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Things to Look Out for When Buying Your First Home

There is nothing as exciting as buying your first home. This is a big milestone for many people in their life and that is why it is important to get all the details right. A good property investment will keep you happy and your finances stable for a very long time. However, navigating the housing market is not so easy. There are constant changes taking place, which makes it difficult to determine the realistic value of many properties. You have to choose a location, find an adequate mortgage plan and assess all the other relevant details. In order to get the most out of your first home, it is worth considering these important home-buying tips.

Determine your budget

When you commence your first home buyer’s journey it is worth investigating what you are getting yourself into from a financial standpoint. You have to learn what your finances can get you. That is why it is necessary to set up a budget. When determining the budget consider the total costs of buying a new home. Your down payment is going to be the first large sum of money that you will have to pay upfront. You will have to consider several factors in order to determine how much of a down payment you will have. The percentage will vary from lender to lender, and it can be quite a challenge to save up money for a hefty down payment, especially if the total cost is high. Use online down payment calculators to determine where to start. In addition, consider the closing costs as well. This is an additional cost on top of your down payment that you have to manage. However, you can negotiate about the closing costs, and in some scenarios ask the seller to pay for a portion of the costs such as home inspections. Lastly, add the move-in expenses to your budget as well for any necessary repairs or upgrades.

Learn what to look for

Once you have a rough estimate of your budget, you can narrow down your search and find available houses online. Luckily, modern technology allows you to browse homes completely remotely using 3D home tours. These virtual models let you explore every room in more detail compared to traditional photos. This is a good opportunity to take your time and see how the general room layout would fit into your plan. Ultimately, you will save a lot of time by simply browsing available homes online. Hopefully, now you will have a list of homes to visit in person. Once there you can assess all the other relevant details which photos do not capture, such as the plumbing pipelines and electrical installations. Make sure to include all your senses and assess if the floor is creaking, the walls are damp, or if there is any strange odor. Lastly, check the roof as well for any possible leaks.

The benefits of professional help

As a first-time home buyer, you will have particular benefits that you can leverage to get an even better offer and save a lot of money. However, it can be quite challenging to get to this information on your own. That is why you should hire professionals who will help you get an excellent first-home buyer’s grant with access to a wide range of properties on the market. You can significantly reduce your interest rates as well because you will be able to let professionals guide you through the entire process with expert advice.

Find the right type of home

In addition to managing your finances, you should also pay attention to the actual type of home that you are looking to buy. There are several different types to choose from and not all of them are going to be worth the investment considering your needs. A duplex is going to combine two homes with a single common wall or ceiling, depending on the number of floors in the building. This lets you have an extra private room. Townhomes unlike traditional single-family homes have multiple floors and are attached to other homes side-by-side. Lastly, a condominium will get you a separate living unit in a large building, but without your personal yard.

Choose a location

When buying a home look for the surrounding area and infrastructure as well. If you live with your children make sure that there are schools close by. The availability of parking and local stores are also going to be significant factors in your day-to-day life.

Buying your first home is a truly exhilarating experience. However, it requires careful attention nonetheless. Some of the most important things to consider are budgeting, 3D virtual tours, getting your benefits, and determining the type and the location of your home.

How to Know When it’s Time to Move to a Larger Home

Few of us are lucky enough to have the funds to move into our first home and have that be big enough or in the right location to serve as our “forever home.” Still, as your circumstances change or you seek to make the most of market opportunities, you may feel an increasing desire to move to a larger home. As you’ll know, though, bigger homes come with larger expenses, so it can be difficult to know when it’s the right time to move.

Much of this will come down to your situation and your gut instinct, but here are a few tips to help you better understand what you should be considering when making this decision.

Signs that a move is on the horizon

Perhaps the first and most irrefutable feeling that you’ll get when it’s time to move is that of being cramped. Whether it’s due to the number of people, the need for more of a workspace, or accessibility needs, you know when there’s not enough space for everyone to be comfortable. Sometimes, this will be as obvious as bumping into things or needing to step over stuff, or more subtle, like hearing activity from all over the house.

Aspects like this can help you to know if you need to move to a bigger house, which USA Today Money expands on by saying that the need for additional storage or bedrooms can also factor in as key reasons. Your work situation can also play into this sense of needing to move. Perhaps you’re now able to work at home, or in a hybrid role, or live too far away from work, or live too close to work where the cost of living is very high. In all of these situations, a house move may very well help to alleviate some of your problems.

How to know if a move is right for you

The first aspects to address once you know that you’re ready to move mainly pertain to your finances. A good sign that you can move to a bigger home is if your debt-to-income ratio is low, according to Business Insider. It’s said that to get a mortgage, you need a debt-to-income ratio at or below 43 percent. To find your ratio, divide your monthly debts by your gross monthly income and then multiply by 100 to see the percentage.

