conduct the inspection. In either case you run the risk of overlooking potentially expensive - or even hazardous - defects in the property. Protect yourself and invest the $200 to $500 for a professional inspection.
http://real-estate-agents.com/tips/buying-house/mistakes.shtml
reprinted courtesy of Our Family Place
Buying a house covers a lot of ground - including legal, financial and emotional considerations. To not educate yourself and learn from the mistakes of others only sets you up to be at best disappointed and at worst finding yourself living in the wrong house. We have listed some of the most prevalent - and potentially dangerous and expensive - mistakes made by first-time home buyers.
Running before walking
This is easy to do once the decision to buy a home has been made. It means rushing off looking at homes, surfing the web or calling on advertisements before doing some up-front preparation. Not spending time doing this preparation, though, can be a disaster. We get a number of emails from buyers who have contracted to purchase a home and want to know the easiest way of getting out of the purchase. Let it be known loud and clear: If you contract to purchase a home and "change your mind," the chances of getting released from the contract are almost non-existent. Still we hear "We found another home!" Sorry, too late. Maybe next time. "We are buying too much house!" Okay, maybe you will be able to rent out a room or two. " It's not what we want!" Maybe you can paint the house, or add on to it or replace the carpeting, but you will almost certainly will be living in it!
Over-buying the first time
Being "house poor" is an uncomfortable existence. A large and beautiful home with little or no furniture tends to be empty and cold. A life where almost every dime of your earnings goes to support your house wears thin very quickly and is a frequent cause of family stress. Pushing yourself right up to - or beyond - your limits leaves you highly exposed when the inevitable changes to the national or your personal economy occur. Leave yourself some breathing room!
Finding out too late that you have no representation
This can be a nasty surprise when you assume that the Agent with whom you are working represents you when they actually represent - and owe complete allegiance to - the seller. How does this happen? By not taking the time to investigate and familiarize yourself with the laws regarding Agency. Or, by rushing out to look at homes, whether in person or on the Internet, and contacting the Agent who has the house advertised (who will be the listing Agent and will absolutely represent the seller). Another pitfall occurs when you try to represent yourself in the purchase of a home, thinking that you will save money. This may be the case, but it is just as - or more - likely that you will run into a savvy seller who is looking to keep the commission savings in their pocket rather than give it to you. In addition, without representation and the use of a Comparative Market Analysis, how do you determine a realistic selling price for a property?
Not comparing mortgages
There are far too many variables - type of mortgage, term, lender and amount of points to mention a few - not to investigate your options carefully. Don't simply accept the first plan presented to you, whether it is from a mortgage broker, an Agent or the recommendation of a friend or relative. Spend time comparing to get the most advantageous plan for your requirements and financial situation.
Not getting mortgage preapproval
In the past it may have been different, but today prequalification and preapprovals are a necessary part of the home buying process. Not only will it give you an exact price range for your purchase, preapproval will add a great deal of strength to your offer.
Waiting for the "perfect" home
Many first time buyers make the mistake of thinking that they will, if they look around long enough, find a home that meets 100% of their needs and wants. With the thousands of variables available in housing, including location, style, size, amenities and condition, this is almost always an unrealistic goal. There are two potential problems with this strategy: First, these buyers pass by homes that meet 90% or more of their requirements only to eventually give up (often purchasing homes that meet fewer of their requirements because they are worn out!). Second, while they are waiting for the "perfect" home, housing market prices (and often mortgage rates) continue to rise, adding expense to their purchase. Instead, it makes sense to determine the most important of your needs and the most desired of your wants, then select a home that meets the majority of them.
Shortcutting the house inspection process
This can involve skipping a whole house inspection completely in order to save the relatively small cost involved or it may involve using a friend or relative with limited experience to conduct the inspection. In either case you run the risk of overlooking potentially expensive - or even hazardous - defects in the property. Protect yourself and invest the $200 to $500 for a professional inspection.
http://real-estate-agents.com/tips/buying-house/mistakes.shtml
Buying a House: Renting vs. Buying
Pro's and Con's of Buying vs. Renting
reprinted courtesy of Our Family Place
If you are considering buying a house, one of the first decisions you need to make is whether buying a house instead of renting one is the right direction for you. Since owning a home is the "American Dream", many people simply assume that it's always to their advantage to buy a home, and for most, it is. Take a moment to review the following lists to see how your situation fits in.
