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Moving On Up: Should You Buy Or Sell First?

March 3, 2021 by Rhonda Costa

Moving On Up: Should You Buy Or Sell First?It’s exciting to be able to move into a new home. But there are some tricky details to navigate when you already own a home and you’re ready to buy a new one. Should you buy or sell first? Don’t worry. There are viable solutions.

Should You Sell First?

Think about how selling your home first will impact your family. On the one hand, you’ll be in a better financial position. You’ll have cash in the bank. You may be able to negotiate better terms on your new house by putting more down. However, selling first may mean moving into temporary housing while you find a new house to buy. You might need to store your furnishings. In other words, you may need to move twice.

Should You Buy First?

Buying first gives you more stability. You can stay in your own home until you’re able to move into the new house. When you do move, there won’t be a big rush. You could move over the course of a week or even more. The downside to buying first is that you might be responsible for paying two mortgages for a month or more. There’s no guarantee that your home will sell in a predetermined length of time. And, there’s no guarantee you’ll get the amount of money for your old home that you need to be financially secure.

Viable Solutions No Matter What You Do

Thankfully, there are solutions no matter how you decide. If you sell your home first, you could ask your buyers for a later closing date so that you have time to find a new home. You could even ask them if you can lease your old home on a month-to-month basis so that you have time to buy a new home.

If you buy a new home first, you could get a bridge loan, that helps you pay the second mortgage until you sell your old home. You could also rent out your old home to help offset your mortgage payment.

As you can see, there are ways of making both scenarios work. Whether you decide to buy first or sell first, your real estate agent can help you make it happen.

Filed Under: Real Estate Tips Tagged With: Buy or Sell, New Home, Real Estate

Home Expenses Include Far More Than Just the Down payment

December 1, 2020 by Rhonda Costa

Home Expenses Include Far More Than Just the Down paymentIf you are thinking about purchasing your first home in the near future, then you need to be aware of the costs that you are going to take on. When you are looking at the cost of a home, it is very tempting to focus on the sticker price of the home. Even though the down payment is going to be the largest check you are going to write, this is not the only cost that you are going to pay.

There are numerous other costs for which you need to budget as well. By thinking about all of these costs ahead of time, you can make a smart financial decision for you and your family.

Think About The Real Estate Taxes

Depending on the part of the country in which you live, real estate taxes can be significant. For example, it is not unusual for even a modest home to cost thousands of dollars in real estate taxes per year. Therefore, even though you have budgeted for your monthly mortgage payment, make sure that you have budgeted for real estate taxes as well. Usually, your mortgage lender is going to hold your real estate taxes in escrow for you so you don’t end up having to write a large check at the end of the year.

Homeowners’ Insurance And Utility Costs

In addition, you also need to think about homeowners’ insurance and utility costs. Some of the utilities that you have to pay for include internet, phone, cable, gas, electricity, and water. When this is added to your homeowners’ insurance expenses, this can also add up to several hundred dollars per month. Therefore, make sure that you can afford not only the mortgage payment but these recurring monthly expenses as well.

Budget For Your First Home Accordingly

Some of the other expenses that you might have to incur when it comes to your first home include maintenance and repair bills. Therefore, you should make sure that you sit down with an experienced planner and ensure that you can afford the combined expenses. Otherwise, you might end up being priced out of your first home before you realize it.

 

Filed Under: Real Estate Tips Tagged With: Down Payment, Expenses, New Home

Important Advice For Locating The Right Neighborhood

November 4, 2020 by Rhonda Costa

Important Advice For Locating The Right NeighborhoodWhen people are thinking about moving, they want to make sure they find the right neighborhood. At the same time, it is not always easy for how many hours to decide where they are going to live. Particularly if they are not familiar with the local community, there are a few important points that everyone should keep in mind. By thinking about these factors ahead of time, potential homeowners are going to place themselves in a position to be successful when they purchase their next home. 

Consider The Importance Of The Schools

Many people who are moving are looking for a bigger house because their family is getting larger. Therefore, one of the most important factors that families need to think about involve the quality of the schools. Schools are going to play a major role in the pricing of the neighborhood. Think about whether the kids are going to go to public school or private school. For families that are going to send their kids to public school, they need to think about the quality of the public schools and what school system the neighborhood is zoned for. 

Think About The Commute To Work

Another important factor that the family should consider is the commute to work. There are many people who are moving in an effort to shorten their commute or because they are getting a new job. Therefore, it is a smart idea to think about the traffic, the time it will take to work, and how challenging the driving route is going to be. This is going to play a major role and where the family is going to end up settling. 

The Access To Amenities

Finally, it is also important to think about access to amenities. This could include parks, shopping, hiking trails, and even access to the airport. Families need to think about what is important to them and prioritize this during the housing search. It is also a great idea to think about any development that might be taking place in the local area that could influence housing prices in the future. All of these factors should be considered when families are considering which neighborhood they would like to move to.

