Edwin St. Aubin's Blog
No one should be forced to break the bank to secure a terrific house. However, a first-time homebuyer may be more likely than others to overspend on a residence, particularly if he or she fails to understand the ins and outs of the housing market.
Lucky for you, we're here to teach you what it takes to browse the real estate market effectively so you can find a house that matches your budget.
Now, let's take a look at three tips to help a first-time homebuyer purchase an affordable residence.
1. Examine the Housing Market Closely
Many great houses are available, and a first-time homebuyer should review a broad range of residences closely. By doing so, this homebuyer can establish a price range for his or her home search.
Evaluate the prices of residences that are currently available in your city or town. That way, you can find out what it costs to afford a home that may serve you well both now and in the future.
Also, assess the prices of recently sold residences in your area. With this housing market data in hand, you can find out whether you're about to enter a buyer's market or seller's market and plan accordingly.
2. Get Pre-Approved for a Mortgage
Pre-approval for a mortgage can help you map out a homebuying budget before you enter the real estate market. Thus, getting pre-approved for a mortgage can make a world of difference for any first-time homebuyer, at any time.
To get pre-approved for a mortgage, you'll want to meet with several banks and credit unions in your area. These lenders can teach you about different mortgage options and help you select one that corresponds with your budget.
In addition, be sure to ask plenty of questions about potential mortgage options before you make your final mortgage decision. This will allow you to understand the differences between fixed- and adjustable-rate mortgages and choose a mortgage that can help you avoid the temptation to overspend on a residence.
3. Collaborate with a Real Estate Agent
When it comes to pursuing a house for the first time, don't leave anything to chance. Instead, collaborate with a real estate agent, and you can streamline the process of purchasing an affordable residence.
A real estate agent helps take the guesswork out of looking for residences. He or she will keep you up to date about new houses as they become available and set up home showings on your behalf. Plus, this housing market professional will do whatever it takes to guarantee you can obtain an affordable house that surpasses your expectations.
Perhaps best of all, a real estate agent will help you alleviate stress throughout the homebuying journey. And if you encounter challenging negotiations with a home seller, a real estate agent will step in and help you get the best price for a residence – without exception.
Ready to purchase a house for the first time? Use these tips, and you can acquire an affordable residence that you can enjoy for years to come.
If you’re trying to decide whether or not you should put a pool in at your home, there’s a lot to think about. You don’t want to regret spending a sizable amount of money. You may picture a life of luxury with a pool, but there’s a lot involved with the installation of it. It can be quite an ongoing investment to put in a pool. Maintenance, repairs, and more are involved. Depending upon the climate you live in, you may need to put a cover on the pool during the offseason as well.
When Putting In A Pool Is A No-Brainer
If you live in a warm climate like California, Florida, Hawaii, Or Arizona, it makes total sense to invest in a pool. these places get the maximum benefit from pool installation since the pool can be used the whole year through.
If you have a large yard and are able to accommodate both a pool and some yard space, it’s also not a bad idea to put in a pool. The important thing is that you understand that you’re not always going to get a return on your investment when you sell your home. Not all homebuyers like pools and often the presence of a pool can even deter some buyers from even looking at the home.
Questions To Ask Regarding Return On Investment:
- Does a pool fit in with the neighborhood?
- Is the pool in good condition?
- How old is the pool?
The idea with homes that have pools is to attract the right buyers. Many times, families with young children stay away from properties with pools since they see it as a safety hazard. Other home shoppers may fall in love with the property because of the pool. The important thing about putting in a pool is knowing that you as a homeowner will enjoy the feature.
The average cost to put in a pool in the US is around $30,000. That’s just a basic pool. You’ll probably need to add a few more details like fencing, pool furniture, and more landscaping. That can cause the total investment to rise significantly. The type of pool that you choose also has an effect on the cost of the project. Don’t forget about the added energy expenses of running a filter and putting a heater in the pool.
When you have a pool, you’ll need to change the type of insurance that you have. The pool can increase your insurance costs significantly. There also could be certain requirements set forth by the insurance company, such as the pool needing to be fenced in.
While adding a pool to your home may make your life more enjoyable, it may not add to the value and return you get on your home. Don’t over invest in an amenity that won’t give you the returns your looking for unless you’re prepared and know that you as a homeowner will truly enjoy the pool.
It’s common knowledge that a 20% down payment is key when you buy a home, but is it absolutely necessary? With average home prices continuing to rise, it’s hard to actually save up that sizable of an amount of money. Thinking bout the numbers, buying a home may seem impossible.
There’s good news: The 20% down requirement is actually a myth. If you put less than 20% down, you can still get a mortgage with most banks. There’s a reason why you hear that you need to put 20% down to buy a home. If you don’t put 20% down, you need to get either private mortgage insurance (PMI) or government insurance from the Federal Housing Administration (FHA). These types of mortgage insurance protect the lender if you don’t make your payments and the home is foreclosed on.
Do PMI Payments Go On Forever?
When your loan-to-value ratio reaches 80 percent, you’re able to ask your lender to cancel the insurance. Once the loan-to-value ratio reaches 78 percent, the lender has a requirement to cancel the PMI. This type of insurance can be costly, averaging at least a few hundred dollars a month.
Alternatives To 20 Percent Down
Look at financing before you find a house. There’s a few programs that can help you to buy a home without 20% down. There’s different ways to qualify for these programs, so your best bet is to talk to a lender well before you start your home search.
Government programs through places like the US Department of Agriculture and the Federal Housing Administration help people to buy a home with very little down- anywhere from 0-3.5%. Some of these programs can prove to be costly on the backend, due to extra insurance requirements, but they do provide an alternative path to home ownership.
There’s also an option to actually finance the down payment with what's called a subordinate loan. his may make sense for some, however, you are taking out a loan in order to pay for another loan. The process may be counterintuitive for you and your financial situation.
Different Paths To Homeownership
While there’s many different paths to owning a home, there’s no one right answer. Since everyone chooses different properties and has different financial situations, there’s a way for you. Even if saving up a 20% down payment is seemingly impossible, there’s way to get around it. Start with talking to your bank and other lenders to see what types of programs are available to you and discover what your path to homeownership is.
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