You can also get a good idea of the affordability of upscaling by using the fee-free mortgage in principle from Trussle to soft check against many mortgage lenders. This service will allow you to accurately see how much you could borrow. Being a soft check, it won’t impact your credit score, but it does check your credit history and eligibility. This way, you get a reliable figure that you can then work from to find a larger house within your budget.

However, knowing your prospects as a potential mortgage lender is one thing: another is knowing your affordability on the other side. You’ll need to work out the costs of moving and the admin that goes along with getting a new home, as well as a likely increase in monthly costs. When you move to a bigger house, you’re likely to end up spending more on local taxes and utility bills. So, you’ll want to research those elements too.

You’ll likely know when you’re approaching the time when you need to find somewhere more spacious to live, but just before you hit the point when you absolutely need to move, check if it’s financially viable.

You Can Save Several Thousand Dollars With These 4 Home Financing Ways!

If you’re in the market to buy a home, you’re probably trying to figure out a way to finance your new property. And that’s only fair. You’d want to spend your money where you get the best deal and perhaps, more savings.

So it won’t hurt to know the various ways you can finance your new home. Who knows, this list might save you a couple of hundred dollars, if not thousands? Read on!

Get a Government Program

The government offers different home financing programs to help you buy your dream property. These include the Veterans Affairs Home Loan Guaranty Program, the Federal Housing Administration (FHA) loan program, and the Department of Agriculture Rural Development Loan program.

Each program has its own set of rules and regulations, so make sure you fully understand them before applying. For example, the VA Home Loan Guaranty program allows veterans to borrow a massive percentage of the property value. In contrast, the FHA loan program only requires a minimal down payment.

You can get more information about these programs on the government’s website or from your local lending institution.

Consider a Private Lender

If you’re not eligible for any government programs or don’t want to go through the hassle, you can always go to a private lender. These entities include banks, credit unions, and mortgage companies that offer financing options outside of the traditional banking system.

The interest rates and terms vary from one lender to another, so it’s important to shop around and compare rates before you sign anything. You also want to ensure that the lender is reputable and has a good track record.

Mortgage

Mortgaging is one of the best and most straightforward ways to buy your new property. You can go to any bank or lending institution and apply for a loan. The amount you can borrow depends on your capacity to pay, which the bank will evaluate based on your credit score, employment history, and other factors.

The good thing about this option is that you can get up to 80% of the property value as long as you’re willing to pay the down payment and other associated fees. You can also take your time repaying the loan, which is usually between 15 to 30 years. Valley Strong is a good option.

Make sure you read the underwriting terms and conditions before signing important documents. There may be hidden terms that you should know before you authorize the mortgage from your end.

Ask friends or family members if they have any recommendations. They might have had a good experience with a particular lender in the past.

Borrow from Family and Friends

If you’ve got wealthy friends, why not ask them for help? They can either lend you the money as a gift or as a loan. The latter is more common because it’s easier to keep track of the transaction if it’s done formally. You might want to put everything in black and white, including the interest rate and payment schedule.

You can also ask them to cosign on the mortgage with you, which will help improve your chances of getting approved. Remember that this might strain your relationships if payments are not made on time or if you fail to repay the loan.

Use Your Savings

If you’ve been saving up for a while, this is the best time to use your hard-earned cash. You can either use it as a down payment or pay the entire cost of the home upfront. If you’re using your savings, make sure you have enough money to cover other costs such as property taxes, homeowners insurance, and repairs.

Final Word

Financing your new home can be a daunting task, but with a little bit of research, you’ll be able to find the right option for you. No matter which way you choose, make sure you compare interest rates and fees to get the best deal.

Things to Consider Before Buying a Home

If you’re in the market for a new home for your family, there are plenty of things that you might be considering before you’re ready to say yes — or even to get too serious. Whether you are considering buying your very first home or you are simply moving from one to another, there are plenty of things that require a little bit of thought when you are moving from one house to another. From the budget to your priorities within a home, you can take a closer look at all of the serious parts of homeownership in order to get a better sense of what you want. Here are a few things that you should probably consider before you buy a new home.

Buying for the Future

Buying a house is a long-term decision and investment, which means that you should be thinking far into the future when you make your choices. Maybe you won’t be in your first house for the rest of your life, but it could very well be the gateway into the plan for the rest of your future. Whether you want to plan financially or you’re thinking about longevity for the property itself, buying for the future is a worthwhile investment.

Look Beyond Aesthetics

Even though it can be extremely tempting to fall in love with the home at face value, it’s also important to look a little bit further beneath the surface to make sure that whatever place you are looking at has good bones to build on and shape the future of your home. You don’t want to purchase a house only to realize that the structure isn’t what you want or that you have to change a lot of things in order to be satisfied. Make sure that the color on the walls and the countertops in the kitchen aren’t the only things reeling you in.

