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How to Be A SMART HOUSING CONSUMER

How to Be A SMART HOUSING CONSUMER. Presented by Marilyn Albertson, Utah State University Extension Salt Lake County. Are Your Ready 1. Know the Steps to the Home Buying process Know how much you can afford Know what your housing needs are

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How to Be A SMART HOUSING CONSUMER

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  1. How to Be A SMART HOUSING CONSUMER Presented by Marilyn Albertson, Utah State University Extension Salt Lake County Are Your Ready 1

  2. Know the Steps to the Home Buying process Know how much you can afford Know what your housing needs are Know how much money you will need to make the purchase Know who is on your team How can you make a wise housing decision?

  3. Are you sure you want to own a home? Now is the time to evaluate whether you are really ready for the commitment Next Ask Yourself - Are You Ready to Buy?

  4. Attend a homebuyer education class Assess your financial readiness Decide on your housing needs Find out how much house can you afford Shop for a house Steps in the Home Buying Process

  5. Make an offer Home Inspection Appraisal Apply for a Mortgage Close on the Loan Move in Steps in the Home Buying Process

  6. ⌂ A form of forced savings ⌂ Homeowners have a sense of pride and status in the community ⌂ A homeowner may have a better credit rating ⌂ Mortgage payments contribute to an investment ⌂ Monthly payments usually remains constant for many years Advantages of Owning a Home?

  7. ⌂ Some families have difficulty in budgeting for repairs, maintenance and home improvements ⌂ Home maintenance can be a hassle ⌂ Real property taxes could increase dramatically ⌂ The family may have higher moving-in costs, since new items may have to be purchased for a home Disadvantages of Home Ownership

  8. ⌂ Some financial risks: a house can lose in value, neighborhood quality can decrease ⌂ It is a long term commitment; mortgage payments for 30 years ⌂ Not very mobile ⌂ The family may feel less secure if neighbors are not near Disadvantages of Home Ownership

  9. Do you have a steady income and stable employment? Do you anticipate remaining in the same geographic location from 3 to 5 years? Have you created a budget so you know how much you can realistically afford for housing? Ask Yourself . . .???

  10. Do you have an established credit record or can you build a non-traditional credit history with records of payments to previous l landlords and utility companies? Is your credit favorable? Do you pay your bills on time or before the due date? Have you been pre-approved by a lender so you know how much you can borrow based on your income and existing debt? Ask Yourself . . .???

  11. Is your existing debt low enough that it will not limit your ability to qualify for a mortgage? Have you looked into the benefits and requirements of the numerous financing options that are now available to home buyers? Do you have enough money saved for the down payment and closing costs? Ask Yourself . . .

  12. Costs of Purchasing A Home • Upfront Costs • Down Payment • Closing Costs • Settling-In Costs • On-Going Costs • Monthly Mortgage Payment and Interest (PI) • Taxes and Insurance • (T & I) Are Your Ready 3

  13. Earnest Money Inspection Appraisal Credit Report Down Payment How Much Should You Have Saved?

  14. Homeowners Insurance Title Company Fees Closing Costs Emergency Fund Moving In Costs Other How Much to Save?

  15. Be responsible with all money transactions and activities Don’t apply for multiple credit cards Pay your bills and credit accounts on time Start the saving habit now Avoid high student loans Ways to Protect Your Credit Now

  16. Have a Spending Plan Track your expenditures Learn ways to cut back on spending Learn to save Pay your bills on time Don’t buy too many other things on credit right before you want to buy a home Financial Tips to Get Yourself Ready

  17. Know how much you can afford to pay Have a practice plan to see if you are ready Have good steady employment Avoid unneeded debt Financial Tips

  18. Learn to spend less than you make and save a little each month Be wary of marketing that encourages you to spend money on things that you don’t need Evaluate progress towards your goals regularly. Financial Tips

  19. Pay you bills on time Have a home maintenance and repair fund Maintain your home and yard Make necessary repairs quickly before they get too expensive Contact your lender immediately if you have a problem making your house payment Sustaining Home Ownership

  20. Be a wise consumer shopper Don’t put other purchases and credit card debt on home equity loans Don’t buy things that you don’t need that make it hard to make your housing payment Avoid Putting Your House at Risk

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