Tag Archives: Home

Advantages of Buying a Home Over Renting

Many people are caught between the dilemma of whether to buy a home or rent one. The answers are not easy because each individual’s situation is different, and the answer may also vary depending on the prevailing market rates for buying and renting at any given point of time. However, with the real estate rates at fairly low levels at present, buying a home offers a much superior opportunity in many ways over renting for a majority of people.

Sense of Ownership

Almost everyone has a dream to have their own home someday. Owning a house gives a sense of permanence and ownership to a family. For many homeowners, the value of owning a home and the peace of mind that comes with it is priceless. Apart from the financial advantages, there is an inherent sentimental value attached to owning a home, which cannot be assessed in monetary terms.

Sense of Financial Security

When you own a home, it becomes a long-term financial security for you and your family. It is a safeguard against the future uncertainties of inflation and other economic conditions. If the construction costs and rentals rise unexpectedly in the future, a homeowner remains unaffected by such sudden conditions.

Tax Benefits

In many cases, the interest payments on the home mortgage and even the real estate tax amount may be deductible from your income tax. Therefore, if you pay installments on your home rather than paying monthly rentals, you can build your own home without too much burden on your financial capacity.

Potential for Capital Appreciation

If you have purchased your home during dull market conditions when the prices are hovering at low levels, chances are that you may benefit in terms of capital appreciation over a period of time. A prudent investment can enable you to accumulate or earn a sharp and considerable return, which you cannot expect in case of a rented home.

Better Financial Planning

If you have taken a fixed rate mortgage, you know exactly how many installments you will be required to pay in the future for what amounts. You can plan your monthly budget accordingly and maintain proper and appropriate control over your finances. This may not be possible so easily in case of the rental option because the rent is not in your control once the term of rental agreement is over.

Enhanced Credit Opportunities

Homeowners usually have a better advantage when they need to apply for loans in the future. A homeowner can build equity over a period of time, and borrow against that equity when necessary. Credit card companies and other private lenders typically favor homeowners for the disbursement of credit and loans.

Private Mortgage Insurance *

If the down payment on your home is below 20 percent of its sale value, you can get a private mortgage insurance (PMI) with your lender. PMI helps you to acquire a mortgage with a lower down payment because it protects the lender against any default on your loan. PMI offers an excellent advantage to people who wish to own a home rather than rent one, but do not have substantial finances available for a larger down payment.

Resource:

* http://www.bankrate.com/finance/mortgages/the-basics-of-private-mortgage-insurance-pmi.aspx

Calendar Considerations When Buying A Home

Most markets are cyclical in nature. In practical terms, this means there are periods where the market in question is very busy and periods where it is very slow. Many people are surprised to learn this also applies to the real estate market.

Buying a home in a seller’s market is tough. In contrast, buying during a slow market is an incredible opportunity. You have a chance to get in at or near the bottom floor of prices. If you can keep focused on the future, you can really make a killing. Yes, you might see the value of the home drop a bit more, but the key is to focus on 2010 and beyond. That may seem a long way away, but the real estate market will bounce back and have returned to typical highs by then. This is where millionaires will be made.

Since you’ve seen the cyclical nature of a sellers’ market versus a buyers’ market, you can see the power of buying or selling during each of these markets. Well, the good news is there are actually busy and slow times within each calendar year.

Nearly every real estate market can be timed year after year. A classical perfect time to buy is during the winter holidays. Why? Well, think about it. How many people are out looking for homes around Christmas or New Years Eve? Not many. This creates an artificial buyers’ market because the number of buyers interested in purchasing a home is greatly reduced. This period usually lasts from November through February.

Given the rather cold nature of winter, it is hardly surprising to learn that the real estate market is slow during the winter months. You might be surprised to learn that the same is true when things heat up. Specifically, the real estate market tends to cool off from July to August. Why is this? Well, families tend to head off on vacations and get caught up in dealing with the kids. There is little time to house hunt and real estate markets tend to slow down, which makes them prime buying time.

Location may be the number one rule for real estate, but knowing when to buy is important as well. It can make the difference between getting a great deal and buyer’s remorse.

