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Imagine: Going home to your own new home

by Rose McKenney, assoc. News editor

When envisioning the future, we tend to see ourselves as rich and successful. We dream of living in a 10-bedroom house overlooking the beach, with a hot tub installed in our bedroom. Our dream home is well-equipped with the most modern technologies, complete with maids and butlers and a garage full of BMWs.

 

For most people, this is a fantasy. We may never own a house like this fantasy one, but we can purchase a condo or house, and financial experts say that the sooner we do it, the better.

Since most of us are about to graduate from college and head out into the world, we should start thinking about investing in a home. Why not start with a condo? Not as impossible as it sounds. Sure we’re in college, all of our money goes to paying for school or buying beer. Well, what if you were told that buying a condo or house would be beneficial in the long run?

So, you check your bank account and wonder how is it possible? Well, the good news is that you could qualify for a loan. First, check your credit status. Creditors will. They want to see how well you have paid your bills. If you pay bills on time, you’ll be fine.

According to Fannie-Mae, a New York Stock Exchange company and one of the biggest nonbank financial services companies in the world, there are many advantages to owning your own home. For one, its worth will increase over time. This means that your net worth will also increase. As your home increases in value, you build equity in it: the value of your home less what you owe in mortgage debt. You can use the equity when you want to sell or refinance your home.

Another advantage is that the interest you pay on your home mortgage is tax-deductible.

Finally, you can put up posters and pictures and not have to worry about your landlord getting on your case about all of the holes in the wall. Of course, holes reduce your property’s value, so you might want to get on your own case about it.

FannieMae’s Web site offers many useful tips on what to do when purchasing your first home. It suggests that potential home owners talk to one of their approved lenders.

Buying your first home can be a rewarding experience in the long run, but don’t wait too long.

Interest rates are low right now, but they could go up. Buy now and take advantage of the increase in value instead of paying for it later.

There is also a worry about the down payment. Start putting money aside now and when the day does come, you’ll have the money to buy your home. Percentage rates vary depending on where you get your loan and the down payment amount. They can range from 3 to 20 percent, depending on where you live, what type of home you buy, and what type of loans you get. The FannieMae Web site offers no or low down payments. What type of loan you can receive depends on your income.

If buying a home still sounds expensive, why not look into finding a co-signer? Maybe asking our parents to help out one last time. Having someone co-sign gives you a better chance of getting the home.

Don’t forget to ask a lot of questions while buying your home. You wouldn’t want to buy a home and then find out that it wasn’t what you had in mind, so stay safe by checking things out and looking around.

For more information, visit fanniemae.com or your local real estate brokers.

 

2004, Kalamalama, the HPU Student Newspaper. All rights reserved. 
 
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