Real Estate

The BlackProsperity Road Map:

Growth-change your Thinking/Habits/Confront your Fears.

Self Education- Knowledge is the key to successful wealth building.

Educate-Yourself to maximize your talent.

Career Planning-Plan the Career that is right for you. Discovering Your talents.

Money Management-Learn How to control your money.

Smart Banking-utilizing the full services of your bank.

Credit-Learn how to use it to your advantage and stay out of debt.

Investments-Learn about them to gain some money back.

Real Estate-A good start in investing.

Entrepreneurship-Owning your own business is it for you ?

Retirement- Don't be fooled what you do with your money dictates what kind of life style you are going to live. Weather it's Good, Bad Or Ugly

Bookmark this site

" According to the National Association of Realtors, the median age of first-time buyers is 28 years"

blackprosperity

Owning your own home is one of the greatest feelings in the world it is also a great investment to build wealth it also requires a great deal of commitment and money. Before you consider buying a home use this formula to determine how much you can afford for mortgage taxes insurance. Example if you make $25,000 per year multiply your income by at least 40%  25000 x 0.40=$10000 divided by 12 months=$833.00 per month toward housing these figures are just an estimate on the high end it may be lower. See How Much Home Can You Afford?

If you have a good, steady income and aren’t carrying a lot of debt, one rule of thumb is that you can buy a home that costs 2-1/2 to 3 times your annual income. For example, if you—or you and your spouse—earn $30,000 a year, you will probably qualify for a home or condo that costs between $75,000 to $90,000.

Loans backed by the Federal Housing Administration (FHA) allow borrowers to use up to 29 percent of their gross income for housing costs and 41 percent for housing costs plus non-housing debt payments such as those for car loans, child support, or alimony.

Loans offered by banks and mortgage companies, known as conventional loans, allow 28 percent of a person’s gross income to go toward housing and 36 percent toward the combination of housing and non-housing debt.

These are some standard up front costs:

1. Earnest money. When you submit an offer, you will be asked to make a deposit, which can vary in size. This will be held by the broker until the deal is closed, and it proves to the seller that you are serious about buying the house.
2. Down payment. At the closing,you’ll be asked to pay a down payment to the mortgage company. This is usually a percentage of the cost of the house. The more money you put down , the lower your monthly payments will be. Some loans require 10 to 20 percent of the purchase price. Many first-time homebuyers use  (FHA) loans, which generally require only 3 percent down.The earnest money you paid will count toward your down payment.
3. Closing costs. is associated with the paperwork necessary to transfer the ownership of the house from the seller to you. Closing costs average 3 to 4 percent of the price of your home. When you apply for your loan, your lender should provide an estimate of the closing costs, so you won't be caught by surprise.

Your mortgage payment do not pay just for the cost housing. Most mortgages are structred to pay four different things:

• Principal—goes toward building equity—or ownership—in your house
• Interest—the amount you agreed to pay when you signed your mortgage
• Taxes—one-twelfth of your annual property tax bill
• Insurance—one-twelfth of your annual mortgage insurance and homeowner's insurance premiums

The size of your mortgage payment is based on a number of factors, down payment, size of the mortgage, interest rate, length of loan, payment schedule.

Are You Ready to Own a Home?

• Do I have a steady source of income such as a job?
• Have I been employed on a regular basis for the last two years?
• Is my current income reliable?
• Do I have few outstanding long-term debts such as car loans?
• Do I have a good record of paying my bills?
• Do I have money saved for a down payment?
• Do I have the ability to pay a mortgage and additional costs every month?

Here are some steps in buying a home.

1. Learn about home buying programs (use a real-estate agent)

2. Know Your Rights

3. Figure out how much you can afford

4. Shop for a loan (try to get a pre-approved loans)

5. Shop for Home insurance( ask your insurance agent)

6. Shop for a Home

7. Get a Home Inspector

8. Make a Offer

9. Sign Paper

 The differences between renting and buying a home

Real estate as an investment:

Develop A Dream Team

• Attorney -- One that specializes in real-estate deals for himself as well as others.
  
• Title or Escrow Co -- Don't deal with big-name companies; find one that specializes with real-estate investors. Make sure they understand double closings and land contracts.
  
• Insurance Agent -- Just like the Escrow Co, find one who specializes in real-estate investors and who understands land contracts, landlords, and so on.
  
• Contractor -- Always deal with one who offers free estimates and knows how to "cut corners" in the right places.
  
• Mortgage Broker -- Find one who is creative, savvy and experienced in dealing with real-estate investors.
  
• CPA (Certified Public Accountant) -- Look for an aggressive individual who owns real estate himself.
  
• Sound Partner -- Sometimes you have limited resources such as cash flow or experience. This is where you might need to bring in a partner.
  
• Mentor -- Someone who's been in the business for some time now and knows how to smooth out the rough spots, or who can give you wise advice for sticky situations. Maybe even a potential partner.

" There are Two Things That Speaks Louder Than Words, Action And Money; HOW LOUD ARE YOU" 

      c.w.hurd

Subscribe Here  For Your Free:  BLACKPROSPERITY Road Map Newsletter

	Web www.blackprosperity.net