Jan 26, 2016 | Home Buyer Tips
When it comes to diving into home ownership for the first time, it can seem like there are so many things you just don’t know. Whether you’re getting advice from your real estate agent, your friends or your family, there are so many things that seem like common sense that they might be lost in the mix of details. Instead of having to squeeze it out of them, here are three tips that are easily forgotten but still essential.
Be Patient And Take Your Time
It’s certainly not the most popular advice, but one of the most important things when deciding to purchase a home is having the time and know-how to make the decision that is right for you. Since you’ll need to consider so many different things when committing to such a significant purchase, from the neighborhood to the local amenities to the future salability of the home, it’s always best to ask the questions so there will be less to regret.
Get More Than One Opinion
It’s entirely possible that you’ve found a home you love and there’s nothing that’s going to get between you and it, but getting someone else’s opinion may provide the criticism you need to take a step back from a home-buying mistake. Instead of going it alone, bring along a friend or family member whose opinion you trust that will be honest with you about the flaws they see. It’s possible that they may notice something you’ve missed that could make or break the entire deal.
Prepare For The Home Inspection
Until you do it, you never really know what you’re going to find out during the home inspection, but doing a little bit of research to determine things you should be looking for can go a long way in saving money down the road. It may seem like you should be able to rely on the inspector to assess things for you, but by asking the right questions you might be able to spot the water tank that’s about to give out or a leak that’s about to get much worse.
There are a lot of little details that go hand in hand with purchasing a home, but often the advice that is the simplest is the easiest to forget. If you’re curious about other aspects of purchasing real estate that go beyond the home inspection, you may want to contact your local real estate agent for more information.
Jan 21, 2016 | Home Buyer Tips
There can be many downsides to both renting and buying, depending on what side of the coin you are on, but if you’re leaning towards purchasing a home it can have added benefits for your bank account that renting does not. While renting can certainly alleviate many of the costs that go along with property ownership, here’s why purchasing a home can have positive monetary affects in the long run.
The Good Impacts of Inflation
While inflation is often seen as a dirty word, a real estate purchase can see the positive side of inflation with how your home purchase investment will grow over the years. Putting money into rent will mean that money is gone and out the window once you’ve paid for the month, but investing into a property will come back to you in future gains that are made in the real estate market. While buying a home will be more expensive in the short term, it can also provide you with greater financial flexibility and equity in the future.
Renovations Will Increase Home Value
While changing up the bathroom or the paint on the wall in your apartment isn’t going to add any extra lining to your wallet when you move out, making upgrades to a home that you own will have the very opposite effect! Renovations can certainly be unpopular while they’re taking place, but no matter how small or large, they can mean an easier sell and a higher profit when the home finally goes on the market.
The Opportunity For Rental Property
An apartment you rent won’t offer opportunity for investment if you’re away from your home for an extended period of time, but a home you own may serve as an ideal investment property at some point in the future. With the success of Airbnb and unique modern housing needs that may only require a home rental for a short period of time, being able to use your house as a rental property can be a significant boon for earning money you would have otherwise been without.
Buying a home can require a lot of number crunching in the beginning that rent does not, but it can also provide significant financial benefits down the road that might not exist without such a purchase. If you’re considering purchasing a home in the near future, you may want to contact your local real estate professional for more information.
Jan 14, 2016 | Home Buyer Tips
Whether or not you’re new to real estate, there’s little doubt that you’ve heard the term down payment as it relates to purchasing a home. There’s a lot of different information out there in regards to how much this figure should be and it can be hard to determine exactly what the importance of this payment is. If you’re trying to determine the ideal amount to put down, here are some things to consider.
Explaining Down Payments And Why They’re Important
The down payment is probably one of the largest single payments you’ll make for anything, and this is why so many people save for years. When you buy a home, the down payment is the amount of money that goes into the initial home investment, and this is taken off of the cost of the house. In essence, while this money qualifies as an asset, it is tied up in paying off the total cost of your home.
The Differing Amounts For Down Payments
It’s often the case that many figures are thrown around in regards to the ideal down payment percentage, and they generally vary from 3-20% of the home’s cost. If you are paying a percentage on the low side of the scale, this can unfortunately mean that you will have fewer mortgage options and will be stuck with an increased interest rate. The amount you should pay depends on your financial health and purchasing commitment, but the larger the down payment is, the more minimal your monthly payments will be.
Deciding The Perfect Percentage
Saving up 20% of a home’s total price may seem like a lot of time and effort, but this can be the ideal amount to put down. In addition to lowered monthly payments and a better interest rate, you’ll also be able to avoid Private Mortgage Insurance (PMI), which is required if you put down less than 20%. There is no right answer to the question of how much to put towards a down payment, but you may end up spending less in the long run if you can invest more in the beginning.
There are many figures thrown around when it comes to real estate, but the amount of a down payment should be economically feasible for you and enable you to make your monthly payments consistently. If you’re planning on purchasing soon and are looking for home options, you may want to contact one of our local real estate professionals for more information.
