Columbia Real Estate

Buyer's Resources

Learn About Buying A Home
Buying real estate is a very complex transaction that requires expert knowledge. We have put together some of the most asked questions we get from buyer's to help you learn more about purchasing your next house. If you can't find the answers to your questions, please feel free to contact one of our experienced agents today and they will be glad to assist you.

Real Estate Buyer's Resources

Rent To Own Homes

What happens when you find the house of your dreams but yours still has not sold? Do you have to give up your dream home and just stay where you are? The answer is no. You do have another option. You could do a rent-to-own home. It is also called a lease-to-own house and it works similar to a car lease. First find a renter. They will pay a certain amount each month to live in your house. At the end of the period that they signed for, they have the option to purchase your house. When they pay you each month, part of that money is income for you and a portion of it goes towards their down payment if they decide to buy your home.

Home Insurance

Homeowners insurance will keep you protected if disaster strikes. Your home will probably be the biggest investment of your life, so you want to protect it. Insurance is something that you have to have, but hope you never have to use. This insurance covers things like fire, lightning, windstorm, hail, freezing of plumbing system and theft. This could be one of the most important investments that you make. Many times you don't have an option of whether to purchase it. Your lender will usually require it to secure your loan. If you don't pay to keep your home insured, your lender may do it for you and then charge you.

How Much Home Can I Afford

So you've decided to buy a house, now what? One of the first things you should do is figure out how much you can afford to spend on a house. The last thing you want to do is put yourself in a difficult financial situation by overspending on your house. This is a payment you are going to have to make every month for the next year! In this day and age, there are many sites out there that have a calculator to get you started. They calculate this by asking you for things like your monthly income before taxes, the down payment you will be making, your monthly debt payments and the mortgage interest rate.

How To Buy A House

You've decided that you want to buy a house, but where do you start? First, you should ask yourself if you willing to stay put for a least a few years? If you can't commit to this, you don't want to even think about buying a house. You may end up losing money if the market takes a fall. The next thing you should do is look at your credit score. There are many great websites out there that can tell you what your credit score is. In order to secure a mortgage, you will need to get your credit history as clean as possible.

Mortgage Insurance

What is mortgage insurance? Why do I need mortgage insurance? These are all questions that you may be asking yourself. If you have a down payment for your house that is less than 20% of the sale price, you have to have mortgage insurance. It is sometimes called private mortgage insurance or PMI. The cost is usually about one-half of one percent of the loan, but can range from 0.25% to 2%. The rate you pay can also be affected by the amount you put down on your loan and your credit score.

Home Appraisal

You've found your dream home, but how do you really know that it's worth what the sellers are asking? A real estate appraisal can give you that answer. This comes from an expert that is certified and state-licensed. The appraisal will help keep you from overpaying and protects the bank from getting stuck with a property that's worth less then they paid for it. It is an unbiased professional opinion of the home's value.

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2100 West Broadway
Columbia, MO 65203
Phone: 573-777-7653

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