So You Decided to Buy?

Your decision is to buy. Congratulations! You are well on your way to creating legacy of wealth for yourself through property appreciation. In Frederick County, property appreciation has been at a rapid pace in the last 5 or so years. The expectation is this appreciation will continue at a 3-5% annual rate. This is good news for you as a homeowner. Appreciation means your home increases in value each year. When you sell, you should leave the transaction with the money that appreciation represents. For example, assume you bought a home for $250,000. If the appreciation rate is 3% for the year, this means at this time next year your home will be worth $257, 500. The next year, assuming appreciation is again 3%, your home is worth $265,225. You can see how this goes.
In addition, to the benefits of appreciation, you will probably be able to deduct mortgage interest and personal property taxes from federal and state income taxes. You will want to check with your tax advisor, of course. In effect, the government is subsidizing your home ownership.
Another major benefit of your home ownership is you know each month what your payment will be, assuming you opt for a fixed loan. Unlike rent, which may go up, you know the amount of your home payment. Expenses related to home ownership like electricity may go up, but that would go up if you were renting.
Indeed, buying your own home is a wise decision. Because the home buying process can be a daunting one for many people, the Frederick County Association of Realtors has accessed a step-by step guide from our government’s Housing and Urban Development (HUD) website. We have supplemented with other websites we think will be of value to you as well as included local information to help you. For many people, buying a home is the largest single financial transaction they will make. The process can be overwhelming. Buyer Beware: this journey can be fraught with ups and downs – the house you wanted was sold before you got to see it, the seller accepted a contract and it wasn’t yours, your first-choice house costs more than you can afford. The guide which follows is designed to help you with these and other matters related to buying your home.
Many homebuyers choose to work with a REALTOR®, a real estate professional who ascribes to a strict Code of Ethics as a member of the National Association of REALTORS® (NAR). Choosing a REALTOR® assures you of getting the top-notch expertise you deserve. Members of the Frederick County Association of Realtors (FCAR) are members of NAR. Both FCAR and the Frederick County Chamber of Commerce can assist you in finding a REALTOR®. Many people are surprised to learn that a REALTOR® can also assist you with the purchase of new homes directly from a builder at no increase to the price of the new home. Any of our members look forward to helping you.
As you go through the material which follows, feel free to call upon one of us to clarify and simplify an immense amount of material.

Happy House Hunting!

Know your Rights

Shop for a loan

Learn about the home buying programs
http://www.MDHOMEPROGRAMS.com
Local FCAR program
Local County Home Programs

Shop for a home
Consider Resale value
Working Builder or New Home Communities

Make an offer

Get a home inspection

Shop for homeowners insurance

Sign Papers
Copy of a HUD1 – (find a complete version)
Closing

House 101 (Under construction)
Types
HOAs
Condos
PUDs
MPDU