The so – called, American dream, often, includes, owning a home, of one’s own. While many people realize and understand, why this is important and relevant, there is often, not enough attention paid, to maximizing the ability and potential, for many, to achieve this objective, in an effective, less stressful manner. In order to do so, smart home buyers, prepare accordingly, and proceed, along their quest. With that in mind, this article will attempt to briefly examine, and discuss, 5 steps, which, if used smartly and effectively, will alleviate some of the challenges and obstacles, and, thus, make the process, somewhat, less painful and tense/ stressful.
1. Prepare for the down – payment, etc: Although most home buyers use a mortgage, in order to acquire their home, even, some of the most qualified, potential buyers, sometimes, neglect, what is referred to, as the closing costs. These costs include the down – payment, legal fees, and associated closing expenses. Most lending institutions want to know, where these funds come from, and so, before beginning one’s search, the necessary funds, should be transferred (at least 3 months prior), to an easily identifiable, bank account, etc. In most cases, the buyer needs to put 20% down, but, sometimes, to get the best interest rate, a larger down – payment, may be needed. Although lower down – payments, may be acceptable, often, there are usually more fees, and conditions, involved. The more prepared, the lower the stress!
2. Reserve fund: No matter how nice a home looks, nearly every buyer decides to personalize/ customize the house, and, this, additional funds are needed. In addition, it is wise, for people, to have an additional reserve or contingency fund (generally recommend a minimum of 6 – 9 months), in case of unexpected contingencies, etc.
3. Fix/ address credit: Several months before you begin shopping for a house, request your credit report, and review it carefully, to be certain, there are no errors and/ or inconsistencies. You can either do so, yourself, or use one of the credit agencies, with a quality reputation, and a high degree of experience and expertise. Do this, in advance, so you minimize it, becoming any type of negative issue!
4. Distinguish between needs/ priorities, and a wish – list: Do you know what you need, in your home, in terms of addressing a combination of your economic, family, etc, personal situations? Most home buyers have a list of items, they desire and seek, in their residence, but, it’s also to break this into, needs and/ or deal – breakers, versus, desirable options, etc.
5. Discipline and reasoning: Hiring a quality, experienced, buyers representative, who clearly understands, your needs and situation, generally eases this process! Know the local market, and take advantage of the Competitive Market Analysis, or CMA, so you have a realistic idea of pricing, values, and strategy.
It’s often your decision, whether you will control this process and period, or let it control you! Will you prepare, and proceed, in a properly prepared manner?
Article Source: http://EzineArticles.com/9871675
Buying and selling of a home tend to increase along with the temperature. Through an analytical survey, we came to know that there is a specific time period that provides home buyers the edge. If you really want to know about the best times for buying a new home , then we are here to assist you in all possible manners. The very basic factor that every buyer should consider while planning to buy a new home is to determine the time when prices drop the most. When is the right time to buy a new home? It merely depends on what you are looking for your dream house. Ideally, the right time is when you find low-interest rate, and when every single change in real estate suits to your current financial condition.
A smart buyer will look for various factors while buying a new home such as interest rate, current real estate trend, own financial budget and lots more. Unlike other services that allow you to consider various key points while making any purchase, buying a new home at a right time is also a very important thing. Make yourself aware with some pinpoints that will surely help you to determine the best time of the year to buy a new house .
Know about the best interest rate
Obviously, interest rate plays a vital role while deciding on buying a new home as interest rate has a direct impact on your monthly payment and on the amount that is associated with purchasing of a new home. When you will find low-interest rate, then it’s obvious you have to pay comparatively less amount and when the interest rates are high, you have to pay the big amount.
Focus on some economical factors
There are some economic factors that have a direct impact on the rate of interest such as the cost of living, inflation and market condition. Note that if you have got a high-interest mortgage, then you’ll be ready to finance to a lower rate. Similarly, if you have got a flexible rate mortgage, then you’ll convert to a specific rate mortgage.
Current Market Trend
There is a great impact of the type of market on rating and demand of homes. Basically, in a seller’s market, you will see that the demand of home is higher. Homes sell quickly and frequently at the terms or higher. Sellers have the advantage in negotiating. While in a buyer’s market, the market is slow: homes might remain unsold, you will realize a lot of decisions and you have got the dialogue edge. Your real estate agent will tell you a lot of regarding this market.
Impact of season on the market
Seasons typically have an effect on the market. For an instance, you see plenty of homes on the market are sold in the spring when new flowers are blooming and therefore the weather is good. Conversely, you will not realize plenty of homes on sale throughout the vacations, as a result of individuals don’t typically wish to maneuver throughout that point. As another chance, you will need to sell your home first as a need of buying a brand new home.
Article Source: http://EzineArticles.com/expert/Neeraj_Sharma/2351575
Buying a home is a great investment for millennials. Being in your early 20’s and thinking about buying a home may scare you, but it’s actually a great way to get started investing. Here are the top reasons to buy a home as your first investment.
