At Living Water Development Group, we’re dedicated to helping you as you journey into homeownership. We want to equip you with confidence and clear terms. To ensure a smooth experience, here are twelve key things you need to know:
- Your Credit Score:
- Your credit score plays a significant role. Obtain a free copy of your credit report from AnnualCreditReport.com and review it for any errors. Improving your credit score can increase your chances of mortgage approval.
- Determine Affordability:
- Understand the full financial commitment — beyond the purchase price. Some items to research are taxes, insurance, maintenance, and loan fees. We can help you assess for FREE how much you can comfortably afford without stretching your budget too thin.
- Total Cost of a Mortgage Loan:
- Interest rates aren’t the only costs to consider. Consider all associated costs, including application fees, appraisal fees, and mortgage points. Review loan estimates carefully for terms like balloon payments or prepayment penalties.
- Down Payment Requirements:
- Be prepared to cover your down payment at the mortgage closing. Standard loans typically require a 20% down payment. Explore special programs for first-time buyers with lower down payment options. We at LWDG can help you with alternative funding options.
- New Home vs. Older Home Costs:
- Evaluate the pros and cons of purchasing a new versus an older home. Newer homes may have higher upfront costs and older homes often entail more maintenance and renovation expenses.
- Property Taxes:
- Research current property tax rates and anticipate potential future increases based on home value appreciation. We can assist with estimating your property tax obligations and ensure they align with your budget.
- Homeowners Insurance:
- Factor homeowners insurance into your budget and explore coverage options tailored to your needs. Additional coverage may apply depending on areas such as flood plains.
- HOA and Other Fees:
- Determine if the property is subject to HOA fees or other community fees. Consider the cost of amenities and any mandatory add-ons or exclusions. Understand the potential impact of annual rate increases on your budget.
- Tax Exemptions:
- There are possible tax exemptions, such as the homestead exemption, to reduce your property tax burden. Familiarize yourself with county requirements and take advantage of potential savings.
- Commuting Costs:
- Calculate the financial and time costs associated with your daily commute from the property. You may need to consider factors such as gas expenses, vehicle maintenance, tolls, and transportation passes. Will this impact on your budget and lifestyle.
- School Quality:
- If children are a factor, investigate the quality of schools in the area. A strong school system can influence your home buying decision. Balance school quality with potential tax implications.
- Trust Worthy Professionals: Make sure you working with professionals who have Integrity like Living Water Development Group.
By keeping these twelve factors in mind, you’ll be well-prepared to embark on your home buying journey with confidence and clarity. At Living Water Development Group, we’re here to support you every step of the way as you find your dream home. If you have any questions or need assistance, don’t hesitate to reach out to us. Happy house hunting!