Frequently Asked Questions ~ Buying
1. HOW DO I KNOW IF I'M READY TO BUY A HOME?
You can find out by asking yourself some questions:
· Do I have a steady source of income?
· Do I have a good record of paying my bills?
· How many outstanding long-terms bills do I have? (like car loans)
· Do I have a down payment?
· Do I have the ability to pay mortgage, lot rent, cost of utilities, plus additional costs?
If you can answer "yes" to these questions, you are probably ready to buy your own home.
2. HOW DO I BEGIN THE PROCESS OF BUYING A HOME?
Start by thinking about your situation. Are you ready to buy a home? How much can you afford in a monthly mortgage payment? How much space do you need? What areas of town do you like? After you answer these questions, make a "To Do" list and start doing casual research. Talk to friends and family, drive through neighborhoods, and look in the "Homes" section of the newspaper.
3. HOW DOES PURCHASING A HOME COMPARE WITH RENTING?
The two don't really compare at all. The one advantage of renting is being generally free of most maintenance responsibilities. But, by renting, you lose the chance to build equity, take advantage of tax benefits, and protect yourself against rent increases. Also, you may not be free to decorate without permission and may be at the mercy of the landlord for housing.
Owning a home has many benefits. Owning a home also qualifies you for tax breaks that assist you in dealing with your new financial responsibilities- like insurance, real estate taxes, and upkeep - which can be substantial. But given the freedom, stability, and security of owning your own home, they are worth it.
4. HOW CAN I DETERMINE MY HOUSING NEEDS BEFORE I BEGIN THE SEARCH?
Your home should fit the way you live, with spaces and features that appeal to the whole family. Before you begin looking at homes, make a list of your priorities - things like location and size. Should the house be close to certain schools, your job, or public transportation? How large should the house be? What type of lot do you prefer? What kind of amenities are you looking for? Establish a set of minimum requirements and a "wish list." Minimum requirements are things that a house must have for you to consider, while a "wish list" covers things that you'd like to have but aren't essential.
5. WHAT SHOULD I LOOK FOR WHEN DECIDING ON A COMMUNITY?
Select a community that will allow you to best live your daily life. Many people choose communities based on schools. Do you want access to shopping and public transportation? Is access to local facilities like libraries and museums important to you, or, do you prefer the peace and quiet of a rural community? When you find places that you like, talk to people that live there. They know the most about the area and will be your future neighbors. More than anything, you want a neighborhood you feel comfortable in.
6. HOW CAN I FIND OUT ABOUT LOCAL SCHOOLS?
You can get information about school systems by contacting the city, county school board or the local schools. Your sales agent may also be knowledgeable about schools in the area.
7. HOW CAN I FIND OUT ABOUT COMMUNITY RESOURCES?
Contact the local chamber of commerce for promotional literature or talk to your sales agent about welcome kits, maps, and other information. You may also want to visit the local library, it can be an excellent source for information on local events, resources and the librarians will probably be able to answer many of the questions you have.
8. WHAT SHOULD I LOOK FOR WHEN WALKING THROUGH A HOME?
In addition to comparing the home to your minimum requirement and wish lists, use the HUD Home Scorecard and consider the following:
· Is the house big enough; enough bedrooms and bathrooms for present and future?
· Is the house structurally sound?
· Are there appliances included? If so, do they work?
· Do you like the floor plan? Bring a tape measure to be sure your current furniture will fit in the rooms and more importantly, through the doors.
· Does anything need repaired/replaced? Will the seller repair/replace?
9. HOW CAN I KEEP TRACK OF ALL THE HOMES I SEE?
If possible, take photographs of each house: the outside, the major rooms, the yard, and extra features that you like or ones you see as potential problems. And don't hesitate to return for a second look.
10. HOW MANY HOMES SHOULD I CONSIDER BEFORE CHOOSING ONE?
There isn't a set number of houses you should see before you decide. Visit as many as it takes to find the one you want. Just be sure to communicate often with your sales agent about everything you're looking for. It will help avoid wasting your time.
11. ARE POWER LINES A HEALTH HAZARD?
There are no definitive research findings that indicate exposure to power lines results in greater instances of disease or illness.
12. DO I REALLY NEED HOMEOWNER'S INSURANCE?
Yes. A paid homeowner's insurance policy (or a paid receipt for one) is required at settlement, so arrangements will have to be made prior to that day. Plus, involving the insurance agent early in the home buying process can save you money. Insurance agents are a great resource for information on home safety and they can give tips on how to keep insurance premiums low.
13. WHAT STEPS COULD I TAKE TO LOWER MY HOMEOWNER'S INSURANCE COSTS?
Be sure to shop around among several insurance companies. Also, consider the cost of insurance when you look at homes. Newer homes and homes constructed with materials like brick tend to have lower premiums. Think about avoiding areas prone to natural disasters, like flooding.
