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President’s Corner Five points you should remember in the new year when buying a home

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Diane Gallagher

Posted: Friday, January 13, 2012 5:31 pm

I do believe this year is off to a great start. As you know, every week I will be talking about one thing or another. This week, I will tell you about the FHA (Federal Housing Administration) anti-flipping rule, as well as something to think about if you are considering purchasing a new home.

Last week, the Federal Housing Administration temporarily extended the anti flipping rule through the end of this year, 2012. What this means: This will permit buyers to contine to use FHA-insured financing to purchase homes that have changed hands in the last 90 days, no matter how long the homeonwer has held title, whether it is a HUD home, a bank owned home or even an investor purchase.

FHA says this extension will allow homes to resell quickly and are hopeful to stabilize real estate prices. Most butyers who are purchasing, using FHA financing, are only required to come in with 3.5 percent for a down payment and if you get your sellers to help with your closing costs, you have little out of pocket expense. Now that’s exciting! If you have more questions contact contact a realtor.

Five things to think about before you jump into buying a home.

1. Examine the houseing market: One avenue that housing analysts look at to gauge housing affordability is the price versus rent ratio. Sometimes it doesn’t make sense to buy in a market you are in.

2. Consider additional costs: Remember, if you choose to buy a home, your mortgage payment may be the biggest cost each month, but it’s not the only one. So make sure you are not mortgage broke.

3. Look into the future: Are jobs coming into the area, or are they leaving town? Is there enough demand for housing that prices will rise over the time you will live there? Ask questions, and keep your eyes and ears open.

4. Look into your personal future, too: Before buying, decide how long you plan to live in the home. If you plan to stay there for 10 years, a drop in value a year after you move in could be balanced out by many years of price appreciation. But if you only plan on living there for 5 years or less you might consider leasing.

5. Consider your personal finances: Does the down payment wipe out savings you might need for a rainy day, if so you might want to reconsider and enjoy life a little.

I look forward to next week and hope you do too. If there is something you would like to know please email me at larpres2012@yahoo.com

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