Renting
* More fixed costs for the term of the lease
* Not gaining equity, but not losing it either
* When the lease is up, you can just move
* There is generally less work in maintaining a home or apartment
* Smaller amount of "up-front" cash
* No matter what happens with the value of the home, you will never gain equity
* Limited - or no - ability to personalize your living quarters
* No tax advantage to renting. Your landlord gets any and all tax breaks that are available
Buying
* Variable costs
* Equity may go up, down, or stay stagnant
* If you want to move, home generally must be sold
* Work needs to be done by you - or paid for by you
* Generally a larger initial investment - the downpayment
* Over time, the mortgage balance decreases and equity builds, even if the value of the home does not increase
* The ability to remodel and redecorate the home to match your needs and desires
* There can be tax advantages attached to home ownership. Consult competant legal and/or accounting advice for details for your situation
http://real-estate-agents.com/tips/buying-house/rent-buy.shtml
reprinted courtesy of Our Family Place
If you are considering buying a house, one of the first decisions you need to make is whether buying a house instead of renting one is the right direction for you. Since owning a home is the "American Dream", many people simply assume that it's always to their advantage to buy a home, and for most, it is. Take a moment to review the following lists to see how your situation fits in.
Renting
* More fixed costs for the term of the lease
* Not gaining equity, but not losing it either
* When the lease is up, you can just move
* There is generally less work in maintaining a home or apartment
* Smaller amount of "up-front" cash
* No matter what happens with the value of the home, you will never gain equity
* Limited - or no - ability to personalize your living quarters
* No tax advantage to renting. Your landlord gets any and all tax breaks that are available
Buying
* Variable costs
* Equity may go up, down, or stay stagnant
* If you want to move, home generally must be sold
* Work needs to be done by you - or paid for by you
* Generally a larger initial investment - the downpayment
* Over time, the mortgage balance decreases and equity builds, even if the value of the home does not increase
* The ability to remodel and redecorate the home to match your needs and desires
* There can be tax advantages attached to home ownership. Consult competant legal and/or accounting advice for details for your situation
http://real-estate-agents.com/tips/buying-house/rent-buy.shtml
Thursday, May 17, 2007
Current 30 Year Mortgage Rates
Despite some “softening” of the housing market in recent months, there are still a number of compelling reasons to take advantage of current 30 year mortgage rates with a new home loan. Whether you are a first-time buyer or considering refinancing or applying for a home equity loan, you can reap major benefits like a low fixed rate, affordable monthly payments, and access to cash from your home’s equity. With some online research, you could find a dream loan that will save you money and help you achieve your immediate – and long term – goals.
Intrest Rate Watch
Comparing current 30 year mortgage rates online is easier than you’d think. Home Loan Center offers mortgage rate watch service so that you can receive rate quotes and offers within a few minutes of making your request. You can evaluate the rates you’re offered and select the loan that truly fits your budget and your needs. Sign up for your rate watch alerts
Important Considerations
When applying for a new home purchase loan, important considerations include the amount of your living expenses, debt payments, and other monthly obligations. Selecting a fixed-rate from current 30 year mortgage rates could provide stability and predictability, as your payments would not change, even if interest rates fluctuate.
With such a high demand for home loans, mortgage lenders find themselves competing not just to offer the lowest current 30 year mortgage rates, but also to extend flexible loan options to borrowers who may have been turned down by other institutions. For example, a couple with so-called “problem credit” might be able to qualify for refinancing at a low fixed rate. The new loan can help them solve immediate financial requirements and rebuild their credit, in the process.
