Dealing with Financing

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.Dealing with Financing 300x200 - Dealing with Financing

Get pre-approved. 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.

Choose your mortgage carefully. 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.

Do your homework before bidding. 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.

3 Surprising Ways Public Schools Affect Your House Hunt

It’s back-to-school season. School supplies are front and center in the stores, back-to-school sales are everywhere, and school buses are becoming part of the morning commute.

Even if the public school district is not an important factor in your home search, the location of public schools can still have a significant impact on your home buying decision.

If you are looking for a home near a school, you may want to take these factors into consideration.

1. School Speed Zones

Pay attention to the speed limit around schools and times that the school zone speed is enforced. You may want to consider a home that has convenient alternate routes around the school zone.

the stop sign on the side of a bus2. School Bus Stops

Whether there is a bus route through your neighborhood or on a major thoroughfare, it can affect traffic around your home. Call the school district and ask if there is a bus that stops near your home to pick up students.

3. Morning and Afternoon Traffic

Traffic congestion near public schools may be an issue during the weekdays. Crowded carpool lanes and frequent bus stops can turn a short trip to the grocery store into a frustrating ordeal.

When you are searching for your home, visit the area during peak morning and afternoon hours. Again, you may want to consider a home that is farther from the school or has convenient alternate routes.

We Are Your Guide to the Area

Realtor showing a buyer a homeA school’s location can affect your decision to buy a home, especially if you are new to the area. But a real estate agent is your local expert, giving you everything you need to know about how the nearby schools will affect your morning commute or afternoon trip to the store.

We can help you find the best home in the best location. Call us and let’s talk about your home search.

Three ways to ease your fears about making a move.

With low inventory in many markets throughout the country, many homeowners are afraid to sell their homes because they’re concerned that they may not be able to find a new one. This can be a real problem, but if you are seeking to sell—whether to upgrade or find a new neighborhood—there are a few ways to combat the low inventory.

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Look to buy first In most markets it is a real mistake to put your home up for sale before you start looking for your new property. Identify the geographic area where you are interested in buying. Even if you don’t see anything on Zillow, it doesn’t mean you can’t or won’t find the right home.

Think outside the box Be proactive! Keep in mind that there are probably many people like you who want to make a move but are afraid as well. Have your real estate agent send a letter to the neighborhoods in the geographic areas where you want to live. The letter should be heartfelt and personal while announcing that you are ready to buy a home in that neighborhood. You could find a home to buy that may not even be currently listed or for sale.

Protect yourself legally Each state varies in how the purchase process is conducted. Talk to your real estate professional about adding a clause in the purchase contract for the home you are selling that will enable you to not sell the home if you cannot find a suitable home to buy.

 

3 Reasons to Buy Luxury Property THIS Year!!

3 Reasons to Buy Luxury Property THIS Year!! | Keeping Current Matters

The housing market is hot, with prices rising as demand far outpaces supply in almost every region. However, when it comes to luxury real estate, things are quite different. In the upper-end market, inventory is plentiful in most locations.

For that reason, prices haven’t skyrocketed as they have in the lower and mid-tier markets. This, coupled with sensational mortgage rates, means that this may be the perfect time to purchase the luxury property you have always desired.

Let’s break it down into the three major reasons to act now:

1. There are more homes from which to choose

According to a recent Wall Street Journal article, inventory in the upper end is increasing, while it is decreasing at the lower and mid-tier price ranges. Here is a graph showing the average increase/decrease in inventory for the first four months of this year as compared to last year:

3 Reasons to Buy Luxury Property THIS Year!! | Keeping Current Matters

2. Prices are becoming more reasonable

In a separate article, the Wall Street Journal also talked about prices in the luxury market. They explained that downward price adjustments have been more common in the luxury market than in markets with lower prices. They went on to say:

“The growing number of price cuts suggests luxury-home sellers are becoming more realistic about property values as sales have slowed, said several real-estate veterans.”

Not only will you have more to choose from, but you may also be able to get the property at a reduced price.

3. Mortgage rates are at historic lows

In the past, one of the drawbacks to purchasing a luxury property was the larger mortgage rate on “jumbo” loans which are often required on high end properties.

However, HSH.com just revealed that jumbo rates just set new record lows:

“While conforming fixed-rate mortgages eased a little this week, 30-year fixed-rate jumbos declined enough to break into new record low territory (3.66%), besting the previous low set in April by two basis points.”

Bottom Line

More choices, better prices and historically low mortgage rates may make this the perfect time for you to own one of those luxury properties you and your family have always fantasized about.

 

Source: Keeping Current Matters

Spring Cleaning Checklist

 

Use these ideas for clearing out the clutter and keeping rooms neat and tidy

Spring cleaning may get more of the hype, but I would argue that spring organizing is even more important. When your belongings are neat and tidy, your whole home feels cleaner and more inviting, and daily life is easier and more pleasant. If you’ve got the spring-cleaning bug, don’t stop there. Take advantage of your motivation and devote a weekend (or two) to clearing out clutter and getting organized all around the house.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Building Family Wealth Over The Next 5 Years

Building Family Wealth Over The Next 5 Years | Keeping Current Matters

As the economy continues to improve, more and more Americans are seeing their personal financial situations also improving. Instead of just getting by, many are now beginning to save and find other ways to build their net worth. One way to dramatically increase their family wealth is through the acquisition of real estate.

For example, let’s assume a young couple purchases and closes on a $250,000 home in January. What will that home be worth five years down the road?

Pulsenomics surveys a nationwide panel of over one hundred economists, real estate experts and investment & market strategists every quarter. They ask them to project how residential prices will appreciate over the next five years. According to their latest survey, here is how much value that $250,000 house will gain in the coming years.

Family Wealth Earned with Home Equity | Keeping Current Matters

Over a five year period, that homeowner can build their home equity to over $40,000. And, in many cases, home equity is large portion of a family’s overall net worth.

Bottom Line

If you are looking to better your family’s long-term financial situation, buying your dream home might be a great option.

Source: Keeping Current Matters