Mortgage Rates National Average Rate* 30-Year Fixed 3.66% 15-Year Fixed 2.79% 5/1 ARM 2.59% * Conforming FNMA Loan Amount. Rates may include points. Information updated: 5/20/2013

Buyer's Resources
 

Buying a home is the largest purchase most people will ever make. Homeownership has great benefits. Homeownership also comes with certain responsibilities.

Are you ready for homeownership? Look at your current situation and determine if:

• You have a continuing and reliable source of income prior to applying for the loan.
• You have a credit history that shows you're ready for homeownership.
• Your total debt is manageable and you can afford to take on the costs associated with homeownership.
• You have money saved for a down payment and closing costs.

Once you fully understand your current situation, it's important to look at the pros and cons of homeownership to make the best decision for you and your family.

Benefits of Home Ownership

Homeownership has many advantages - both financial and personal. But buying a home is an important decision. Look at the benefits and the differences between homeownership and renting to better understand if owning a home is right for you.?

What are the benefits of homeownership

• Tax savings.
  You may earn significant tax savings because you can deduct mortgage interest and property taxes from your federal income tax and many states' income tax if you itemize your deductions.
• A more stable monthly housing expense.
  Your monthly housing loan or mortgage expense can remain the same for the life of your mortgage, depending on the type of loan you choose.
• Equity.
  You may build equity in your home over the life of your loan, which allows you to plan for future goals like your child's education or your retirement.

Homeownership is not right for everyone. It may not be the right time in your life or you may not like the commitment associated with owning a home. Here are some differences between renting and homeownership:

• Renters are typically free from maintenance obligations such as repairs or lawn care.
• Homeowners often have more freedom in decorating, landscaping, etc.
• Renters can move more easily and more quickly than homeowners and there are higher costs associated with buying and selling a home.
• Homeowners have a financial investment and may build equity in their home.

How Much Can You Afford?

To get a quick idea of what you can afford to spend, multiply your annual gross income (before taxes) by 2.5. For example, if your annual household income is $50,000, you might be able to qualify for a $125,000 home. This is just a rough estimate - the actual number will vary based on factors such as your debt and credit history.

Mortgage lenders typically use the housing expense and debt-to-income ratios to more accurately determine how much you can afford to spend on your mortgage.

• Housing Expense Ratio
  Mortgage lenders recommend that your monthly mortgage payment should be less than or equal to a quarter of your monthly gross income. This percentage can change based on the type of mortgage you choose and sometimes the area in which you're looking to buy.
• Debt-to-Income Ratio
  You need to factor your other debts into determining an affordable monthly mortgage payment. Mortgage lenders look at whether your total debt is larger than 30-40% of your monthly gross income. Remember, debt is not just credit cards and student loans. It can also include alimony, child support, car loans, and housing expenses.

A mortgage lender, a housing counselor, or consumer credit counselor can help you better understand these guidelines. Before you talk to a financial professional, you can organize your financial picture by creating a budget [PDF 76K ]. Don't forget that you also have to save for the down payment, closing costs, inspections costs, moving, and other related expenses.

Myths About Homeownership

Lenders evaluate mortgage applications a lot differently today than they did even 10 years ago. And even more has changed in the last 20 years. What used to close the door to homeownership may not be a factor today.

Here are some common homeownership myths:

Myth: You need great credit to become a homeowner.
Fact: You may still be able to buy a home with less-than-perfect credit. And remember, you can improve your credit over time.

Myth: You need to put 20% down to buy a home.
Fact: There are many types of mortgage products and programs that allow low and no down payments. But remember to factor in other costs such as closing costs, property taxes, moving expenses, and repairs.

Myth: You can't buy a home in the U.S. if you're not a citizen.
Fact: If you're a legal resident, you can purchase a home in the U.S.

Myth: If you don't have a bank account or credit cards, you can't qualify for a mortgage.
Fact: Having a bank account is always a good idea and helps you establish credit. However, lenders can approve you for a mortgage even if you don't have a bank account or credit cards. You'll likely need to keep records showing a history of payments you've made for items such as rent, utilities, and car payments.

Myth: Lenders share your personal financial information with other companies.
Fact: By law, banks and other financial institutions are restricted in their uses and disclosures of information about you. In some situations, you may choose to restrict the disclosure of your information if you don't want it to be shared.

Myth: If you're late on your monthly mortgage payments, you'll lose your house.
Fact: If you have a financial hardship, like the death of your spouse or a medical emergency and fall behind, it's possible to keep your home and get back on track if you contact your lender early.

Myth: You can't get a mortgage if you've changed jobs several times in the last few years.
Fact: Not true. You can change jobs several times and still get a loan to buy a home. Lenders understand that people change jobs. The important thing is to show that you've had a stable income.