Trade an Adjustable-Rate Mortgage (ARM) for a Low Fixed Rate
Refinancing your existing mortgage presents a unique opportunity for homeowners. Not only can you trade an adjustable-rate mortgage (ARM) for a low fixed rate, but you can also use cash-out refinancing at current 30 year mortgage rates to get money from the equity you’ve built in your home. By borrowing more than your mortgage balance, you’ll receive money that could be used to pay-off higher interest balances, take a dream vacation, or to launch your own business.
Finally, a home equity or line of credit (HELOC) loan is another low-hassle source of cash from your home’s equity. At current 30 year mortgage rates, the amount of your home equity loan can be distributed in a single lump sum, or, in the case of a HELOC, be accessed much as you would use a credit card to receive cash and make purchases. Many homeowners use their home equity loans to consolidate debt into one low payment, which improves cash flow dramatically.
To gain a better sense of the loan options available to you, take a few minutes to compare offers online. The process has been streamlined to facilitate matching you with lenders who can provide appropriate, personalized loan solutions. For more information, check out HomeLoanCenter.com.
http://www.homeloancenter.com/Articles/Mortgage-Advice/Current-30-Year-Mortgage-Rates.aspx
Intrest Rate Watch
Comparing current 30 year mortgage rates online is easier than you’d think. Home Loan Center offers mortgage rate watch service so that you can receive rate quotes and offers within a few minutes of making your request. You can evaluate the rates you’re offered and select the loan that truly fits your budget and your needs. Sign up for your rate watch alerts
Important Considerations
When applying for a new home purchase loan, important considerations include the amount of your living expenses, debt payments, and other monthly obligations. Selecting a fixed-rate from current 30 year mortgage rates could provide stability and predictability, as your payments would not change, even if interest rates fluctuate.
With such a high demand for home loans, mortgage lenders find themselves competing not just to offer the lowest current 30 year mortgage rates, but also to extend flexible loan options to borrowers who may have been turned down by other institutions. For example, a couple with so-called “problem credit” might be able to qualify for refinancing at a low fixed rate. The new loan can help them solve immediate financial requirements and rebuild their credit, in the process.
Trade an Adjustable-Rate Mortgage (ARM) for a Low Fixed Rate
Refinancing your existing mortgage presents a unique opportunity for homeowners. Not only can you trade an adjustable-rate mortgage (ARM) for a low fixed rate, but you can also use cash-out refinancing at current 30 year mortgage rates to get money from the equity you’ve built in your home. By borrowing more than your mortgage balance, you’ll receive money that could be used to pay-off higher interest balances, take a dream vacation, or to launch your own business.
Finally, a home equity or line of credit (HELOC) loan is another low-hassle source of cash from your home’s equity. At current 30 year mortgage rates, the amount of your home equity loan can be distributed in a single lump sum, or, in the case of a HELOC, be accessed much as you would use a credit card to receive cash and make purchases. Many homeowners use their home equity loans to consolidate debt into one low payment, which improves cash flow dramatically.
To gain a better sense of the loan options available to you, take a few minutes to compare offers online. The process has been streamlined to facilitate matching you with lenders who can provide appropriate, personalized loan solutions. For more information, check out HomeLoanCenter.com.
http://www.homeloancenter.com/Articles/Mortgage-Advice/Current-30-Year-Mortgage-Rates.aspx
Smart Mortgage Moves in a Changing Market
For years, buying real estate has seemed like a "sure thing" investment. In many parts of the U.S., housing prices have gone up more than 70% over the past five years, and in a few red-hot markets like Southern California, home values have more than doubled.
Suppose you bought a home four years ago for $250,000 and financed with a $200,000 fixed-rate mortgage at 7%. If the market in your area has since climbed 15%, your home is now worth $287,500. You'd have paid only about $9,000 in principal while building over $96,000 in equity.
Industry experts disagree on the subject, but many caution that the housing "bubble" may burst soon, causing home values to decline. Should this occur, some of your equity could disappear. And, if you're a recent buyer who bought your home with a low down payment, you could find yourself with a mortgage that exceeds the value of your property.
You cannot control home prices, but you can protect yourself from a potential downturn in the real estate market. Just keep these strategies in mind:
Avoid buying "too much house"
When mortgage rates are low, it can be tempting to make a low down payment or buy more house than you can afford. However, this approach leaves you vulnerable if the market turns, since your equity is low to begin with.
