Bill Ryan's Blog
Ready to buy a house? It pays to be proactive, especially if you hope to streamline the process of acquiring a terrific residence at a budget-friendly price.
A superb house is likely to stir up interest from large groups of homebuyers. Fortunately, with a proactive approach, you can stay ahead of the homebuying competition and boost your chances of securing a wonderful house.
Ultimately, there are several best practices for proactive homebuyers, and these practices include:
1. Search for Homes Early and Often
The early bird catches the wom. Much in the same vein, a proactive homebuyer is better equipped than others to achieve his or her desired results.
Keep a close eye on the housing market – you'll be glad you did. If you monitor home listings in your city or town, you can quickly identify potential properties that you may want to buy.
In addition, evaluate housing market trends and patterns. With this housing market data in hand, you can differentiate between a buyer's and seller's market.
2. Get Pre-Approved for a Mortgage
Meet with several banks and lenders in your area. By doing so, you can explore a variety of mortgage options and select one that complements your finances.
There is no shortage of mortgage options at your disposal. For example, many homebuyers prefer a 30-year fixed-rate mortgage, which guarantees they will pay the same amount each month for the life of a mortgage. On the other hand, some homebuyers choose a 15-year adjustable-rate mortgage, which features lower upfront payments that gradually increase over time.
If you're uncertain about which mortgage option to select, there is no need to worry. Banks and credit unions employ friendly, knowledgeable mortgage professionals who can help you make an informed decision.
Perhaps best of all, meeting with mortgage professionals guarantees you can receive expert responses to your concerns and questions. These mortgage professionals will devote the necessary time and resources to assist you and make it simple for you to select a great mortgage.
3. Collaborate with a Real Estate Agent
If you want to enter the housing market, there is no reason to wait. In fact, if you contact a real estate agent today, you can immediately launch a successful homebuying journey.
A real estate agent is dedicated to your homebuying success. He or she first will learn about your homebuying goals, ensuring you can start the homebuying journey on the right foot. Then, this housing market professional can help you narrow your search for your dream residence.
In most instances, a real estate agent will set up home showings, keep you up to date about new residences as they become available and help you submit home offers. This housing market professional also provides a one-of-a-kind homebuying resource. And if you ever have homebuying concerns or questions, a real estate agent is ready to respond to them.
Don't wait to kick off a homebuying journey. Instead, use the aforementioned tips, and you can become a proactive homebuyer.
When you find a home that you love, you probably already have been pre-approved by a bank for a certain amount that will enable you to buy a home. Once you put in an offer on the home and it’s accepted, however, you may need to take a step back. The appraisal can help you to know what the value of the home actually is. The bank may decline your loan based on the appraisal This is one of the most important steps to obtaining the financing that you need to purchase a home.
What Is An Appraisal?
In a nutshell, an appraisal protects the bank from investing in a property that’s worth less than what they’re paying for it. This process also protects you as a buyer from buying a property that’s worth less than what you’re expecting it to be worth.
Although the appraisal makes sense financially, it doesn’t mean that the process won’t be emotional for you as a buyer and for the sellers as well. The appraisal can in fact make or break the purchase of what you consider as your dream home. There’s a lot of data that’s collected for the appraisal, which can cause nerves to be shot on both sides while the value of the home is being calculated.
What’s The Difference Between The Inspection And The Appraisal?
A home appraisal is much different than an inspection. The home inspection is important in its own right. As a buyer, you hire a home inspector to find any potential problems or hazards that could be big issues for you in the future as a homeowner. While property appraisers will make note of glaring issues, they won’t check out the nuts and bolts of the home like a home inspector will. The home inspector checks out everything from the air quality to the chimney to the toilet and sinks. There’s many things that will affect your home appraisal. In other words, if you’re a seller, you want to get major issues fixed before you put your home on the market. Home inspections will be very important for different reasons to you as a buyer since it will be valuable to you in the future. Appraisers may request an inspection if they notice something serious within the home, but they are more interested in the value of the property than the direct problems that are within the home.
Who Will Pay For The Appraisal?
Generally, the seller will pay for the home appraisal along with the closing costs. This can be a few hundred dollars. In certain circumstances the buyer may agree to pay for the appraisal, however.
What Goes Into Calculating The Worth Of A House?
Appraisers look at many different factors including:
- The square footage of the property
- The number of bedrooms
- How many bathrooms the home has
- The condition of the home
- How much have comparable properties have sold for in the area
- Safety issues
- Other factors pertaining to health and safety
The appraisal process can seem complicated, but once you’re educated on the matter, you’ll be prepared when it gets to that point in the home buying process.
Whether you’re a first-time homebuyer or you’re upgrading to a larger house to fit your family’s needs, it’s vital to understand just how much house you can afford before you start shopping for homes.
When planning for your future home, there are two main things you need to figure out.
What is a smart amount to spend on a home for your budget
What are the key features in a home that will give you the most benefits for the cost
These two questions may seem simple, but there are quite a few factors that should go into determining each one.
So, in today’s post, I’m going to walk you through the process of determining what kind of house you can afford so you can make the best home buying decision for you and your family.
A smart home buying budget
To create an effective budget, you’ll need to gather some information and possibly create a spreadsheet with Excel (or a free alternative like Google Sheets).
On your spreadsheet, you’ll first want to add up all sources of income that your family has. This is the easy part for most people who only have one or two sources of income based on a salaried job.
