The Value of Homeownership

Homeownership provides shelter and security to homeowners.

A long-term investment

The average home appreciates at a typical annual rate of five percent and the homeowner who made a cash down payment of 10 percent generally will receive a 94 percent return on that cash after owning the home only three years, 225 percent after five years and 623 percent after 10 years. (Harvard University’s Joint Center for Housing Studies).

Builds wealth

Tax advantages to homeownership include: interest payments on mortgages and property taxes in most cases; home equity loans which may also be used to consolidate debt, thereby making all the debt interest tax deductible. (Get more information on the tax benefits of being a homeowner from your tax preparer or the IRS).

Tax breaks

Tax advantages to homeownership include: interest payments on mortgages and property taxes in most cases; home equity loans which may also be used to consolidate debt, thereby making all the debt interest tax deductible. (Get more information on the tax benefits of being a homeowner from your tax preparer or the IRS).

4 Steps to The Home Buying Process – What to Expect

Once you’ve decided to look for real estate in Austin, Lakeway, Cedar Park or the surrounding cities/areas including Travis and Williamson County, here is a brief outline of what to expect as we work together to find and purchase the perfect property.

1. Get Pre-Approved-Talking Dollars to Sense

First of all, you need to decide how much you can afford to spend on your new home. Take into consideration your income and any expected increases or decreases, the profit you will receive from the sale of your current home, the amount you can spend on a down payment, mortgage rates, and home values in the neighborhoods you are interested in. Being pre-qualified or pre-approved for a loan puts you in a strong position when it comes time to make an offer. We can put you in touch with local lenders who, after reviewing your financial situation, can issue letters of pre-qualification and get started on the approval.

2. Choosing the best subdivision/community for you and yours

Now that you have an idea of what you’d like to spend, we’ll work together to determine which areas are most likely to meet your needs. Tell us what’s important to you—privacy, acreage, proximity to schools, a short commute, nearby parks, established landscaping, farm amenities—or anything else you envision. Then, it’s time to give us the details on the house itself: Number of bedrooms and bathrooms, property size, new construction, historic home, architectural style, hardwood floors, master suite, etc. Once we have a better idea of the area, The Marotz Team can direct you to a short list of properties in Austin and surrounding areas that will best suit your needs. The team provides you with an emailed list of available properties to review and together we decide which ones merit further investigation; you select the properties you want to see, and we’ll visit as many or as few as you choose.

3. Choosing a Price

4. Making An Offer

Once you’ve decided on an offer price, we will prepare the necessary contract documents, explain them to you, then present them to the seller’s broker. If you have any addendums/contingencies, such as a home inspection or making the offer contingent upon the sale of your existing home, we will include those in the offer. We will also include a pre-approval letter from your lender. Detailed and thoughtful preparation of your offer will give you the best shot at successfully negotiating a contract with the seller.

If you are interested in viewing all 14 steps please click the link to the right labeled Step by Step Process and we will email you a detailed page on the entire process.

Facts and Myths About Homeownership

Myth: It’s a bad time to buy a house.

Fact: Mortgage rates for fixed-rate mortgages are at historical lows, creating stable payments and long-term savings for today’s homebuyers and house prices have fallen at a record pace. Additionally, there is some financial relief for first-time homebuyers through the recently enacted Housing and Economic Recovery Act of 2008 and foreclosures have increased to record levels, leaving lots of housing supply on the market with unequalled demand. The combination of these factors generally equals greater affordability, and makes now a good time for many to consider homeownership.

Myth: Buying a house is just too risky; I’ll end up in foreclosure.

Fact: The recent news on foreclosures is understandably frightening. Certainly if you lose your job, go through a divorce, or suffer an illness, you could have real trouble paying your mortgage, or rent for that matter. In recent years, we’ve even seen an increase in excessive obligation–just too many bills–as a reason for delinquency. While you can’t always solve for the unexpected twists and turns of life, good budgeting and responsible credit practices can decrease the likelihood of a foreclosure. Also if you have trouble paying the mortgage, contact your lender immediately!

Myth: You can’t buy a home in the U.S. if you’re not a citizen.

Fact:If you’re a permanent or non-permanent resident alien, you can purchase a home in the U.S. In order to qualify for a loan you typically need to be a permanent resident alien with a valid USCIS card or, a "Green Card" and Social Security number. If you are a temporary resident alien with a valid work permit and Social Security number and have been in the United States continuously for the last 2 years, with steady employment and good credit history you may also qualify for a loan.

Myth: If you don’t have a bank account or credit cards, you can’t qualify for a mortgage.

Fact: Having a bank account is always a good idea and helps you establish credit. However, lenders can approve you for a mortgage even if you don’t have a bank account or credit cards. You’ll likely need to keep records showing a history of payments you’ve made for items such as rent, utilities, and car payments.

Myth: Lenders share your personal financial information with other companies.

Fact: By law, banks and other financial institutions are restricted in their uses and disclosures of information about you. In some situations, you may choose to restrict the disclosure of your information if you don’t want it to be shared. If you are unsure how your information will be used, don’t be afraid to ask – it’s your right to know.

Myth: If you’re late on your monthly mortgage payments, you’ll lose your house.

Fact: If you have a financial hardship, like the death of your spouse or a medical emergency, and fall behind, it’s possible to keep your home and get back on track if you contact your lender early (the organization to whom you make your monthly mortgage payments, sometimes also referred to as your mortgage servicer).

Myth: You can’t get a mortgage if you’ve changed jobs several times in the last few years.

Fact: Not true. You can change jobs several times and still get a loan to buy a home. Lenders understand that people change jobs. The important thing is to show that you’ve had a stable income and good credit.

Fact an Myth information obtained from http://www.freddiemac.com

© all rights reserved Harmony Sells Austin.com All information deemed reliable but you should verify