Maintain a reasonable loan-to-value ratio
Your mortgage principal, plus any outstanding home equity loans, should total no more than 80% of your home's current value. Not only will this get you a better loan rate and eliminate the need to pay Private Mortgage Insurance (PMI), but it also builds in a healthy cushion if the value of your home drops.
Stay put
Homebuyers may get into trouble if they plan to sell within a year or two, since they're not allowing for the market to recover, should it drop. Staying in your home for at least five years improves your chances of weathering a potential economic storm.
Keep an equity stake
A home equity loan (HEL) can be an affordable way to consolidate debt, finance renovations, or cover large expenses like college tuition. However, stretching your home equity too thin is risky, should the market head for a downturn. If you expect housing prices to cool off in your area, avoid using a home equity loan to pay for luxuries like a new vehicle or an expensive vacation.
Use common sense when cashing out
Some homeowners dip into their home equity when refinancing by drawing cash out, resulting in a higher principal on the new mortgage this is called a refinance cash-out. However, just like taking out a home equity loan, this is riskier in the event of a housing market downturn.
Build equity faster
The less equity you build in your home, the more you could be hurt by a market decline. Interest-only mortgages and option ARMS are higher risk, as they do little or nothing to reduce your principal balance. If you're buying or refinancing and are worried about a downturn (and can afford the higher payments), consider a fixed-rate mortgage with a 15-year term. This will enable you to pay down the principal and build equity much faster. Finally, remember that your home's value is most important on the day you buy and the day you sell. On all the days in between, modest swings in the real estate market shouldn't cause too much concern.
http://www.homeloancenter.com/Articles/Mortgage-Advice/Mortgages-in-Changing-Market.aspx
Suppose you bought a home four years ago for $250,000 and financed with a $200,000 fixed-rate mortgage at 7%. If the market in your area has since climbed 15%, your home is now worth $287,500. You'd have paid only about $9,000 in principal while building over $96,000 in equity.
Industry experts disagree on the subject, but many caution that the housing "bubble" may burst soon, causing home values to decline. Should this occur, some of your equity could disappear. And, if you're a recent buyer who bought your home with a low down payment, you could find yourself with a mortgage that exceeds the value of your property.
You cannot control home prices, but you can protect yourself from a potential downturn in the real estate market. Just keep these strategies in mind:
Avoid buying "too much house"
When mortgage rates are low, it can be tempting to make a low down payment or buy more house than you can afford. However, this approach leaves you vulnerable if the market turns, since your equity is low to begin with.
Maintain a reasonable loan-to-value ratio
Your mortgage principal, plus any outstanding home equity loans, should total no more than 80% of your home's current value. Not only will this get you a better loan rate and eliminate the need to pay Private Mortgage Insurance (PMI), but it also builds in a healthy cushion if the value of your home drops.
Stay put
Homebuyers may get into trouble if they plan to sell within a year or two, since they're not allowing for the market to recover, should it drop. Staying in your home for at least five years improves your chances of weathering a potential economic storm.
Keep an equity stake
A home equity loan (HEL) can be an affordable way to consolidate debt, finance renovations, or cover large expenses like college tuition. However, stretching your home equity too thin is risky, should the market head for a downturn. If you expect housing prices to cool off in your area, avoid using a home equity loan to pay for luxuries like a new vehicle or an expensive vacation.
Use common sense when cashing out
Some homeowners dip into their home equity when refinancing by drawing cash out, resulting in a higher principal on the new mortgage this is called a refinance cash-out. However, just like taking out a home equity loan, this is riskier in the event of a housing market downturn.
Build equity faster
The less equity you build in your home, the more you could be hurt by a market decline. Interest-only mortgages and option ARMS are higher risk, as they do little or nothing to reduce your principal balance. If you're buying or refinancing and are worried about a downturn (and can afford the higher payments), consider a fixed-rate mortgage with a 15-year term. This will enable you to pay down the principal and build equity much faster. Finally, remember that your home's value is most important on the day you buy and the day you sell. On all the days in between, modest swings in the real estate market shouldn't cause too much concern.
http://www.homeloancenter.com/Articles/Mortgage-Advice/Mortgages-in-Changing-Market.aspx
Home Buying Tips
Purchasing a new home may have you climbing the walls, but with our help and the tips we provide below, you should be well on your way to a stress-free home purchase.
