I am amazed everyday when I find yet one more person who is renting because they think they cannot buy a home. They feel for one reason or another that it is too difficult, they need more money than they actually do or that it is just easier to rent.
Some of those reasons, and at times all, are valid. But the home buying process is much easier than you may believe. If you have a good Realtor, they will coach you through the process and may every step of the way clear to you so that you are comfortable with the process.
Yes you do need some money to buy a home, but many people think they will need much more than they actually do. An FHA loan currently only requires 3.5% of the purchase price down, for a VA loan, nothing down. If you have served in the National Guard, you may qualify for a VA loan. Check with your local VA Administration office or go online.
You will need approximately $500 when you find a home to use as earnest money. This will go towards the down payment. This is just a little 'up front' money to show that you are serious about buying that home.
Once an offer is accepted you will need money for inspections. A good home inspection should cost anywhere between $185 and $250. There are many in the phone book or ask around to those who have used home inspectors to get a referral. You will also need a termite inspection here in Oklahoma. That will usually be around $75 to $100.
All lenders require that an appraisal be done as well and this is something that you will need to pay for before it is done. That will be around $350 to $425.
There will also be closing costs which include title insurance, document filings, etc. The yearly portion of property taxes and insurance that you are responsible for will also be included in that as well. However, it is perfectly accesptible with a good offer to ask if the sellers would contribute to help pay some or all of your closing costs. If they do agree to pay for your closing costs, then you would not be responsible for paying those items.
There are certain rules which apply regading the source of the money for down payments, but you can get a loan on a car, cash in or get a loan on your 401k, get a gift from a relative or use your income tax return. These are the most common acceptible sources, but you may think of another source that you could use. To be safe talk to your lender about your specific situation.
When you take the plunge to buy instead of rent you will begin immediately gaining equity in that investment. In just a few short years, with proper maintenance and care of your home, you should see about a 3.5% to 4.5% increase in value, not to mention the amount you were paying on the principle of your home each month. This is cash in your pocket when you sell your home. Cash you would not have had if you were still renting.
If you have questions or are concerned about the home buying process. I would be more than happy to help you. I can answer your questions and direct you to a reputable lender to help you determine if you do qualify. It is easy to find out and to know for sure. You may be pleasantly surprised.
Call me today! I look forward to talking to you.
Rick & Nancy Jackson - Realtors
http://www.dreamsdocometrue.us/
NAJackson@cox.net
405-921-8449
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