Real Estate Tips
Down Payments and Pre-qualification vs. Pre-approval
Before you go out looking for a home, it's good to get an idea of
what you can afford. Think about your monthly income, debts and
assets, and begin to think about the money investment of buying a
Another important thing to remember and think about is your down
payment amount. Think you canít buy a house without a 10% or 20%
down payment? Thanks to more lenient government guidelines and new
mortgage products, many people can now get into a house for as
little as 3% down or less. There are even some special programs for
first-time buyers that help with closing costs.
Remember the difference between pre-qualification and pre-approval
when you are entering the home buying process. Pre-qualification is
a rough estimate of how much you could afford. With a pre-approval
its just that: getting your mortgage approved prior to going out and
looking for a new home. This critical step launches your home
purchasing experience and allows you more options when you are
beginning the home buying process.
After you have purchased your home, you will probably be interested
in the tax break available to you. As a homeowner, when filing your
taxes you can deduct the interest portion of your monthly payment -
and that can mean big savings for you. You can deduct your property
taxes as well. After looking at what your monthly mortgage payment
will actually be, take your tax breaks into consideration. You may
find out itís about the same as - or sometimes even less - than a
Homeownerís Insurance and Inspections
Since your home typically is the single biggest investment you'll
ever make, protecting it with homeowner's insurance will provide
financial protection against the unexpected. Aside from protecting
your home and your possessions, it provides you with liability
coverage as well.
Hopefully before you acquired your home you asked for a complete
home inspection, however even after purchase you may want another
inspection to go over the problem areas once more.
Tour the house with the inspector, who will point out potential
trouble areas. Take notes as you tour. If you have not purchased the
home yet, you will want to be sure to note all problems and add them
as terms to your contact agreement.
Equity is the difference between what your home is worth and what
you still owe on it. When you sell your home this equity can be used
as a down payment on a new home. If you donít sell, this same equity
can be used as collateral for a home equity loan. You can use a home
equity loan to finance home improvements, a childís college tuition,
or a new car.
Let our Western North Carolina Mountain real estate experts at Real
Property People help you today. We are very knowledgeable about
Mitchell County and Yancey County and are here to help you buy or
sell a home today!
Please click on the following links for more
Sellers | 1031 Exchanges |
Real Estate Tips | Area
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questions or would like more information, please contact us
us, or use our online request form.