 

Filed Under: Real Estate Tips Tagged With: Commuting, Neighborhoods, New Home

How Much House Is Too Much House: A Mortgage Calculation Guide

October 13, 2020 by Rhonda Costa

How Much House Is Too Much House:When it comes to finding a home, this is an exciting time. Many people love looking at houses; however, the reality is that people also need to think carefully about how much house they can actually afford. Buying a home is a big decision and for many people this is going to be the most expensive purchase they ever make in their lives. Therefore, it is important to take the time to get this decision right. There are plenty of ways for people to calculate how much house they can actually afford. With a budget in mind, this will make the shopping process easier.

The 28 Percent Rule

One of the top ways that people can figure out how much house they can afford is called the 28 percent rule. This is a simple formula that states that the house should only spend 28 percent of their gross income on expenses related to homeownership. This includes:

  • The mortgage, including the principal and interest
  • Real estate taxes
  • Homeowner’s insurance
  • Private Mortgage Insurance (PMI), if this applies
  • HOA dues

Keep in mind that this is the gross monthly income, meaning that this is before taxes.

The 36 Percent Rule

Another key rule that people need to keep in mind is called the 36 percent rule. This is a rule that states that that people should not spend any more than 36 percent of their gross monthly income on debts. This might include housing expenses (such as the ones above), loan payments (including car loans and student loans), child support, alimony, and credit card debt. Therefore, those who have more of these expenses are going to have less money to spend on a home.

Find The Right Budget For A Home

This is a short overview of how people can figure out how much house they can afford. Once people know how much they can spend each month on a home, they should be able to calculate backward to figure out how big of a loan they can actually take out. Of course, it is always important to remember that there are trained professionals who can help people figure out exactly how big of a house they can afford.

Filed Under: Home Buying Tips Tagged With: Affordability, Budgets, New Home

Falling In Love With An Imperfect Home

October 6, 2020 by Rhonda Costa

Falling In Love With An Imperfect HomeWhen people start the process of trying to find a home, they want to make sure that they take the time to get this decision right. The reality is that a home is the most expensive purchase that most people are ever going to make. As a result, they need to make sure they find a home that will meet their needs.

At the same time, it will be hard to find a home that is truly perfect. Therefore, it is a great idea for everyone to come up with a list of necessities and a list of features on which they can be more flexible. How can people do this? How can people fall in love with an imperfect home?

Remember That There Are Options

Every home is going to have its flaws. Those who spend the time trying to find a home that is absolutely perfect are going to have decision paralysis. On the other hand, it is important to remember that there are options available. Nearly everything that is wrong with a potential home can be remedied, fixed up, or recycled. In this manner, even if a home is not perfect when people first look at it, there is a way to make it perfect with a few improvements or upgrades. This is a nice alternative that people should keep in mind.

The Styles Of Homes Change

Furthermore, keep in mind that it might be helpful to find a home that will grow with the family or the homeowners. Styles rotate and change on a regular basis, so people should not worry about finding something that is going to be absolutely perfect right this minute. For example, the open concept is one of the biggest shifts that has taken place during the past few years.

Closet standards have changed as well. There are even inconvenient structural columns that people have found a way to love. There are plenty of ways that homeowners can take a home that has flaws and find ways to help them match new and trending styles.

These are just a few of the ways that homeowners can find ways to love a home that is not perfect. This could make it easier for homeowners to find the right home for them.

Filed Under: Real Estate Tagged With: Homeowners, New Home, Real Estate

Buying A Home: You Might Be Able To Skip The Home Appraisal – But Should You?

July 24, 2020 by Rhonda Costa

Buying A Home: You Might Be Able To Skip The Home Appraisal - But Should You?When someone is thinking about buying a home, one of the key parts is the home appraisal. The appraisal ensures that the buyer is paying a fair price for the home while also protecting the mortgage lender against taking a loss.

On the other hand, an appraisal is also an added cost of the buyer can be a serious source of stress for both sellers and brokers.

Recently, government agencies have passed a rule saying that home appraisals are no longer going to be required on homes that are less than $400,000; however, many lenders will still require them.

Therefore, when should someone consider skipping a home appraisal to save some money?

Appraisals And Mortgages

One of the first ways to take a look at the value of a home appraisal is by comparing it to the mortgage. The two go hand in hand. Appraisals are important because they protect not only the seller and buyer but also the lender. The lender wants to make sure they know what the property is worth.

Therefore, an appraisal is more about valuing the property and not about the price of the home.

In addition, lenders make loans based on either the sale price or the appraised value, whichever is lower. Lenders do this to make sure that buyers have invested enough in their own property.

Borrowers And Appraisals

In addition to considering the lender, it is also important to consider the borrower. An appraisal is helpful for the borrower because this prevents someone from overpaying for a property.

Therefore, they act as a form of consumer protection. On the other hand, they also cost the borrower a few hundred dollars. If money is tight, this can be a serious problem and could dull the appeal of a home.

Choosing Between The Two Options

In the end, people should consider skipping the appraisal if it saves them money. Lenders might still require someone to obtain an evaluation as a form of protection. If the buyer is not confident in this evaluation method, then a traditional evaluation might be a better approach.

It is important for people to feel confident in the sale price, regardless of how this happens.

Filed Under: Real Estate Tagged With: Home Appraisals, New Home, Real Estate Tips

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