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 Gloria
Banks- RE/MAX Allegiance
703-866-4074
www.homesdatabase.com/gloria
TeamBanks4u@gmail.com
Bringing Families Home for over 19 years’
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 month’s 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 landlord’s. 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! That’s 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 Yun’s Market Report predict a moderate growth of
at least 6% in sales price during 2006. But let’s 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 would’ve
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 wouldn’t 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 it’s a year away, there are things
you can do now to help you to be successful. Don’t 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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