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Dale W Doughty, Jr.'s Blog

By Dale W Doughty, Jr. | Mortgage Broker
or Lender in Maine

Tired of Renting?

A yard that your children can play in.  A garden where you can plant the flowers and vegetables of your choice.  The freedom to have any pet you may want and decorate your home to your specific taste  The peace of mind and pride that goes along with owning your own home and not being at the mercy of a landlord.  These are all really great reasons to buy a home in your lifetime.

Affordable but stable pricing, historically low interest rates that show signs of increasing and a giant inventory of available homes for sale are all the reasons why now is the time to react.  As the economy grows interest rates will climb, real estate prices will climb and the home of your dreams may become out of reach.

If you are currently renting, have a stable income and relatively good credit then you should be thinking about becoming a homeowner. 

If you don't mind apartment life and are somewhat handy, you may consider buying a multi-unit.  Multi-units qualify for FHA financing allowing you to put down as little as 3.5% of the purchase price.  Then your neighbors can pay your mortgage for you (through their rent payments)!  If you ever get sick of apartment life you can simply move out and rent the unit you were living in too.

If you are tired of apartment life now then you're in luck because there are many, many quality homes for sale right now and there are programs available that offer 100% financing on many of them.

What do you need to do to get started and consider homeownership a little more seriously?  First, get prequalified for a mortgage.  The best way to do this is to schedule a consultation with an experienced Mortgage Banker who can review your credit and financial status with you and determine what mortgage product makes the most sense for your particular situation.  You usually will need to provide paystubs, bank statements and other supporting documents so that your banker can accurately calculate your income and determine how much home you can afford and which mortgage program makes the most sense for you.

Once this is done your Banker can provide you with a pre-approval letter that will indicate how much home you can afford and any property type restrictions you may have.  A copy of this should be provided to your Realtor to help them find you the right home.  Often your Mortgage Banker will have names of Realtors that he or she has worked well with in the past but ultimately it is your decision who you use to find a home, or if you even wish to use one at all.

Depending on the type of residence you are considering, how much money you earn annually and other factors you may qualify for programs that allow you to buy a home with little or no money out-of-pocket expense.  In today's market many renters are able to buy a new home without any money down and are finding themselves with a mortgage payment that is lower then what they were paying in rent.

If you would like to schedule a consultation, submit a quick application over the phone or receive a free booklet on understanding mortgage settlement costs, call me at my office at (207) 850-1007, toll free at (877) 440-2739 or email me at daled@reliantsanford.com.  You can also submit a secure, quick application online 24/7 at www.ReliantSanford.com,


By Andrew Mooers,  Sat Feb 5 2011, 12:43
Lucky to live in Maine, 4th lowest crime state, 46th lowest for FSSR. (Foreclosure, short sale, repossession caused home sales). 43rd lowest for teenage pregnancy too. Lots to like in Maine.
By Dale W Doughty, Jr.,  Sat Feb 5 2011, 16:07
As a follow-up to this article, in addition to the risk of home prices moving out of reach for many folks the cost of rent is now increasing. According to MPF Research, average rent prices were up 2.6% nationally in the third quarter of 2010 vs the third quarter of 2009. Additionally, occupancy rates have climbed sharply to 93.9% making it almost certain that further rent hikes are to come. Since this article was written Trulia announced the results of a study they conducted that found that in 18 major real estate markets it is now more expensive to rent then it is to own. This trend will likely continue as more and more people are forced to rent due to their economic circumstances. For those Americans with fair or good credit, a stable income and no desire to move outside of the area in the near future this is definitely an opportunity for aspiring homeowners that likely will not last.

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