For most people, a home is their biggest asset by far. Assuming that you continue to pay your mortgage every month, you will generate equity in your home, which is essentially ownership in the property. But you may have some concerns if you're looking to buy a home, some of which we're going to discuss today. Here are some of the top concerns of potential homebuyers.
Top Concerns of Potential Homebuyers
How Long Does it Take To Buy a Home?
The timeline for finding a house can vary significantly from person to person. Once you have found a house and have an offer accepted, it will usually take around 30 days to close on the house.
What If I Don't Have Enough Money for a Down Payment?
While there are always exceptions, you typically need to put 3.5% down on a FHA loan with a 30-year mortgage (fixed rate). Different lenders have different requirements for down payments, however. But if you're looking to buy a new home in the near future, it's a good idea to begin saving now, because the more money you put down, the less you'll have to pay in interest over the course of the loan.
How Much Money will I Need to Buy a Home?
In general, you need to come up with enough money to cover three costs: earnest money - the deposit you make on the home when you submit your offer, to prove to the seller that you are serious about wanting to buy the house; the down payment, a percentage of the cost of the home that you must pay when you go to settlement; and closing costs, the costs associated with processing the paperwork to buy a house. Start by using a mortgage calculator to determine what your monthly principal, tax, insurance, and total payment may be.
What Does A Realtor Do?
One of your most valuable assets when buying a home, is a great realtor. Your realtor will walk you through every part of the process, from helping you to select your perfect new home to the step-by-step details of the homebuying process. They will educate and inform you of all your options and represent you throughout the transaction and beyond.
Will Marriage Affect My Eligibility for a Mortgage?
Being married can affect your eligibility for a mortgage. If you and your spouse apply for a mortgage jointly, and one of you has bad credit or no credit at all, you may get turned down for the loan. Banks typically view married couples as a single unit, so one person with bad credit can certainly affect a married couple's eligibility for a mortgage.
It's important to note that some states have laws allowing only married couples to own community homes or property. Other states require married couples who buy homes to sign a quitclaim deed. In any case, you should refer to your state's respective laws for more information about the nuances when buying a home as a married couple.
Will My Kids Attend a 'Good' School?
With just under 100,000 public schools in the U.S., according to the National Center for Education Statistics, parents who are looking to buy a home should consider which school or schools are in the district. Niche.com offers a list of the country's top schools, with rankings based on state test scores, SAT/ACT scores, graduation rates and other criteria. Refer to this website when searching for a home in a good school district.
What is the Homestead Exemption?
If you've spent any time searching for a new home, you may have come across the term "Homestead Exemption." Basically, this is a law designed to protect the value of homes from property taxes, creditors, and special circumstances that occur if the homeowner's spouse dies; thus, lowering the taxable value of the home. Specifications for Homestead Exemption typically vary from state to state, though not all states have it. In Florida, for instance, it allows a $50,000 exemption for the property tax value, as well as a $50,000 exemption on all taxes except school millage. Additionally, the exemption limits the increase in assessment tax to no more than 3% of the property's assessed value from the prior year.
This article was brought to you by Premier Island Properties - A full service real estate firm serving Hilton Head Island and Bluffton, South Carolina. For more real estate news, information, and interesting facts about the Lowcountry, please visit our website.
- 5 Mistakes to Avoid When Buying a Home
- What You Should Know About Home Buying Closing Costs
- Do I Need a Realtor to Buy a Home?
- What is the Home Buying Process?
- The Benefits of Buying a Home
- How to Buy a Home with Bad Credit
- Buying Your First Home - What You Need to Know
- What is MLS in Real Estate?
- What is Loan to Value in Real Estate? (LTV)
- What is Escrow in Real Estate?