Julie Gross' Blog
Anyone can buy a home – all it takes is hard work and diligence to evaluate your home financing options. Fortunately, we're here to help you streamline the process of finding the financing that you'll need to pay for a residence.
Now, let's take a look at three tips to help you determine how you will afford a house.
1. Take a Look at Your Current Financial Situation
Put together a monthly budget that outlines your current spending patterns. This will enable you to review how much you earn, what you're paying for housing and other pertinent financial information.
After an in-depth review of your current financial situation, you'll be better equipped than ever before to determine how much you can pay for a house. Then, you can create a homebuying budget to help you move closer to acquiring your dream residence.
2. Get a Copy of Your Credit Report
In all likelihood, a lender will receive your credit score to determine whether you are a viable candidate for a mortgage. If you request a copy of your credit report today, you can learn about your credit score and take steps to improve it before you apply for a mortgage.
The three major credit reporting bureaus (Equifax, Experian and TransUnion) provide one free copy of a credit report annually. If you submit a request for your credit report, you can gain unprecedented credit insights in no time at all.
Furthermore, if you find errors on a credit report, don't hesitate to contact the reporting bureau. This will enable you to fix any credit report mistakes prior to applying for a mortgage.
3. Reach Out to Local Lenders
Banks and credit unions are happy to meet with you and discuss a variety of mortgage options. These lenders are available in cities and towns nationwide and can teach you everything you need to know about home financing.
Ultimately, lenders can explain the home financing process and ensure you can avoid any potential pitfalls along the way. And if you ever have mortgage concerns or questions, lenders are available to respond to them at any time.
If you need extra help prior to kicking off a home search, you may want to contact a real estate agent as well. This housing market professional understands the ins and outs of purchasing a house and can help you plan accordingly.
Oftentimes, a real estate agent will meet with you and learn about your homebuying goals. This housing market professional then can ensure you won't have to break your budget to afford a terrific residence.
If you want to buy a home but have limited finances at your disposal, a real estate agent is happy to assist you. Or, if you are searching for a mortgage but don't know where to begin, a real estate agent can put you in touch with top lenders.
Work with a real estate agent, and you can improve your chances of acquiring a first-rate house at an affordable price.
There are many parts and pieces that go into relocation. Finding the perfect home is, of course, an important step in the process. But once you have found a residence in your new city or town, it is crucial to consider other home-ownership factors that will affect your monthly and annual expenses. As part of your relocation preparation, research what other fees and bills you may need to pay outside of your mortgage.
If you’re moving to a new state, review the escrow process and any new, or different, closing costs that may increase the amount you’ll owe. Understand what annual property taxes will be assessed and fees you will be responsible for. Homeowners Associations may also function differently in your new city or state. Closely review all paperwork and research what costs are normal for the area. Know what your requirements are as a homeowner, so you don’t agree to anything outside the norm or incur fees from not aligning to your contract.
Utility costs vary from city to city and state to state, but even within the same city, prices can be different from neighborhood to neighborhood. While you’re house hunting, include a visit to the electricity, water, gas and trash company websites that service the homes you’re considering. For electricity and water, learn what the costs are per unit, time of day and any special programs available for conservation. See what bins your new trash company offers and how much they charge per month. There might be different sizes available to you at different pricing, along with compost or yard waste bins and lower to even free rates for recycling. Your new city may also have monthly fees for general upkeep of parks, greenbelts and other public services.
When you consider the monthly mortgage payment you can afford, it’s smart to take these other costs into account. You might be able to make a mortgage payment, but a high electricity or water bill might put your monthly outgo outside your budget. It’s easy to forget about these little (or big) costs. Make your move easy and successful by planning for monthly and annual costs outside of your mortgage.
So, you're buying a home remotely. Because you probably don't want to invest hundreds of thousands of dollars in a house that smells like cats or that features weekly invasions by the SWAT team of the building next door, it's important to find a long-distance realtor you can trust. You need someone who excels at the remote-home-buying experience and who will represent you faithfully. Agents like these are out there, but it may take a bit of work to find them. Here's what we recommend.
Choose a Certified Residential Specialist
A certified residential specialist is a real estate agent who has undergone additional training and who has more experience than other agents. Only about 3 percent of all realtors in the United States have attained CRS status. You can find a CRS locally by using the online search function available at the Residential Real Estate Council.
To become a certified residential specialist, an agent must meet strict minimum requirements, including:
- Completion of between 25 and 150 successful real estate transactions.
- Completion of between 16 and 80 additional hours of training and education in realty.
- Adherence to a higher code of ethics than the average realtor.
While millions of hard-working real estate agents exist, only a small number have gone that extra mile to earn CRS certification. These are the agents you should trust to handle your transaction when you can't be there in person.
Choose an Expert Communicator
Choose a realtor who's an expert in your desired area and with whom you feel comfortable from the first conversation. The relationship between you and your remote-home-buying partner should feature excellent communication. He or she needs to understand your needs precisely, including your must-haves, your budget, your time frame, and what you're hoping to find in a neighborhood. If you're bringing along three small dogs, your mother-in-law, or two moody teenagers, your long-distance realtor needs to make sure there's sufficient space for everyone included.