Should I Buy a Home In 2008?

Dreadful information about the slumping American housing market is all over TV news and in almost every paper. During this housing slump many potential first time home buyers often wonder, should i buy a house in 2008? While every persons situation is different the next few paragraphs will hopefully help you decide whether or not to buy a house in 2008

It is a fact that property values across north America have dropped, in some areas they have dropped drastically and others its just a slight dip. Buying a home when prices are at the lowest is the best way for buyers to get the most for their money, and many people are now taking advantage of the lower home prices.

The major factor for most people when buying a home is securing a affordable mortgage to purchase the home with. In today’s current market mortgage rates have also fallen to very low levels making financing a new home more affordable then one year ago. When low mortgage rates are combined with reduced asking prices your money suddenly is able to buy you much more home then you previously thought possible!

The only real roadblock to buying a home in 2008 is going to be actually qualifying for a mortgage. Even though mortgage rates are low the lenders have tightened up their lending guidelines since the housing slump began. Since many borrowers need 100% financing it makes things that much more difficult. To deal with stricter lending guidelines borrowers are going to need excellent credit or have down payments in the range of five to twenty percent to secure home financing.

With property values falling and mortgage rates at very low levels 2008 is a great time to buy a new home. Not only is there more selection on the market but you will also be buying when prices are low so when the next real estate boom starts you will make substantial money on your investment.

Rules To Help You Succeed When Buying A Home

Get your funding before you get your property. There are very few things in life as discouraging as losing out on the house of your dreams because of not being able to secure financing. Although the drive to go out there and hunt for that great house is easy to understand, it is crucial to set up the funding you will need before you begin looking for a house.

Getting the funding in advance has several important benefits, such as being aware of how much you can buy and earning a lot more respect from the listing agents. By understanding how much house you really can afford before you decide to shop, you will avoid wasting your time and energy looking at expensive houses, and the real estate agent will be more than happy to show you the properties within your budget.

It is also essential to take a good look at the different mortgages in the marketplace before getting started with the house shopping process. Nowadays, home loans are available in far more options than the standard 15 or 30 year. Because of this, prospective house buyers need to comprehend how each kind of house loan works, and also to determine which mortgage loan is the ideal option for their needs.

Look at the neighborhood, not just the property. It is a great idea to have a look at the whole area, rather than concentrating on a single house. This is usually a particularly significant thing to think about for anyone moving to a new urban area, because these potential buyers will likely be unfamiliar with the local environment and lifestyle. It is vital to figure out the parts of town that are most appealing, and also to look at things like distance from work and local shopping opportunities.

We have all heard that location is key considering when it comes to real estate, and that is exactly the case. Purchasing a property in the wrong place could be a huge mistake, and you should choose the area along with the house. Possible buyers can learn a whole lot about the nature of the different neighborhoods merely by driving around town, and also by speaking to other locals.

Be reasonable with your initial offer. Looking to low-ball a seller on the very first offer can backfire, as can spending too much. It is essential to thoroughly evaluate the local marketplace, and to compare the selling price of the property with what identical properties in the area have sold for. Comparing the sales of similar properties, what are called “comps” in the business, is probably the best way to figure out what is fair, and to make certain that you neither pay too much or underbid on the property.

Always get a home inspection. Always check out the property for any possible problems prior to making an offer. Compared to the price of the standard house, the cost of a good property inspection is practically negligible. Therefore, get a good property inspection performed before you purchase. To get the best house inspector, it is a great idea to get word of mouth referrals as most of the best home inspectors depend on word of mouth marketing.

Also try not to alienate the sellers of the house. Several real estate deals have fallen apart because of the personal animosity of the buyer and the seller. It is very important to avoid offending the seller of the property during the process, and to avoid nitpicking every small detail during the sale. Keeping the good will of the seller will help the deal go smoothly, and will also provide the best atmosphere for seller and buyer alike.

Bankruptcy and Buying a Home – 3 Benefits to Buying a Home After Bankruptcy

If you have filed bankruptcy recently, you may wonder if you can get approved for a home loan. You may also wonder if buying a home after a recent bankruptcy is a good idea for you.