14. IS THE HOME LOCATED IN A FLOOD PLAIN?
Your sales agent can help you answer this question. If you live near a flood plain, you may choose whether or not to get flood insurance coverage for your home. Work with an insurance agent to construct a policy that fits your needs.
15. CAN I PAY OFF MY LOAN AHEAD OF SCHEDULE?
Yes. By sending in extra money each month or making an extra payment at the end of the year, you can accelerate the process of paying off the loan. When you send extra money, be sure to indicate that the excess payment is to be applied to the principal. Most lenders allow loan prepayment, though you may have to pay a prepayment penalty to do so. Ask your lender for details.
16. WHAT FACTORS AFFECT MORTGAGE PAYMENTS?
The amount of the down payment, the size of the mortgage loan, the interest rate, the length of the repayment term and payment schedule will all affect the size of your mortgage payment.
17. HOW CAN I FIND OUT INFORMATION ABOUT MY CREDIT HISTORY?
There are three major credit reporting companies: Equifax, Experian, and Trans Union. Obtaining your credit report is as easy as calling and requesting one. Once you receive the report, it's important to verify its accuracy. Double check the "high credit limit,"'total loan," and 'past due" columns. It's a good idea to get copies from all three companies to assure there are no mistakes since any of the three could be providing a report to your lender. Fees, ranging from $5-$20, are usually charged to issue credit reports but some states permit citizens to acquire a free one. Contact the reporting companies at the numbers listed for more information.
18. WHAT IF I FIND A MISTAKE IN MY CREDIT HISTORY?
Simple mistakes are easily corrected by writing to the reporting company, pointing out the error, and providing proof of the mistake. You can also request to have your own comments added to explain problems. For example, if you made a payment late due to illness, explain that for the record. Lenders are usually understanding about legitimate problems.
19. WHAT IS A CREDIT BUREAU SCORE AND HOW DO LENDERS USE THEM?
A credit bureau score is a number, based upon your credit history, that represents the possibility that you will be unable to repay a loan. Lenders use it to determine your ability to qualify for a mortgage loan. The better the score, the better your chances are of getting a loan. Ask your lender for details.
20. HOW CAN I IMPROVE MY SCORE?
There are no easy ways to improve your credit score, but you can work to keep it acceptable by maintaining a good credit history. This means paying your bills on time and not overextending yourself by buying more than you can afford.
21. WHAT RESPONSIBILITIES DO I HAVE DURING THE LENDING PROCESS?
To ensure you won't fall victim to loan fraud, be sure to follow all of these steps as you apply for a loan:
· Be sure you understand everything before you sign it
· Refuse to sign any blank documents
· Do not overstate your income
· Do not overstate how long you have been employed
· Be truthful about your credit problem, past and present
· Be honest about your intention to occupy the house
· Do not provide false supporting documents
22. WHAT SHOULD I LOOK OUT FOR DURING THE FINAL WALK-THROUGH?
This will likely be the first opportunity to examine the house without furniture, giving you a clear view of everything. Check the walls and ceilings carefully, as well as any work the seller agreed to do in response to the inspection. Any problems discovered previously that you find uncorrected should be brought up prior to closing. It is the seller's responsibility to fix them.
You can find out by asking yourself some questions:
· Do I have a steady source of income?
· Do I have a good record of paying my bills?
· How many outstanding long-terms bills do I have? (like car loans)
· Do I have a down payment?
· Do I have the ability to pay mortgage, lot rent, cost of utilities, plus additional costs?
If you can answer "yes" to these questions, you are probably ready to buy your own home.
2. HOW DO I BEGIN THE PROCESS OF BUYING A HOME?
Start by thinking about your situation. Are you ready to buy a home? How much can you afford in a monthly mortgage payment? How much space do you need? What areas of town do you like? After you answer these questions, make a "To Do" list and start doing casual research. Talk to friends and family, drive through neighborhoods, and look in the "Homes" section of the newspaper.
3. HOW DOES PURCHASING A HOME COMPARE WITH RENTING?
The two don't really compare at all. The one advantage of renting is being generally free of most maintenance responsibilities. But, by renting, you lose the chance to build equity, take advantage of tax benefits, and protect yourself against rent increases. Also, you may not be free to decorate without permission and may be at the mercy of the landlord for housing.
Owning a home has many benefits. Owning a home also qualifies you for tax breaks that assist you in dealing with your new financial responsibilities- like insurance, real estate taxes, and upkeep - which can be substantial. But given the freedom, stability, and security of owning your own home, they are worth it.
