Tips for Ormond Beach Home Buyers

June is National Homeownership Month. This year, with our country's economic challenges and the many incentives for 1st time buyers to own a home, the label takes on more meaning. Even with the low interest rates and tax credit, there are a growing number of obstacles for home buyers, including a higher credit score standard and more restrictions on credit. But, home loans are still available to credit-worthy buyers.

Here are a few things for buyers of Ormond Beach properties to consider:

1. Learn about the 1st-time Buyer programs, such as the tax credit on your 2009 taxes and local Florida and Volusia County incentives (just email me, I can help with this information).

2. Get pre-approved, not just pre-qualified. Pre-approval means you have applied for a loan and the lender tells you how much home you can buy. This saves you time, your lender time, and - of course - your realtor time. And that tax credit is only good until Nov. 30, 2009.

3. Be honest with your lender and yourself. Lots of folks are now upside down on their mortgages because they purchased more home with a larger mortgage than they could afford. Visit the mortgage calculator page on my web site to run the numbers.

4. Review the additional costs of homeownership over and above the mortgage and add those into your monthly bills. Whatever utilities have been paid by your landlord will now be your responsibility - sewer, garbage, taxes - in addition to utilities, homeowner's association fees, and more.

5. Be sure you understand the basics of the loan you choose before you pay any fees. What is the origination fee? Is there a prepayment penalty? What will the total fees be at closing that you are responsible to pay? How much can you legally ask a seller to pay for you? Any reputable mortgage lender will make sure these important items in your loan are explained to you thoroughly.

6. Know your credit score before you start shopping for a home or loan. You can get one free report annually and another for a small fee later. If you have issues on your report - especially if the late payments are not yours - they will take some time to clear off your record. To obtain a free copy of your credit report, visit www.annualcreditreport.com.

7. When you are ready to apply for a loan, be prepared. Don't waste your time and the lender's time - you will need 2 years of pay stubs, 2 years of tax returns, copies of monthly bills such as credit cards and car payments, and any additional information on your finances - such as proof of additional income (child support, alimony).

After writing these tips for Ormond Beach buyers, I realize that I can help you with every step of the process, from figuring out how much home you can buy to how to pay for it and what the total costs will be. And then, I can show you the houses you choose and guide you through the purchase process into your Ormond Beach home.

Remember, realtors are free for buyers - it is the seller who pays. Would you write a complex legal document without a lawyer? Probably not. So use a Realtor for your home purchase, at no cost to you. Contact me soon.

Sherry Armstrong, Realtor
386-679-3191
sherry@sherryarmstrong.com
www.ormondbeachflhome.com
www.sherryarmstrong.com