Top 10 Reasons why now is the Time to Buy a Home and Stop Renting

Top 10 Reasons why now is the Time to Buy a Home and Stop Renting

If ever there was a time for renters to consider buying their own home and stop wasting money on rent, now is certainly the time. This is because there are numerous advantages available to home buyers in the current market, especially first-time home buyers.

While it is true that mortgages are somewhat more difficult to come by than they have been in the past, this does not mean that they are completely impossible to obtain. Buyers who have taken the time to ensure they have strong credit and have saved for a down payment can still qualify for a mortgage loan.

Below are just a few of the reasons why now is the best time to make the move from renting to buying:

1. Lower interest rates - Currently interest rates are lower than they have been in some time. If you are thinking of buying a home, now is certainly the time to do so in order to make sure you lock in those great low rates.

2. More choices - The inventory of available homes on the market is larger than it has been in years. This means that buyers have far more homes to choose from than they would have in the last couple of years.

3. Begin to build home equity - When you rent a home, all of the money you pay in rent goes to your landlord. It does not allow you to accumulate any type of asset for yourself. When you buy a home; however, the money that you pay for the mortgage payment actually goes toward something that is tangible and belongs to you.

4. Tax savings - Renting a home does not provide you with any opportunities to save on your taxes; however, owning a home certainly does. The interest you pay on your mortgage payment every month is tax deductible.

5. More freedom - If you rent an apartment, you already understand the degree to which your freedom and flexibility is restricted. Not only are you probably not allowed to enjoy the opportunity to grill outdoors due to fire codes, but there are probably a host of other restrictions that are imposed as well. When you own a home instead of rent, your home is really your castle. If you feel like having a backyard BBQ, you have the freedom to do that. If you want to plant flowers along the walkway, you can do that too. Home ownership provides a tremendous amount of freedom, flexibility and privacy.

6. More decorating choices - Are you tired of the blah way in which your current rental home is decorated? Are the walls a boring beige or white? When you own a home rather than rent, you have the power to decide how you want to decorate it. If fire engine red walls are what really speaks to you, you can paint to your heart’s content whenever you feel like it.

7. The ability to negotiate on terms and price - Due to the large number of homes on the market, sellers are far more willing to negotiate in terms of price as well as many other concessions. Some sellers are even willing to pay a portion of the buyer’s closing costs; a real boon to first-time home buyers.

8. More Space - You may very well find that in today’s market you are able to afford a larger home for the same amount of money or even less money than you are currently paying every month in rent. If you dream of having a home office, starting a family soon or expanding your family, now could be the best time to get the additional space that you need for the right amount of money.

9. Develop community ties - Living in an apartment it can often be difficult to take a vested interest in your community or even to get close to your neighbors. This is not the case; however, when you live in a neighborhood of homeowners. By owning a home you may find the opportunity to become involved in community affairs, develop strong friendships with neighbors and enjoy such advantages as block parties.

10. Maybe no money down - Financing restrictions have tightening in the last few months; however, that does not mean that all of the 100% financing programs have been completely banished. If you have good credit and do not wait, it is quite possible that you may still be able to take advantage of this type of program. This could allow you to purchase a home for no money down.

When is the Best Time to Buy Property?

What with the rising prices of gas, food, and basics of everyday living, would it be a good idea to buy property or close deals before prices rise again?

According to senior economist Prince Christian Cruz, if a buyer can pay in cash and the property is bought for the purpose of owner occupancy, any time is the best time to buy it regardless of the price increase of goods. If the purchase will be financed by a loan, however, the buyer will need to consider other factors like his income, savings, expenses, and the amount allotted for the monthly amortization. Although it’s easy to estimate how much income you’ll make in a year, the unstable economy makes it harder to predict how much your expenses will be. Even if prices seem stable for a week, it can increase unpredictably and without warning.

If you’re buying the property simply to invest in it, it gets a little trickier. Just because you bought the property with a 20% markup does not mean it will also be sold at a higher price. The price is determined by the demand for it, and it seems as though we are nearing the end of the housing price boom.

The best time to buy is now, according to President of the Subdivision and Housing Developers Association Eduardo Alunan. The interest rates are still low thanks to Pag-Ibig and other commercial banks, and you can still dodge increasing gas bills by carpooling or using public transport. But as the peso appreciates, the interest rates could rise as well.

