Why Rent When You Could Buy

if you are having trouble finding a rental then consider buying. Cygnus Real Estate can help you with buying a home and even clean up your credit in the process.

The first step in homeownership is to determine how much house you can afford realistically. In fact, if you can’t afford your dream house, you may have to borrow money from the bank, known as a mortgage. This step can either make or break your homeownership prospects for three reasons:

Your Timeline

In determining whether you should buy a new home, think about how long you're planning to stay in it. It generally doesn't make economic sense to buy if you're planning to stay there for less than four years. Why? Because you will pay fees to buy and sell your house. It would have to appreciate in value very quickly between the buying and selling to make it financially worthwhile. In other words, you'd have to get lucky.

Your Comfort Zone

Before you borrow $90,000 or $200,000, figure out whether you can really afford it. Just because the bank will loan you the money doesn't mean that you will live your life in such a way as to be able to pay it back. Are you planning on having a big family? Would you rather replace your Chevy with a new Mercedes? Your house payment is just one piece of your financial puzzle. What might you need to give up to make that house a reality?

Shopping for a Loan

There are thousands of mortgage lenders across the country, and all have different loan products. From lenders who only sell to the most creditworthy borrowers (at the best rates) to those who will lend 50 percent of a property's value (at high rates), there's a mortgage product for just about everyone.

One place to check is your local bank. This can result in a reasonably good deal for the qualified customer. In many other cases, the bank will not have a program that fits your needs, or you may fall outside the guidelines of its lending ability.

Once you have visited your bank, look in the real estate section of your local paper for rates at other banks. It's a good idea to start the legwork on your own, before bringing in a mortgage broker, so that you'll 1) avoid the hard sell from the get-go and 2) have a better idea of what you could find on your own.

The Internet

The Web lets you comparison-shop. Not only that, but you don't have to hunt down a hundred different banks -- certain aggregator sites have done that for you. You may well find the cheapest rates in town (or in the country) from the Internet. If, however, you end up working with a real estate agent, you may feel more secure with a lender that has a relationship with your agent. The idea is this: The agent brings business to the lender, so the lender has some sense of responsibility toward honoring commitments with that agent's clients. This is not the case for the internet. You should be cautious of internet lending and scams.

When Should I Shop for a Mortgage?

Ideally, you should find a mortgage before you ever start looking for a house. Not only will you feel more confident knowing that you'll have a certain amount of money, but you'll be a more serious candidate to sellers.

What Information Should I Get from the Mortgage Company?

There are many questions to ask prospective lenders. You may find yourself feeling a little nervous. After all, you may feel like they have you by the suspenders. But don't think of it that way. You are going to pay them a lot of money for a very long time. They serve you, not the other way around. Don't let them take advantage of you or bully you into a deal that isn't to your advantage.

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Serving all Leelanau and Grand Traverse county real estate areas including: Traverse City, Sutton’s Bay, Leland, Lake Leelanau, Glen Arbor, Old Mission, Omena, Northport, Empire, Elk Rapids and Torch Lake.

City Property Managers - Great Lakes
508 N Saint Joseph St Suttons Bay, MI 49682
Phone: 231-994-3225 Website: www.citypropertymanagers.com



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Cygnus Real Estate