Denise Dutson's Blog
For those who want to enjoy a quick, seamless homebuying experience, it helps to prepare as much as possible. In fact, those who plan ahead may be better equipped than others to avoid various challenges throughout the homebuying cycle.
From struggling to obtain home financing after a seller accepts your offer to purchase to struggling to find the right home in one of your preferred cities and towns, myriad issues may make it tough for you to achieve your desired results on the homebuying journey. Fortunately, we're here to help you minimize risk as you pursue your dream residence.
Now, let's take a look at three tips to help you avoid a homebuying fiasco.
1. Establish Homebuying Criteria
If you enter the housing market with criteria in hand, you can narrow your house search. As a result, you may be able to accelerate your journey from homebuyer to homeowner.
Think about where you want to live. Then, you can hone your home search and focus exclusively on houses in specific cities and towns.
It also may be beneficial to establish a list of home must-haves and wants. This list can help you determine exactly what you want to find in your dream house so you can map out your home search accordingly.
2. Get Pre-Approved for a Mortgage
There is no need to wait to get a mortgage. Thankfully, lenders are available that can help you get approved for a mortgage before you kick off your home search.
Meet with a variety of banks and credit unions – you'll be glad you did. This will allow you to learn about the ins and outs of different mortgage options.
Furthermore, don't hesitate to ask questions about all of the mortgage options at your disposal. Because if you understand exactly how a mortgage works, you can make an informed mortgage decision.
3. Collaborate with a Real Estate Agent
When it comes to avoiding problems during the homebuying journey, it generally is a good idea to hire a real estate agent. This housing market professional will offer comprehensive support at each stage of the homebuying journey. By doing so, a real estate agent will ensure you can quickly and effortlessly navigate the housing market.
For example, if you want to find a house in a small town, a real estate agent will help you explore residences that match your expectations. He or she will set up home showings and keep you informed about open house events. Plus, if you identify your dream house, a real estate agent will help you submit a competitive offer to purchase.
Let's not forget about the housing market expertise that a real estate agent possesses, either. If you ever have concerns or questions as you pursue your dream house, a real estate agent is happy to address them at any time.
Want to discover your dream residence? Use the aforementioned tips, and you can reduce the risk of encountering problems as you search for your ideal residence.
The rent vs buy dilemma is something that Americans have been facing for decades. Both options have their benefits, and it’s really a matter of timing and preferences when it comes to choosing which is best for you.
However, there are a lot of things to consider before making this decision. So, in today’s post we’re going to break down some of the benefits of renting an apartment and of buying a home. That way you can make your decision with a clearer picture of what each situation looks like.
One thing to note first, however, is that it isn’t always as simple as buy vs rent. Some living situations draw on the pros of each type of living. For example, living in a condo might be a good option for people who want the privacy and independence of owning their own home, but who also don’t have the time or desire to keep up with maintenance.
So, as we compare buying and renting, keep in mind that the features of each are not mutually exclusive.
Renting an apartment
Most people who are living on their own for the first time start off renting. For younger people just out of school, renting offers the first taste of independence without the prerequisites of homeownership.
When you rent your first apartment, you’ll learn the skills associated with budgeting for your monthly expenses, making your rent payments on time, and will start learning some of the skills that it takes to run a household.
In terms of monthly costs, apartments can vary greatly. Depending on where you live (and how luxurious the apartment is) you could end up having rent and utility payments that are much lower or much higher than mortgage payments for a house.
However, apartment leases often come with the benefit of utilities, trash removal, and other expenses built in. They also typically require the landlord to maintain the apartment and the land it sits on.
Live in the northern part of the country and hate shoveling snow? Make sure your lease specifies that your landlord will provide snow removal.
One technique that many renters take is to find an apartment that is small and affordable while they save up for a home. In this case, it’s worth living with fewer amenities if your end goal is saving for a down payment.
But, what if you want to own a home someday but haven’t quite decided where you want to settle down? Maybe your work keeps you moving from place to place or you’ve always wanted to move away to somewhere new.
Renting is typically a better option for those who aren’t quite sure what their plans are for the next coming years. They can have a stable place to live while they figure things out and plan their next move.
Buying a home
Once you’ve rented a home for a while, you might become increasingly aware that you want more space and more control over your home.
You’re also likely noticing how much money you spend on rent each month that is essentially a net loss.
When you buy a home, your mortgage payments might be going to the bank, but someday the money you’ve paid toward that home will be yours in the form of equity. You can then use this as a down payment for another home.
This financial benefit cannot be understated. Since house values dependably increase over time, owning a home is a great investment toward your future.
So, those are the main pros and cons of renting vs buying a home. Think about your circumstances and determine which one makes the most sense for you right now. Then, start planning for the future.
When your family is searching for a home, it’s an exciting time for the adults, but if there are children involved, it can be a difficult task. Children don’t have to be left in the dark during a home search. Children of all ages can be involved in the process of finding a home. Read on for tips on how to make your kids feel a part of the home search process.
Preschool-aged children might seem not to be aware of the fact that your family is searching for a home, but they can still very much be a part of the process. One thing to remember about young children is that you shouldn’t give them too many options. Once you have narrowed down the homes to a few and the time to buy a home is close, it’s a good time to tell your toddler about the fact that you’re moving. While you probably don’t want to take your kids along with you on all of your home viewings, you can bring the children with you. Even the opinions of the tiniest among us can help contribute to a final decision.
