Volume Four of Making Extra Cents is now available
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MAKING EXTRA CENTS
MARCH, 2018 - Volume # 4
Table of Contents
Website
Loans
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Washington DC 20002
 
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CENTRAL VA OFFICE
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Room C-27
Washington DC 20420
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Mon - Fri: 8:00 am - 3:00 pm
 
PHILADELPHIA VA OFFICE
5000 Wissahickon Avenue
Philadelphia, PA 19144
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BROOKLYN VA MEDICAL

800 Poly Place
Room 1-110
Brooklyn, NY 11209

Mon - Fri: 7:45 am - 2:45 pm

ALBANY VA MEDICAL

113 Holland Avenue
Albany, NY 12208
 
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Preparing to purchase a home begins long before house shopping and applying for a loan. First and foremost, it is essential to make sure you are financially ready to purchase a home. 
 
Here are 3 things to consider before buying a home:
 
1. Credit score.
 
Good credit history is not only required to be approved for a home loan but will also qualify you for lower interest rates. Be sure to view your credit score before preparing for home ownership. You want to aim for a credit score of at least 640. If your score happens to be less than this, satisfy any unpaid collection accounts, make all payments on-time and hold off on opening new accounts. Lenders want to see an established history of responsibly managed credit. 
 
2. Savings. 
 
A mortgage loan does not cover the entire cost of the home purchase. There are two big upfront costs to plan and save for: the down payment and the closing costs. A down payment is typically 3%-5% of the total cost of the home. For example, if you want to purchase a home for $200,000, plan to save $10,000 (or 5%) to put down at the time of closing (the day when the property title is transferred into the purchaser's name). 
 
At closing, you will also be required to pay for a number of expenses, including items such as the appraisal, credit report fee, lender points, initial escrow deposit, real estate taxes, homeowners insurance, homeowner association fees, recording fees, title insurance (lender's and borrower's), private mortgage insurance, and transfer taxes. Buyers can expect to pay between 2%-5% of the home purchase price in closing costs. For example, when buying a $200,000 house, expect to pay $4,000 to $10,000 in closing costs. Being prepared will not only make the process move quicker but will also put you at ease.
 
When your credit is in good shape and you have 10% of your home purchase price saved up, you will truly be ready to begin the process of purchasing a home.
 
3. Lifestyle. 
 
Owning a home comes with a lot of responsibility that will impact your lifestyle. Your monthly expenses will increase; be prepared to pay for additional utilities such as water, electricity, and trash pickup. In addition, there will be maintenance and repairs that require your attention. These items will cut into your free time and spare cash. Are you prepared to change your lifestyle? If the answer is yes, keep reading for more questions to help you decide which home is right for you.
 
Ask yourself, will your family grow? Do you want to live in a particular neighborhood or school district? Do you have pets? Do you want to deal with an HOA? Do you enjoy yard work? How long of a commute is acceptable? Answering these questions will help you determine the location, type and size home that fits your needs, whether it be a single family, townhouse,  condo or farm. Taking all of these into consideration before you shop will make your home buying experience more enjoyable and rewarding. 

Have questions about becoming a homeowner? Join us for our free Home Buyers Seminar - April 3rd from 6 PM - 8 PM at 1200 First Street NE, Washington, District of Columbia 20002. All are welcome to attend. Membership is not required to attend.

Or contact our Mortgage Experts directly at (855)-913-6186.
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