Title: Importance of a Down Payment

Today we are going to share with you some tips we have as it pertains to mortgage down payments.

You have probably heard this since you were a child, but, save, save, save! It is recommended to start saving for a down payment as soon as possible. You could put any tax refunds or work bonuses in your “down payment” fund. It is common to put down 20% as a down payment, but many lenders will accept much less. There are some first-time home buyer programs available where you can put as little as 3% down! It is recommended to put down as much as your bank account will allow. If you put down less than 20%, you may have higher costs. There are many down payment calculator resources available that can help you figure out what your down payment goal should be.

If you have trouble coming up with a down payment, you have a few options!

-Conventional mortgages. These mortgages conform to standards that are set by government-sponsored entities. These mortgage require as little as 3% down.

-FHA loans. These loans are insured by the Federal Housing Administration and require as low as 3.5% for a down payment.

-VA loans. These loans are guaranteed by the Department of Veterans Affairs. There are cases where a down payment is not required at all.

Some states offer assistance programs for first-time home buyers. Some of these programs assist with your down payment or closing cost or even help you with tax credits or discounted interest rates. Get in touch with your county or municipality to learn about these first-time home buyer programs.

Remember, the higher your down payment, the lower your monthly mortgage payment. A thirty year fixed mortgage will help you obtain the smallest mortgage payment possible.

Title: House Hunting Tips

House hunting can be a tricky game, especially if it is your first time. We will share some tips we have learned over the years.

To start, it is very important to make sure you hire the right real estate agent. You will be working very closely with them so it is imperative you hire someone who you get along with, feel comfortable with, and feel as though you can trust. The real estate agent you hire should be well qualified and knowledgeable about the area you wish to buy in. You will not jive with everyone, so remember, it is okay to say no to a real estate agent you do not get along well with.

Make sure you are looking at purchasing the right type of house. You may automatically assume you have to purchase a single-family home. Purchasing a single-family home is a great idea if you want (or need) a lot of room or a yard. If you do not see yourself needing too much space, keep the options open to condominiums or townhouses. There is less you need to maintain with a condominium or a townhouse, but be aware of what the homeowners association fee is.

It is important you chose a home in a neighborhood you feel comfortable in. Some things to keep in mind as it pertains to a neighborhood are:

-Schools. Even if you do not have kids (or do not plan on ever having any,) it is important to know if there are any nearby as it will affect home value.

-Safety and crime statistics.

-Nearby amenities such as: hospital, pharmacy, grocery store, gym, church, etc.

We recommend you drive through or take a walk in a potential neighborhood you would like to live in.  Do this on different days and different times to get a feel for traffic, noise, and activity levels.

Pay attention to all details when you go to open houses. Ask questions at the open house as well! Go there with a list so you will not forget anything. Some questions to ask are: how old is the air conditioning and heating system? When was the home built? Has the house been damaged by a hurricane?

It is important you stick to what you can afford! Even though you were approved for X amount, does not mean you have to purchase a home at that amount. It is recommended to look at properties that cost less than what you were approved for. This means if there are any unforeseen costs in your life, you will be able to afford your home. House hunting below your preapproval amount also allows you to negotiate the price a bit.

If you keep these tips in mind when house hunting, it should be a fairly comfortable process.