Tips for First Time Buyers

• 10-20% of the purchase price of the home as a down payment. 20% is preferred, and you will find that banks will love you! It may also help you get a lower interest rate.
• About 2% of your mortgage (loan) amount as closing costs
• 2 months worth of living expenses to remain in the bank (the bank will want you to have some left over cash for emergencies.)
• You should have good to excellent credit to qualify for a mortgage. If your credit is poor, you may have a hard time finding a bank or mortgage company that will offer you a mortgage.
• If you have never bought real estate before, you can take money out of your IRA without a penalty! Check with the IRS for more information.
• As a homeowner, the interest you pay on your mortgage interest and real estate taxes is tax deductible. If you set up your W-4 forms properly with your employer, you can start to see more cash in each paycheck as a direct result of having additional deductions. How much extra? Well, as a general rule of thumb, add your mortgage payment to your monthly real estate tax payment and multiply by your IRS tax rate. That's a rough idea of how much extra cash you will see.

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If you need more information just call us:

754-245-7501