Next, is the hard part--expenses. We can’t just use your current expenses to determine the new budget because we have to account for changes in several areas.
If you aren’t sure of the cost of living for the area you hope to move to, try plugging it into this cost of living comparison tool to see get a better idea of the cost of things like transportation, childcare, groceries, and more.
Likewise, it’s also a good idea to assume you’ll be paying more in utilities if you’re hoping to move into a home that is larger than your current home. Keep in mind, however, that different houses have different levels of energy-efficiency, so it’s a good idea to also ask the seller of the homes you’re interested in to determine what your costs might be.
Now, subtract your expenses from your income. The amount remaining should easily cover whatever mortgage payment you receive along with, ideally, 20% of your income going toward savings.
Deciding what you need in a home
The second part of determining how much house you can afford is to find out exactly what you’re looking for in a home. The number of bedrooms, bathrooms, location, the size of the backyard; all of these are questions that have a monetary value.
So, to really answer this question you’ll need a strong understanding of what you and your family’s goals are for at least the next 5-7 years, if not longer.
Once you have your long-term goals and a good understanding of your budget, you can start safely shopping for homes with a clearer idea of the type of home you’re looking for and just how much home you can afford.
Setting up and completing a home inspection may seem like a long, arduous process. However, an inspection is a must-have for any homebuyer, at any time.
With a comprehensive home inspection, you can identify any potential problems with a house. And if you don't like what you find in an inspection report, you can always ask a home seller to complete improvements or reduce his or her asking price. Or, if you prefer, you can walk away from a home sale altogether.
Ultimately, there are several steps that you'll want to follow to conduct a home inspection, and these are:
1. Find an Expert Home Inspector
When it comes to a home purchase, there is no need to leave anything to chance. Fortunately, if you hire an expert home inspector, you can avoid the risk of missing possible issues during a home inspection.
Not all home inspectors are created equal, so you'll want to evaluate all of the options at your disposal.
To kick off your search for a home inspector, browse the web. This will enable you to find dozens of home inspectors in your area and assess online client reviews.
Also, don't hesitate to ask a home inspector for client referrals. If you obtain client referrals, you can better understand whether a home inspector can match or exceed your expectations.
2. Attend Your Home Inspection
Although homebuyers are not required to attend a home inspection, it generally is a good idea to walk with a home inspector as he or she examines your residence. By doing so, you may be able to gain home insights that might not be included in a home inspection report.
A home inspector may notice home problems that range from minor to severe. The inspector's job is to identify a problem and include it in a home inspection report.
If you attend a home inspection, an inspector may be able to provide you information about potential home problems, along with an estimate about how much assorted home repairs may cost. That way, you are better equipped than ever before to determine whether potential home problems could deter you from buying a house.
3. Evaluate the Home Inspection Report
A home inspection report can play a key role in the homebuying process. If you evaluate this report closely, you can learn about a home's strengths and weaknesses and decide whether to proceed with a home purchase.
If you have questions regarding a home inspection report, you can always follow-up with the inspector that provided the assessment. This will allow you to obtain the insights that you need to make an informed homebuying decision.
Lastly, it certainly helps to collaborate with a real estate agent before, during and after a home inspection. A real estate agent will guide you along the homebuying process and ensure that you can get the best possible results.
Follow the aforementioned steps, and you should have no trouble conducting a home inspection.
Ready to purchase a condo? No worries, as there are many terrific condos available in cities and towns nationwide.
As a condo buyer, you'll want to do everything possible to ensure you can buy a top-notch property quickly and effortlessly. Lucky for you, we're here to help you streamline the process of acquiring your dream condo.
Now, let's take a look at three tips to help you simplify the condo buying process.
1. Know What You Want Out of the Perfect Condo
Are you looking for a condo in a small town or a big city? Do you want a condo that features a community swimming pool, tennis courts and other deluxe amenities? And how close is a condo to your workplace? These are just some of the questions that you'll want to consider before you kick off your condo search.
An informed condo buyer will know exactly what to look for in the perfect condo. As a result, this condo buyer may be better equipped than others to accelerate his or her property search.
2. Understand Your Price Range
You know that you want to buy a first-rate condo, but what can you afford? With a condo buying budget in hand, you'll be able to estimate your monthly property expenses and plan accordingly.
Getting pre-approved for a mortgage may prove to be a great idea. If you meet with several banks and credit unions, you'll be able to learn about all of the mortgage options at your disposal. Then, you can select a mortgage that will enable you to establish a price range for your condo search.
In addition, don't forget to consider any homeowners' association (HOA) fees before you choose a condo. HOA fees cover property maintenance costs and will vary depending on the condo community. Therefore, if you fail to account for these fees before you purchase a condo, they may cause you to exceed your monthly budget.
3. Work with a Real Estate Agent
Take the risk out of finding a condo that meets or exceeds your expectations by working with a real estate agent – you'll be glad you did.
A real estate agent with condo experience understands what it takes to speed up the search for the perfect property. This real estate professional will go above and beyond the call of duty to help you find a property that you can enjoy for years to come.
Typically, a real estate agent will set up condo showings and keep you up to date about open houses. He or she also will help you submit offers on condos and negotiate with condo sellers on your behalf, ensuring you can manage any challenges during the condo buying process.
A real estate agent will even respond to any condo buying concerns and queries. That way, you can receive expert guidance as you navigate the process of going from condo buyer to condo owner.
Use the aforementioned condo buying tips, and you should have no trouble securing an amazing condo in the near future.