Sometimes getting ready to buy a home feels stressful. But it doesn't have to be when you take clear steps to get financially ready for the exciting world of homeownership. Here are a few quick items to consider before stepping into your new home.
Do You Have a Down Payment?
Depending on the type of home loan you get, having a down payment of at least 20% can save you thousands to 10's of thousands. It's more than it might appear on paper. You save on:
- Private Mortgage Insurance (PMI) - This varies but is usually between .55% and 2.25% of the total loan amount.
- Interest - That mortgage rate may seem low, and it is, but it really adds up over 30 years, so every $1000 you can knock off the loan amount can save much more than $1000 because of interest.
- Origination and other fees - These are often a percentage of the loan amount.
You also build equity faster, so you're in a better financial situation overall.
Figure Out How Much You Can Afford
Ideally, your mortgage payment should not be more than 25-30% of your gross monthly income. If you need assistance figuring out what that may look like or how to get a loan that works for you, contact a financial specialist. You want to make sure all of your financial affairs are in order before starting the home buying process.
Check Your Credit
You can pull all of your credit reports for free through annualcreditreport.com. Even though this isn't a dot gov site, the US federal government set this site up to provide this free access. You can verify this on the Federal Trade Commission (FTC) sits, which is a dot gov site.
Pulling these will allow you to resolve any discrepancies and understand how good your credit report appears to lenders. The better your credit, the better terms you may qualify for.
Look Into Financing Options
Depending on your current financial and personal situation, you may qualify for a:
- FHA Loan - Backed by the federal government may work well for people who don't have a full 20% down payment
- Conventional Loan - Provides the best terms for those with exceptional credit who can put 20% down
- VA loan - For veterans only
- New construction home loan - Designed for people buying a new construction home
- Builder financing - Getting your financing through the company that is building your new home.
Whether you currently own a home and want to move or are buying your first home, it's critical to take steps to secure your financial future. When you do, you can love the new home you move into, no regrets, just great times with family, friends and loved ones.
126 Mascuppic Trail, Tyngsborough, MA 01879
The rent vs buy dilemma is something that Americans have been facing for decades. Both options have their benefits, and it’s really a matter of timing and preferences when it comes to choosing which is best for you.
However, there are a lot of things to consider before making this decision. So, in today’s post we’re going to break down some of the benefits of renting an apartment and of buying a home. That way you can make your decision with a clearer picture of what each situation looks like.
One thing to note first, however, is that it isn’t always as simple as buy vs rent. Some living situations draw on the pros of each type of living. For example, living in a condo might be a good option for people who want the privacy and independence of owning their own home, but who also don’t have the time or desire to keep up with maintenance.
So, as we compare buying and renting, keep in mind that the features of each are not mutually exclusive.
Renting an apartment
Most people who are living on their own for the first time start off renting. For younger people just out of school, renting offers the first taste of independence without the prerequisites of homeownership.
When you rent your first apartment, you’ll learn the skills associated with budgeting for your monthly expenses, making your rent payments on time, and will start learning some of the skills that it takes to run a household.
In terms of monthly costs, apartments can vary greatly. Depending on where you live (and how luxurious the apartment is) you could end up having rent and utility payments that are much lower or much higher than mortgage payments for a house.
However, apartment leases often come with the benefit of utilities, trash removal, and other expenses built in. They also typically require the landlord to maintain the apartment and the land it sits on.
Live in the northern part of the country and hate shoveling snow? Make sure your lease specifies that your landlord will provide snow removal.
One technique that many renters take is to find an apartment that is small and affordable while they save up for a home. In this case, it’s worth living with fewer amenities if your end goal is saving for a down payment.
But, what if you want to own a home someday but haven’t quite decided where you want to settle down? Maybe your work keeps you moving from place to place or you’ve always wanted to move away to somewhere new.
Renting is typically a better option for those who aren’t quite sure what their plans are for the next coming years. They can have a stable place to live while they figure things out and plan their next move.
Buying a home
Once you’ve rented a home for a while, you might become increasingly aware that you want more space and more control over your home.
You’re also likely noticing how much money you spend on rent each month that is essentially a net loss.
When you buy a home, your mortgage payments might be going to the bank, but someday the money you’ve paid toward that home will be yours in the form of equity. You can then use this as a down payment for another home.
This financial benefit cannot be understated. Since house values dependably increase over time, owning a home is a great investment toward your future.
So, those are the main pros and cons of renting vs buying a home. Think about your circumstances and determine which one makes the most sense for you right now. Then, start planning for the future.
34 Lowell Rd, Pepperell, MA 01463
You likely aspire to sell your house as quickly as possible. However, you may not need to set a deadline for selling your residence to achieve your desired result. In fact, there are lots of things you can do to speed up the home selling journey, including:
1. Boost Your House's Curb Appeal
A home that boasts amazing curb appeal may draw buyers' attention as soon as it becomes available. Lucky for you, it may be easy to bolster your house's curb appeal in no time at all.
To improve your home's curb appeal, you may want to complete assorted home exterior upgrades. Mowing the grass and eliminating weeds, for example, could make your front lawn stand out to buyers. Or, if you have cracked or damaged home siding, you can always devote time and energy to repair it.
Of course, if you need help with home exterior enhancements, you can reach out to home improvement professionals. If you have home improvement pros at your side, you can accelerate the process of upgrading your house's curb appeal.
2. Establish a Competitive Initial Asking Price
The initial asking price of your home should account for the age and condition of your residence, along with the current state of the real estate market. That way, you can set a price for your home that falls in line with buyers' expectations.
Generally, it helps to conduct an appraisal before you list your residence. An appraisal report is based on a wide range of factors, including the prices of comparable homes in your city or town. Therefore, if you perform an appraisal, you could receive a property valuation that helps you determine how to price your home competitively.
3. Work with a Real Estate Agent
As a home seller, it never hurts to receive expert support as you navigate the property selling journey. Fortunately, real estate agents are available nationwide, and these housing market professionals can offer great insights into what it takes to quickly sell a house.
A real estate agent first will learn about you and what you hope to accomplish. Next, a real estate agent will develop a plan designed to help you achieve your home selling goals. You and your real estate agent then will put this plan into action and adjust it as needed. Perhaps best of all, if you receive an offer to purchase your home, a real estate agent can help you decide whether to accept, reject or counter this proposal.
Furthermore, a real estate agent can help you bolster your home's curb appeal, establish the optimal initial asking price for your home and much more. And if you have any concerns during the house selling journey, a real estate agent is ready to respond to them right away.
For those who want to speed up the home selling journey, it helps to prepare. Thanks to the aforementioned tips, you can list your home, ensure it generates significant interest from buyers and move quickly to finalize a house sale.