REAL ESTATE SPECIAL SECTION
1. Give yourself some credit.
Now is not the time to open a new credit card, increase your
credit limit or make a big purchase. The first thing lenders
check is your credit score when determining how much
you are approved for on a home loan. Work on keeping
your credit card balances low, and paying down balances.
Limiting your spending may seem hard, but is worth the
payoff when you are approved for your new home.
2. Location. Location. Location.
When narrowing down where you want your home to be,
it’s best to first determine how much you can borrow. You
don’t want to have your heart set on a location and come to
find it is out of your budget. Look at what is most important
to you. Is it proximity to parks and good schools, or access
to entertainment and nightlife, or lots of land to spread out?
From there, you may find exactly where you want to be that
fits your spending limit.
3. Create a must-have list and a wish list.
What’s non-negotiable in your new home? Is it an integral
garage or open-concept floor plan or a pool? Now, is a pool
really a non-negotiable? (We do live in Pittsburgh with
sunny days less than half of the year.) Be realistic with your
must-have list and your wish list. While a pool may seem
dreamy, many communities have local swim clubs or gyms
that provide all the joy of having a pool without the work.
You may not get everything on your must-have list, but be
creative on ways to potentially add those “musts” once you
move in.
4. Things (including houses) are not always as they
appear.
Just like models in magazines with no wrinkles, home
photos are often taken at their very best angle. What may
seem dreamy and flawless on a computer screen may be
crumbling and cracking in real life. Hit the streets with your
local agent to see your favorite homes in person. You’ll
be able to explore all of the sights unseen in the photos,
including what the neighborhood is like. Maybe you find a
lovely home, but come to learn it’s next to a busy freeway or
shopping center. Never stray from the sentiment that seeing
is believing!
5. Be patient; it’s a process.
Unfortunately, you’re not the only buyers in the market.
Many are looking for similar offerings in a home. You may
lose out on what you think is the perfect home, but keep
your head up! Something just as good, if not better, will
come along—because where there are buyers, there are sure
to be more sellers!
Whether you’re looking to buy or to sell, there are hundreds of
resources available to you and your family. Start smart by doing
your research. Is now the time to put your home on the market?
What’s the buyers market like this season? Don’t rush to make a
decision just because spring is here. Homes are bought and sold
throughout the year, so make sure the time is right. As a first step,
review your finances. If you’re on the right track to having a good
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bit saved, you’re probably ready to start your must-have/wish
lists. Reach out to a real estate agent to help you get acquainted
with the communities you have in mind and the neighborhoods
you can afford. If you’ve been talking about moving, take a look
at your home. Do you have repairs to make before putting your
home on the market? You’ll want to make any small upgrades,
declutter and rearrange rooms prior to taking pictures of your
home to show potential buyers.
What First-Time
Homebuyers Should
Know
Last year was a great year for new homebuyers. According to
the National Association of Realtors, about 35 percent of the
homebuying market was made up of first-time buyers. Yet, each
year is not created equally in the mortgage industry and real
estate market. Changes happen frequently and it is often hard
to keep up. If you’re looking to break into real estate for the first
time, here are some insights into how to navigate the market.
SAVING.
Step number one for a first-time homebuyer should always be
saving. Take a look at your current finances. It’s recommended
that your mortgage payment not exceed 30 percent of your
gross monthly income. See where you can cut back spending
to put away a little extra out of your paycheck every month
for your new home. Not only can this cash go toward a down
payment, but most likely you’ll need furniture, appliances, and
decorations to furnish your new home. Don’t just calculate the
amount of money needed for a down payment. Keep in mind
the unforeseen expenses such as home repairs, agent fees and
closing costs. You can never save too much!
1. Mortgage.
Applying for a mortgage can be an intimidating process,
but if you prepare accordingly, you’ll be happy with the
outcome. According to LendingTree.com, mortgage
lenders are allowing higher debt levels for borrowers
with lower down payments (as little as 3 percent on a
conventional mortgage loan). You may not need the
typical 20 percent down that was required of homebuyers
a few decades ago. If your debt-to-income ratio is high,
you may not have to worry. Mortgage companies are
making it easier for borrowers with more debt to still
qualify.
2. Mortgage rates and tax limits.
Unfortunately, not all news is good news for first-time
buyers. Mortgage rates are predicted to continue to rise
in 2018, expected to reach 5 percent toward the latter half
of the year. In addition, new tax laws that went into effect
at the beginning of the year have new limitations. Be sure
to look into mortgage interest deduction and other tax
deduction limits that may affect your taxes for 2018.
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