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Dreaming of Your First Home
As we reach start moving into a new year, many wish to stop paying rent and finally move into a new home. Now is the time to speak with us at Acorn Home Mortgage to evaluate your ability to afford your first home. As with everything else, first time home buying is a process with many options. If you rely on dated or "what you heard" information, it may lead you to the wrong conclusions about what you can or cannot afford. What is critical is that you are comfortable with your monthly housing expense.
Let's look at some of the facts: The average rental in this area is $1,400 for a one bedroom. By purchasing a home instead, even though the mortgage payment (including property tax and home insurance) may well be over $2200 a month, the interest on the loan plus property tax is an allowable tax deduction that you can take straight away. This can translate into a $200,000 to $375,000 loan amount depending upon the mortgage program chosen.
Although appreciation of real estate varies by town, last year's home prices increased by 8% on average - better than any saving account interest rate! This also means that the longer you wait to buy, the more difficult it becomes to afford your first home.
Even with little or no savings, many first time buyers may qualify for 100% financing and 60/6' sellers' contribution toward closing costs. These programs have specific guidelines for credit scores, debt ratios and document requirements, which need to be reviewed. Within the last 18 months, lenders have introduced many programs to attract first time buyers such as 40 and 50 year loans. AHM professionals can explain the various loan programs available.
A credit review is an important part of the process and should be done with your mortgage professional. On average, 25 - 30% of all credit reports have errors.
Being a homeowner will reduce your taxes, which translates to more money in your paycheck. As a first time buyer, you are considered 'more flexible with closing dates because you do not have a home to sell. This is a plus when you begin your search.
Acorn Home Mortgage works closely with first time buyers in order to assist you throughout the process. It is important as a first time homebuyer that you have all of your financial "ducks in a row" before you begin to look for a home. We work with many experienced local realtors throughout the area who will assist you in your search once you are qualified.
It is important to work with a local mortgage company like Acorn Home Mortgage that knows the property tax rates, filing fees and legal costs etc., in your area. Over the next several months, we will be offering informal meetings to discuss the first time homebuyers' process. For additional information, please contact US at 203, 682 0246 now with mortgage professional available until 9 PM or at www. AcornHomeMortgage.com, we look forward to helping you.
When you begin your first home search, it is important to be informed and to be "paperwork" ready to minimize the stress in buying your first home. Documents-that you should have ready are:- Employment History at least 1 to 2 years. - Rent history 12 months is always preferred. Only a couple of lenders will allow living with a relative. - Pay your bills on time and create sufficient credit history. - Save when you can. - Pay stubs. - Tax returns. - W2 and/or 1099's. - Will a relative co-sign?
For more information:
Acorn Home Mortgage
1720 Post Road East, Suite 214 Westport, CT 06880
Ph: 203 682 0246
Toll Free: 1 8003390680
Member of Better Business Bureau
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