Wednesday, June 13, 2012

Tips For Northern Kentucky Home Buyers.

Consider the tips below to make your home buying process a good one!

Get Pre Approved: It is smart to get a pre-approval from a lender so that you are clear on how much financing you can get for the home. Make sure your lender is pulling your credit and verifying your income. With a firm pre-approval you can put in an offer without fear that your financing could fall through. In todays world few sellers will consider an offer without one!

Your Down Payment: With a down payment of at least 20% you can avoid costly mortgage loan insurance. Consider deferring home ownership until you’ve saved the 20% and find ways to fund that down payment.

Know Your Ratios: Financial institutions have rules and ratios when granting credit. The amount they are willing to lend you might be more than you can afford without compromising your desired lifestyle. It pays to do your own number crunching to see what you can afford each month.

Are You Ready To Become A Contractor: About 30% of homes currently for sale are distressed sales. Many are in need of major repairs or renovation. Before inking that "great deal" consider the cost and time that will be involved in making the home the way you want it.

Beware Of A Bidding War On A Property: Many of the homes for sale require bids being made in advance of a sale. Beware of getting into a bidding war on these properties. In a bidding war on say a HUD home you could pay more than the appraised value. This means you might need more financing and the down payment you had might be insufficient to avoid mortgage loan insurance. Don’t make a firm offer in a bidding war unless you are sure of your financing and the true value of the home.

Insure The Risk: Almost all loans require lender insurance yet if your family relies on your income to make the mortgage payments, then you need life (and possibly disability) insurance. This is usually an option when you sign up for your mortgage but consider applying for your own policy through an insurance agent, which could save you money and provide flexibility for your future needs.

Look At Payment Options: Review your financing options to make sure they meet your cash flow needs and long term goals. Consider a shorter amortization period and increase the frequency of your payments from monthly to bi-weekly or weekly to pay off your mortgage faster and save thousands in interest costs.

Keep Saving: Just because you have saved enough for a down payment and bought your home doesn’t mean your saving days are over. Make sure you have an emergency fund and try to stash away some income for the inevitable upkeep - and surprises - that comes along with home ownership

All The Best,

Herb Johnson
859-372-8019 Direct Line Email Website
Buyers and Sellers wanted. Referrals Appreciated!

4895 Houston Road
Florence, Kentucky 41042

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