Find a REALTOR® Who Cares
The REALTOR®you choose should be an expert on local schools. He should be able to get back to you with crime rates and economics. Additionally, he should be present at home inspections to ensure your future home doesn't have a termite infestation or a sketchy, outdated septic system. Everything from water pressure to the condition of outdoor fencing matters. These are all things you would investigate when viewing a home in person. If it's important to you, it should be important to the realtor you choose.
Seventy-eight percent of all home buyers value the quality of a neighborhood over the size of a home, and 57 percent would rather have a shorter work commute than a sprawling yard. It's statistics like these that can make or break your remote-home-buying experience. It's vital to partner with the best agent for the job.
The homebuying journey can be long and arduous, particularly for an individual who makes mistakes along the way. Fortunately, an informed homebuyer can identify potential problems early in the homebuying journey and take the necessary steps to resolve such issues without delay.
Now, let's take a look at three common mistakes that homebuyers make, along with the best ways to eliminate these problems before they escalate.
1. A homebuyer spends too much time debating whether to submit a home offer.
The housing market moves quickly, and a homebuyer who hesitates to submit a competitive offer on a residence risks losing this house to a rival homebuyer.
Ultimately, it pays to learn about the real estate market. That way, if you fall in love with a house, you'll be better equipped than other homebuyers to submit a competitive offer before it's too late.
Check out the prices of houses in cities and towns where you'd like to live. This may help you narrow your search for the perfect home and provide housing market data that highlights how much it may cost to acquire your dream residence.
Also, take a look at the prices of recently sold houses in different areas. This will enable you to determine whether you're working in a seller's market or a buyer's one.
2. A homebuyer foregoes a home inspection.
Even though a homebuyer may want to rush through the purchase process, there is no reason to forego a home inspection.
When it comes to buying a residence, it is always better to err on the side of caution, and a home inspection offers a valuable opportunity to learn about a house's condition and uncover any "hidden" problems with a residence.
For example, a home inspection may reveal roof damage that could lead to thousands of dollars in roof repairs in the near future. On the other hand, a home inspection may show there are no major issues with a residence, thereby verifying that a house is a sound investment.
Don't forget to consider a variety of home inspectors before you schedule a property inspection. This will ensure that you can find a home inspector who possesses the necessary skills and expertise to perform a deep evaluation of a home before you finalize your purchase.
3. A homebuyer tries to purchase a house without support from a real estate agent.
For those who want to streamline the homebuying process, expert help may be necessary. Luckily, you can hire a real estate agent who can help you seamlessly navigate the homebuying journey.
Real estate agents are easy to find in cities and towns nationwide. Meanwhile, these housing market professionals are available to help you narrow your home search, submit offers on residences and much more.
If you need additional help during the homebuying journey, it usually is a good idea to hire a real estate agent. By doing so, you can receive the expert guidance and support that you need to go from homebuyer to homeowner.
In the internet age, we’ve all seen dream homes on Google, Pinterest, or Instagram that seem to encompass everything we’ve ever wanted in a home.
Sometimes, obsessing over dream homes can be detrimental to us--making us feel bad about our own living situation or discouraged about ever being able to afford the home we truly want.
However, dream homes can serve a purpose when it comes to identifying what we really want out of a home.
In today’s post, we’re going to use the idea of a dream home “wish list” to help you narrow down what really matters to you and your family in your next home.
Step 1: Start by making a list of your dream homes
This is the easy part. If you’re like me, you probably have a Pinterest board or bookmark folder just for home inspiration.
Put all of the dream homes on your list. The order doesn’t matter, and you’ll find out why below.
Step 2: For each home, write down one or two of your favorite things
Is it the square footage? The location that’s perfect for your commute or for trips to your favorite places? Or, is it just the color scheme of the kitchen?
No aspect is too small for this list--it all depends on what you like, not what the price tag is.
Step 3: Go over your list and try to put the items in order of how much they matter to you.
An example would be:
A cheerful, bright colored kitchen
A cozy office to wok quietly in
A two-car garage
A playroom for the kids
A location that’s close to the water
Looking over these five things, there are only two items that can’t be found in most houses, a two-car garage and a location that’s near the water. And, this house-hunter didn’t even list those items as the most important.
So, what can we learn from this exercise? Oftentimes, the things we’re looking for the most in a home can be things that we can do later, like interior decorating or designating spare rooms to serve as an office or playroom.
Step 4: Use your top 3 when house hunting
Now that you have the top three things that you’d find in your dream home, take this list with you on your house hunt. Try to seek out a home that has a combination of these items and one that will be the most practical for your family.
You might find that these conveniences, such as being closer to your work for a shorter commute, will pay off in the long run, as they’ll let you spend more time with our family and make each day a little bit easier.