What to Know Before Buying a Home

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HOME BUYINGWhat to Know Before Buying a House

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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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Wednesday | 3 p.m. ET
“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

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“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

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“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

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“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?
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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

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“Credit history is
crucial to both
price/access to credit.
Some lenders have
minimum or
“overlays” of higher
rates/fees for lower
scores.”
- @HSHassociates

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“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:
ex.pn/homebuy

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What to Know Before Buying a Home

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