Tara Knight October 10, 2016
As the events of the last few years in the real estate industry show, people forget about the tremendous financial responsibility of purchasing a home at their peril. Here are a few tips for dealing with the dollar signs so that you can take down that “for sale” sign on your new home.
Sub-primes may be history, but you’ll probably still be shown homes you can’t actually afford. By getting pre-approved as a buyer, you can save yourself the grief of looking at houses you can’t afford. You can also put yourself in a better position to make a serious offer when you do find the right house. Unlike pre-qualification, which is based on a cursory review of your finances, pre-approval from a lender is based on your actual income, debt and credit history. By doing a thorough analysis of your actual spending power, you’ll be less likely to get in over your head.
Used to be the emphasis when it came to mortgages was on paying them off as soon as possible. Today, the debt the average person will accumulate due to credit cards, student loans, etc. means it’s better to opt for the 30-year mortgage instead of the 15-year. This way, you have a lower monthly payment, with the option of paying an additional principal when money is good. Additionally, when picking a mortgage, you usually have the option of paying additional points (a portion of the interest that you pay at closing) in exchange for a lower interest rate. If you plan to stay in the house for a long time—and given the current real estate market, you should—taking the points will save you money.
Before you make an offer on a home, do some research on the sales trends of similar homes in the neighborhood with sites like Zillow. Consider especially sales of similar homes in the last three months. For instance, if homes have recently sold for 5 percent less than the asking price, your opening bid should probably be about 8 to 10 percent lower than what the seller is asking.
September 6, 2024
Buying a home is an exciting process. However, there’s also a lot to consider when you decide to buy.
August 20, 2024
To avoid that unfortunate scenario, first-time buyers will need to think carefully and weigh all of their options.
August 6, 2024
We’ll guide you through everything you need to know about how to sell fast before you even have to talk to an agent.
July 23, 2024
Once you’ve outlined the criteria you require in a home, start taking to agents about which neighborhoods meet your needs better than others.
July 4, 2024
Assuming you’ve done the deep cleaning and decluttering, consider adding these items to your shopping list.
June 20, 2024
If you’ve never bought a home before, the sheer number of mortgage loan options can be overwhelming.
June 4, 2024
You hear it on the news all the time: “It’s a buyer’s market,” “It’s a seller’s market,” or “The housing market is on the rebound.”
May 21, 2024
Even if your plan has been finalized for months, though, there might be some components you could add to make it even better.
May 7, 2024
When you miss an opportunity to add plants or flowers, you’re missing out on the chance for your house to feel vibrant and alive.
Get assistance in determining current property value, crafting a competitive offer, writing and negotiating a contract, and much more. Contact me today.