NEW HOME PURCHASE TIPS
Buying a home is not an easy task. There are many
different phases involved, all of which can be very
confusing and tense. The 'home purchase guideline' below
will help you get the best deal on your purchase with
minimal stress involved! If you have any questions,
**If you are looking to buy an investment property, check
out the section related to
vacation home mortgages.
Are you ready to own a home?
Buying a home is likely going to be the biggest
purchase in your life. Outlined below is a simple
checklist that will help you determine if your are truly
ready for being a homeowner.
-- You should not buy a new home if you do not anticipate living in your
new house for a minimum of 3-5 years.
-- How much are you paying in rent? The cost of owning a home is very
expensive in certain areas. It may make more sense to
continue paying rent as opposed to buying. Learn more
renting vs. buying.
-- There is a great deal of responsibility of being a homeowner. Are you
prepared to deal with not only your mortgage payment but
also the price of
homeowners insurance and the cost of
general repairs and maintenance? Learn more about the
financial responsibilities of homeownership. As a
homeowner, you are going to have to learn how to
develop and maintain a budget.
*We also suggest examining the option of
buying a condominium. A condo is a lot less
expensive than a house, but offers many of the same
benefits of homeownership.
Explore your opportunities
Once you have decided that buying a home is the
route you want to take, you must determine if you are
-- Do you have any money for a down payment? Star Loan Services does not
require down payments for new home purchases. However,
making a down payment can help you save money in
mortgage interest. A sensible down payment should be no
less than 15% of the purchase price. Learn more about
the dangers of
0% down payments.
-- Do you know how much you can afford for your mortgage? We offer a
free calculator for determining how much mortgage you
can afford for a mortgage with your current salary.
It is a good idea to also use the
mortgage payment calculator when trying to figure
out how much you can afford for your loan. This
calculator will help you predict what you can expect to
pay for your mortgage based on interest rates, terms,
and down payment.
-- How much are the homes in the area you are looking at? Are the houses
in neighboring communities just as expensive? What is
the forecast for the value of these homes in a few
years? Learn more about the
fair market value of homes.
-- What are the current mortgage rates like? Are the rates forecasted to
go up or down in the next few years? Would utilizing a
fixed rate mortgage make more sense than an adjustable
Before submitting a request for a loan or even
pre-approval take the
pre-application preparation steps necessary to
ensure that you will obtain approval and the best rates
Get pre-approved for your mortgage loan
When in the market for a new home, you need to
obtain a mortgage pre-approval. Having a pre-approval
will help you determine what you can afford and help
your real estate agent/s find you a home that is in your
price range. A pre-approval will also give you
negotiating leverage with the sellers.
Star Loan Services offers pre-approval loans for all of
the different types of home purchase loans we offer. We
will work with you to find you a loan that will satisfy
your cash needs while staying within your budget. Fill
out the short form
here for an instant pre-approval mortgage. We will
lock you in for as long as 6 months! Your
credit is not checked when you apply and there is no
obligation to accept the pre-approval offer! Click the
link to browse the
different types of home purchase loans we offer.
Click the link to
apply for preapproval for a home mortgage.
Finding a real estate agent
Finding a good real estate agent is not always easy.
Some are very pushy and are more interested in making
the most money from a deal than satisfying your needs
and wants. A good idea would be to ask friends,
families, neighbors, co-workers for a real estate agent
referral. Even referrals don't always work out. You are
never in any commitment to continue working with an
agent if you are not happy with the service being
offered. In fact, you can work with as many agents at a
Below are some tips that will help ensure that you
find the right house for your needs and wants.
-- What sort of aspects are you looking for in your
new home? How many bedrooms do you need? Do you want a
pool? What about a fireplace? A good idea would be to
create a list of what your needs and wants are. Take
this list with you when you are looking at potential
-- For every house you see, take notes. Make sure you note the pros and
the cons of each house. You don't want to forget any
negative or positive feature of any house you are
interested in. Also, bring a camera with you and take a
lot of pictures of each house.
-- Get an
estimated value of the property you are interested
online. It is never a good idea to trust either the
seller or the realtor. You need to confirm the actual
value for yourself.
-- Negotiate the price of the house. In most housing markets, the buyer
has the upper hand. Meaning they can likely obtain a
potential home for a lower price than what the seller is
Close the deal
-- As soon as you find a home that you are
interested in buying,
make a formal offer. This entails putting together a
-- Have the home inspected by a professional. The cost of an inspection
is minimal, usually $300-500, and could save you from
buying a house that has a great deal of internal damage
that the average individual can not see. If there is
damage found, and you are still interested in buying the
home, you will likely be able to negotiate a lower
-- Start shopping for
homeowners insurance. Do your research and find
the best policy for the best price. You will be required
to have your homeowner's insurance policy in place
-- Work with an attorney to arrange your paperwork for closing. Your
lawyer will do all of the leg work. All you will have to
do is sign a bunch of papers. During the closing
process, make sure you go over the documents before you
sign them to make sure that they are 100% accurate.
buying a home warranty to give you piece of mind.
Owning your home
Did you know that there are great
tax benefits for owning a home?
What happens if I can't make my mortgage payments?
Foreclosure can occur if you fail to make your home
loan payments. Learn
how to prevent foreclosure.
When buying a new home, there are
mortgage scams that you need to on the look out for.