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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Presented by Marilyn Albertson, Utah State University Extension
Salt Lake County
Are Your Ready 1
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 teamHow can you make a wise housing decision?
Now is the time to evaluate whether you are really ready for the commitmentNext Ask Yourself - Are You Ready to Buy?
Assess your financial readiness
Decide on your housing needs
Find out how much house can you afford
Shop for a houseSteps in the Home Buying Process
Apply for a Mortgage
Close on the Loan
Move inSteps 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 yearsAdvantages 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 homeDisadvantages 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 nearDisadvantages of Home Ownership
Do you have a steady income and stable employment? neighborhood quality can decrease
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 l landlords 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 your ability to qualify for a mortgage?
Are Your Ready 3
Earnest Money your ability to qualify for a mortgage?
Down PaymentHow Much Should You Have Saved?
Homeowners Insurance your ability to qualify for a mortgage?
Title Company Fees
Moving In Costs
OtherHow Much to Save?
Be responsible with all money transactions and activities your ability to qualify for a mortgage?
Don’t apply for multiple credit cards
Pay your bills and credit accounts on time
Start the saving habit now
Avoid high student loansWays to Protect Your Credit Now
Have a Spending Plan your ability to qualify for a mortgage?
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 homeFinancial Tips to Get Yourself Ready
Know how much you can afford to pay your ability to qualify for a mortgage?
Have a practice plan to see if you are ready
Have good steady employment
Avoid unneeded debtFinancial Tips
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 month
Have a home maintenance and
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 paymentSustaining Home Ownership
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 paymentAvoid Putting Your House at Risk