Should I buy a home??

Should I buy a Home?
By Monika McGillicuddy

Many Buyers ask why they should buy a home. Isn’t it easier to just rent and let a landlord take care of any hassles regarding the property and it’s maintenance. Isn’t paying taxes and budgeting for home repairs very costly…especially in New Hampshire where property taxes are known to be high? So why should I buy instead of renting?

Many first time buyers DO get in over their heads! They put the cart before the horse…they fall in love with a home that they can’t comfortably afford, they get hooked up with the wrong real estate agent…WE are not all created the same. Some agents simply should not be allowed to practice real estate. Think about this…my hair dresser has stricter continuing educational requirements to renew her license than real estate agents do. Yet, real estate agents are responsible for helping you with the biggest financial decision in your life…are you just going to trust anyone? Agents don’t like this kind of talk but it’s true and you should know it…You shouldn’t just trust anyone to sell your home? Or to help you buy a home? Make sure you work with a skilled REALTOR. Find out how long they’ve been in the business, what has their training been…do they believe in continuing education? What is their availability? Do they have the skills necessary to understand todays generation X and Y buyers? All very important questions to ask.

Consider our recommendations:

#1 Get pre-approved before you start looking or contact an agent

#2 If you think you might have credit issues sit down with a lender…they can counsel you on what steps you might need to take so that you can purchase

#3 Research on the Internet…most homes are available on website like REALTOR.com and NNEREN.com or you can search our site

#4 Research by driving around in the areas you are considering living in

#5 Visit the local police department if issues like Megan’s law are important to you

#6 Consider hiring a buyers agent…They can advise you and keep all your financial information confidential

#7 Contact the real estate commission to see if the agent you’re working with has had any complaints lodged against them

#8 If any agent at first meeting does not explain who they represent before asking you a bunch of questions..find another agent fast

#9 In NH the beauty of working with agent is that you know who they represent before walking out the door to view property…if it’s not you than they are representing the other guy…don’t tell them a thing

#10 Don’t skimp on the Home Inspection…like agents home inspectors are not created alike

My cyber friend George Souto a mortgage officer from Connecticut wrote a series about Home buyers seminars that his company McCue Mortgage promotes. I really like his style and thought the tips and suggestions he wrote about are excellent. George gave us permission to use his article and I’ve copied some of it below.
The advantages of owning a home
By George Souto

• A place of their own: It is their own house and they can do what ever they want to it, and what they put into it is theirs.

• Stable housing costs: The mortgage payment will always stay the same (if it is a fixed rate loan), unlike renting which can change every year.

• Increase in value: As property values go up so does their equity in the property, and this can far exceed any money that they put in the bank over a period of time.

• Tax benefit: This quite often is the first response, because everyone knows that the interest payment on your mortgage is tax deductible, and that this can substantially reduce your tax liability each year.

Can they afford to purchase a home? In other words, have they considered the costs of purchasing a home? Do they realize that they will need money for the following thing, or obtain assistance to pay for them?

• Down payment: Most “First Time Homebuyers” seem to think that they only need to have a down payment in order to purchase a home. Many are very surprised to find out that there are other costs involved.

• Up-Front Costs: Represent many of the costs that “First Time Homebuyers” have not considered, and are very surprised when they are told that they are going to need money for an Application Fee, Appraisal, Homeowners Insurance, maybe Points, Earnest Money (deposit on sales contract), and even though it is not part of the Loan Process a Home Inspection is always advisable. These are all cost that the Buyer will have to pay before they get to the closing table.

• Closing Costs: Some “First Time Homebuyers” realize that there are cost that they will incur at the closing such as Attorney Fees, but do not have any idea that there are other significant costs involved, like Title Insurance, Taxes & Insurance that many times have to be put into Escrow, and Recording Fees.

Have they considered how much money they can afford for a monthly mortgage payment? This is very different from what they can qualify for a mortgage. Qualifying for a mortgage, and being comfortable with the payment, are two different things. In qualifying them for a mortgage they must look at all their revolving debt, which can be determined from their Credit Report, but there are other expenses that are not taken into consideration in qualifying a Borrower for a mortgage. These expenses can include, but not limited to Food, Clothing, Gas, Entertainment, Child Care, General House Maintenance, and Church Contributions to just name a few. These expenses need to be considered when deciding on how much of a mortgage a “First Time Homebuyers” can handle. A “First Time Homebuyers” can quickly get in over their head, so the more that I can bring to their attention at these Seminars, the better equipped they will be to determine how much they feel they can afford to pay for a mortgage. George Suto
Interested in reading what we’ve had to say about our communities:
Hampstead Happenings
Hampstead Market Info
Hampstead Tid Bits
A little bit about Hampstead
A little bit about Danville NH
A little bit about Kingston NH
A little bit about Atkinson NH
New Hampshire’s Old Man
New Hampshire’s White Powder
New Hampshire Kayaking Adventures
New Hampshire My Favorite State

We know that you don’t care what we know ….until you know that we care!
Jay and Monika McGillicuddy

Prudential Verani Realty

Hampstead NH

603-548-7728

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