June is National Homeownership month! When it comes to where we live, there are two choices: renting or buying. Whether you’d like to be on your own for the first time and rent an apartment from a landlord, or you’d like to be a homeowner, the choices seem to be pretty simple. But what if you’re thinking you’d like to change the way you pay for a roof over your head? Should you rent or should you buy your home? It takes more than looking at your mortgage payment to answer this question. Here are some frequently asked questions from first time home buyers courtesy of the leading real estate company in Rochester – Nothnagle REALTORS
Q: Buying my first home is a pretty big step. How can I be sure everything will fall into place?
A: Nothnagle’s Relocation Department is a good place to start! Your Move Manager will be your personal guide throughout the buying process. He or she will personally select the perfect agent to suit your preferences and then follow the progress of your transaction through completion. Your Move Manager is always available at anytime if you have any concerns. Just call!
Q: How can I get prequalified for a mortgage?
A: At a minimum, you want to be prequalified but a pre-approval will put you in a better position to have your offer accepted. A prequalification is usually free and takes minimal time but the lender does not verify any of the data. The pre-approval process is very comprehensive and requires backup documentation and a credit check but will result in an actual commitment letter from the lender, indicating to sellers that your financing is in order and that there should be few, if any, snags on the way to closing. Check out our mortgage calculators to get an idea of how much you can afford.
Q: The thought of a mortgage scares me! Why not rent instead?
A: Believe it or not, buying can actually be more affordable in our area, where rents often exceed the cost of a mortgage! The obvious tax advantage is that you are allowed to write off the interest on your property. A home also offers the space and amenities to meet each person’s needs and allows you to customize your home to your own personal preferences. With low interest rates and other possible incentives in place, it’s a perfect time to make the leap from renting to owning.
Q: I’ve had credit problems, such as late payments on student loans. Will this affect my mortgage?
A: Not necessarily. When it comes to financing, there are many factors to consider, such as more recent activity with timely payments, current income, and the amount you’ve saved toward a down payment. The FHA program is an attractive option for first-time buyers because it is typically easier to qualify and requires a lower down payment than a conventional mortgage. Give us a call at 1-800-295-RELO, and we’ll connect you with a financial specialist who can guide you and let you know exactly where you stand.
Q: I’ve gone through bankruptcy. Can my dream of home ownership ever come true?
A: There is life after bankruptcy! If you’ve been current with your bills for several months following discharge of bankruptcy, along with other criteria, there is hope. Give us a call and we’ll walk you through the steps it takes to reach your dream.
Q: Do I need an agent when buying a house? Wouldn’t I save money by just contacting the listing agent?
A: Not really. The listing agent represents the seller and, typically, commission is paid for by the seller. In other words, whether a buyer users an agent or not, that commission is being paid. Having your own agent means you’ve got someone looking out for your best interests…someone who is savvy in the market, can help you locate properties that meet your search criteria and will help you with negotiations to ensure you get the best price and terms.
In many cases, owning a home can be more affordable than what some people currently pay in rent – if you take taxes into consideration. However, buying a home isn’t always a financial decision. The constant worry of getting a security deposit back, or often times not having the freedom to decorate as one would like is a strong impetus for individuals to leave their landlords and become their own landlord. No matter what the reason is for buying a home it is important to make as much of an educated decision as possible. Depending on what lifestyle best suits your needs, Nothnagle REALTORS is here to help make it easy for you to decide whether you want to buy your own home or whether you choose to rent!
If you are considering moving or would like more information about buying, renting or selling a home contact a Nothnagle Realtor today at 585.899.MOVE.