While a bankruptcy can make getting approved for a mortgage loan more difficult, it is still possible to get approved for a mortgage loan. In fact, there are more and more bad credit loan programs coming out all the time. Subprime lenders are focusing more on helping individuals with poor credit achieve home ownership. This is happening mostly because bankruptcies are still on the rise and there is an increasing number of people with bad credit who are looking for home financing.

Here are some reasons to consider home ownership after a bankruptcy:

1. Increase Your Credit Score – When you make your payments regularly, you improve your credit rating. Once your pre-payment penalty period is over, you should be able to refinance your mortgage loan for a much lower interest rate. After your bankruptcy has been discharged for over 2-3 years, you should have a much easier time qualifying for a lower interest rate mortgage loan.

2. Accrue Equity In Your Home – If you are just making rent payments, you are throwing your monthly payments away. When you own a home, over time, home values increase and you are working toward owning an asset.

3. Take Out An Equity Loan To Consolidate Debt or Get Needed Extra Cash – Once you have bought your house, as soon as 6 months or so later, you might be able to take out an equity loan on your home and consolidate any other debt that you might have since your bankruptcy or debt that could not be included in your bankruptcy. Taxes and student loans will not be discharged in a bankruptcy. You may also want to use the extra cash to invest in a business venture or for needed home improvement.

To view our list of recommended lenders online for bad credit mortgage loans,

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Before Buying, Know What You Want In Your New HOME!

Since, for most Americans, their house, represents their single, biggest, financial asset. Therefore, doesn’t it seem, to make very little sense, that, when people are ready to purchase their first HOME, or upgrade to a new one, they appear to often, do so, in a rather, haphazard manner. Wouldn’t it make more sense, if, before buying any specific home, we took the time, and fully considers, what we, personally, sought, and hoped for, in the place, where we will hang our hat? Obviously, we need to consider, economic and financial considerations, so we avoid the so – called, Money Pit, where we become house – rich, but overwhelmed by the obstacles and challenges. However, unless, we, also, fully consider, what we are looking for, and might make us happy/ satisfied, it doesn’t make sense, to proceed. With that in mind, this article will attempt to, briefly, consider, examine, review, and discuss, using the mnemonic approach, what this means, and represents, and makes sense, to consider, from the beginning of the house hunting.

1. Happiness/ healing/ heart; heating: Living, where you do, should bring you happiness, and self – fulfillment! It should bring you, a healing heart, and spirit! However, major systems of a house, must function effectively, and easily, such as heating, air conditioning, and other major and minor systems, which might impact, your enjoyment of the particular home!

2. Objectives; option; organized; opportunities: Before you begin, take an introspective, objective look. and fully consider your personal objectives, needs, goals and priorities. Which home options, might be most useful, in making you more fulfilled, and happy, living in a specific home? Observe how it is organized, and consider, if, it serves your needs, as is, or, might be easily adaptable (in a somewhat, inexpensive way), to do so! Consider, your immediate, as well as longer – terms needs, and purposes, and whether, you desire, to live there, for a temporary, or a longer period. Recognize those opportunities, this house might present, to serve your needs, in terms of the interior, exterior, neighborhood, school system, and other conveniences.

3. Motivating; meaningful; manageable: Is this house, manageable, or, would it overwhelm you? Is it worth, the effort? What is most meaningful to you, when you consider making this type of significant commitment? Your home must be motivating and inspiring, to your life, as a whole!

4. Energy/ energize; efforts; emphasis; excellence: Be realistic, but seek a degree of excellence, rather than settling, merely for, good – enough! What do you consider, your major emphasis? Is this prospective place, worth your efforts? Will it energize you, and meet your needs, goals, and aspirations, providing you with extra energy?

A house may not be a HOME. When it’s time to purchase one, seek a house, which you’ll make, a home, of your own!

What Most Home Buyers Seek?

Why do people purchase a home, of their own, and does it correspond with, why they should? Before you commit, to investing, in what, for most, is their single, biggest, financial asset, it’s important to focus on what you actually seek, need, and hope to achieve, by buying a house! Open – your eyes, and consider, what you might need, to make this, one of the best personal decisions, and serves the best interests of you, and your family! With that in mind, this article will attempt to briefly consider, examine, review, and discuss, what this means, and represents, and why it should make a difference, for you.