First Time Home Buyer’s 10 Step Guide! Must Read Before Buying!

1. Know You’re Ready

You must be ready to buy a home physically, financially and emotionally. Your own home is a great freedom, but also a great responsibility.

If you have a steady income for over two years that is reliable, have paid your bills on time and have a good record, have few large, long term debts such as a car or boat, have a credit score that qualifies you for a decent loan that will not make you pay too much in interest, have money saved up for a down payment, and have the ability to pay a monthly mortgage payment plus additional costs that come along with owning your own home.

These costs may include gardening, maintenance, home-owners fees, trash, water, and other bills associated with day to day living in a home. You may say, well I am paying many of those bills now and I’m renting, so I should be able to afford a home. Keep in mind that when you are a home owner, you are completely responsible for all aspects of the home, and you will not have a land lord to turn to fix major problems or maintain the grounds.

Some first time home buyers do not realize how much effort and money can go into a home especially if they want to make upgrades, decorate according to individual tastes, or simply furnish a third room that was not in an apartment. However, if you have been able to cover all these issues and realize the responsibility that comes with owning a home, then you are ready to buy!

2. Decide How Much You Can Afford

Deciding how much you can afford can be tricky, especially since you must consider interest and the costs associated with a mortgage. Your monthly payment will depend on the type of mortgage and the interest rate. Of course, the better your credit, the better loan you will be able to get.

A financial advisor can help you determine how much you can really afford a month according to your current income, total expenses, the amount of money you can put down, and of course the loan terms you can qualify for. Although it is better to get a good mortgage with a lower interest rate, there are options for every home buyer.

Be sure to contact your local bank or financial professional for assistance. There are also many tools on-line that can assist you in finding how much you can afford. For example, a mortgage calculator and figure monthly payments, interest, and principal payments quickly.

3. Locate Your Community

When buying a home, it is important to live in a community that fits your every day to day lifestyle. For example, if you enjoy peace, quiet and small local stores and friendly relationships, a rural city would be best for you. However, if you enjoy the hustle and bustle of walking, driving and meeting new and different people on a daily basis, the big city might be right for you.

Many people know exactly where they want to live so go with your instinct and find things in the community that you feel are important, such as good schools, great restaurants, libraries, fishing, terrain to ride horses, surfing, and so much more. Talk to people who live in the community you are considering and see what they like and dislike about the area they live in.

Above all, you should feel comfortable and happy where you live which may seem obvious, but this step is one of the most important when buying a home and some people don’t pay enough attention to it.

4. Scan the Environment for Homes

You have to start somewhere when you begin your house search. I do not recommend that you hire a real estate agent right away, but rather check out local listings in the newspaper, take a drive in different neighborhoods if close enough, and get a feel for the different areas to live within the community. Check out the style of the homes, what condition they are in, what houses are selling, and surrounding shopping centers, stores, and services.

It is important to see asking prices of the homes you are considering to make sure they are within your budget. There is no sense in looking in areas you know you can’t afford. Instead, focus on finding beautiful properties in the areas you can afford. No time will be wasted and you will have a good idea as to what type of home you want and in the area that is best for you.

5. Get a Real Estate Agent

After you have done your own preliminary work, and feel you could use the help of an agent, go for it. They can assist you further by giving you inside real estate and community information that can only strengthen or deter your decision to buy a home in that specific area.

Also, agents can intensify your search by showing properties they know of or may be coming on the market soon. They can keep an eye out for properties they know will meet your already decided qualifications. The more specific you can be when going to an agent, the better help they can be to you. If you are going to buy a home, get exactly what you are looking for, or know you can easily change it by some upgrades or individual style. Don’t settle if you know what you want is out there.

To find an agent, ask for referrals from trusted sources such as friends, family, and co-workers. Your agent should be friendly, trust-worthy, have the right credentials, which include a license and exclusive agreement with a broker, and of course be willing to listen to you and what it is you want. Don’t let them show you homes that are not within your price range or not what you are looking for. They are working for you, so be sure to stay in a dominating, but friendly position.

6. Look at Homes

This can either be great fun, or grueling work! It depends on your specifications and well, how picky you are! Have fun looking at properties, but be sure to always be inspecting the foundation, the condition of both the interior and exterior. You need to play detective to make sure the home is in good condition and there are no major problems with it.

