1. HOUSE
BUYING
POWER VS
TAXES
This is a huge deal right now.
Do you go after a good deal on
a home and pay higher taxes
or do you find a a higher
priced home in a lower tax
district?
Your telling me I am approved for $120,000
house. Since the taxes are high, now it brought
my buying power for a house down to
$115,000?
Whatever your goals are,the difference
between dreaming and making them a reality
is by not procrastinating and by doing them.
My opinion, you can always later
refinance a home to make the payments
more affordable but you have little
control over taxes. You have to make
that choice. You could apply for a tax
abatement to lower the assessment of
your taxes but this also can decrease
the resale value. There is no guarantee
that you will be able to have the taxes
lowered. You have to meet somewhere
in the middle of this debate. Ultimately,
you have to be able to afford your
monthly payment. In 30 years, the
house will be paid off but the taxes will
continue.
Buy VS Rent To Own
What is the difference between buying and rent to own? There is a huge difference. Buying now
means you are a smart consumer, you have done the necessary steps to become pre-approved.
Now you can start shopping for your home. After you find the home you want, you put in a offer.
Once the offer is put in and accepted then a deposit is paid and held in escrow. The mortgage
will start to be processed.Home inspections will be scheduled. Appraisal will be done for the
value of the home. A mortgage commitment will be given to you 2 weeks before settlement and
this will allow you to lock in the current low rates. Final walk through is done on your home.
Settlement is where you finalize the transaction and I hand you the keys of your new home. All the
money you pay will be applied toward principal, interest and taxes on your new home.
Congratulations!
Rent to own is renting the home with the purpose of buying the home in usually a year. Typically,
rent to own clients have items on their credit that needs worked on. Instead of working on the
credit then buying, they want to move now. Downfall of rent to own is you have limited inventory
of homes, you are not locking in a low mortgage rate because essentially you are still renting. You
will normally pay $1-200 more a month in rent and this money is “saved” for the down payment
on the home. At the end of the term, you must obtain a mortgage for the purchase price of the
home. If your credit still does not allow you to obtain a mortgage like agreed then you have now
defaulted the terms, all monies paid are non refundable and you must vacate the property.