Kathy Kelley's Blog
The homebuying process may prove to be challenging, particularly for individuals who fail to anticipate potential problems. Lucky for you, we're here to help you identify and address homebuying hurdles before they escalate.
Now, let's take a look at three tips to ensure you can seamlessly anticipate and overcome homebuying hurdles.
1. Learn About the Housing Market
The real estate market can be complex. Fortunately, an informed homebuyer should have no trouble resolving potential problems early in the property buying journey.
Examine a wide range of housing market data – you'll be glad you did. Look at the prices of recently sold houses – as well as the prices of available residences – in your preferred cities and towns. With this housing market information, you'll be better equipped than ever before to differentiate a buyer's market from a seller's one and plan your homebuying journey accordingly.
2. Get Home Financing
If you intend to pursue a house, you likely will need a mortgage. Thankfully, banks and credit unions are available to help you obtain a mortgage in no time at all.
Ultimately, it helps to get pre-approved for a mortgage. If you enter the housing market with a mortgage in hand, you can narrow your house search to properties that fall within your price range. And as a result, you could speed up the process of finding and buying your dream house.
When you meet with lenders, don't hesitate to ask lots of questions, either. If you allocate time and resources to learn about all of your home financing options, you can determine exactly which option is right for you.
3. Employ a Real Estate Agent
There is no need to pursue a house on your own, regardless of whether you're an experienced or first-time property buyer. But if you employ a real estate agent, you can work with a homebuying expert who can help you make your homeownership dream come true.
A real estate agent understands what it takes to find a great house at an affordable price. He or she can teach you about the housing market and help you make informed decisions at each stage of the property buying journey. Perhaps best of all, a real estate agent can prepare you for potential homebuying hurdles and ensure you can quickly address these issues.
Let's not forget about the assistance that a real estate agent provides as the homebuying journey progresses as well. A real estate agent will set up home showings, help you weigh the pros and cons of different houses and ensure you can submit an offer to purchase your dream residence. And as you approach the date of your home closing, a real estate agent will offer tips and recommendations to ensure you can finalize your house purchase without delay.
Want to avoid homebuying hurdles? You're not alone. But with the aforementioned tips, you can identify and overcome various homebuying hurdles and effortlessly navigate the property buying journey.
As a homebuyer, you likely want to do everything you can to ensure you can seamlessly navigate the property buying journey. Yet problems may arise that hamper your homebuying aspirations. Lucky for you, we're here to help you analyze the property buying journey and ensure you can avoid complications along the way.
Now, let's take a look at three tips to ensure you can minimize the risk of problems as you search for your dream residence.
1. Learn About the Homebuying Journey
There is nothing quite like buying a home. As such, you'll want to do whatever you can to prepare for the property buying journey to ensure you can limit the risk of encountering potential pitfalls.
Oftentimes, it helps to review housing market data related to residences in your preferred cities and towns. This information can help you assess the prices of available houses in your area and find out how long residences typically stay available before they sell. Plus, this housing market data may help you differentiate a buyer's market from a seller's market.
You also should establish realistic homebuying expectations before you enter the real estate market. In some instances, homebuyers require many weeks or months to find the perfect residence. But if you set realistic expectations for the homebuying journey, you may be better equipped than ever before to overcome myriad property buying challenges.
2. Get Pre-Approved for a Mortgage
A mortgage is essential for most homebuyers. If you secure a mortgage before you start your home search, you'll know precisely how much you can spend on a residence. Then, you can narrow your home search accordingly.
It generally won't take long to get pre-approved for a mortgage, either. If you meet with local banks and credit unions, you can review your mortgage options and select a mortgage that complements your finances.
3. Hire a Real Estate Agent
There is no telling what may happen as you pursue your dream residence. However, if you have a real estate agent at your side, you'll be able to prepare for any homebuying challenges that might come your way.
A real estate agent is a homebuying expert who is happy to teach you about all aspects of the housing market. He or she will help you craft a homebuying strategy, as well as respond to your homebuying concerns and questions. Furthermore, a real estate agent will maintain constant communication with you to ensure you can get the homebuying support you need, exactly when you need it.
For homebuyers who want to minimize complications, hiring a real estate agent is crucial. This housing market professional will set up home showings, help you analyze properties and enable you to submit a competitive offer to purchase your dream home. And as your home closing day approaches, a real estate agent will do whatever it takes to help you quickly finalize your house purchase.
Ready to buy a home? Use the aforementioned tips, and you can streamline the property buying cycle.
Ready to enter the real estate market for the first time? As a first-time homebuyer, you may encounter many challenges as you kick off your search for the perfect house. However, property buyers who understand these challenges will be better equipped than others to overcome such difficulties quickly and effortlessly.
Now, let's take a look at three common challenges that first-time homebuyers may face:
1. You don't know what to look for in a house.
You know you want to own a house, but how do you define your "dream" residence? Ultimately, you'll want to consider what you'd like to find in your perfect house so you can map out your real estate search accordingly.
Creating a checklist of things you'd like to have in your dream home usually represents a great starting point for first-time homebuyers. This checklist should include both "must-haves" and "wants" and can help you narrow your search for the ideal residence.
2. You aren't sure how much money you have available to purchase a home.
How much can you spend to acquire a residence? Without a budget, you may struggle to begin your real estate search.
Lucky for you, many banks and credit unions make it simple to get pre-approved for a mortgage.
Set up meetings with a few lenders in your city or town – you'll be glad you did. These lenders can help you assess your current financial situation, outline all of your mortgage options and ensure you can gain pre-approval for a mortgage.
