Buying a home can be complicated, but it doesn’t need to be. Arm yourself with the knowledge you need to be an informed home buyer, starting with the basics. If you are buying a home for the first time, you probably have a lot of questions about the mortgage process. Whether you want to talk to an expert or find answers online, we’re here to help you get started.
We offer custom fit solutions for any unique situation, here is a quick overview of the loan types we offer.
Start with how much you want to spend each month on housing. Most budgets call for earmarking 28% of your post-tax income for house payments, including your homeowners insurance and property tax. For example, if your annual income after taxes if $60,000, 28% of that is $16,800, or $1,400 per month. However, every situation is different. Maybe you have costs in your monthly budget that effect your bottom line, such as childcare, car payments, or student loans – the important thing is to find a monthly payment that you’re comfortable with.
If you’re thinking about buying a home, there are a number of factors that can help you decide if now is the right time. Are mortgage rates low? Are you planning to live in the same city for at least five years? Are rents rising in your city? Do you want to customize your home? If the answer to most of these questions is “yes,” then buying a home is a good option for you.
Mortgage closing costs, also known as settlement costs, are fees charged for services that must be performed to process and close your loan application. Examples of mortgage closing costs include title fees, recording fees, appraisal fees, credit report fees, pest inspection fees, attorney’s fees, taxes and surveying fees. The closing cost of a loan will vary depending on your geographic location.Lenders are required by law to provide you with two documents – the Loan Estimate and the Closing Disclosure – which outline your closing costs and help you avoid surprises at the closing table. For more information regarding the loan process through BluEleven, call (800) 872-5063 to talk with a Loan Expert today.
How do I find one?At first, you may think you don’t need a real estate agent to buy a home. But when you find yourself sifting through papers you don’t understand, you may want to reconsider. There are many things you’ll gain from hiring a real estate agent when house hunting: access to the Multiple Listing Service (MLS) database, an experienced home price negotiator, legal protection and someone who can fill out all the detailed paperwork for you.