Buying A Home MayBe Eas (NAPSA)—For anyone dreaming of owning a home, a look at one young couple’s success story could prove OO inspirational. Recent college grads Jacob and Katherine closed on their first home a week after their wedding. “I wanted our own homebecause the rent was going up andstuff was falling apart in the apartment,’ Jacob explained. He's an engineer for an industrial automation company. Katherine said that buying a home really wasn't on her radar. “Owning a home seemed so complicated, with mortgage payments and property taxes. I was muchslowerto get on board with the idea. It seemed like such a grown- up decision,” she said. Katherine is a graphic designer for a university. But once they made that momentous, “grown-up decision, they movedforward together. Here's whatthey learned: 1.Do A Lot Of Research Online. “There are so many tools and resources you can use. We found calculators that showed us how much we could afford,’ Jacob said. 2. Don’t Let Student Loans Get In The Way. Jacob explained that he had somepretty heavy student loans. “But I focused on paying off those with higher interest rates. Once we got those under control and started saving again, we started the home-buying discussions.” 3. Trust Your Real Estate Agent. “Ourreal estate agent spenta lot of time with us. Hegot straight to the point and wasvery honest. He helped us figure out what we wanted, where we wantedto live and what wecouldafford,” Jacob said. 4.Look In The Basement First. “Ourreal estate agent advised usto look at the guts of the house first. Don't be distracted by things like granite countertops and stainless steel appliances,” Katherine said. Jacob agreed: “You can get too caught up in the aesthetics of a house. Ithas been staged that way on purpose. We looked in the basementfirst, at the foundation and to see if anything was damp.” 5. If You Don’t Have A 20 Percent Down Payment, Consider Private Mortgage Insurance. Katherine and Jacob had saved up for a down payment, but it wasn't enough for the 20 percent down required by manylenders for borrowers whodon't finance with mortgage They graduated from college, got married and bought a house,all in the same month! Kat and Jake did not let student debt or a big down paymentget in their way and successfully closed on their first home. Next on their list: a puppy! Tali the catis clearly in denial. insurance. With private mortgage insurance, borrowers can buy a homewith as little as 3 percent down. Katherine and Jacob had enoughfor a 10 percent down paymentandprivate mortgage insurance helped them qualify for their mortgage. “We wouldn't have been able to buy our house with only 10 percent down without private mortgage insurance,’ Jacobsaid. 6.Down Payment Funds Can Come From A Gift. Although they were good savers, Katherine explained, most of the funds for their down payment came from their parents. Resources Buy Now vs. Wait Calculator—This tool can help you determine whether youare better off waiting to save for a 20 percent down paymentor buying a homeright now with a smaller down payment. mgic.com/buynow. HomeDiggidy.com—'This blog pro- vides useful articles and tools to help you explore the home-buyingprocess. A Beginner’s Guide to Homeowner- ship—This website leads you through the home-buying process. homebuy ers.mgic.com. Home by Fannie Mae—This app will guide you through four steps: Financial Prep, Home Search, Home Purchase and, finally, Homeownership. Downloadfrom the AppStore. CreditSmart by Freddie Mac—This website is a guide to better credit, money management and responsible homeownership. Freddiemac.com/creditsmart.
