Expert Financing & Investments

Everything You Need to Know About Buying Your First Home

The Housing Market

• All real estate is local.
• Housing inventories are up.
• Prices have come down.
• Sellers are more willing to negotiate.
• Interest rates are still low.
• Your home can be a solid, long term investment.

Buying Versus Renting

• Buying gives you the opportunity to build equity.
• Buying a home allows you to make improvements and/or change the landscaping and décor.
• You may be able to deduct mortgage, interest, and taxes from a purchased home.
• Buying a home gives you pride of ownership.
• While the benefits of purchasing your own home are listed above, also make sure to Use a “buy versus rent calculator” to determine what’s right for you

Costs of Buying and Owning a Home

One Time Costs

• Down payment (ask about Down Payment Assistance Programs)
• Closing costs (may be able to be financed or contributed by the seller)
• Lender, Reserves, and Transfer fees

Ongoing Costs

• Mortgage payment – Principal, Interest, Taxes and Insurance (and possibly Mortgage Insurance)
• Maintenance (ask about a Home Warranty)
• Homeowner or Condo Association fees, if applicable

Mortgage Terms

• Mortgage: a loan where the borrower offers property as collateral until the debt is repaid.
• Down Payment: the difference between the amount of the loan and the cost of the property.
• Loan to Value: the percentage of the loan amount compared to the cost of the property (this will determine need for Mortgage Insurance).
• Appraisal: a report that states an opinion regarding the value of the property.
• Good Faith Estimate: a document that tells the borrower the approximate costs they will pay at or before closing.
• Truth in Lending Statement: a statement that tells borrowers how much they will be repaying over the term of the loan.