If men are to be the leaders of their family and their community, then having a vested interest in the community is important - owning a home is a vital piece of the puzzle toward responsibility.
Fred Villa - RE/MAX real estate agent
What is the “right” home?
Lending Agent is going to be looking at:
- Income
- Debt
- Cash on hand
- Credit scores
Finding the “right” home includes considerations like…
- Finding the right price point (what can you afford?)
- Location, location, location (where do you want to be - city, rural, schools, family, job, neighborhood, etc)
- What type/size house feels right to you?
- What amenities do you have to have - pool, square footage, number of bedrooms, one story or two, etc…)
How can you improve your credit score?
- Start by establishing solid credit - finance a few things and make sure you pay off your bills!
- Couple of years to repair bad credit - talk to a solid lender to see what they’re looking at…
Home ownership = “building equity”
Why would you buy a home…when would you buy a home?
- See if you’re in the right place - are you wanting to stay there for a while?
- Take some time to see where you want to be in that community
- Remember that if you’re renting, you’re not going to want to spend money improving a home and making it “yours” - you may not have the right to make significant changes and you won’t be able to recoup those expenses when you leave
- Make a financial plan to save enough money to purchase a home
- Home ownership gives you an opportunity to make connections with people, neighbors - building community, investing not just in yourself, but in the well-being of others!
Do I need a real estate agent?
- A real estate agent will help you understand the market from an objective point of view, can pull comps (comparable selling prices to consider)
- A real estate agent will help you understand the value of certain expenditures - where should you invest in your home, will you get some of that money back if and when you sell?
- Buyers - do not pay a real estate agent! Seller agrees to pay a commission between a selling and a buying agent.
- A real estate agent has great connections to inspectors, repair companies and individuals, etc.
What are the “red flags” that you should pay attention to when purchasing a home?
- Homes that back up to RR tracks, power lines, major highways, etc. - things that you can’t change and 80% of the people are bothered by these things
- Look at the home, location, traffic at different times, different days…
- Consider the homes around - are the neighbors keeping up their properties?
20% down rule? No, not everyone needs to have 20% down!
Understand the difference between a “buyers” market and a “sellers” market.
Interest rates affect the amount of home you can purchase with the same amount of money! Better credit will get you better interest rates!
Ready to buy a home - DON’T call the person’s name on the “For Sale” sign - their interest is in selling the home, not helping you buy the home!