How to be a smart housing consumer
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How to Be A SMART HOUSING CONSUMER. Presented by Marilyn Albertson, Utah State University Extension Salt Lake County. Are Your Ready 1. Know the Steps to the Home Buying process Know how much you can afford Know what your housing needs are

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How to Be A SMART HOUSING CONSUMER

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How to Be A SMART HOUSING CONSUMER

Presented by Marilyn Albertson, Utah State University Extension

Salt Lake County

Are Your Ready 1


Know the Steps to the Home Buying process

Know how much you can afford

Know what your housing needs are

Know how much money you will need to make the purchase

Know who is on your team

How can you make a wise housing decision?


Are you sure you want to own a home?

Now is the time to evaluate whether you are really ready for the commitment

Next Ask Yourself - Are You Ready to Buy?


Attend a homebuyer education class

Assess your financial readiness

Decide on your housing needs

Find out how much house can you afford

Shop for a house

Steps in the Home Buying Process


Make an offer

Home Inspection

Appraisal

Apply for a Mortgage

Close on the Loan

Move in

Steps in the Home Buying Process


⌂ A form of forced savings

⌂ Homeowners have a sense of pride and status in the community

⌂ A homeowner may have a better credit rating

⌂ Mortgage payments contribute to an investment

⌂ Monthly payments usually remains constant for many years

Advantages of Owning a Home?


⌂ Some families have difficulty in budgeting for repairs, maintenance and home improvements

⌂ Home maintenance can be a hassle

⌂ Real property taxes could increase dramatically

⌂ The family may have higher moving-in costs, since new items may have to be purchased for a home

Disadvantages of Home Ownership


⌂ Some financial risks: a house can lose in value, neighborhood quality can decrease

⌂ It is a long term commitment; mortgage payments for 30 years

⌂ Not very mobile

⌂ The family may feel less secure if neighbors are not near

Disadvantages of Home Ownership


Do you have a steady income and stable employment?

Do you anticipate remaining in the same geographic location from 3 to 5 years?

Have you created a budget so you know how much you can realistically afford for housing?

Ask Yourself . . .???


Do you have an established credit record or can you build a non-traditional credit history with records of payments to previous llandlords and utility companies?

Is your credit favorable? Do you pay your bills on time or before the due date?

Have you been pre-approved by a lender so you know how much you can borrow based on your income and existing debt?

Ask Yourself . . .???


Is your existing debt low enough that it will not limit your ability to qualify for a mortgage?

Have you looked into the benefits and requirements of the numerous financing options that are now available to home buyers?

Do you have enough money saved for the down payment and closing costs?

Ask Yourself . . .


Costs of Purchasing A Home

  • Upfront Costs

  • Down Payment

  • Closing Costs

  • Settling-In Costs

  • On-Going Costs

  • Monthly Mortgage Payment and Interest (PI)

  • Taxes and Insurance

  • (T & I)

Are Your Ready 3


Earnest Money

Inspection

Appraisal

Credit Report

Down Payment

How Much Should You Have Saved?


Homeowners Insurance

Title Company Fees

Closing Costs

Emergency Fund

Moving In Costs

Other

How Much to Save?


Be responsible with all money transactions and activities

Don’t apply for multiple credit cards

Pay your bills and credit accounts on time

Start the saving habit now

Avoid high student loans

Ways to Protect Your Credit Now


Have a Spending Plan

Track your expenditures

Learn ways to cut back on spending

Learn to save

Pay your bills on time

Don’t buy too many other things on credit right before you want to buy a home

Financial Tips to Get Yourself Ready


Know how much you can afford to pay

Have a practice plan to see if you are ready

Have good steady employment

Avoid unneeded debt

Financial Tips


Learn to spend less than you make and save a little each month

Be wary of marketing that encourages you to spend money on things that you don’t need

Evaluate progress towards your goals regularly.

Financial Tips


Pay you bills on time

Have a home maintenance and

repair fund

Maintain your home and yard

Make necessary repairs quickly

before they get too expensive

Contact your lender immediately if you have a problem making your house payment

Sustaining Home Ownership


Be a wise consumer shopper

Don’t put other purchases and credit card debt on home equity loans

Don’t buy things that you don’t need that make it hard to make your housing payment

Avoid Putting Your House at Risk


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