The agent and seller must disclose all information to you about ht property including both the positive and negative aspects about the home. This includes any plumbing problems, water damage, termites, soil problems, mold, and so on. So while you are enjoying the homes, be sure you ask about these things that may need repair or even replacement.

You need to also be looking as such things as the floor plan, space that is adequate for both the present and the future, the number of bathrooms and bedrooms, if there is an office or bonus room, the size and quality of the kitchen, and if the home will be pleasant all year around, if there is snow, rain or sunshine. Is there a yard that is big enough, a dog run, pool, spa, or patio that will be great for a Saturday afternoon lounge or BBQ. Make sure your basic qualifications are covered, and then look for the bonuses! Almost every home has them.

7. Choose a Home

So you found the home that meets all your needs, in the community that best fits your lifestyle, at a price you feel is negotiable. The next step is to negotiate a deal. Now, I am not going to get into negotiation, because the price paid for a house depends on many factors such as market value, appraisals, upgrades, local comparable properties, and personal assessment.

However, your agent can help you determine an offer that will make both you and the seller happy. Always remember the offer is negotiable, so negotiate! You can always submit multiple offers until accepted.

8. Get a Mortgage

You should have already tested the water with this when determining if you were ready to buy a home. Remember? You should already have a good idea as to the loan you could both get and afford. Once again either your financial advisor or broker can help with this. Now that you have chosen the home, know the purchase price, and have a certain amount of money to put down, you can actually get the loan and purchase your house!

There are many places to find home loans, including banks, lending institutions, both private and public, and mortgage companies themselves. This can take some searching and effort to find the best deal, so you may want to have your agent and broker help you with this. That is what they are there for use them! There are so many options you will no doubt find a situation that is right for you individual circumstance.

This is also the time to purchase home owner’s insurance. This will be required at the signing of the papers. Do not forget this, because you must have documentation at signing that you have paid your home insurance premium.

9. Offer and Loan Accepted- Sign the Papers

On closing day you will present your home owner’s insurance policy and the closing agent will list the money you owe the seller which my include the down payment and prepaid taxes. The seller will then present you with proofs of inspection, warranties, and any other documentation that is pertinent to the sale of the home.

After carefully reviewing all the documentation, and checking all disclosure agreements very carefully, you can sign the papers and mortgage, promising to pay your monthly mortgage based on the terms you and the lender agreed upon. You will most likely pay all closing cots and be provided with a record of where all your money went as well as the deed to the property. The deed will be recorded in the State Registry of Deeds, and you are officially a home owner!

Make sure you are clear on all terms, conditions and have read all parts of the sales agreement. Don’t rely solely on your agent, because ultimately, you are responsible for the agreement. If you nee assistance, you can always hire a lawyer to review the contract, especially if there are special terms.

10. Move!

After everything has closed and cleared, you can move into your new home! You have successfully bought your first home and will enjoy all the benefits of your very own, private home.

I hope you use these 10 tips as a good guideline for purchasing your first home. Always be ready for unexpected events, as things do not always go as we plan. Also, if you need assistance in any area of buying your home, know that there are many resources available to you including financial advisors, agents, on-line tools and books. Don’t do anything you do not understand or are not sure about. Good luck and have fun!

Buying A New Home - Home Buying Tips

If you in the process of looking for your first home, there are some essential steps that you should be aware of.

Many times, people fall in love with a home and rush into the deal — not considering some important issues. Unfortunately, many of those people end up unhappy with their purchase or end up with a deal gone bad.

Avoid this by following the suggestions below and ensuring that you have thought out your purchase thoroughly.

The most important consideration should be the sales price of the home. Just because it’s the best home in the neighborhood, that doesn’t mean that you should pay a lot more for it. In fact, experts tell us that the “best” house in the neighborhood probably won’t sell for much more than the other homes in the area.

You should look to pay not more than 10-20 more than the other homes in the area — no matter how much nicer the home is. Anything higher than that is based on emotion — not business — and will probably cost you when you go to sell it.

Next, you should take a serious look at the neighborhood itself. How are the school systems rated? Even if you don’t have children this is important because when you go to sell the home, your buyers might.

