The home buying process can be complex, however, there are great benefits to owningÂ yourÂ ownÂ home.Â Not onlyÂ areÂ you providing yourself and your family with a stableÂ living environment, your hard earned money will be going toward the equity of your home; unlike rent, where the money you pay is never seen again. Over time, as homeÂ values increase, your equity will increase.Â It's like a built-in savings plan.Â YouÂ also receive certain tax benefits when you purchase a home such as being able to deduct the interest you pay on your mortgage and possibly some of the cost associated with purchasing your home. Â
WithÂ the low mortgage rates we are currently experiencing and theÂ recent decrease in home values,Â buying a homeÂ now is a great idea.Â Often times you canÂ buy a home and pay less per monthÂ than you would pay for rent.Â And itÂ only gets better for first time homebuyers.Â There are many programs that can assist you with your down payment and closing cost, reducing the amount of money you will need to bring to the table. Â Contact Sheri Hipsley today to find out what programs are available to assist you with your home purchase.Â
1.Â DecideÂ What You Can Afford.Â Â Depending on your current debt, you typically can affordÂ a home that is 2 to 3 times your current income.Â It is important that you are comfortable with your payments.Â Â
2.Â Start Saving For Your Down Payment and Closing Cost.Â Â Currently FHA requires a down payment of 3.5% of the sale price and a conventional loan requires 5%-20% down. ThereÂ may beÂ otherÂ loan programs, such as a VA loan, that do not require any down payment. Â There are alsoÂ programsÂ thatÂ are available from time to timeÂ to assist with your downpayment.Â Your lender will be able to advise youÂ approximately how much money you will need to bring to closing. Closing cost typically run between 4% and 6% of the sale price and include items such as the appraisal,Â the credit report,Â transfer tax, recording tax, escrows, land survey, title insurance, mortgage insurance, notary fees, deed recording, homeowner's insurance, private mortgage insuranceÂ and any loan origination fees or discount points.Â Â Don't let this scare you, your real estate agent can help you negotiate a contribution from the seller to help pay for these fees.
3.Â Get Pre-approved.Â Talk to your mortgage consultant about getting pre-approved.Â This will help you determine how large of a mortgage you can afford and lessen your anxiety when searching for a new home. Â It will also help your negotiating power if aÂ seller knows you are already approved for a mortgage. YourÂ lenderÂ willÂ let you knowÂ the current interest rate and advise you on programs that may be available toÂ assist you with the down payment.Â To make the process smoother, you shouldÂ start getting together the documentation the lender will need to get you pre-approved.Â Typically, they will ask for 2 current pay stubs, w-2's or tax returns for the previous two years, 2 current bank statements from your checkingÂ and/or savings account, and account numbers for any credit accounts that you currently have.Â Â
4.Â Develop Your Wish List.Â Â You need to decideÂ where you would like to live and what you need and want in a home.Â Â You may want to start researching neighborhoods where you would like toÂ live. I tell my clients toÂ check out the local schoolÂ systems, visit the local police stations and ride around the neighborhood at different times to get a sense of what is going on.Â After you have done your research, you should make a list of three or four neighborhoods where you would like to live.Â Then you can develop your wish list for the home.Â Decide what you need and want inÂ a home, then prioritize your list.Â Â You have to be realistic, keep an open mind, and be flexible when searching for a new home.Â You do not want to miss out on a great deal because you told your realtor to search for only homes with 2 bathrooms and there is a great home, atÂ a great price, with only 1.5 bathrooms.Â
5. Contact a Realtor.Â ContactÂ a Realtor. Contact a Realtor. IÂ can't say this enough.Â Find an experienced Realtor who can guide you through this process.Â You need to find someoneÂ you trustÂ and ultimately, someone you like.Â You will be spending a great deal of time with this person as you search for aÂ home and navigate the home buying process.Â YourÂ Realtor willÂ help your find your new home, assist you with preparing your offer, assist you with the proper paperwork, represent you in the negotiations,Â help with the inspection process,Â do everything possible to get you toÂ the settlement table, andÂ will look out for your best interest through the entire transaction.Â Since the seller usually pays the commission for the buyer's agent/broker, there is no reason to go through the process without representation.
If you are a First Time Maryland Home Buyer and you are looking for help with your down payment and closing cost, there are many programs available to help you.Â I also offer free first time home buyer counseling.Â If you are interested in setting up a time to visit with me, please contactÂ Sheri Hipsley.Â It is an informal meeting designed to help you understand the process of home buying, to inform you of the programs that may be available to help with your down payment and closing cost, and to answer any questions you may have regarding the home buying process.Â
If you don't currently have a Realtor, feel free to contactÂ Â Sheri HipsleyÂ at Cell: 443-756-5041/Office 410-823-0030.Â Whether you are aÂ buying your first home,Â selling your current home,Â or just have a real estate question, I can help you.Â As a full time Realtor with Cumming & Co. Realtors, I have the experience and knowledge to guide you through the process.
All information deemed reliable but not guaranteed. All properties are subject to prior sale, change or withdrawal. Neither listing broker(s) or information provider(s) shall be responsible for any typographical errors, misinformation, misprints and shall be held totally harmless. Listing(s) information is provided for consumers personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. Information on this site was last updated 10/07/2022. The listing information on this page last changed on 10/07/2022. The data relating to real estate for sale on this website comes in part from the Internet Data Exchange program of Bright MLS (last updated Fri 10/07/2022 9:11:31 AM EST). Real estate listings held by brokerage firms other than Cummings & Co. Realtors may be marked with the Internet Data Exchange logo and detailed information about those properties will include the name of the listing broker(s) when required by the MLS. All rights reserved. --