HELPFUL LOCAL LENDING RESOURCES:

Don Merlo, Express Mortgages 304-776-7139 info@expressmortgagewv.com 

Sean Fuelhart, City National 304-526-6200 sean.fuelhart@cityholding.com

Marge Leonard, Fifth Third 304-760-0238 margaret.leonard@53.com

HELPFUL LOCAL HOME INSPECTION RESOURCES

WVAHI Members Serving Putnam County

Samual A. Wood, PE, BOD Member Since: 10/2001 WV Certification #: HI-15470848-0806 Advantage Home & Environment Inspections 304.768.5446 sam@advantagehomewv.com Seth Adkins Member Since: 10/2003 WV Certification #: HI-64260574-0806 Home Professionals -Inspections & Environmental Services, Inc. 304.733.6155 , 877.733.6160 Sadkins@HPIEServices.com                                                      Curtis McLeod, Treasurer Member Since: 10/2001 WV Certification #: HI-41440165-0806 C.W. Development, Inc. 866.697.9795 curtmcleod@comcast.net Max Ferguson, BOD Member Since: 10/2001 WV Certification #: HI-3023071949-0806 American Home Inspectors and Engineering Assessments, Inc. 304-757-0688, 888-982-4432 max@wvahi.com Herb Wheeler, BOD Member Since: 06/2002 WV Certification #: HI-98960744-0806 National Home Inspections 304-345-8109 hcwheeler@suddenlink.net Jared Gray Member Since: 10/2003 WV Certification #: HI-06700281-0806 Advantage Home & Environment Inspections 304.768.5446 jared@advantagehomewv.com  Robert P. Cook Member Since: 08/2005 WV Certification #: HI-27311163-0806 Castle Inspection Services 304-741-4656; 304-360-1544 rpcjjc@suddenlink.net                                                                                                          Rickie Holstein Member Since: February 2007 WV Certification #: HI 826224-0351-0906 5-Star Home Inspections LLC 877-202-3172, Cell: 304-414-2776 rickieholstein@peoplepc.com Brett Hodgdon Member Since: February 2007 WV Certification #: HI-7644-9619983-0207 Advantage Home & Invironment 304-768-5446, Cell 304-561-8804 Brett@advantagehomewv.com David J. Tabor, PE Member Since: May 2007 WV Certification #: HI36160776-0507 American Home Inspectors and Engineering Assessments, Inc. 304-757-0688, 888-982-4432 david@wvahi.com Robert C. Smith Member Since: May 2007 WV Certification #: HI-33093011975-0407 Best Home Inspection, Inc. 304-444-4558, 304-444-1259 chad@wvinspect.com Steven A. Hensley Member Since: Jan 2007 WV Certification #: HI-0821090662-0906 Steven A. Hensley Certified Home Inspections 304-743-1418/ 304-544-2853 inkwellz03@aol.com                                                      Richard Boehm, PE Member Since: 10/2001 WV Certification #: HI-55810874-0806 Advantage Home & Environment Inspections 304.768.5446 richard@advantagehomewv.com. Greg Jenkins Member Since: Not Available WV Certification #: HI-61660766-0806 Bright Side Home Inspection, LLC 304-389-6953 brightside@suddenlink.net Donald R. Jordan Member Since: 12/ 2006 WV Certification #: HI-27820619-1006 Donald R. Jordan Builders Inc. 304-736-4678 cell: 304-751-6215 jordandrj@verizon.net                                                                                Toby Scholl Member Since: 04/2006 WV Certification #: HI-06030572-0806 Cornerstone Home Inspection Services, LLC 304-372-1463, 304-542-8828 cornerstone@citynet.net Brian Easthom Member Since: 02/2004 WV Certification #: HI-67540965-0806 Preimer Home Inspections,Inc. 304-523-4281/360-5404 dodger1450@aim.com Bob Johnson Member Since: 07/2006 WV Certification #: HI-28790649-0806 Closer Look Home Inspections, LLC 304-539-6184, 360-6184 bob2554@suddenlink.net

HELPFUL LOCAL PEST INSPECTION COMPANIES:

Alford Termite and Pest Control, Inc.

www.1-800-pestcontrol.com

Mountaineer Exterminating

304-727-6320

Nationwide Exterminating

304-722-7224

Are you moving to WV? Click here:

http://www.wv.gov/sec.aspx?pgID=15

*Please note that the services provided by any resources on this site are not the responsibilty of myself nor West Teays Realty. We are not endorsing nor recommending any one particular company or specialist. These resources are just meant to give you a starting point in your research process and you by no means have to use any of the specialists listed on this website.