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Home Purchase Advice
-Home Purchase Guide
-Ensuring a Fast Purchase
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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, please contact us.

**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 about 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 financially ready.
  -- 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 rate loan?


Prepare yourself!
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 possible.

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 given time.

House hunting
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 homes.
  -- 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 asking.


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 mini contract.
  -- 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 price.
  -- 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 before closing.
  -- 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.
 -- Consider 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.


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