If you were to ask 100 women "What would you like to accomplish financially?" Buying a home or apartment is regularly one of the answers. Some women think that they can never own a home - which is not true! In fact, there are so many success stories of home buyers who never understanding they would get there. In addition, homeowners tend to have greater financial success in the other areas of their finances life. I’ve seen it over and over.
The benefits of owning a home include: construction equity, salvage money on taxes and an integral step towards construction wealth. With interest rates so low, this is a great environment to buy a home. This report is a checklist with tips and guidelines to buying a home. If you already own a home, some of these tips will be helpful for refinancing your home. Real estate is not a substitute for stocks but it plays a big part in your financial fitness.
Bankrate Mortgage Calculator
1) Check Your Credit. Get a recent a copy of your credit report, especially your Fico score (the score lenders use to decide your interest rate). Check out http://www.myfico.com.
2) How Much Home Can You Afford? Start with your monthly cost and plug it into a mortgage calculator. (Great one on [http://www.eloan.com:] Affordability Calculator). This site tells you how much home you can afford assuming inescapable numbers. For example, if you make ,000 per month before taxes, you can afford anywhere from 5,000 to 5,000 assuming ,000 as a down payment. There are dissimilar choices with the actual monthly payments. If you don't have enough saved for a down payment, create a cut off savings account and come up with a savings schedule. Only borrow what you can afford!!!
3) Organize Your Documents. Get together the following documentation: past 3 years of tax returns, recent paychecks, bank statements, venture statements and all other financial statements.
4) Which Mortgage Is The Best For You? Understand the dissimilar mortgage options. Most are based on a 30-year amortization cycle: fixed-rate, adjustable and a hybrid. Hybrids are very favorite now; fixed rate for a inescapable amount of time and then they adjust annually. Consider a 15- or 20-year fixed rate mortgage. The payments will be a bit higher, but you will end up paying much less interest over the policy of the mortgage and be debt-free much sooner!
5) Should You Pay Points? A point is equal to 1% of your loan amount. You pay a point to receive a lower interest rate on your loan. If you get a low enough rate, paying points can be worth it.
6) Shop Around. Work with a mortgage broker or check out a few mortgage websites: http://www.e-loan.com, http://www.bankrate.com
7) Pre-Approval 6 Months Before Buying A Home. Get pre-approved for a loan from the bank or your mortgage broker. It gets the process going faster and in a competing market, it gives you the edge.
8) Minimize Your Debt. Avoid big-ticket purchases so not to add to your debt load.
9) Save Money On Taxes. Points paid for a first-time home (not for refinancing) can be deducted in the year your home was closed.
10) Be just Of Costs. Don’t ignore transaction costs and watch end costs very carefully. There are also many incommunicable costs of home buying: moving, minor renovations (especially if you are buying an older home). Make sure you are prepared.
11) Diversify, Diversify, Diversify. Don't tie up all your assets in your home.
12) Pay Your Mortgage Automatically. Get it taken from bank account automatically every month. You don’t ruin your credit and don’t forget to pay every month on time.
13) Refinancing?
· Shop around for interest rates.
· Start with the bank that currently holds your mortgage. It may give you a good deal just to keep your business.
· Avoid paying points. When you refinance, you can deduct only a measure of the points each year, so it's regularly not a good deal.
· Don't try to outsmart the shop and wait for interest rates to hit their low point. If the numbers make sense for you, go for it.
14) Pmi Insurance. You will have to pay monthly Pmi assurance if you put down a down-payment less than 20%. Once you are paying your mortgage for more than a year, ask your lender to reconsider.
15) Bad Credit? Don'T Have enough For A Down-Payment?
· You can use your investments or securities as collateral for buying a home.
· Consider a low-documentation, no documentation or sub-prime mortgage. You will pay a higher interest rate but it will help build your credit and equity.
· Also, check out these government agencies:
· Freddie Mac http://www.freddiemac.com.
· Fannie Mae http://www.fanniemae.com.
· http://www.hud.gov/fha.
16) Other Mortgage Options:
· Bi-weekly mortgages,
· Customized mortgages – regularly offered by local banks,
· Use venture folder as collateral and a smaller cash down-payment.
17) Home Inspection. Have an inspection done by person with accreditation (www.nahi.org).
18) Remodeling? If you remodel, be diligent about keeping records. The right improvements can decrease your dutible gains when you sell.
19) Can'T Afford To Buy Now? But want to get into real estate? Check out Reit stocks or Reit mutual funds, http://www.investinreits.com.
I Want to Buy a Home - Now What? Bankrate Mortgage Calculator
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