Archive for the ‘Buying a Home’ category

Buying Your Home – Finding the Right Home

January 4, 2014

Buying your homeWhat are the pros and cons of adding on or buying new? Before  making a choice between adding on to an existing home or buying a larger one,  consider these questions:

  • How much money is available, either from cash  reserves or through a home improvement loan, to remodel your current house?
  • How much additional space is required? Would the foundation support a  second floor or does the lot have room to expand on the ground level?
  • What  do local zoning and building ordinances permit?
  • How much equity already exists in the property?
  • Are there affordable properties for sale that  would satisfy your changing housing needs?

Do we dig deep and buy a dream home or settle for a starter  home? Choosing between a smaller house in an affluent neighborhood, an  older, bigger house in a more working-class community or a brand-new home is not  easy. If you’re in this situation, start by examining your priorities and asking  the following questions:

  • Is the surrounding neighborhood or the home itself  the most important consideration?
  • Is each of the neighborhoods safe?
  • Is quality of the schools an issue?
  • Do any of the areas seem to attract  more families with children or adult residents? And where do you fit in?

As for the return on your investment, home-price appreciation is hard to  predict. In the late 1980s, and again 10 years later, the more expensive move-up  housing appreciated wildly. But during the recession that followed, smaller  homes tended to hold their value better than more expensive ones.

How  do you choose between buying and renting? Home ownership offers tax  benefits as well as the freedom to make decisions about your home. An advantage  of renting is not worrying about maintenance and other financial obligations  associated with owning property. There also are a number of economic  considerations. Unlike renters, home owners who secure a fixed-rate loan can  lock in their monthly housing costs and make prudent investment plans knowing  these expenses will not increase substantially. Home ownership is a highly  leveraged investment that can yield substantial profit on a nominal front-end  investment. However, such returns depend on home-price appreciation.

What do you consider when buying a house?

January 2, 2014

Buying a new home, what can I affordIn starting out the new year, many people talk about adding the purchase of a new home to their list of resolutions. However, many don’t pursue it due to some common fears. One of the biggest fears for home buyers, especially for first-timers, is that they end up buying a home more expensive than they can actually afford. We’ve all heard the stories of people losing their homes. What is sometimes comes down to, aside from the economy and other factors outside of people’s control (like losing a job), is that even though a house payment may fall within a budget, many people fail to consider everything else that comes with home ownership, like yearly home-maintenance costs, homeowners insurance, HOA fees (if applicable), and renovation costs if purchasing an older home.

So how do you know what you can afford? When considering the budget for a new home, there are six factors to consider:

  1. Gross income
  2. The amount of cash you have available for the down payment, closing costs and cash reserves required by the lender
  3. Your outstanding debts
  4. Your credit history
  5. The type of mortgage you select
  6. Current interest rates

Another very important fact to consider is just because a mortgage company may approve you for a certain loan amount, you still have to be prudent and consider what it is you can actually afford. Remember that the family still has to eat.

For more tips on what to consider when buying a home, click here to visit a page on Ideal Real Estate Group’s website for more answers to questions like:

  • How much does my real estate agent need to know?
  • When is the best time to buy?
  • What if I have a bankruptcy or foreclosure on my credit?
  • What is the standard debt-to-income ratio mortgage companies are looking for?

Sandy Luedke and Ideal Real Estate Group is here to help you find a home you can live with for a long time, that perfectly complements you, your family, and your lifestyle. Sandy will also make sure you are in-the-know on everything you need to consider when purchasing or selling a home. Call today and don’t wait another year before making your home-buying dreams come true!

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