#1 Mortgages are Cheaper than Rent
In 42 out of the 50 states, it’s cheaper to own a home than to rent. Taking on a mortgage can actually save you money now and in the future. The biggest thing standing in most people’s way is the down payment. Luckily, in Washington state, there are many programs that will help homeowners purchase a home for a lower or no down payment.
#2 Start Building Equity
As you start to pay down your mortgage, the amount of equity you have in your home grows. Unlike rent, you’re not just throwing away your money, but securing it to your home. When you’re ready to move you can use that equity to buy your next home.
#3 Your Lower Budget is in your Favor
When buying your first home, odds are you won’t be able to buy the nicest home on the block. Go for the fixer upper that you can actually afford. Over the years take the time to make improvements to the home and when you’re ready to sell, you’ll be making money
#4 It’s an Investing Stepping Stone
Buying a home is one of the best stepping stones to get started investing. Buying a home, paying your mortgage, building equity, and selling for more than you bought it for is a great way to learn how investing works. You invest in something while it is low, wait for it to grow in equity, then sell when it is high. This is exactly how homeownership works. If you make enough money on the sale of your first home you can even invest some of that into other types of investments such as stocks, bonds, retirement accounts, or more real estate.
Buying a home is a big decision, but as long as you make your payments on time and let your equity grow, it’s one of the best investments you can make… especially in your 20s. Investing is all about risk, start off with a small but beneficial risk of buying a home and see how it can help guide you towards a future of great investments
Article Source: http://EzineArticles.com/9802968
When you decide, you want to buy a home of your own, take care, to avoid paying all your attention, on cosmetic items, such as curb appeal, paint colors, how its furnished, etc, and focus on the potential, build – quality, etc! After over a decade, as a Real Estate Licensed Salesperson, in the State of New York, I have become convinced, it’s necessary, to pay, far more attention, to the BONES of a specific house. When we refer to a house’s bones, it refers to the hidden quality, potential, and build – quality, which might make a house, far more valuable, than another, without these same, fine qualities and/ or assets. Therefore, this article will attempt to briefly review and examine, using the mnemonic approach, why this consideration, is such an important, compelling, and essential one.
1. Basics; benefits: There are many basics, one should closely examine. Start in the basement of most houses, and examine the quality and condition of plumbing, electrical. leak – resistance, and other structural components. Just as a dentist won’t simply put a filling into a decayed tooth, without restoring it, and being certain it is healthy, a new homeowner should proceed, in a similar manner, and mindset! What are the benefits and/ or strengths, that are positive, beneficial and worthwhile!
2. Options; opportunities: What opportunities, does a particulate house present? Which of the options have a significant degree of value, which make it meaningful, worthwhile, and present a reliable base, and structural strong – point?
3. Nuances; needs; neighborhood; neighbors: Before purchasing any home, drive around the area, and see, if you like this particular neighborhood! Take the time to meet some of the potential neighbors, to see if you feel, you’d enjoy living there! Remember, you can make many changes to a house, or even knock it down, if that’s your desire, but it will still be located, in the same location! Know your preferences, and personal needs, and see, if there are certain nuances, which might, meet your needs, concerns and priorities!
4. Energy; entries/ exits; exterior: How energy – efficient is the particular house? Are the windows, efficient and effective, from that perspective? If they are not, you will, literally, be throwing money, out the window! Look at the doors, in terms of, not merely their appearance, but how they are hung, if they are draft – free, whether they are both safe and efficient, and meet your personal needs, and/ or requirements! Examine the exterior, including the condition of the grounds, without omitting attention, to details, such as painting, trees, concrete and driveway, etc.
5. Solves/ solutions; strengths; sustainable; serves (your needs): How expensive, and plausible, are some of the features of this particular property? Does it provide viable solutions, which might provide necessary, relevant strengths? Is the home, built, well – enough. to provide quality sustainability? Does it serve your true needs?
Before you buy any home, take the time, and make the effort, to truly, examine and look, at the BONES! Will you focus on the possibilities, or be overly impressed with cosmetics and esthetics?
Article Source: http://EzineArticles.com/9800805
Congratulations! You’ve made the decision, the time is right, for you to find the house for you, and make it your home! However, doesn’t it make sense, since, for most people, one’s house is their single, most valuable asset, to be as prepared, as possible? As a Licensed Real Estate Salesperson, in the State of New York, for over a decade, I have come to realize, many potential home buyers, enter into this all – important process, with their eyes, seemingly, shut, when they need to plan effectively, and be as prepared, as possible! Let’s briefly discuss 6 considerations, potential home buyers, should keep – in – mind.
1. Pre- approved: Before looking at any houses, discover what you can afford. Meet with a recommended, professional mortgage expert, and ask to be pre – approved! This is far different from receiving a pre – qualification. While pre- qualification’s merely mean, based on a simple analysis of basic data, you provide becoming pre – approved, requires a procedure similar, to what is actually done, to receive a mortgage approval, and submitting more forms, verification, etc. By doing this, a buyer knows, before he starts, how much mortgage, he is qualified for, and thus what price range, he should be looking at. Doesn’t that make more sense?
