Sally Vanjoske, Broker's Blog
Want to buy a house for the first time? Create a budget, and you can move one step closer to transforming your homebuying dream into a reality.
Now, let's take a look at three budgeting tips that every first-time homebuyer needs to know.
1. Don't Wait to Start Saving for a Down Payment
In most instances, a down payment on a home ranges from 5 percent to 20 percent. With a large down payment, you may be able to reduce your monthly mortgage expenses.
A lender may be more willing to provide you with a favorable mortgage if you can afford an above-average down payment. This means if you have plenty of money for a down payment, you could save money over the life of your mortgage.
2. Take a Look at Your Outstanding Debt
Student loan charges, credit card bills and other outstanding debt may make it tough for you to get the financing that you need to buy a house. Fortunately, if you pay down your outstanding debt as much as possible, you can boost your chances of buying your dream house.
Evaluate your current spending and make cuts if possible. For example, if you dine out several times a week, it may be more cost-effective to buy groceries and cook your own meals. Then, you'll have extra money that you can use to pay off outstanding debt and save for a house.
3. Understand Your Credit Score
Do you know your credit score? If not, you may be missing out on opportunities to eliminate outstanding debt and increase your home savings.
You are eligible for a free annual copy of your credit report from each of the three credit reporting bureaus (Equifax, Experian and TransUnion). Take advantage of this perk, and you can receive insights into your credit score.
If you obtain your free credit reports and find outstanding debt, you should try to pay off this debt sooner rather than later. Because the longer that you wait to pay off outstanding debt, the longer it may take you to acquire your ideal residence.
Furthermore, if you discover errors on a credit report, contact the reporting bureau immediately. This will enable you to fix any report errors before you get a mortgage.
If you need additional assistance as you map out a homebuying budget, it often pays to collaborate with a bank or credit union. In addition to providing you with multiple mortgage options, a lender will offer expert recommendations to help you budget for your first home purchase.
Lastly, don't hesitate to reach out to a real estate agent as well. This housing market professional is happy to help you get in touch with the best lenders in your area. And when you're ready to kick off your inaugural homebuying journey, a real estate agent can provide you with the support you need, precisely when you need it.
Use the aforementioned tips, and you can establish an effective homebuying budget.
You've won!Congratulations! By reading this article you've won an all-expenses paid trip to the destination of your dreams. One of the most common scams affecting homeowners come in the form of phone calls, mail, or even door-knockers informing you that you've won some kind of prize. Unless you've specifically entered to win a certain prize, you can almost be certain that this is a scam.
Identity crisisWe've often heard of the dangers of identity theft, but homeowners in particular are an at-risk demographic. Identity thieves attempt to steal your personal information in order to commit fraud or crimes. To avoid identity theft, be responsible with your mail. Always shred mail with personal data and be sure to have someone take care of your mail for you when away from home for extended periods.
I noticed your roof needs to be repairedMany scams come in the form of people knocking on your door to offer a great deal on a service. People who solicit you and ask to be let into your home or onto your property to "inspect" part of your home should never be allowed in. They may actually be a roofer attempting to convince you to repair your roof (regardless of whether it needs to be repaired). Or, they could be a would-be burglar scoping out your residence. These scammers will attempt to sell you anything from "subsidized" and "energy efficient" home energy products all the way down to fixing imagined water/moisture issues in your basement.
Make $60k a year working from home!Work-from-home jobs do exist, and they're growing in number as technology makes it easier and more efficient than traveling. However, some job offers are too good to be true. Be wary of job offers that require you to enter personal information like your social security number before ever having met the employer. Many of these "too good to be true" jobs can be spotted when they ask you for money to get started. They may say to need to pay for your own training but then can make thousands, or will ask for a company buy-in that will pay off later. Regardless, never give money to a potential employer.
I came to read the metersSomeone in a safety vest with a name tag and clipboard knocks on your door and says they're from the energy company, water company, etc. They seem legitimate and tell you how important it is to have your meter read. The might even say you're eligible for a refund or subsidy. It's important to always ask representatives to show you their ID or ask them to call and make an appointment before letting them enter your home.
Honesty is the best policy when you’re selling your home. There can be messy legal consequences when it comes to not disclosing problems contained within your home. If you’re unsure if you should disclose something, you probably should reveal it. Legally, here’s what you’ll need to be concerned about in your home as a seller:
A Death On The Property
Some would refer to these as “emotional defects.” A murder, suicide or violent crime occurred on the property most likely needs to be disclosed. If a death is more than 3 years old, it may not need to be discussed. If a buyer asks about it however, even crimes that occurred on the property more than 3 years ago must be exposed.
The Use Of Lead Paint
This is a must when it comes to seller disclosures. Any homes built before 1978 must have a lead paint disclosure signed. This is a federal law that applies to every state. Even if lead paint has been removed, the former presence of it must be revealed. If you are completely unaware of lead paint issues, you aren’t legally required to provide the information. In this area, it’s best to be honest.
