Thursday, July 8, 2010

5 Steps to going from renter to purchaser

I can't think of a time when prices were as low as they are now on homes (well, at least in my ADULT life).

As you know, I've been looking to move out of the mansion and into something a bit more in tune with our lifestyle - yes, a condo. Being that I'm always on the go and that there are only 2 of us here, having the luxury of an association that takes care of maintenance as well as a plethora of amenities is appealing.

It's also going to save us a LOT of money, as we're looking at our monthly payments being LESS than 1/2 of what we now pay. For those of you who have been renting for some time, you might be SHOCKED to find out that purchasing a home may cost you less than you are currently spending on rent each month.

Steve Ostad, founder of Empire City Realty in New York, NY has suggested these 5 tips to going from renter to owner....

1. Retrieve your credit score via FICO – it’s the principal credit score program used by all mortgage lenders. It will also group credit score data to your favor. Don’t waste time with any of the other report programs.

2. Reduce credit usage – FICO is sensitive to credit usage; any charges summing 30% or more of your total allowance will lower your credit score and increase annual mortgage payments. If you cannot cap this percentage, make regular credit payments to keep your credit score fit and future mortgage payments low.

3. Plan for a 30-year fixed rate mortgage– Hybrid loans are subject to change, and with the current economic climate the 30 year is the safest, most economical bet. The smaller, yet prolonged payments will eliminate the need to open an another line of credit and allow for long-term budgeting.

4. Research, enroll in first-time home-buyer programs – Many of these programs alleviate large down-payments, forgive loans, and reduce interest costs. To participate, a renter-come-buyer will need to enroll roughly one year in advance to maximize all grant capabilities. If it’s a first-time buy, there’s no excuse for not enrolling.

5. Utilize the MLS – The Multiple Listing service is the most comprehensive and up-to-date database for all things real estate. It is the number one resource for sellers, so it’s going to be the number one resource for buyers, too. Typically, your best point of contact will be through a realtor.

Steven Ostad is the founder of Empire City Realty, a full-service real estate brokerage headquartered in Manhattan and specializing in connecting individuals and businesses to real estate opportunities in New York City. As a seasoned real estate investor, owner and developer, Steven’s expertise spans all facets of the real estate industry, from management and investing, to dealings with mortgage brokers, landlords, management companies and attorneys. 


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    Anonymous said...

    Don't trust Steven Ostad! This guy is a scam artist! He doesn't even have a real license!!

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