1. Price and costs: While most want to live, in the nicest house, they can. and proudly, show – it – off, to their friends and family, what good is buying a home, if it makes your life, more stressful, etc? Objectively, and introspectively, consider, the impact of reducing your other assets, because of the amount of your down – payment. Will this create stress? How much are the monthly carrying charges, and can you, not only afford it, but do so, within your personal comfort zone? Do you have the necessary reserves, for contingencies, including; short – term employment gaps; necessary repairs; desirable renovations and/ or alterations, etc? Don’t become, house – rich, but hurt yourself, in terms of stress, etc!

2. Size and features: How many rooms do you need, and how does compare with what you want? What are your present needs, in terms of size and number of bedrooms, bathrooms, etc, and what do you anticipate in the short – term, and longer – term future? Are you ready, willing and able to maintain, and care for, whatever house, you purchase? Will you personally do the work, or will you hire someone else to do so, and if you will, how will that impact your overall budgeting, etc? Don’t overlook what most homeowners state, are the most important areas of a house, including the kitchen area, bedrooms (size and number), and bathrooms (number, location, etc)!

3. Intentions: Are you planning to stay, at the specific location, short – term, or the longer – run? Know what you seek, and plan accordingly. If you are buying, for now, and willing to move, when your needs, change, consider resale value, and emphasize present needs. Otherwise, look at the bigger picture!

4. Comfort zone: Know what makes you comfortable and happy, and do what’s best for you. People differ, and so, don’t try to Keep up with the Jones’, but, rather, do, what makes you happy, comfortable, and meets your personal needs, goals, and priorities!

A wise, aware home buyer, is, generally, the individual, happiest, with their decisions! Be prepared, and proceed accordingly, and smartly!

Avoiding the Emotions When Buying a Home

When you are buying a home it is easy to let your emotions drive you. This is good sometimes, but there are times when this can be a very bad thing. Wrong decisions can easily be made when you are letting your emotions take over. The last thing you want is regret when you are buying a house. It is a decision that will take you until you get your next home, so it is a big one. Making rational decisions is usually the best option. There are three emotional pitfalls that people easily fall into when buying a home. This article will list and detail those pitfalls and tell you why these things should be avoided.

You often hear home owners talking about how they fell in love with their house. This may be the case, but this can easily be turned into a pitfall. It is easy to fall in love with a great house and then not be able to afford it. This can crush the home buyers experience and change their attitude for the rest of the shopping period. This is something you want to avoid. One way to avoid this is by getting pre-approved. If you do this, then you know what your price range is from the start. You can then shop in that range and never have to fall in love with a home you cannot afford.

After you find the dream home that you can afford, you can make an offer on it. But what if someone else wants the same house? They may make an offer that is better than yours and it can turn into a bidding war very easily. This can end up with you paying more than the home is actually worth. If you let your emotions drive you through the bidding war then this is an easy pitfall to get into. You either have to be logical about it, and do the numbers yourself, or have someone tell you when you should stop. The bidding war can be bad if you let your emotions take over. You do not want to pay more for the house than you have to.

Another pitfall comes in the form of repairs. If you are buying a home that is pre-owned, then there may be repairs that need to be done. This can be a good thing, but you need to look at yourself and ask if you can really do everything. Just because you are in love with a house does not mean it is best for you right now. Having a home that needs repairs will be very bad down the line and you want to fix everything as soon as possible. If you cannot do this, then the home may not be right for you.

These three things are crucial to remember when you want to buy a home. When you fall in love with a home, then you know it. But, being rational about everything is definitely a good thing to do. Remember to avoid these things and you will be fine.

6 Home Buying Considerations Other Than The House

We often focus on the bones – of – a – house, when deciding whether to purchase a particular residence, but, while that’s essential, an educated home buyer, recognizes and realizes, there are other relevant considerations, as well. In fact, before one, should even view and/ or consider a particular house, he should thoroughly consider these factors, to ensue he will also be happy, and satisfied, living there. With that, in mind, this article will attempt to briefly, examine, review, and discuss, 6 important home buying considerations.