Steps to Home Ownership
Between your real estate agent and the help of our expert home mortgage team here at HomeLoanCenter.com, there is very little for you to do. In the meantime, take a few minutes to read over the 8 simple steps to owning your home.
Keys to Your Home Loan
Researching & Budgeting
Determining Your Price Range
Home Purchase Pre-Approval
Create a Wish List For Your Home
Search For a Home
Make an Offer on a Home
Lock-In Your Interest Rate
Close & Own Your Home
Researching & Budgeting
Before you begin home shopping, it helps to figure out your budget. That way there are no surprises later on, and you can fully enjoy home ownership rather than look at it as an overwhelming burden.
To determine your purchasing power, you need to consider the following things such as monthly income, monthly debts, down payment amount, loan closing costs, and your credit history. For help, you can use any of these easy calculators and tools that HomeLoanCenter.com has developed to assist you in your research:
Mortgage Calculators
Rent vs. Own Calculator
Monthly Payment Calculator
Payment Affordability Calculator
Home Purchase Tools
Home Buying FAQs
Get Pre-Approved
Find a Real Estate Agent
Determing Your Price Range
Pre-qualifying for a particular home loan amount helps your real estate agent focus your home search so you only look at homes that fit within your price range. In fact, many real estate agents require either a pre-qualification letter or a certificate of pre-approval before showing you a home. You can pre-qualify in a couple of minutes by speaking with one of our mortgage specialists, or by applying right here online. You won't have to supply any supporting documentation until you actually start the home loan process. HomeLoanCenter.com simply uses your information here to quickly determine how much you can afford to borrow so we can send you a pre-qualification letter right away.
HomeLoanCenter.com provides a no-cost, no-obligation pre-qualification letter online in minutes, or you may contact one of our experienced home loan specialists to obtain a pre-qualification letter. Get a Pre-Qualification Letter Online
Home Purchase Pre-Approval
A pre-approval certificate is the best way of demonstrating your ability to purchase a home. Pre-approval offers are also given stronger consideration by a seller than pre-qualification letters. To issue you a pre-qualification certificate, your mortgage specialist will ask you for documentation such as W-2 forms, paycheck stubs, and bank account statements, and then run your credit report to establish credit worthiness. Once that's complete, and everything checks out okay, your letter can be in your hands so you can submit the best offer for your next home.
What Documents Do I Need?
Get Pre-Approved for a New Home
Create a Wish List For Your Home
To ensure that your new home meets your needs, we've created a checklist to help you identify and prioritize features you want. With this checklist, you can also organize all the key people involved in your home purchase process. Download Home Finding Checklist
Search For a Home
Now we get to the fun part - searching for your ideal home! You can browse the homes for sale at various online websites, in the classified section of your local newspaper, visit open houses, or find a real estate agent. A real estate agent not only has access to homes not always advertised in the paper, but will help you locate homes that meet your exact price, size and other criteria. HomeLoanCenter.com can help you find a real estate agent in your area and help you earn up to $2000 cash. Learn More
http://www.homeloancenter.com/HomePurchase/HomeBuyingTips.aspx
Steps to Home Ownership
Between your real estate agent and the help of our expert home mortgage team here at HomeLoanCenter.com, there is very little for you to do. In the meantime, take a few minutes to read over the 8 simple steps to owning your home.
Keys to Your Home Loan
Researching & Budgeting
Determining Your Price Range
Home Purchase Pre-Approval
Create a Wish List For Your Home
Search For a Home
Make an Offer on a Home
Lock-In Your Interest Rate
Close & Own Your Home
Researching & Budgeting
Before you begin home shopping, it helps to figure out your budget. That way there are no surprises later on, and you can fully enjoy home ownership rather than look at it as an overwhelming burden.