4. HOW CAN I DETERMINE MY HOUSING NEEDS BEFORE I BEGIN THE SEARCH?
Your home should fit the way you live, with spaces and features that appeal to the whole family. Before you begin looking at homes, make a list of your priorities - things like location and size. Should the house be close to certain schools, your job, or public transportation? How large should the house be? What type of lot do you prefer? What kind of amenities are you looking for? Establish a set of minimum requirements and a "wish list." Minimum requirements are things that a house must have for you to consider, while a "wish list" covers things that you'd like to have but aren't essential.
5. WHAT SHOULD I LOOK FOR WHEN DECIDING ON A COMMUNITY?
Select a community that will allow you to best live your daily life. Many people choose communities based on schools. Do you want access to shopping and public transportation? Is access to local facilities like libraries and museums important to you, or, do you prefer the peace and quiet of a rural community? When you find places that you like, talk to people that live there. They know the most about the area and will be your future neighbors. More than anything, you want a neighborhood you feel comfortable in.
6. HOW CAN I FIND OUT ABOUT LOCAL SCHOOLS?
You can get information about school systems by contacting the city, county school board or the local schools. Your sales agent may also be knowledgeable about schools in the area.
7. HOW CAN I FIND OUT ABOUT COMMUNITY RESOURCES?
Contact the local chamber of commerce for promotional literature or talk to your sales agent about welcome kits, maps, and other information. You may also want to visit the local library, it can be an excellent source for information on local events, resources and the librarians will probably be able to answer many of the questions you have.
8. WHAT SHOULD I LOOK FOR WHEN WALKING THROUGH A HOME?
In addition to comparing the home to your minimum requirement and wish lists, use the HUD Home Scorecard and consider the following:
· Is the house big enough; enough bedrooms and bathrooms for present and future?
· Is the house structurally sound?
· Are there appliances included? If so, do they work?
· Do you like the floor plan? Bring a tape measure to be sure your current furniture will fit in the rooms and more importantly, through the doors.
· Does anything need repaired/replaced? Will the seller repair/replace?
9. HOW CAN I KEEP TRACK OF ALL THE HOMES I SEE?
If possible, take photographs of each house: the outside, the major rooms, the yard, and extra features that you like or ones you see as potential problems. And don't hesitate to return for a second look.
10. HOW MANY HOMES SHOULD I CONSIDER BEFORE CHOOSING ONE?
There isn't a set number of houses you should see before you decide. Visit as many as it takes to find the one you want. Just be sure to communicate often with your sales agent about everything you're looking for. It will help avoid wasting your time.
11. ARE POWER LINES A HEALTH HAZARD?
There are no definitive research findings that indicate exposure to power lines results in greater instances of disease or illness.
12. DO I REALLY NEED HOMEOWNER'S INSURANCE?
Yes. A paid homeowner's insurance policy (or a paid receipt for one) is required at settlement, so arrangements will have to be made prior to that day. Plus, involving the insurance agent early in the home buying process can save you money. Insurance agents are a great resource for information on home safety and they can give tips on how to keep insurance premiums low.
13. WHAT STEPS COULD I TAKE TO LOWER MY HOMEOWNER'S INSURANCE COSTS?
Be sure to shop around among several insurance companies. Also, consider the cost of insurance when you look at homes. Newer homes and homes constructed with materials like brick tend to have lower premiums. Think about avoiding areas prone to natural disasters, like flooding.
14. IS THE HOME LOCATED IN A FLOOD PLAIN?
Your sales agent can help you answer this question. If you live near a flood plain, you may choose whether or not to get flood insurance coverage for your home. Work with an insurance agent to construct a policy that fits your needs.
15. CAN I PAY OFF MY LOAN AHEAD OF SCHEDULE?
Yes. By sending in extra money each month or making an extra payment at the end of the year, you can accelerate the process of paying off the loan. When you send extra money, be sure to indicate that the excess payment is to be applied to the principal. Most lenders allow loan prepayment, though you may have to pay a prepayment penalty to do so. Ask your lender for details.
16. WHAT FACTORS AFFECT MORTGAGE PAYMENTS?
The amount of the down payment, the size of the mortgage loan, the interest rate, the length of the repayment term and payment schedule will all affect the size of your mortgage payment.
17. HOW CAN I FIND OUT INFORMATION ABOUT MY CREDIT HISTORY?
There are three major credit reporting companies: Equifax, Experian, and Trans Union. Obtaining your credit report is as easy as calling and requesting one. Once you receive the report, it's important to verify its accuracy. Double check the "high credit limit,"'total loan," and 'past due" columns. It's a good idea to get copies from all three companies to assure there are no mistakes since any of the three could be providing a report to your lender. Fees, ranging from $5-$20, are usually charged to issue credit reports but some states permit citizens to acquire a free one. Contact the reporting companies at the numbers listed for more information.