Older children may be more challenging to deal with during a move. These kids are more aware of the changes to come and maybe more reluctant of the entire process. It’s best to include children this age (around 6-9 years old) in conversions about your plans. Where do you hope to move? What neighborhood will the home be? Show them pictures of potential new homes. Allowing kids this age to share their thoughts on location and the types of houses you’re looking at can help to ease fears and anxieties. Remind your kids that the final choice is up to the adults but that you appreciate and welcome their input.
Older Children And Teenagers
Pre-teens and teenagers can play a part in the house search. Make sure that they understand that there’s no pressure on them to pick a house but their input is essential to you. Teens are tweens should be encouraged to come along on house tours to help give an opinion on the properties in person.
The older the kids that are involved, the more you should value and welcome your input. Make sure that you reassure your teens, letting them know that they can continue their favorite activities. Do a little research on the new community first, or allow your kids to do a bit of research themselves.
Do you ever wish that they taught a class in high school called, “Things You’ll Actually Need to Know In Life?” You’d learn how to prepare your taxes, what investing is, and how to buy a home.
Unfortunately, all of these important life lessons tend to be self-taught; you pick them up along the way and learn from your mistakes.
However, it needn’t be that way. Our goal today is to give you an accurate idea of what to expect when you’re buying your first home. We’ll go over a typically home buying timeline and discuss how long each step can take. This will give you a better idea of how long it will take to close on your first home.
Step 1: Build credit and save for a down payment
Estimated time: 2+ years
The first step of buying a home is to make sure you’re financially secure enough to do so. While there are ways to purchase a home with low or no down payments (See FHA, USDA, and VA loans), generally it’s wiser to wait until you have a sizable down payment saved. This will save you money in interest and mortgage insurance in the long run.
Next, you’ll need to start working on your credit. If your credit score took some hits due to late payments when you were younger, now is the time to start fixing those mistakes by making on-time payments and paying off outstanding balances.
Step 2: Have a plan for the next phase of your life
Estimated time 6+ months
One of the most important, and least talked about, parts of buying a home is understanding what it means to own a home. If you have a spouse, partner, or family, you’ll need to be in agreement that you’re prepared to stay in one place for the next 5 or more years.
Buying a home is expensive and you won’t want to go through the process of closing on a home if you aren’t sure you’ll stay. This means making sure your career won’t bring you elsewhere in the near future.
Step 3: Get prequalified and preapproved
Estimated time 1-3 days (depending on how much initiative you take)
Getting prequalified for a mortgage takes minutes. You simply fill out an online form and the lender will give you an idea of the type and size loan you could qualify for. Be forewarned: they’ll also use this information to call and bother you about getting a mortgage from them.
Once you’re prequalified, it’s just a matter of working with the lender to provide the correct documentation for pre-approval.
Getting preapproved takes a bit longer (1-3 days), since it requires a credit check and some work on your part--namely, gathering and sending income verification.
Once you’re preapproved, you can safely start shopping for homes without worrying that you’re wasting time looking at homes that are overbudget.
Step 4: House Hunting
Estimated time: 30+ days
It’s a seller’s market. So, if you’re buying a home right now there is competition out there. You’ll need to dedicate a substantial amount of time to researching homes online, contacting sellers’ agents, and following up on calls. Like before, the amount of effort you put into this process determines how quickly and smoothly you’ll get through it.
Step 5: Making an offer and closing
Estimated time: ~50 days
Average closing times for buying a home has grown to 50 days according to a recent study. However, by securing financing ahead of time and acting quickly, you can drastically cut down the time of these process to as little as two weeks.
Deciding whether to set up a home showing sometimes can be a tough decision. Yet a home showing can make a world of difference for a buyer as he or she searches for the ideal residence.
Ultimately, there are many reasons to schedule a home showing, and these include:
1. You can look beyond a home listing.
A home listing generally offers details about a house's age and features, as well as photographs of different areas of a residence. But a home listing can only provide so much information. Fortunately, a home showing enables you to assess a house in person and decide whether a residence is right for you.
During a house showing, you can walk around a residence and view each room. If you want to further pursue a residence after a showing, you can submit an offer to purchase. Or, if you find a house fails to match your expectations, you can always continue your search for your dream home.
2. You can gain comprehensive insights into a house's condition.
When it comes to evaluating a house's condition, it typically is a good idea to attend a showing. That way, you can get an up-close look at a home's condition and determine whether a residence needs major or minor repairs.
A home showing enables you to analyze a residence both inside and out. After a showing is complete, you can decide whether you are satisfied with the condition of a home and map out your homebuying journey accordingly.
3. You can imagine what it would be like if you purchase a home.
A home showing makes it easy to envision what life may be like if you purchase a particular house. As such, a showing may prove to be crucial as you pursue your dream residence.
If you feel good about a house following a showing, you should not hesitate to submit a competitive homebuying proposal. Conversely, if you feel uncomfortable with a residence, you may want to pursue other options.
Of course, hiring a real estate agent may be exceedingly valuable as you search for your ideal house. A real estate agent can schedule home showings at your convenience and provide plenty of tips to help you pursue residences in any housing market. By doing so, a real estate agent will empower you with the insights you need to make an informed decision about a house.
Let's not forget about the assistance that a real estate agent will provide after you find your dream house, either. At this point, a real estate agent will help you put together a competitive offer to acquire your ideal residence. And if you have any concerns or questions as you move along the homebuying journey, a real estate agent is happy to respond to them.
Ready to find your dream residence? Schedule a home showing, and you take the next step to acquire your ideal house.