To determine your purchasing power, you need to consider the following things such as monthly income, monthly debts, down payment amount, loan closing costs, and your credit history. For help, you can use any of these easy calculators and tools that HomeLoanCenter.com has developed to assist you in your research:
Mortgage Calculators
Rent vs. Own Calculator
Monthly Payment Calculator
Payment Affordability Calculator
Home Purchase Tools
Home Buying FAQs
Get Pre-Approved
Find a Real Estate Agent
Determing Your Price Range
Pre-qualifying for a particular home loan amount helps your real estate agent focus your home search so you only look at homes that fit within your price range. In fact, many real estate agents require either a pre-qualification letter or a certificate of pre-approval before showing you a home. You can pre-qualify in a couple of minutes by speaking with one of our mortgage specialists, or by applying right here online. You won't have to supply any supporting documentation until you actually start the home loan process. HomeLoanCenter.com simply uses your information here to quickly determine how much you can afford to borrow so we can send you a pre-qualification letter right away.
HomeLoanCenter.com provides a no-cost, no-obligation pre-qualification letter online in minutes, or you may contact one of our experienced home loan specialists to obtain a pre-qualification letter. Get a Pre-Qualification Letter Online
Home Purchase Pre-Approval
A pre-approval certificate is the best way of demonstrating your ability to purchase a home. Pre-approval offers are also given stronger consideration by a seller than pre-qualification letters. To issue you a pre-qualification certificate, your mortgage specialist will ask you for documentation such as W-2 forms, paycheck stubs, and bank account statements, and then run your credit report to establish credit worthiness. Once that's complete, and everything checks out okay, your letter can be in your hands so you can submit the best offer for your next home.
What Documents Do I Need?
Get Pre-Approved for a New Home
Create a Wish List For Your Home
To ensure that your new home meets your needs, we've created a checklist to help you identify and prioritize features you want. With this checklist, you can also organize all the key people involved in your home purchase process. Download Home Finding Checklist
Search For a Home
Now we get to the fun part - searching for your ideal home! You can browse the homes for sale at various online websites, in the classified section of your local newspaper, visit open houses, or find a real estate agent. A real estate agent not only has access to homes not always advertised in the paper, but will help you locate homes that meet your exact price, size and other criteria. HomeLoanCenter.com can help you find a real estate agent in your area and help you earn up to $2000 cash. Learn More
http://www.homeloancenter.com/HomePurchase/HomeBuyingTips.aspx
Tax Benefits of Homeownership
Buying a home can result in a big tax break every year, among other benefits.
In terms of investments, purchasing a home is probably the biggest one you will ever make. Moreover, it can be the wisest, due partly to a number of tax advantages the government has instituted to encourage homeownership. These benefits can help reduce the cost of buying and owning a home and leave you with more money when it's time to sell. Because tax rules vary based on income and other factors, you should consult an accountant or financial advisor for advice on your particular tax situation.
Deducting mortgage interest
One of the biggest incentives to owning a home is that the interest you pay on your mortgage is tax-deductible, up to a limit of $1 million. This deduction, like most other tax breaks for homeowners, applies to any kind of home. That includes a second home, as long as you spend a certain amount of time there: either 14 days each year, or 10% as much time as it's rented.
In addition, you can deduct the interest on up to $100,000 of other debt that uses your home as security such as a home equity loan. However, the amount you can deduct may be limited if the money you borrow raises your debt above the home's actual market value. This can sometimes happen when a lender extends you a loan based on more than the value of the house.
You can also deduct any amount you pay for points to reduce the interest rate of your mortgage or other loan linked to your home. In most cases, the points on a mortgage to buy or build your principal home can be deducted fully in the first year. However, if you refinance, take a home equity loan, or a loan secured by a second home, the points must be deducted over the life of the new loan. The exception is if you use part of a refinanced mortgage to improve your house; that portion of the points can be deducted in the same year.
