Showing posts with label first time home buyer. Show all posts
Showing posts with label first time home buyer. Show all posts

Tuesday, October 16, 2018

First Time Homebuyers: 4 Things You Should Do When Starting Your House HUNT

Buying a home can be difficult if you don’t know where to start, especially if you’re a first-time homebuyer. To help you, we’ve compiled a list of 4 things you should do when you‘re starting your first house HUNT.

Gather your paperwork. One of the most important things you must do is get pre-approved for your mortgage, so both you and your agent understand what the price range is for your home search. Gathering all the required paperwork for your mortgage pre-approval is crucial. This can also make it easier to apply for your mortgage when the time comes.

Choose your agent wisely. Who you select as your agent can have a huge impact on your home buying experience. Your agent will represent you in the transaction, so make sure they are a good fit. Your agent should be familiar with your local market. Your agent should also be attentive and available. No two agents are the same, so make sure you enlist the help of someone who knows your wants and needs.

Explore the communities you are interested in living in. What are you looking for in your future community? Make sure you ask yourself the important questions. What school district would you like to be in? Are you near shops and restaurants or would you prefer a more rural setting? Do you want a large yard or no yard?

Decide your home renovation skill level. We love a good home renovation show, but HGTV isn’t always the reality. While home renovation TV shows glamorize home improvement projects, the reality can be time-consuming and incredibly expensive. If you’re looking for a project, make sure you’re realistic about your skills and your budget.

At HUNT Real Estate, our sales professionals will help you every step of the way. Are you embarking on your house HUNT? Reach out to one of our real estate professionals today!

Tuesday, March 29, 2016

First-Time Homebuyer? How to Tell If You’re Ready.

How’s your job? Love your work and see yourself staying put for the next 10 years? Or do you dread the commute, hate what you do and frequently scan job boards? Oh, and how’s your love life?

If a far-away job beckons or you decide you’re ready for marriage after all, you don’t want to end up yoked to a home you really shouldn’t have purchased. Before buying, you’ve got to take a serious self-inventory, including asking yourself some not-so-obvious questions.

Before you buy, think of selling
The career and relationship questions might seem obvious, but when you consider moving into your own home, you’ve got to probe even deeper. Does your career path mean you need to maintain a bit of mobility? Could a promotion or career advancement in the next five years mean you’ll have to relocate? If so, maybe you’d better keep on renting. Or if you’re planning to start a family, you might outgrow that starter home before you know it. Better look for something bigger — and check out the school district before buying.

It’s all about determining your first home’s shelf life. Before you buy, think about selling the home you’re considering:
•  How is the neighborhood? Will potential buyers love the area as much as you do a few years down the road?
•  Is the local real estate market on the upswing?
•  What kind of development is going on nearby? Commercial, retail, residential — or is that a multi-stack highway interchange they’re building over there?
•  Does the home have a quirky location or features you don’t mind but that might turn off future buyers?

Also worth thinking about: Your starter home may serve as a passive income provider in the future. Consider how the property might work as a rental unit.

It’s how much you can afford, not how much you can borrow
A lender will tell you how big a loan you’ll be eligible for when you prequalify, but that’s not necessarily what you can afford. You’ll want to leave room in your budget for the one-time and recurring expenses of homeownership.

Everyone’s financial situation is different, but many conventional lenders use the following formula to determine how much home a buyer can afford: Your house-related payments (mortgages, taxes, insurance) shouldn’t exceed 28% of your pre-tax income, and your total monthly debt obligation shouldn’t exceed 36% of your monthly pre-tax income. (Government-backed loans tend to be a bit more flexible.)

But before you rush to a mortgage calculator to see how much house that will buy, remember to consider that your monthly note will likely include more than just principal and interest — there are also taxes, insurance and other expenses that will have to be accounted for.

What lenders consider
In the process of determining whether to grant you a loan, lenders will look at how much debt you have compared to how much money you make. It’s called the debt-to-income ratio, or DTI. The formula looks like this:

Total Debt / Gross Income = Debt to Income Ratio

Say you pay $7,200 toward all your debt each year; that’s $600 a month. If you make $60,000 per year, or $5,000 per month, your debt-to-income ratio is 12%. As we mentioned above, conventional lenders generally want to see an all-in DTI of 36% of your gross income or below — including your house note — but some lenders will allow for wiggle room on this, and if they determine you have the ability to repay, they may go above this watermark.

In the above scenario, that leaves 24% of your annual salary available for your housing expenses (36% minus 12%), or $14,400. Your mortgage note would need to be around $1,200 per month. You’ll notice in the chart above that the $60,000 income allows for a monthly payment of $1,400, so we’re close. Remember, you’ll still need to allow for insurance and taxes.

The power of rational thinking
When you’re ready to put down roots and can’t imagine living anywhere else — that’s when you realize wanting a house is an emotional decision. But buying a house should be a deliberate, rational process, and a key part of such an important financial decision is figuring out the numbers.

This article originally appeared on NerdWallet.

Friday, November 8, 2013

Some of the things you learn from being a homeowner | HUNT Real Estate ERA

The transition from renting to owning your home is beneficial in a number of ways, but it does take some adapting. Being a homeowner is a large responsibility, but one that is undeniably worth it. The key is to remember that owning a home is actually awesome, while you're figuring some things along the way. Once you’re settled into your new home, you’ll notice how things are different, and you’ll learn a lot about being responsible.

#1 You’re Officially on Your Own
Your financial and emotional preparations have led up to this point. You’ve crossed a milestone and try extra hard to hide how high your level of absolute delight is and find it impossible.  

#2 Your Tax Return Feels like Your Birthday
The first year you buy a house, you usually see a nice, big tax return. 

#3 You Always Turn Off the Lights
You finally understand your father’s obsession with turning off the lights!  You feel your life coming full circle.  

#4 You Get Super Excited to Shop at Home Depot
After months of planning your d├ęcor on Pinterest and endless hours watching HGTV (that channel is so addicting), you can finally put your plans into motion!  Home Depot’s employees now know you by name. 

#5 You Find Yourself Busting Out Random Moves
You just can’t help it.  Your new house is just too awesome. 

#6 Your Hard Work has Paid Off
The paint has dried, everything is unpacked and you realize you are finally HOME! 

Peter F. Hunt