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Do I Have Enough Money For The Home I Want?
This article contains information about home ownership and the financial considerations that must be taken into account when considering home ownership.
When deciding whether to buy a home, often the first thing that needs to be considered is how much can you afford. Determining how much money you have and how much you can borrow is often a deceptively difficult question to answer. The internet and your local community are littered with banks and financial institutions that are set up to lend buyers money. How much you're able to borrow for a home loan will depend on factors like your income and your credit report score. If you find that your credit report score is too low for the loan you wish to obtain, you may be able to use a credit repair service. But, beware because there are a lot of predatory companies involved in credit report repair. A good resource for Florida home loans for Florida credit repair is: The Federal Trade Commission. Some banks and lending companies can pre-qualify a buyer so that when they find the property that is right for them, they can produce their prequalification letter/certificate to the real estate agent and this lends credibility to the buyer's offer - making it more likely to be accepted by the seller than an unqualified bidder. If you contact your financial institution they may be able to help you with the pre qualification process. There are often significant costs associated with a home purchase that less experienced buyers can overlook: A fee to have the property surveyed. The property must be assessed and this charge often falls on the buyer. Local property search to ensure that the title is free of liens. Mortgage broker will charge an administrative fee for handling the transaction's paperwork. Lead and asbestos surveys. Expenses associated with lead and asbestos abatement. The cost of installing gas, electric, phone and cable can often be a fairly significant and overlooked fee. The realtor's fees are also something we shouldn't forget. These are often negotiable, so it can help to persistently ask the realtor to take a lower cut to help facilitate the transaction. If the property fails to close and it is your fault, these fees are often non refundable. Your realtor may also ask for a "good faith" commitment of several thousand dollars to prove that you are serious about the property. This fee may also not be refundable. Another factor in addition to the mortgage that should be considered is the monthly costs of maintaining and keeping the property up. These costs may include: Monthly heat and gas bills Property tax- this is usually included in the cost of the loan payment as part of the escrow. Monthly water bill Insurance costs- if you have a loan, this is usually included in the cost of the loan payment as part of the escrow.