2. Check out the area: How will you know what area, and/ or neighborhood, you should search in? Walk around potential areas, and get a feel, for the place! Is it quiet enough for you, or too quiet? What about the neighbors? How convenient might your commute be, from this locale?
3. Know what you need, and want: Evaluate both present and future needs. Is this going to be a starter home, or one, where you hope to remain, for a significant period of time? How many bedrooms, and what size, do you need, and want? How about the bathrooms, kitchen, living room, dining room, house style, amount of land, etc?
4. Downpayment and closing costs: Now that you know how much you qualify for, in terms of your mortgage, consider whether you feel comfortable with the necessary amount of downpayment! Be careful to avoid becoming house – rich, but living over your head! Discover your closing costs, and be certain, you are prepared and comfortable, with those expenditures.
5. Monthly charges: Try to evaluate, as closely as possible, your estimated monthly charges! This includes far more than merely your mortgage interest and principle, taxes and insurance. Consider maintenance, creating a reserve for repairs, etc, utilities, and other potential expenditures. As a rule of thumb, be prepared, by maintaining at least 6 months reserves!
6. Be prepared for the unanticipated: What will happen if you undergo a career reversal, or some extended period, with less than your regular income? How long will you be able to continue making the necessary payments? Use the 6 months, rule, but attempt to maintaining a larger reserve!
Prepared home buyers are better able to enjoy owning a house. Will you prepare, as you should?
Richard has owned businesses, been a COO, CEO, Director of Development, consultant, professionally run events, consulted to thousand, conducted personal development seminars, for 4 decades, and a RE Licensed Salesperson for a decade+. Rich has written three books and thousands of articles. Website: http://PortWashingtonRealEstateOffice.com and LIKE the Facebook page for real estate: http://facebook.com/PortWashRE
Article Source: http://EzineArticles.com/expert/Richard_Brody/492539
Article Source: http://EzineArticles.com/9735048
There are many types of mortgages. It is to your advantage to know about each mortgage type before you start searching for your next home. Most people apply for a fixed-rate mortgage. In a fixed rate mortgage, your interest rate stays the same for the term of the loan, which can range from 10 to 30 years. The advantage of a fixed-rate mortgage is that you always know exactly how much your mortgage payment will be, and you can plan for it, although your property taxes and home owner’s insurance may change during the repayment term of your mortgage. Another type of mortgage is an adjustable rate mortgage (ARM). With this type of mortgage, your interest rate and monthly payments usually start lower than a fixed rate mortgage. But your rate and payment can change either up or down, as often as once or twice a year. The adjustment is tied to a financial index, such as the U.S. Treasury Securities index.
The advantage of an ARM is that you may be able to afford a more expensive home because your initial interest rate will be lower. There are several government mortgage programs, including the Veteran’s Administration’s programs, the Department of Agriculture’s programs, Federal Housing Administration mortgages, and conventional loans. Thoroughly discuss your financial situation with your real estate broker about the various loan options, before you begin shopping for a mortgage.
Below is a brief description of the 4 main mortgage types. The Federal Housing Administration (FHA), Veterans Administration (VA), United States Department of Agriculture (USDA), and Fannie Mae/Freddie Mac (conventional financing) all have different guidelines and down payment requirements. Fannie Mae and Freddie Mac are the most recent sudo-government agencies to launch minimal down payment programs. There are also various down payment assistance programs available to first time home buyers, recent graduates, and low-income households. Most down payment assistance programs have income and sales price limitations and repayment requirements.
• Conventional Financing – Conventional mortgage loans require a minimum 3% down payment. Private mortgage insurance (PMI) is required unless there is a 20% down payment or lender paid PMI is offered by the mortgage company. Mortgages are offered for owner occupants and investors.
• FHA Financing – This financing type requires a minimum of 3.50% down. FHA allows approved nonprofit organizations and/or family members to assist homebuyers with the down payment requirement. Upfront and monthly mortgage insurance is required. Only owner occupied financing is offered.
• Veterans Administration – Honorably discharged veterans or active-duty personnel in the US military who meet specified qualifications are eligible for no down payment mortgage financing. VA Mortgages requires an upfront funding fee unless the veteran is disabled. VA mortgages require no monthly mortgage insurance, but are available to owner occupants only.
• USDA Financing – This mortgage program is available through the United States Department of Agriculture. This loan type allows zero down financing for owner-occupied properties in designated rural areas. Income and sales price limitations apply. An upfront and monthly fee is required. There are two distinct loan types, which include guaranteed and direct loans.
Each of these loan types offer different features and should be fully investigated to determine which loan type fits your credit and financial situation. It is always in your best interest to be pre-approved prior to looking for a new home.
Article Source: http://EzineArticles.com/9726888