Home Buying 101

Buying a Home

Buying a home can be one of your most significant investments in life. Not only are you choosing your dwelling place, and the place in which you will bring up your family, you are most likely investing a large portion of your assets into this venture. The more prepared you are at the outset, the less overwhelming and chaotic the buying process will be. The goal of this page is to provide you with detailed information to assist you in making an intelligent and informed decision. Remember, if you have any questions about the process, we’re only a phone call or email away!

Whether this is your first itme to buy a home or 10th time to buy a home, if its been more than 24 months, you’ll likely benefit from CHERIN’S free, no obligation, one-hour Home Buying Made Easy class (although it’s more like a really good talk about the process and what to expect more than it is a class).  And be sure to let us know on the contact form if you prefer wine or coffee!   

What should we do first, what is the best website to use when searching for homes, how much down payment is required, how much will my closing costs be, maybe I want to buy a brand new home or build a brand new home, what if the home doesn’t make appraisal, what if the inspection report reads like a horror novel, what are upfront costs, what if the roof needs to be replaced and the seller says, no. 

There are literally a million questions that could keep any prospective home buyer awake at night surfing the net for answers.  Make it easy on yourself, contact CHERIN today and let her answer your question.   

 

What home inspections should you have?

Obtaining the proper inspections for a home prior to purchase is one of the best ways to make a smart purchase decision and protect your investment.  I will help guide you through the inspection process and make sure if there is an inspection you want done, that we get it done.  There are numerous inspections that can be obtained – standard home inspection, wood destroying insect, mold, roof, lead based paint, stucco, foundation, pool, septic and more.   CHERIN will guide you.

Interest Rates are increasing BUT there’s no reason to panic

As you start shopping for a home loan, your first question of each lender will probably be “What’s your interest rate? How much are you charging?” Interest rates are usually expressed as an annual percentage of the amount borrowed. If you borrowed $120,000 at 10% interest, you’d owe interest of $12,000 for the first year. With most mortgage plans you’d pay it at the rate of $1,000 a month. You would also send in something each month to reduce the principal debt you owe – and the next month you’d owe a bit less interest.

When your grandparents bought their home (putting at least half the purchase price down, by the way), their interest rate was probably around 4 or 5%. Rates stayed the same for years at a time. Then in the years following World War II, things became more turbulent. As economic changes speeded up, rates began to change several times a year. By the l980s, lenders were setting new rates on mortgage loans as often as once a week – and they still do today. When inflation hit a high in the ’80s, some mortgage loans carried interest rates as high as 17% – and those who absolutely needed to buy, paid that much.

Rates dropped gradually through the 1990s, and by 2000 had reached their lowest rates in decades. Continuing into the millennium, home buyers appear to have the most favorable conditions for mortgage borrowing since their grandparents’ days – and without 50% down payments either.