first time home buyers | Beth Guthrie Realty

Pre-qualification is one of the smartest things you can do to help your home buying process run smoothly.

Getting pre-qualified is quick, easy and free. It gives you an estimate in advance of what loan amount you will be able to borrow and determine the loan type that’s right for you. Pre-qualification can even be done online. The lender will review your finances and estimate the amount of loan for which you may qualify. This pre-qualification is not guaranteed or considered to be any type of loan commitment…it’s simply a tool for you to know your borrowing power.

In addition, loan guarantees are offered on a variety of government sponsored mortgage programs and enable mortgage lenders to provide USDA mortgages. What is a USDA home loan? Well, this type of loan assists borrowers who would not traditionally be able to get approved. This loan means zero money down allowing financing up to 100% of the home’s value. USDA loans also provide very competitive fixed interest rates (never an adjustable rate mortgage) and affordable 30-year loan terms. This fixed rate guarantees that your monthly mortgage payments will never increase with a USDA home loan. The only fee associated the USDA rural housing program is a small, one-time funding fee.

So, all this being said, pre-qualification before you shop allows you to budget early on, and set your expectations on what you can afford…and what you might need to get out of your current home if you’re selling too. Once you create your budget and know about how much of a monthly house payment you can comfortably afford, your new home search will be more efficient. Knowing which homes are in your price range and the loan type you will need will save you time and allow your home buying expectations to be met.

If you’re in the search for a new home, I would love to help you! Contact me to get started today. I can help you not only sell your current home, but get you and your family into the home you desire! Connect with me on Facebook too!

While there are some instances where renting an apartment or home may make sense, such as during your college years or if you are planning to move cities, most of the time renting is not a financially sound choice. Often times the cost of renting can be the same or even more than that of a mortgage payment. The only difference is that once you make your rent payment that money is gone forever without ever helping you in the future. By paying into a mortgage you are essentially paying into your own investment that can you can gain the return on or even earn money from when selling in the future. In addition to the potential return on your home investment, you also can take advantage of tax benefits for homeowners. In stark contrast your monthly payment to your landlord is not tax deductible and there are absolutely no tax benefits for you as a renter. There are not many investment opportunities that allow you to leverage your money the way a real estate investment does. For example, even if you put only a small amount of money down you will still get the full value of appreciation if the value increases.

Another benefit to owning over renting is having the ability to do whatever you want to your home. When renting you must first get permission before making any changes or improvements to the home or apartment. Even if you do get permission you are still doing work and making improvements to someone else’s property.

And last but not least there is a sense of pride and accomplishment that comes from owning your own home. It gives you as well as your family a feeling of stability and comfort in knowing that you have a place to officially call your own.

If you have any questions or concerns about becoming first time home buyers please call me, I would love to help you and work together to find the ideal home to fit your budget, lifestyle, and family needs!