Tax-free profits
Another major advantage of homeownership is that, in most cases, you don't have to pay taxes on any profit you make when you sell your home. The law allows you to exclude from taxes up to $250,000 in profit from the sale of your principal home -- $500,000 for a couple who file jointly. This exclusion also covers the sale of a parcel of land adjacent to your house, unless it's used for business.
There are some stipulations, however. The home must be your principal residence, and you (and your spouse, where applicable) must have lived there for at least two of the previous five years. You can only claim the exemption once every two years. If you don't meet those requirements, you may still claim a partial exemption if the sale was due to a change in your place of employment, necessary for health reasons, or due to other unforeseen circumstances.
Don't forget property taxes
You can claim property taxes you pay as an income tax deduction. This applies to both your principal home and any others you may own. Any money held in escrow to pay future taxes, however, is not deductible.
Write off your moving costs
The government allows you to write off many of your moving costs when you buy a new home if it's at least 50 miles closer to your job than your old home. To qualify, you must continue to work full-time in the general area of your job for 39 weeks during the following year. If you're self-employed and work in your home, any move of 50 miles or more will make your moving expenses deductible. However, you must also work full-time near the new location for 78 weeks during the next 24 months.
Of course, because tax rules vary based on income and other factors, be sure to consult an accountant or financial advisor about your particular situation.
http://www.homeloancenter.com/Articles/Mortgage-Advice/Tax-Benefits-of-Homeownership.aspx
In terms of investments, purchasing a home is probably the biggest one you will ever make. Moreover, it can be the wisest, due partly to a number of tax advantages the government has instituted to encourage homeownership. These benefits can help reduce the cost of buying and owning a home and leave you with more money when it's time to sell. Because tax rules vary based on income and other factors, you should consult an accountant or financial advisor for advice on your particular tax situation.
Deducting mortgage interest
One of the biggest incentives to owning a home is that the interest you pay on your mortgage is tax-deductible, up to a limit of $1 million. This deduction, like most other tax breaks for homeowners, applies to any kind of home. That includes a second home, as long as you spend a certain amount of time there: either 14 days each year, or 10% as much time as it's rented.
In addition, you can deduct the interest on up to $100,000 of other debt that uses your home as security such as a home equity loan. However, the amount you can deduct may be limited if the money you borrow raises your debt above the home's actual market value. This can sometimes happen when a lender extends you a loan based on more than the value of the house.
You can also deduct any amount you pay for points to reduce the interest rate of your mortgage or other loan linked to your home. In most cases, the points on a mortgage to buy or build your principal home can be deducted fully in the first year. However, if you refinance, take a home equity loan, or a loan secured by a second home, the points must be deducted over the life of the new loan. The exception is if you use part of a refinanced mortgage to improve your house; that portion of the points can be deducted in the same year.
Tax-free profits
Another major advantage of homeownership is that, in most cases, you don't have to pay taxes on any profit you make when you sell your home. The law allows you to exclude from taxes up to $250,000 in profit from the sale of your principal home -- $500,000 for a couple who file jointly. This exclusion also covers the sale of a parcel of land adjacent to your house, unless it's used for business.
There are some stipulations, however. The home must be your principal residence, and you (and your spouse, where applicable) must have lived there for at least two of the previous five years. You can only claim the exemption once every two years. If you don't meet those requirements, you may still claim a partial exemption if the sale was due to a change in your place of employment, necessary for health reasons, or due to other unforeseen circumstances.
Don't forget property taxes
You can claim property taxes you pay as an income tax deduction. This applies to both your principal home and any others you may own. Any money held in escrow to pay future taxes, however, is not deductible.
Write off your moving costs
The government allows you to write off many of your moving costs when you buy a new home if it's at least 50 miles closer to your job than your old home. To qualify, you must continue to work full-time in the general area of your job for 39 weeks during the following year. If you're self-employed and work in your home, any move of 50 miles or more will make your moving expenses deductible. However, you must also work full-time near the new location for 78 weeks during the next 24 months.
Of course, because tax rules vary based on income and other factors, be sure to consult an accountant or financial advisor about your particular situation.
http://www.homeloancenter.com/Articles/Mortgage-Advice/Tax-Benefits-of-Homeownership.aspx
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