Location, Location, Location

Again, buying a home is an extremely permanent decision in terms of your living situation. And although you can change pretty much everything else about a home, the one thing that you cannot change is the location. Do you want to be a bit more secluded for your privacy, or would you rather be in a central neighborhood with easy access to everything? These are questions that you need to ask yourself when it comes to committing to a home. I think about the school district, what kinds of amenities and features are nearby and even how that will impact your home’s value. Location is one of the most important things when shopping around, and that fact is pretty much a constant in the industry.

Don’t Top Out Your Budget

The top of your budget is exactly what it sounds like — the top. Even if you have a high limit when it comes to your down payment and the kind of loan that you can take out, it isn’t always smart to go for the highest price point. Make sure that whatever you decide on, you’re still being reasonable with your expectations. This will likely cause a lot less stress down the line.

Consider Your Other Debts

Getting into the financial aspect a little bit more, one of the other important things that you should consider before you even start looking to buy a home is what other debts you have. Think about your student loans, credit card debt or any medical debt that you might have, and think about where a mortgage might fit into that situation.

Getting an Inspection

When it comes to making sure that our house has good bones, there’s no test that compares to the classic home inspection. It’s standard practice to have a home inspected before you commit to buying, so just make sure that if you have a house that you’ve fallen in love with, you pay attention diligently to the details of the home inspection and make an informed choice based on the information you have. Regardless of how much you love a place, you don’t want it falling apart the year after you buy.

Are You Ready to Buy?

One of the primary questions that you should ask yourself when you are thinking about buying a home is whether you are actually ready to buy. Purchasing property of any kind is a big decision, and it’s important to be honest with yourself about exactly what you want. If you aren’t sure about the details, you don’t know exactly what you want or even if you think you might be better off renting for a little while longer, it’s perfectly okay to figure out what you want while you continue renting and saving.

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About The Author

Ava Roman (she/her) is the Managing Editor of Revivalist, a women’s lifestyle magazine that empowers women to live their most authentic life. When Ava is not writing you’ll find herin a yoga class, advocating for body positivity, whipping up something delicious in the kitchen, or smashing the patriarchy.

Buying a Home Right Now or Waiting for 2022?

Buying a house is one of the most important steps in your life, and one of those things that will show the world who you are as a person and what you stand for. This is a process that takes a lot of time and energy, as well as a ton of money, regardless of the size of your home, its location, and age. Even the tiniest homes can cost a fortune, and even properties located in the middle of nowhere can end up being surprisingly expensive. That’s why finding the right time to buy a home is crucial – but is that time now, or should you wait until 2022?

The prices

The prices in the real estate world are wilder than ever. The global COVID-19 pandemic has brought lots of problems our way, including the rise of the prices in the building industry, which is why new properties are more expensive than ever. Consequently, the older houses are getting costlier and costlier, and there’s very little you can do about it. Essentially, there are two things you can do – buy a home right now and hope you’re not too late, or wait until 2022 and hope that the prices will drop. Most experts are predicting that this won’t happen, but that doesn’t mean you won’t be able to find an affordable house in a few months, so think long and hard before you make that decision.

The rent

People who are thinking about buying a home in the future are usually the same people who are renting their current homes at the moment. But, just because they’re doing that doesn’t mean they’re living there for free – most of them are spending a fortune on their rent and bills, wasting more money than you can imagine. That’s why you need to think about the rent you’re paying and compare that to the amount of money you’d pay for your mortgage loan. In other words, if you’d be spending the same, why wouldn’t you invest in your own home instead of paying someone else to live in theirs? If this is the case, buying a property as soon as possible is the best way to go, so don’t hesitate any longer and start looking for a home right now!

The insurance

Whenever you’re buying your home and no matter how much money you’re spending, making sure everything is protected and safe is vital. Spending money on a comprehensive insurance policy might not be your most favorite thing in the world, but this is something that will keep your home, your possessions, and your family safe, and that’s something you can’t put a price on. However, finding the right policy and avoiding those dangerous junk insurance frauds is the only way to do this right, so spend some time looking into everything and you’ll end up making the right choice. And if you manage to find the right insurance policy, don’t wait, but buy a home ASAP!

The knowledge

The only reason why you should deliberately wait until 2022 to buy a home is to gather more info about this entire process. Learning what to do, how to act, and what to pay attention to is an amazing way to buy your dream home and make the most of your money. So, if you’re in a position to wait several months, use that time to learn more about buying a home and talk to your real estate agent.

Buying a home is never easy, so get informed, get ready, and try to save a few extra dollars while you’re waiting – just in case you need them!

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