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FIVE COMMON QUESTIONS
THAT BUYERS HAVE
 

                             

Gloria Banks- RE/MAX Allegiance
703-866-4074 
www.homesdatabase.com/gloria
TeamBanks4u@gmail.com 

Bringing Families Home for over 19 yearsí

            

1)      HOW MUCH MONEY DO I NEED?

The answer to that varies with each specific situation. Depending on your credit, there are loan programs that cover 100% of your purchase price and even cover closing costs. There are money sources for funds that include loans from retirement accounts, seller help and gifts. Regardless, you will need earnest money to put down when you sign a contract. That money will be applied to your costs or refunded to you at settlement. Usually $3000- $6000 is sufficient for 100% programs and working with a qualified lender will determine all of your options. 

2)      ARE THERE HOMES I WOULD LIKE IN MY PRICE   RANGE?

Once your qualification range is determined, you can work with a good realtor to determine what types of homes in specific locations are affordable for you. I have a complimentary Homes Database internet system that allows you to get information on specific areas as soon as it becomes available on the market. Many people use this as a research tool to find out about options in advance of starting their actual search.

 3)      WHAT ARE THE ADVANTAGES OF HOME OWNERSHIP?

Control of your future is a primary advantage. You are not prevented from decorating or improving your living space. You are not forced to relocate your family on a monthís notice. You are not held hostage to annual rent increases.

Financial equity is another advantage. Every month, your mortgage payment goes to building your equity instead of your landlordís. The majority of the payment is a tax deduction which allows you to itemize and have Uncle Sam help buy your home. The average home has almost doubled in value over the last four years. That increase is based on the value of the home, not what you put into it. 

If you invested $6000.00 on a  $286,000 home in 2001, you could have made $274,000!  Thatís a huge return on investment.   Furthermore, if you were married and lived in that home for at least two out of the last five years, you could sell it and would owe NO taxes on a profit of  $274,000! What other investment has that kind of return with no taxable penalty?  Please consult a tax accountant for specific details and guidelines. Past performance is not a guarantee of future returns.

 4)      WHAT IF I BUY AND PRICES DROP?

The cost of homes varies based on many factors, primarily supply and demand and job creation. Northern Virginia has had a historically strong job market and limited land to increase housing supply. Latest statistics from Lawrence Yunís Market Report predict a moderate growth of at least 6% in sales price during 2006.  But letís say you are renting at $1500 a month. You buy a home and after a year prices drop by $10,000.  If you had not bought, you wouldíve spent $18,000 on rent and had nothing to show for it.  Instead, you paid down your mortgage slightly and saved on taxes. The following year, had you stayed a renter, your rent would have most likely increased. As a homeowner, with a fixed rate mortgage, your payment wouldnít change. Over time, the real estate market has always increased, so over a five-year period you should see significant financial gains instead of paying approximately $95,475 in rent.

 5)      HOW DO I GET STARTED?

The first thing you should do is contact an experienced realtor who can evaluate your situation and develop a plan. Even if itís a year away, there are things you can do now to help you to be successful. Donít just start looking at houses; sit down with a good buyer agent who will take the time to educate you, develop a plan, answer all of your questions and support you every step of the way. Teamwork and communication are critical elements to successfully getting you home.

First Time Buyer?  Looking for information on home loans?  Click Here for more information on how to get started.

 

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www.pentecofinancial.com
Correspondence: P.O. Box 210, Mount Vernon, VA  22121 (703) 799-2500/ (866) 4PENTECO/ (703) 799-7489 fax
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