The
general rule is that the deposit should be at least 3-5 percent
of the offering price. Remember the larger your earnest deposit
the better your chances of having the offer accepted.
The typical homebuyer searches for a home for about 8 weeks and
looks at 10 houses. If you have looked at more homes or for much
longer, sit down with your REALTOR and redefine your needs.
Be Cautious
Do not max yourself out financially. Today's easy lending
standards often mean you can qualify for a home that is more
expensive than your financial comfort zone. Discuss your
personal needs and lifestyle in depth with your REALTOR. It can
help keep your home purchase price in line with your financial
comfort level.
Remember, the stock market affects the housing market. If the
stock market is stable, housing prices remain stable. If the
stock market is declining, housing prices drop. Most people tie
up their assets, which we call wealth, in one of two main
places: homes or investments. If investment returns are high,
people generally buy larger homes and spend more on their
housing needs. However, when investment returns drop, most
people are less willing to spend the high dollar for homes and
are out looking housing for bargains. Be sure where you want to
put your money before you do it!
Some Advice
If your new mortgage reads "payment must be------or more", you
have the right to and are free to make extra principal payments
every month. This is a wise investment. Even $25 extra a month
pays your loan off sooner and saves on interest payments.
Consider paying your mortgage every two weeks. To do this,
divide your monthly mortage payment by 2 and pay that amount
every two weeks. This equates to making 13 monthly payments
every year and with a 30 year mortgage can lead to a mortgage
pay off 7 or 8 years earlier! Always check with your mortgage
lender for permission to do this and to get exact payoff
information.
Your REALTORŪ Can Help
Always check with your REALTORŪ when in doubt about purchase and
financing. In this age of heavy telemarketing and abundant TV
commercials, you want to deal with a lender you can trust. Your
REALTORŪ can recommend reputable mortgage representatives who
can help find the best rates and mortgage programs for you.
Call (610)444-5185 Today!
