Health & Fitness
6 Items No One Tells First Time Home-buyers, Part 1: Mortgage Rates, Debt, and Realtor
Ted Taylor, a PT resident for 35 years, has 10 years of Real Estate Broker experience, and has worked in the fields of New Construction and Residential Real Estate Development 16 years.
First time home-buyers are told many different things from various sources. Their parents may advise them to “Save your money!” Their friends may alert them that “Location, location, location!” is a priority. Although this is definitely reasonable advice, there are other key elements of the home buying process which a typical first time home-buyer does not usually hear. I've listed some of the most important ones, in no particular order:
1) Mortgage Rates
The banner ads are everywhere online: “3.2% rates!” “No money down!” The reality is this: mortgage rates vary greatly, and advertised mortgage rates are not always accurate or realistic. The only way to know what rates you will actually qualify for is to go through a complete mortgage application. This process includes credit pulls and income verification. One more point to consider: online mortgage calculators, while handy, can be deceptive if you do not factor in the real cost of tax, insurance and PMI (private mortgage insurance) when you're looking at an FHA-loan.
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2) Debt Is A Factor
If you think that $1400 left on your Visa is not going to matter, think again! Every iota of debt weighs in when your credit is scored. What many first time home-buyers are not told is that when applying for a mortgage, nearly every element of personal financial history is analyzed with a fine-toothed comb. All debt will be factored in as the bank figures out how much it is willing to lend. Standards have stiffened, so the earlier even the small debt issues are taken care of, the better.
Find out what's happening in Peterswith free, real-time updates from Patch.
3) Realtor Selection
Everyone knows a Realtor and everyone may claim to recommend the best. There's no reason to not explore these possible agents, as they could be a great fit for you and your needs. However, it is not recommended to just sign up with the first agent you find: this is a working relationship that can shape your family's future. Your agent's connections, experience, and market knowledge will be key -and can make the difference between writing an offer that gets accepted or not.
(The next 3 items will be revealed in the next post!)
