what to know before buying a home
TRANSCRIPT
#CreditChatWednesdays | 3 p.m. ET
HOME BUYINGWhat to Know Before Buying a House
Join our #CreditChat every Wednesday at 3 p.m. ET. This week, we talked about what to know before buying a house.
ex.pn/homebuy
How do you decide whether you should buy or rent?
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“Best to move from renting to owning, when you’ve saved at least 20% down payment,
have huge savings. ”
- @ConsolidatedUS
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“The key consideration is how long you’re likely to stay put, less than 5 years often suggests renting.”
- @HSHassociates
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“If you can afford the costs of owning (upkeep, maintenance) in addition to down payment, etc, consider buying vs. renting.”
- @kevincswanson
How much should you have saved up before buying a home?
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“Traditionally, 20% is required for private mortgage loans. Some specialized federal
loans require less of a down payment.”
- @care4yourfuture
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“A working rule of thumb is: Qualifying mortgage amount +
down payment + closing costs + a
cushion.”
- @HSHassociates
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“Try using a mortgage calculator. It’s a great resource to see if you have enough
saved.”
- @StacySmith0615
How do you determine what your future expenses will be?
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“Best way to figure future housing expenses is with a certified housing counselor, who will help you achieve a realistic budget.”
- @KOFETIME
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“A working rule of thumb is that maintenance is perhaps 1% per year ($1,000 for every $100,000 you spend to buy).”
- @HSHassociates
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“Calculate HOA, plus taxes and expected increases, insurance deductible, cost of
replacing items (ex: fridge).”
- @AirForceFCU
How do you find a great realtor? Any warning signs?
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“Look to see who’s selling and buying the most homes; reviews are good but don’t
always tell the whole story.”
- @kevincswanson
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“Family, friends, co-workers in the area you are buying is great place to start. Consider having a
lawyer review any/all contract language to make sure you are protected.”
- @HSHassociates
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“I used my landlord's realtor who had rented me the apartment I was leaving. He
knew the area and had opinions. Very helpful!”
- Kelley Long, CPA/CFP, @kclmoneycoach
What should you research before deciding to buy a home?
Neighborhood? Crime? Schools?
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“Look at historic home values. Sales prices increasing or decreasing? Dropping values
may be a warning sign.”
- @Rod_Griffin
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“Commute matters! Stores/Shopping. Entertainment options, transportation, neighborhood, traffic neighbors, taxes.”
- @HSHassociates
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“Search neighborhood info online, check crime reports and schools, visit the home at different times the day and test commute.”
- @StacySmith0615
How should we deal with emotions when trying to buy a home?
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“Buying a new home is an exciting and emotional time, but take a deep breath and
take your time with the paperwork and contracts.”
- @navicorePR
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“‘Home is an emotional concept; house is a physical object; mortgage is a financial
obligation. You can have ‘home’ without owning house.”
- @HSHassociates
#CreditChatWednesday | 3 p.m. ET
“Remember not to make rash decisions. Take time to think things over, consult your
realtor and friends.”
- @JustOnePay
What are common mistakes home buyers make when wanting to buy
a home?
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“Don’t just jump at the first option. You want to weigh the pros and cons and make the
best decision.”
- @PicaCreditUnion
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“Overbuying your budget will create financial and lifestyle stress. More features and amenities, such as
fireplaces/pools/outbuildings, etc equal more maintenance - underestimating commitment.”
- @HSHassociates
#CreditChatWednesday | 3 p.m. ET
“Not getting pre-approved for a loan, forgetting about closing costs, not getting
an inspection, and not checking your credit.”
- @care4yourfuture
How important is it to shop around for the best rates? Pros/Cons?
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“Whenever you’re going to spend your money, it’s important to shop around for the
best price to keep your costs low.”
- Lacey Langford AFC, @FinanceLacey
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“Hinderence: Law doesn’t require Loan Estimate forms for up to 3 days after you apply, but ask for
them to help compare offers.”
- @HSHassociates
#CreditChatWednesday | 3 p.m. ET
“Very important! Know the difference between an advertised teaser rate and one
that is based on actual borrower conditions.”
- @KOFETIME
What role does credit play? When should we review our report and
credit scores?
#CreditChatWednesdays | 3 p.m. ET
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“Credit reports and scores are key to how much you qualify for and what rates you
pay. Good scores save money!”
- @Rod_Griffin
#CreditChatWednesday | 3 p.m. ET
“Credit history is crucial to both
price/access to credit. Some lenders have
minimum or “overlays” of higher rates/fees for lower
scores.”
- @HSHassociates
#CreditChatWednesday | 3 p.m. ET
“Credit is a major factor in determining whether you qualify for mortgage and at what interest rate. Higher score = lower
rates.”
- @ConsolidatedUS
Do you have any favorite online resources to help you research
homes in your area?
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“Some master planned communities have their own listings. Zillow and Trulia are
pretty popular.”
- @AirForceFCU
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“Local realtors sites/MLS in areas you are interested in. You might find exclusives or ‘pocket listings’ locally.”
- @HSHassociates
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“Crimereports.com is a good resource if you’re concerned about crime rates.”
- @kevincswanson
Any final tips for those looking to buy a home in the near future?
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“Know your budget and how much you can afford to spend. Don’t take someone else’s word for it, they don’t help pay your bills.”
- Lacey Langford AFC, @FinanceLacey
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“Prepare! Home: Know what you don’t want and know what you need; Mortgage: Know what fits you, see
yourself as lender does.”
- @HSHassociates
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“Understand that property taxes might increase, raising your mortgage payment
over time.”
- @Rod_Griffin
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Check out all the resources and tips shared:
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