Buyers

There are many factors to consider when purchasing your first home, your next
home or your dream home. Do you wonder if it's time to stop paying someone
else's mortgage with your monthly rent payments? Do you and your growing
family need more space? Less space? Is your long commute cutting into your
valuable personal time? Do you prefer the growth in the different subdivisions,
the convenience of the city, or quiet country living. All these are valid questions,
and hence deserve thoughtful answers.

This website was designed specifically to help you find many of the answers to
your questions about purchasing a home. However, when you are ready for a
personal consultation and assessment, I am ready and eager to help.

Contact me today!

diane@casalesells.com

256.679.6470 CELL

While everyone would like to live the American Dream of buying and owning a Home it is important to understand all the
costs involved in buying and owning a home.

Many potential buyers sometimes forget to factor in the down payment, homeowners insurance and the possibility of
depreciation, as well as the costs associated with closing the transaction,
moving, purchasing major appliances, and home, landscape and pool maintenance, not to mention furnishings and design
accessories once you move in.

For a general idea of your buying power, multiply your annual gross income by 2½. For example, if you had a household
income of $50,000, you might be able to qualify for a $125,000 home. The actual number may be more or less, depending
upon your individual situation, debts and credit history.

Housing Expense Ratio

As a general guide your monthly mortgage payment should be less than or equal to a percentage of your income, usually
about a quarter of your gross monthly income. The percentage can change depending on the type of mortgage you
choose. However, there are mortgage products available that focus solely on the debt-to-income ratio. Your lender can
provide more information on these types of mortgage products.

Debt-to-Income

Your buying power can be affected by factors such as your income, debt and credit history. Your debt, such as credit card
bills and car loans, and other expenses such as housing expenses, alimony and child support, should not be more than
about 30-40% of your gross income.

How Much Money Do I Need to Buy a Home?

You'll need money for:

1.) A down payment
2.) Closing costs
3.) Other housing-related costs – mortgage payments, maintenance and repair costs

Your Down Payment

The down payment is a percentage of the value of the property. What percentage that is will be determined by the type of
mortgage you select. Down payments usually range from 3.5% to 20% of the property value.

You may be required to have Private Mortgage Insurance (PMI or MI) if your down payment is less than 20%.

Closing Costs

Closing costs include points, taxes, title insurance, financing costs and items that must be
prepaid or escrowed and other settlement costs. These costs generally range between 2-7% of the property value. You will
receive an estimate of these costs from your lender after you apply for a mortgage.

While it may seem that it can take a lot to actually buy your home, you may be closer than you think.

Some people like the flexibility that comes with renting. When you rent, you can live in a neighborhood for as little or as
long as you want. You're also free of most maintenance responsibilities – your landlord usually handles repairs.

Of course there are many other reasons owning a home can be beneficial. These are just a few....

Build Equity

In the early years of most mortgages, the majority of your monthly mortgage payments go towards interest on your loan.
Over time, an increasing amount of the monthly payment goes toward reducing mortgage balance, or "principal."
As you make payments, you reduce the principal and increase your share, or "equity," in your home's value. If your home
increases in value through appreciation, your equity will build even faster.

Building equity—or savings—in your home is important. For many people, it lets them plan for retirement and other future
goals.

Gain Tax Advantages

You are allowed to deduct mortgage interest and property taxes from your federal income tax and from some states'
income tax. These deductions can mean significant tax savings, especially in the early years of the mortgage when interest
makes up most of the monthly payment.

After calculating your taxes, you may find that it's cheaper for you to buy than to rent.

Rely on Payment Stability

If you select a fixed-rate mortgage, you will pay the same monthly principal and interest payment for the term of your loan.
Unlike renting, this type of payment will remain the same month after month, even when inflation leads to higher prices.
However, your total monthly housing expense could vary if tax and/or insurance expenses change.

Before you begin house hunting, create a realistic "shopping list" to narrow your search. Looking for a home can take time,
especially if you have not focused on what is most important.

Create a "wish list" and a "must have" list. Many people focus more on "wants" than "needs." As a result, they sometimes
reject homes that perfectly meet their needs in search of homes that meet their wants, which in many cases can be out of
your budget and not affordable.

That's not to say that you shouldn't try to get what you want – you should just be able to tell the difference between what
you really need and what you would like to have.

Buyers