1. Location/ convenience: A central premise in real estate, is, Location, location, location. The greatest house, in a less – than – optimal neighborhood, and/ or area/ location. serves very little positive, productive purpose! Some of the factors included in this sub – topic, include: Does it meet your personal needs?; Does it simplify or complicate your life/ existence?; Are the things, you personally, prioritize, readily available, and convenient, in this location?

2. Safety: Check the safety statistics of the areas, you are considering. What are the crime rates, relative to other alternatives? How safe does the area make you feel? Will your house be safe, largely free – of – crime, and is there, little crime, vandalism, etc, in this vicinity? Who wants to live somewhere, where he feels unsafe, and/ or insecure?

3. Education: Whether you have school – aged children, or, simply, want to assist your future ability to re – sell the house, the local school system, must be, both, actually, as well as perceived as, being superior, and above – average! If you have children, you want them to get the best education, possible, from the local schools, wouldn’t you?

4. Transportation: Since many individuals commute to work, the ease, quality and/ or convenience of mass transit, is often a relevant factor. In addition, how easily can one get to places of interest, including shopping, the arts, etc?

5. Shopping: Most people want their essential shopping, to be as easy and simple, as possible! Especially when this comes to food shopping, pharmacies, and conveniences, individuals would rather, not have to go out of their way, to do, what they feel, most essential.

6. Specific neighborhood: Even within the same, basic area, there are often significant differences, from neighborhood, to neighborhood. Where I reside, some people live uptown, while others prefer living near the water. Depending on one’s personal priorities, and preferences, this often makes, a significant difference, in where one wants to live. Speak to some of the neighbors, and determine, if you’d like to live there!

Using these 6 home – buying considerations, often, help people determine the best place, for them, to live. Will you do what’s in your personal, best interest?

Before Buying A Home, Know Where You STAND!

Since, for most of us, the value of our home, represents our single – biggest, financial asset, wouldn’t it make sense, to be certain, we proceeded, forward, in the best, most logical manner? This means, knowing, and understanding, our needs, goals, and objectives, in terms of our finances, personal comfort zone, needs, goals, priorities, and what we seek, need, deserve, desire, and want, in the house, we purchase. Potential homeowners should carefully examine, and ask themselves, where they STAND, and whether, the so – called, American Dream, is for them. With that in mind, this article will attempt to, briefly, consider, examine, review, and discuss, using the mnemonic approach, what this means and represents, and how it might make one, pursue their quest, in a personally, wiser, and more satisfying way.

1. Schools; shopping: Not only, do most of us, want to provide the finest education, to our families, it’s important to recognize, the direct correlation, in most cases, between quality, local educational resources, and maintaining property values! It’s also important, at times, to consider, school taxes, and their impact on affordability! Another key consideration, to many, is convenience to shopping, especially for food, and certain others, essential conveniences!

2. Transportation: How important is convenient access to mass transportation, to you? Are the trains, buses, and highways/ expressways, meet your needs, and make your life easier, and more stress – free?

3. Area: Before buying any house, walk around the neighborhood. Consider, whether, the specific location is appealing, and what you like, and/ or, dislike about the neighborhood. Examine the specific strengths and weaknesses of the area, and see if it meets your primary, and key needs, and priorities. Is it safe, convenient (in terms of your primary needs, such as transportation, ease of commuting, shopping, Houses of Worship, etc), and someplace, you want to live?

4. Needs: Closely examine your needs, both, currently, and into the future, and see if the specific house, meets your immediate, as well as longer = term needs, and necessities!

5. Determine: Are you capable of looking at a potential home, without letting your emotions, dominate your logic? Can you, effectively, and efficiently, determine, what might be, the right house, for you, and your family? What do you feel comfortable with, in terms of downpayment, monthly costs, maintenance, and your personal job security? Take the time, to determine, if it’s a good – fit, for you?

Take your time, and make the wisest personal decision. Identify your personal preferences, and proceed, in a head/ heart balance, so you clearly know, from the onset, where you STAND!