Jan 12, 2016 | Home Buyer Tips
When delving into the realities of home ownership, there can be many factors involved that make it difficult to determine what you need to know and what can wait until later. If you happen to be a first-time buyer who’s looking for the best tips for purchasing a home, look no further than the following three pointers to set you on the right path.
Get Familiar With Your Credit Score
If you haven’t looked at your credit report for a long time, it can be a daunting task to request this information. Fortunately, your credit report is free from AnnualCreditReport.com and it will prepare you for what lenders are going to see. By taking this important step, you will be able to determine any delinquent accounts or balances owing that have gone to collections, and hopefully have these cleaned up before they can become a problem for your mortgage.
Determine The Price You Can Pay
While you may have a price in mind for what you’re willing to pay for a home, it’s important to determine your debt-to-income ratio before putting in an offer. Your DTI ratio can be determined by taking your total monthly costs, adding it to what you would be paying for a home and dividing it by your monthly gross income. If it’s a housing price that will work for you, this amount should equate to less than 43%.
Organize Your Housing History
If you have a good history as a tenant, the next step will probably be the easiest of all, but it’s very important in order to prove you’re a responsible candidate for home ownership. Once you’ve acquired a Verification of Rent from any applicable landlord in the previous year, you’ll want to ensure that you have money in the bank. While RRSP’s can make a good impression, make sure you have liquid assets available so you can convince the lender your home investment is manageable.
There are a lot of things to know when it comes to buying a home, but if you’re a first time buyer the most important thing is to ensure that your finances are organized and that you’re not diving into more house than you can afford. By taking the time to determine your debt-to-income ratio and looking into your credit, you can ensure a positive first-time buying experience. If you’re wondering about homes for sale in your area, you may want to contact your trusted real estate professionals for more information.
Dec 29, 2015 | Home Buyer Tips
When you’re looking into purchasing a home, there are plenty of things to watch out for at any time of the year, but there are a few things that you can expect during the winter months that may be a little different than other seasons. If you happen to be on the market for a home and are thinking of buying, here are three things you may want to consider for the winter buying months.
A Little Bit Off The Top
While there is significant home buying that goes on throughout the fall, it’s often the case that things slow down in winter with the often unruly weather and the busyness of the season. As a result, if you’re planning on making an offer during these months, you may be able to swing the home seller a couple thousand dollars in your direction to garner a bit of a discount. Though there are no assurances, it’s quite likely that the home seller will want to get their house off the market before springtime comes around.
A Speedier Approval Process
With the amount of properties being bought and sold in the winter months slightly lower than the rest of the year, you may be able to take advantage of a speedier approval process for your mortgage. Since there will be fewer client approvals to sort out, you may be in the clear shortly after you’ve decided on the home of your choice. This means more ease in the winter months for you, and a home you’ll soon be able to call your own.
An Effective Heating System
There may be certain upgrades you’ll want to make shortly after arriving in your new home, but if you decide to buy in the winter months, overhauling the heating system is not going to be one of the things you’ll want to worry about. If the furnace in good working order and is maintained on a consistent basis, you should be good to go; however, if any upgrades will need to be made you’ll want to clarify this with the seller before signing on the dotted line.
There are many factors in winter that can lend to a slow season for the real estate market, but there are a few things you can expect that may make buying a home in the winter months a worthwhile venture. If you’re looking for more information on purchasing a home in the near future, you may want to contact your local real estate professional for more information.
Dec 3, 2015 | Home Buyer Tips
While making a real estate purchase can be a matter rife with many questions, buying to invest in a long-term property can be even more confusing. If you’re looking into investing in real estate and wondering what variables to consider, here are a few tips that you’ll want to keep in mind before deciding on a fruitful investment property.
Be Aware Of The Market You’re Buying Into
Since you’ll need to be aware of what other people are looking for in a property if you’re diving into real estate to invest, you’ll want to carefully consider the neighborhood and city that you’re buying in and think about what the future holds. While becoming knowledgeable about home prices in the area you’re thinking of buying is a must, you’ll also want to think about market projections, trendy new neighborhoods and what the appeal will be to renters or buyers of the home you’re contemplating.
Consider A Diamond In The Rough
It might seem like a home that is a little rough around the edges is going to be a high-maintenance endeavor that doesn’t balance out in the end, but a fixer upper of a place may be end up being the best option. While you may need to renovate a little here and there to unearth some of its natural features, improvements to a home with a good structure in a good neighborhood can be more economical than spending more on a home that instantly appeals. It can also provide a better return on your investment in the long-term.
Stay Within Your Spending Means
When considering an investment property, it can be quite easy to get derailed and think about what you’ll be making instead of the expenditure of the initial investment. However, it’s important to determine beforehand that what you’re choosing to afford is going to be manageable in case you have to swing it on your own. By determining whether or not it’s an affordable expense, you can have a successful investment that will balance out in your favor at the end of the day without having to worry about sinking beneath the cost.
There are many questions that can come along with choosing to invest in real estate, but by carefully considering the market and keeping your purchase at a reasonable price point, you may have a long-term moneymaker on your hands. If you’re interested in other tips for real estate purchasing success, you may want to contact your local real estate expert for more information.
