Realty411 Magazine Featuring Eric Counts, Credit Nerds | Page 59

condominium association fees,
but are you ready to pay
homeowners’ fees?
6. Do you have an emergency
fund? Emergencies can
vary from broken dryers to
flooded patios, so you need
to be ready for anything. Is
your emergency fund big
enough to handle common,
unplanned expenses?
4. Do you have the necessary financial paperwork?
Mortgage applications require a great amount of
paperwork. Lenders can ask for old tax statements,
check stubs, savings account statements, and other
information.
• If you have a high credit score, you may get a no
documentation loan.
• It’s rare to get a no documentation loan, so it’s better to
be prepared by checking your files and collecting the
financial papers you may need.
5. Did you calculate the hidden expenses of owning a
home? Home ownership comes with multiple expenses
that go beyond appraisal fees, property taxes, mortgage
closing costs, and insurance.
• One of the hidden expenses of moving to a home is more
bills. If you’re used to renting, then home ownership can
change your monthly bills by adding new ones. You’ll
add trash collection, water, recycling and sewage in
most locations to the expense list.
• Home insurance is higher than renter’s insurance. In
addition, older homes cost more.
• Homeowners' association fees are becoming more
common in neighborhoods. You may be aware of
• Emergency funds are a better
option than credit cards or
loans. Putting enough money
aside can help you avoid new
debt.
7. Are you applying for other credit? Mortgage lenders
can see applications for other types of loans on your
credit report.
• Applying for other types of credit while trying to get a
mortgage can hurt your loan. Mortgage companies
view these applications as risks, so it’s better to wait
before trying to get another credit card.
• Applications for new credit lower your credit score and
affect interest rates.
A mortgage is a responsibility that affects multiple
areas of your financial life. Before you buy a house,
consider how your current financial situation will be
affected and plan for emergencies.
Meet Dr. Teresa R. Martin, Esq.
Dr. Teresa R. Martin, Esq. is the founder of
Real Estate Investors Association of NYC
(REIA NYC). REIA NYC (www.reianyc.org)
is a premier real estate investment
association serving the New York City
marketplace. Its primary focus and mission is “helping our
members build, preserve, and harvest multi­generational
wealth” in the areas of real estate investments, business
ownership and personal development.
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