Thursday, March 12, 2009
Young Engaged Couple Pursue Home Ownership
What a great evening! I had the pleasure of sitting down and talking with a great couple in their early twenties this evening. I talked with them over the phone last night, and they agreed to come in to my office today. Before our appointment, they had already scheduled a visit with a local lender. The lender went over various payments on different loan amounts, and analyzed their budget to tell them what they could afford to spend per month. Overall, I agreed with the lender's numbers, as I had done my own calculations based on a conversation with them. He even suggested a Rural Development Loan for them, which I was happy about, since so few people are knowledgable about this loan. I was a little disappointed that he told them prices of homes to look for, rather than explaining to them to buy based on what they wanted their monthly payment to be, but I went over it with them, so they understand now. For those of you reading this that haven't bought a home before, knowing what the millage rates are for the municipalities in your area are is of great importance. The difference in what you pay in taxes from one municipality to the next could equal tens of thousands of dollars in purchase power. Now, instead of looking for homes not to exceed $80,000, we are looking for a home in a municipality that will allow their PITI payment to stay under $650. We will find homes in one municipality that are 90,000, but has low taxes, and still be able to come up with the desired monthly payment. It's all about whether you want to spend your money on taxes, or put it into equity in your home. These folks left my office armed with some valuable knowledge, and are excited to see some homes this weekend. I'm excited for them, and can't wait to help them buy their first home. I love my job!