With a mortgage in hand, you may be better equipped than other homebuyers to secure your ideal residence. This mortgage will help you determine exactly how much you can spend on a home. Plus, getting pre-approved for a mortgage can help you avoid the temptation to spend beyond your financial means to acquire your dream house.
3. You don't know what it takes to go from homebuyer to homeowner.
The homebuying process can be long and complicated, especially if you have no idea about what to expect from it. Fortunately, real estate agents are available to help you take the guesswork out of going from homebuyer to homeowner.
A real estate agent is a housing market professional who is happy to share his or her insights with you. He or she will respond to your homebuying concerns and queries and teach you about all stages of the homebuying cycle.
Furthermore, a real estate agent will set up home showings, keep you up to date about new houses as they become available and negotiate with property sellers on your behalf. This housing market professional will even go above and beyond the call of duty to guarantee you can purchase a home that you'll be able to enjoy for years to come.
When it comes to buying a home for the first time, there is no need to navigate the homebuying journey alone. Instead, collaborate with a real estate agent, and you can accelerate the process of acquiring a top-notch house at a budget-friendly price.
Let's face it – there are many risks that you may face during the homebuying journey. From submitting an offer on a house that ultimately proves to be a poor investment to failing to obtain a mortgage due to a bad credit score, there are various issues that may prevent you from achieving your desired results. Lucky for you, we're here to help you focus on the task at hand and eliminate potential risks as you search for your ideal residence.
Now, let's take a look at three tips to help you avoid risks throughout the homebuying journey.
1. Set Realistic Homebuying Expectations
How you search for a home may determine whether you are successful or unsuccessful. For example, if you evaluate houses that fall outside your price range, you may struggle to find a home that you can actually afford. On the other hand, if you establish realistic homebuying expectations from the get-go, you may be able to streamline your house search.
Think about where you want to live and how much you can afford to pay for a home. Also, you should consider home must-haves and wants. With this information at your disposal, you can avoid the risk of missing out on an opportunity to acquire a residence that matches your expectations.
2. Get a Mortgage
Getting pre-approved for a mortgage is pivotal. Because if you obtain a mortgage today, you can enter the housing market with a budget and narrow your house search accordingly. Perhaps most important, a mortgage enables you to avoid the temptation to pursue homes that be priced beyond your budget.
Consult with banks and credit unions, and you can learn about a broad array of mortgage options. Then, you can select a mortgage and kick off your search for your dream residence.
3. Work with a Real Estate Agent
Problems may arise at any point during the homebuying journey. And if you're unsure about how to address these issues, it may be tough for you to acquire your ideal residence. Fortunately, if you hire a real estate agent, you may be able to identify and address homebuying problems before they escalate.
A real estate agent understands the housing market and is happy to share his or her expertise with you. This housing market professional can teach you about the differences between a buyer's and seller's market, help you prepare a homebuying strategy and much more.
Let's not forget about the assistance that a real estate agent can provide as you get ready to submit an offer on your dream home, either. A real estate agent will help you craft a competitive homebuying proposal. Furthermore, he or she will negotiate with a seller's agent on your behalf and do everything possible to ensure you can acquire your dream residence at a budget-friendly price.
Take control of the homebuying journey – use the aforementioned tips, and you can limit risk as you search for your ideal house.
Home prices may vary greatly throughout the country. But, buying a home is most likely the largest purchase you will make in your life.
Deciding just how much to spend on your home isn’t just a matter of numbers--it also depends on your lifestyle and long-term goals.
In today’s post, I’m going to give you a few ways you can help determine how much is a safe amount to spend on your home so that you’ll feel confident moving into the home buying process that you’re making the best decision for you and your family.
Mortgage as a percent of your income
Like most large purchases, buying a home typically isn’t dependent on the amount you have in the bank. Rather, it depends on several factors including your income, credit score, and the type of lifestyle you want to maintain.
One of the simplest ways to determine how much house you can afford is to figure out what percent of your monthly income your mortgage and insurance will be.
For most homeowners, a mortgage payment that is 25% of their income or less is ideal. So, if you earn $6,000 per month, you don’t want your monthly mortgage payment to exceed $1,500.
This “25% rule” does have one flaw, however, and that does not--and cannot--account for each individual’s financial circumstances.
Let’s say, for example, that you earn $6,000 per month, but that you have a large monthly car payment and are trying to aggressively pay off your student loans. You might find that paying another $1,500 toward a mortgage on top of your current bills is bringing you over budget, especially when combined with your other monthly expenses and retirement contributions.
Plan for homeowner expenses
Another caveat to determining how much to spend on a home is that the home itself will require a budget for maintenance. When renting an apartment, repairs are mostly the responsibility of the landlord or property manager.
Homeownership, on the other hand, requires you to make the repairs yourself or hire a professional. And, if you neglect these repairs, you might find that they cost you even more in the long run or drive down the value of your home.
Create a comprehensive budget
Throughout a given person’s life, they’ll experience raises, promotions, layoffs, medical expenses, childcare costs, and any other number of financial changes. While it isn’t possible to foresee all of the financial fluctuations you’ll experience in life, it is always helpful to have a comprehensive budget.
What do I mean by “comprehensive budget”? The goal of a good budget is to know where each dollar of your income is currently going and to have a plan for each cent that you make. This is a proactive approach to budgeting that will give you an exact number for the amount you can afford when it comes to a mortgage payment.
Within your budget, it’s vital to account for things like an emergency fund, retirement, savings for vacations, and so on.
If you take this due diligence, not only will you have a better sense of where your money goes, but you’ll also be confident in knowing exactly how much you can spend on a home.