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Home Buying

Home Buying
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Home Buying is one of the major decisions you can make in your life. It is also a major financial investment. It involves expenses which include interest, property taxes, insurance, utilities, repairs and maintenance. Home Buying has many benefits. The interest paid on the mortgage is tax deductible reducing the amount to be taxed and eventually the tax liability. The homeowner will have security and satisfaction while mortgage repayments may be lower than the rent.
 
People who rent houses have to make a decision whether to continue renting or to buy a home. Unless the rent is too low or you are thinking of moving soon, Home Buying is better than renting. Depending on the number of years you intend to pay the mortgage the house will be completely yours within 15-30 years or less.

The first Home Buying step is to know what kind of a home you want to buy. This depends on how much you can afford. Since different homes are sold at different prices depending on the location, it would be wise to look around or consult real estate agents and brokers. There are online calculators which you can use to calculate the home you can afford and the monthly repayments which depend on the purchase price of the home, the interest rate and the repayment period.

Home Buying is expensive and most people take a mortgage from the government, bank or a financial lender. You should go to the bank and ask for a loan officer. Fill a loan application form and pay the application fee. The loan officer will calculate and let you know how much the bank can loan you. Take this information to the real estate agent and tell him where you want to buy a house and for how much.
The price will also depend on the type of house you are buying. He will show you the houses on offer and you can view them until you get what you want. He will give you a disclosure of all you need to know about the house. You will negotiate the price and if you both agree you will sign a contract. You will pay inspection fee and have the house inspected. The bank will appraise the house to see if it is worth the loan they are giving you. If all goes well you will go to the attorney to close the deal.

The bank will ask you to pay a percentage of the purchase price as a down payment. However banks are now offering 100% financing Home Buying mortgages. But paying a down payment this will give you a chance of getting better terms. You will be given a lower interest rate if you have good credit history or if you pay a down payment of 20% or more. After paying the down payment to the attorney chosen by the bank or the seller you will sign the papers and the bank will pay the mortgage.

Last modified onTuesday, 02 April 2013 23:42
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