When you get that urge to buy a house, the first thing to do is step back and ask whether it makes sense to buy or rent.
If you want to buy, determine how much house you can afford. To determine if you qualify for a loan, a lender will consider your credit history, your monthly gross income and how much cash you'll be able to accumulate for a down payment.
As a general guideline, your monthly mortgage payment, including principal, interest, real estate taxes and homeowners insurance, should not exceed 33 percent of your gross monthly income (this is an estimate only, please contact a lender).
IRS helps homeowners by allowing deductions on mortgage interest and real estate taxes each year. This is a huge part of your monthly payment and this deduction can significantly reduce your taxable income - something that rent payments can not do.
Homeowners build equity over time as home values rise and their mortgage balances shrink.
Most downpayment programs consider you a 1st Time Home Buyer if you have not owned a home in the last 3 years. If you purchase a home in a targeted area, you do not have to be a first time buyer! WASHINGTON STATE HOUSING FINANCE COMMISSION requires you to take a free, 5-hour class before writing an offer or applying for a loan. CLARK COUNTY HOMEBUYER SEMINARS.
COLUMBIA NON-PROFIT HOUSING also offers downpayment assistance in conjunction with various loans.
Lenders:
Be sure to find a lender that is familiar with 1st Time Home Buyer & Downpayment programs. Research your options. Interview your lender before you commit.
When you buy a house, you definitely want to get a place you can call "home." At the same time, you want to shop smart and purchase a piece of real estate that will increase in value and serve as a wise investment.
The best real estate purchase is one that can fill the role of both a home and an investment. Therefore, when you begin the search for your home, there are a few things you should keep in mind in order to make the best purchase possible. These include: LOCATION, SIZE OF HOME, & LOT SPECIFICATIONS. By carefully considering these three areas, you will be more likely be happy with your real estate purchase for years to come.
Location:
Everyone has heard that location is the most important aspect of real estate – and for good reason. After all, if the home you buy is in a poor location, you are not likely to be happy living there and you will have a difficult time selling the property later.
Pass on the "really good deal" if it looks like the neighborhood is on a decline. City of Vancouver Neighborhoods
If you have children, check out the schools. . .. SCHOOL RATINGS
Size of the Home:
The size of the home is another important consideration.
Lot Specifications:
Although most of the value of your real estate purchase will be tied up in the actual home, you certainly want to consider the lot as well. Don't worry too much if the lot does not have a great deal of landscaping. You can add your own landscaping later, which will give the value of the home a nice boost. More importantly, you want to select a lot that is not overly crowded, oddly shaped or situated in a strange position. All of these factors can make it more difficult for you to sell the home later.
Other Resources:
USDA RURAL DEVELOPMENT LOANS - LOCAL NUMBER - (360)883-1987
Washington Homeownership Center
Washington State Dept. of Financial Institutions - Home Loan Information
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