There truly is no disclosure too big or too small when it comes to selling your home. You may not think of paranormal activity as something you must reveal, but everything is important. If you believe your house is haunted or if an exorcism has been done to the home, buyers should know about it. Many states have laws that include the obligation to disclose all known facts about a home. Even if you think it’s a silly issue, it could be important to discuss with potential buyers.
Property Drainage Issues
If your basement gets flooded or your backyard gets standing water, you need to expose that in the disclosure. Even if you believe an issue has been fixed, adding what has been done to documents can help to save you legal trouble later on. If you believe an issue has been resolved, at least the buyer has the information on hand as to what they might expect.
Sellers are required by law to disclose any pest issue or infestation. Any types of creatures that have been found in the home like bedbugs, snakes, mice, or bats are an issue that must be shown on the disclosure. Even if the building has had the pests but you have not personally seen them, it’s a good idea to tell buyers about it to cover yourself.
Disputes With Neighbors
It’s wise to disclose neighborly disputes with potential buyers. This is especially true if it involves your property lines and fences. Even small issues can become big ones, so it’s always best to reveal them upfront.
If your new home comes with a softening system or you are thinking of installing one to combat particularly hard water there are some differences you will need to account for that you may not expect. In fact, you might even be using tactics to combat hard water in your current household and not even realize it!
So what is soft water?
Hard water has high concentrations of magnesium and calcium in particular. Whereas soft water has little to none leaving only de-ionized sodium.
One of the first things, and arguably the most important, you need to know about living with soft water is that it is not recommended as your main supply of drinking water. Soft water is very high in sodium which in addition to the typical American diet being high in sodium can lead to increased risk of high blood pressure, heart attacks and stroke.
I don’t say this to scare you! Usually, water softening systems have a bypass valve that allows you to choose which appliances gain access to which water type.
This means that in most cases your kitchen sink should have access to the hard water supply.
If you aren’t familiar with benefits of soft water you are probably wondering why have it all.
But benefits there are!
Hard water is tough on plumbing, appliances and even clothing. Those high concentrations of calcium and magnesium build up and cause havoc. They can even make clothing dingey and surfaces like your bathtub difficult to get clean.
What this means is that with soft water you don’t have to spend as much time cleaning/scrubbing the effects left behind by hard water. And you even can, and should, use less soap. This is most important to keep in mind with your washing machine and dishwasher. Soap can suds up much easier in soft water. So when there is too much soap it leads to too many bubbles and this leads to damage to your machine and even leakage over time.
In addition to using less soap, you will find you will need less, or even none, of “booster” products like Borax and Oxiclean. This is because these products are actually water softening agents and help keep soap “sticking” to clothing after it’s attracted up all the dirt.
Your appliances and plumbing will also have a longer life thanks to the lack of magnesium and calcium building up inside pipes and hoses. This is true for your water heater, washing machine, dishwasher and even smaller appliances like your coffee pot.
If you’re thinking of having a softening system installed, have your water levels tested first. They might not be so high that an entire system is necessary. For the most part, and with some research, you can find other solutions to combat hard water just as well!
Sure, it's possible to find a home with a fully equipped exercise gym, an Olympic size swimming pool, or a couple tennis courts on the premises, but who wants to spend that kind of money! Fortunately, there are house features you can look for that will help you stay in shape without having to win the lottery first! Here are a few ideas to consider when searching for the ideal home:
- Proximity to a park: Whether you're looking for a home in the city or nearby suburbia, most communities have bike paths or public parks where you can walk, jog, inline skate, bicycle, take your dog for a stroll, or play tennis. Parks with playgrounds are also a great resource for keeping your kids entertained, physically active, and engaged. Having a park or walking trail located within a mile of your house is ideal because if it's convenient, you'll be more inclined to go there frequently. While it may not be at the top of your house-hunting "wish list," proximity to a park, nature preserve, or walking trail can be instrumental in helping you and your family stay healthier and more energetic. Doctor-approved, regular exercise is also a proven way to counteract the effects of stress, elevate your mood, and maintain a healthy weight.
- Pedestrian-friendly neighborhoods: One of the advantages of buying a home in a quiet neighborhood is that it offers a safe and relaxing environment for taking daily walks. Going for walks near your house can also be a good way to get to know your neighbors and check out the latest yard sales. Although sidewalks can be a nice feature for homeowners who enjoy neighborhood walks, quiet streets with mostly local traffic is all you really need for favorable walking conditions.
- A finished basement or extra room: The problem with putting an exercise machine in your bedroom or even the family room is that, sooner or later, you're going to get sick of looking at it! Until somebody creates a treadmill, exercise bicycle, or elliptical machine that has aesthetic appeal as well as functionality, it's never going to complement your decor! More often than not, exercise machines are an eyesore and a source of clutter. The solution is to create a dedicated exercise space in either a finished basement, a rec room, or a spare bedroom. Half of a two-car garage can sometimes provide a good area for weights and exercise machines, too, but that's only if you're willing to park your second car in the driveway.