Dallas Home Appraisals News and Information

Today's suggested link is a section on Bankrate.com that takes the reader through "mortgage basics".  One of the most instructional pages might be the information on downpayments, including a chart that compares different interest rates with possible downpayments and calculates what your monthly payment would be in each case.  It gives a good overview on what you can expect if you put down more than is generally required (better rates and less negative impact from credit blemishes) and how you can still become a homeowner with only 5% down (3.5% in the case of FHA loans).

It seems clear that one of the problems for homeowners in the past was the ability to get into a home with 100% financing and no money down or, in some cases, more than 100% financing.  The problem with these seeming gifts from lenders is that if you are in a situation where you have no downpayment saved up, you are also likely in a situation where you have no emergency fund to speak of and are possibly living paycheck to paycheck.  In these cases, the cost of homeownership, especially if you have any major (or even enough minor) maintenance or upkeep issues soon after buying, could quickly get you into trouble and into a situation where you begin to have trouble making payments - not to mention paying your property taxes and homeowners insurance.

We generally tell friends and family to find out how much they qualify for, have a good laugh, and then slash that figure by 25% or more.  That way, they have something to put away for both the expected and unexpected costs of homeownership.  If you are interested in buying and are curious about what you qualify for or how to get started, Blue Star Appraisals Inc. can put you in touch with brokers and realtors that we have longstanding relationships with and trust enough to refer.  Please contact us today!