Is the house located in a convenient area, or would you have to drive excess miles to do your grocery shopping? In addition, you should visit the area in the day time, as well as the night. Does the “feel” of the area change when it’s dark, or does it still look like a nice place to live?

Finally — and perhaps most importantly — don’t get caught up in “house fever” and commit to buying more than you can afford. One way to do this is by being pre-approved by your mortgage company. This will tell you exactly how much you can afford to pay, and that will automatically slim down your options.

A good rule of thumb when you’re shopping is that your mortgage payment shouldn’t exceed more than 36 percent of your income.

7 Steps to Buying Your First Home

1. Find Your Real Estate Agent - Interview 2 to 3 Buyer Agents pick the one you are most comfortable with. Make sure they can give you the service you need. Real estate agents who can send you daily emails of homes that fit your criteria will get you into your new home faster and save you money at the same time.

2. Complete Mortgage Pre-Approval - Stop! Don’t pass go until you complete this step. The process takes 20 to 30 minutes over the phone, on line, or in person. This step determines whether or not you can buy a house and how much home you can afford. This step sets up the entire process all the way through closing.

3. Pick The Setting For Your Family To Grow - Rural, Suburban, In Town, City, On the Beach, In the Mountains, Subdivision or Acreage. The place your family settles depends a lot on where you grew up and your childhood experiences.

4. Determine What Type House Fits You - 2 stories, Rancher, Basement, no basement, Split Level, Cape Cod, Bungalow, Log Home, High Rise Condo, or Townhouse. The home style choices are not endless but after seeing a dozen homes they all start to blend together.

5. Select What Amenities You Want or Need - Eat in Kitchen, Formal Dining Room, Fireplace, Air Conditioning, Jacuzzi, 2 baths, 3 baths, 3 car garage, Patio, Deck, Screened Porch, Wooded Lot, Level Lot. The choices are limited only by your imagination and wallet.

6. What Schools Do You Want For Your Children - Public School, Private School, Parochial or Religious, How about Home School? In neighborhood walk to school, bussing OK? Mom and Dad drop off. Involve the kids as much as you can, this should also be their choice.

7. Don’t Forget Your Transportation Needs - travel to work do you use public transportation, How about travel time 20 minutes 45 minutes or more to work OK? Special needs do you require access to medical facilities. Shopping and recreation some areas it’s a 25 minute ride to get a gallon of milk.

New Homes vs Old Homes

There’s a long list of pros and cons when deciding between buying a new home or buying an old one. People commonly think that the workmanship in the past is superior than construction that is done today, but good or bad craftsmanship can happen at any point in time and there are still builders today with skill and integrity.

The advantage to buying a new home is that they are usually up-to-date with current structural standards and have contemporary conveniences. Often, new homes are built in developing areas, which means that the real estate value of the property appreciates significantly. If you’re thinking in terms of investment and reselling, buying a new home might be a good idea.

Buying an old home also has its own advantages. It’s got stability, character, and that old-fashioned charm from its design features, but many old homes also have obsolete designs, deterioration, and general wear and tear. While some old homes in the market have been renovated to offshoot these disadvantages, not all of the changes are done by qualified persons. Lack of energy efficiency is another disadvantage most old homes have, and upgrading it costs quite a bit of money. When choosing between an old home, it’s always a good idea to bring your own house inspector so you’ll be aware of any structural defects that the seller might have missed out on.

Buying Your First Home: Tips for First-Time Home Buyers

There are many benefits to buying a home instead of renting one - appreciation of the property, pride of ownership, mortgage reductions, etc. You’re probably already shopping for a your own house because you’ve figured out the reasons why you want to own one. Now all you have to do is remain focused and determined to find the house that’s just right for you or your family.

Most searches for homes begin by checking out listings on Internet, looking at pictures or going through virtual tours. If you still can’t find what you want, ask your friends to recommend a good real estate agent to you, one who will listen to your needs and only show you homes that will suit those needs.

When looking at a house, bring a digital camera and take pictures of the exterior and every single room. Note down all the interesting features and elements of the house’s construction and design, and pay attention to the location and its surroundings. After leaving each house, rate it from a scale of one to ten, with ten being the highest. You’ll immediately know which among the houses you’ve seen deserve a second look. Once you do look at them a second time, you’ll notice different things that you didn’t see the first time around.