18. WHAT IF I FIND A MISTAKE IN MY CREDIT HISTORY?
Simple mistakes are easily corrected by writing to the reporting company, pointing out the error, and providing proof of the mistake. You can also request to have your own comments added to explain problems. For example, if you made a payment late due to illness, explain that for the record. Lenders are usually understanding about legitimate problems.
19. WHAT IS A CREDIT BUREAU SCORE AND HOW DO LENDERS USE THEM?
A credit bureau score is a number, based upon your credit history, that represents the possibility that you will be unable to repay a loan. Lenders use it to determine your ability to qualify for a mortgage loan. The better the score, the better your chances are of getting a loan. Ask your lender for details.
20. HOW CAN I IMPROVE MY SCORE?
There are no easy ways to improve your credit score, but you can work to keep it acceptable by maintaining a good credit history. This means paying your bills on time and not overextending yourself by buying more than you can afford.
21. WHAT RESPONSIBILITIES DO I HAVE DURING THE LENDING PROCESS?
To ensure you won't fall victim to loan fraud, be sure to follow all of these steps as you apply for a loan:
· Be sure you understand everything before you sign it
· Refuse to sign any blank documents
· Do not overstate your income
· Do not overstate how long you have been employed
· Be truthful about your credit problem, past and present
· Be honest about your intention to occupy the house
· Do not provide false supporting documents
22. WHAT SHOULD I LOOK OUT FOR DURING THE FINAL WALK-THROUGH?
This will likely be the first opportunity to examine the house without furniture, giving you a clear view of everything. Check the walls and ceilings carefully, as well as any work the seller agreed to do in response to the inspection. Any problems discovered previously that you find uncorrected should be brought up prior to closing. It is the seller's responsibility to fix them.
Frequently Asked Questions ~ Renting
An apartment lease is a legally binding agreement, so ensuring a proper fit is essential before making a commitment for up to a year or more. Once you have narrowed your selections based on criteria such as number of rooms, proximity to your work, school and social activities, don't be afraid to ask any other question that will help to ensure you have found the most ideal home.
Are there additional costs?
It is best to speak to the sales agent regarding additional costs. For most of the units we have there are additional costs for sewer, trash, and water. For a few units electric would be an additional cost.
Is there an ideal date to move in?
If you would like to be moved in by a certain date please let your sales agent know. We will do out best to accommodate.
Are there late fees?
Yes. Be aware of your due date. If an Early Payment Discount is applicable and your full rent payment is received in our office during working hours, at least a day before your rent is due, you will earn your EPD. If your rent is not received in full, late charges will start accruing the day after the rent is due. For most of our Pennsylvania properties there is a $2.00/day late charge and this will be in your Lease. For most of our Maryland properties there a 5% late charge starting six (6) days after due date if not paid in full.
Rental requirements:
There is a $100.00 application fee payable by cash, certified check, money order or personal check and is completely refundable if for any reason you are declined. However, the application fee is non-refundable if the applicant is withdraws for any reason. If approved the application fee will be applied to the damage/security deposit. Should the application be rejected the $100.00 application fee will be returned within (10) workings days after rejection.
Before you can move in your application must be approved, the Lease must be signed, proof of renters insurance provided and all payments received. You will also need to make arrangements for electric, telephone, water, sewer, trash and cable services and payments for fuel oil or propane.
Are there additional costs?
It is best to speak to the sales agent regarding additional costs. For most of the units we have there are additional costs for sewer, trash, and water. For a few units electric would be an additional cost.
Is there an ideal date to move in?
If you would like to be moved in by a certain date please let your sales agent know. We will do out best to accommodate.
Are there late fees?
Yes. Be aware of your due date. If an Early Payment Discount is applicable and your full rent payment is received in our office during working hours, at least a day before your rent is due, you will earn your EPD. If your rent is not received in full, late charges will start accruing the day after the rent is due. For most of our Pennsylvania properties there is a $2.00/day late charge and this will be in your Lease. For most of our Maryland properties there a 5% late charge starting six (6) days after due date if not paid in full.
Rental requirements:
There is a $100.00 application fee payable by cash, certified check, money order or personal check and is completely refundable if for any reason you are declined. However, the application fee is non-refundable if the applicant is withdraws for any reason. If approved the application fee will be applied to the damage/security deposit. Should the application be rejected the $100.00 application fee will be returned within (10) workings days after rejection.
Before you can move in your application must be approved, the Lease must be signed, proof of renters insurance provided and all payments received. You will also need to make arrangements for electric, telephone, water, sewer, trash and cable services and payments for fuel oil or propane.
- 30% of your monthly net income or take home pay must be equal to or greater than the months rent
- Landlord Reference
- Employer Verification
- Copy of photo ID (front and back)
- Criminal and Credit Check (this is a $40.00 fee per person 18 and older payable by cash, certified check or money order)
- Payment in Full with certified funds is expected at time of lease signing
- Proof of Renters Insurance