Rents are skyrocketing across the U.S. so it is cheaper to buy a home. According to data compiled by National Association of REALTORS®, about 1/3 of home buyers are purchasing for the first time. Forecasts show that more than 6 million people will buy home this time around.
If you are jumping on the same boat of home-ownership then ask yourself these 5 questions to determine where you currently stand and what you can afford to achieve. 
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Buying home might be the biggest purchase you are going to make in your lifetime. Be smart and make plans about it. Personal finance is the most important factor to consider. Your future decisions will have an impact on the homeownership process. So, keep your future goals in mind. Planning will help you make smarter moves and remain ahead of the curve.
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People tend to look at the maximum price of the home. That is not a right question to ask yourself. The right question is how much you can afford to pay comfortably on monthly basis. The maximum monthly payment is more important than maximum home purchase price. Make a monthly budget inclusive of all the future recurring costs. Determine whether buying a home of particular size and price is affordable on month to month basis or not?
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When buying a home you also need to set aside some money for contingencies. Financial experts suggest that you should have at least 6 months of cash reserve for this purpose. This money should not be used for estimating the amount of down payment you can afford. The down payment percentage can vary from 0 to 20 percent or more.
The Department of Veteran Affairs and Aepartment of Agriculture, both offer homes without any down payment. There are also some programs in the market that can be a suitable option for lowering down payments like FHA (Federal Housing Administration) and Fannie Mae housing programs, both allow very low down payments. These laons hav eligibility eligibility.
Majority of the people that are going for a mortgage with low down payment have to settle with Fannie Mae, Freddie Mac or standard FHA loan. Use their data to determine which one suits your needs
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​The department of housing and urban development (HUD) has issued some guidelines for home buyers. They recommend you should set aside 4 percent of home’s cost to account for various fees and expenses. This include lender fee, title fee and government taxes.
Closing costs vary by state and you can contact your lender and talk about your options.
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​Your credit report is linked with your personal credit score. Your lenders look at the report to determine the risk. It is because credit report reflects the likelihood of loan defaulting and foreclosure.
It is a rough estimate that a lot of credit reports contain errors. These can significantly affect your score. You should review your credit report for errors time to time and file a dispute to amend mistakes in it.
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​If you’re looking for a home that’s in a family-friendly neighborhood, there are a few key things you can look for to make sure your new house is a good fit for both you and your children.
Quality Public or Private Schools
Are there good public schools nearby? If so, do they span from kindergarten all the way to high school? Finding a home in an area with a great elementary school can be a good fit for several years, but if you’re looking for a home that will be convenient in the long-term it’s important to consider your proximity to both primary and secondary schools.
Parks And Other Relaxing Green Spaces
If you’re looking for a family-friendly neighborhood with free sources of entertainment, make sure that there is at least one park or playground nearby. Playgrounds can provide endless amusement for younger children, whereas a park can offer entertainment for kids of any age. Either way, have a park in the area will help boost the quality of your family’s leisure time.
Recreation Facilities And Other Amenities
For even more great leisure opportunities, check out the local recreational facilities. Public swimming pools, community centers, and recreation centers often offer a wide variety extracurricular activities and programs. These can be a great support when it comes to supplementing what your kids’ education with skills that are learned outside of school, and can encourage a healthy lifestyle as well.
Shopping & Services
If you’re looking for a convenient lifestyle, perhaps one of the most important factors to consider is what stores and businesses are located nearby. Is there a grocery store, doctor’s office, cafe, drug store, gas station, or other essential businesses nearby? Make your life easy! If there are stores nearby that meet your needs it will help boost your neighborhood satisfaction for years to come.
A Short (Or At Least Tolerable) Commute
If you commute to work, it is also valuable to consider how long of a drive it is between your place of employment and potential new home. The less time you have to spend on the road, the more time you’ll have with your family.
Neighbors You Will Enjoy Associating With
Finally, it is important to consider who else lives in the area. Is the neighborhood you’re looking at full of other young families? Are there other children for your kids to play with? Does it seem like a close-knit community?
Although you can’t predict how relationships will blossom in a new home, you’ll set yourself up for success if there are people with similar interests and lifestyles as you. If the people seem great, chances are the neighborhood is, too!
Ready to purchase the perfect home to raise your family in? Contact your trusted mortgage professional today.

​It can be a bit of a surprise if your home turns out to be valued at less than the purchase price offered, but this is the type of thing that can occur in an appraisal situation. While this can change everything from your contract to the amount of your down payment if your home has been appraised at less than you envisioned, here are some options you may want to consider.
Review The Appraisal Contingency Clause
If an appraisal contingency clause is built into the terms of your contract, this means that the terms of your contract can be re-evaluated and re-negotiated if an appraisal happens to come up short. While this is meant primarily to protect the homebuyer against a lower appraisal, it doesn’t mean that the terms of a new deal can’t be met for the good of both parties.
Get A Second Appraisal
It’s entirely possible that the initial appraisal is accurate, but it doesn’t necessarily hurt to get a second opinion in the event that the first appraisal seems too low. While you can work in conjunction with your lender to get a second appraisal, you may need to pay for it the second time around in order to get your initial purchasing price. Whether it happens to be good news or bad news, it can be worth the peace of mind to know how to proceed.
Consider A Lower Price
It’s less than ideal when your home is appraised for less than the purchase price, but this doesn’t have to be a deal breaker when it comes to selling it. While you may be able to get away with a higher price for your home in a hot real estate market, if things have cooled off, this can be an important time to re-negotiate the deal you’ve got. If a potential buyer likes your home and has already made an offer, they may be happy to decide on new contract terms.
It can be quite disappointing if your home is appraised at a value that is less than the offer you’ve received, but this doesn’t necessarily mean that you’ll have to put your home back on the market. Whether you and the potential buyer decide to re-negotiate or get a second opinion, there are options that can be beneficial for both parties. If you’re currently going through the appraisal process, you may want to contact Mortgage Market Corp for more information.