Purchasing a new home can be somewhat overwhelming.  How much should or can you borrow?  What kind of loan should you apply for?  What will your interest rate be?  At Larry Lewis Lending, we are here to make this process stress free!

Buyer's Guide:

1. Make sure you are financially prepared to take on an increased house payment!

2. Understand your credit.  You should obtain a recent credit report to help determine how much debt you may have.  Look for any judgements that may be reported against you that have either already been paid, or settled, or do not belong to you.  Having a higher credit rating will help improve your ability to obtain a loan while allowing you an affordable  interest rate.

3. Determine how much you can afford.  It is best to visit a lender to find out for sure what you are capable of qualifying for, but you can get a idea of what you can afford by reviewing your income, co-borrower's income (if applicable), credit rating, current monthly expenses, and downpayment.

4. Be aware of your rights are a buyer.  You should research the current rights that are awarded to you as a home buyer. (ex: privacy rights, etc.)

Benefits of Purchasing a Home:

1. Income tax reduction: in most instances, property taxes and mortgage insurance reduce taxable income.  Also, a mortgage increases your eligibilty for tax breaks.

2. Wealth and credit building possibilities: buying a home is one of the largest investments you will ever make.  As long as payments are made in their entirety and on time, your mortgage will boost your credit rating.

3. Borrowing power: over time the equity in your home will increase.  With this increase you may be able to borrow against your equity for a line of credit or home equity loan for such things as college tuition or investment opportunities.