Posted by Muneeza Realty Group on 1/13/2018

For the generation that grew up at the height of the subprime mortgage crisis, buying a home is a scary concept. Many young people in the 18-34 age range are dealing with high rent, a poor job market, unpaid internships, and student loans the size of a home loan. Yet, others are finding their footing and realizing that owning a home is advantageous in the long run. If you're thinking of delving into the world of home ownership for the first time here's a crash course in Home Buying 101.

Figure out your finances

You should be an expert at you and your significant other's personal finances if you are thinking about buying a home. The first thing to look at is your income and expenditures. Put the following information in a spreadsheet:
  • Total monthly income
  • Total monthly expenditures (bills, gas, food, etc.)
  • Total monthly savings
  • Total savings and assets
  • Credit and FICO score (request both of these online)
When crunching these numbers you should (hopefully) find that your income is higher than your expenditures and your savings should account for most of the difference. If your savings is lower than it should be, you either missed something on the expenditures list or you are spending more than you should be if you want to buy a home. Down Payments Down payments on a home, post-financial crisis, range from anywhere between 0-25 percent of the price of the home, 20 being the median. A down payment ideally shouldn't break your savings in case you have any unforeseen expenses once you buy your home. Moving is time-consuming and can be pricey, so you'll need to account for this in your finances.

Lock Down Your Financing

There are several types of mortgages that you'll need to choose from, and you'll want to learn about fixed and adjustable mortgage rates. This information should be informed by your long-term plans. Are you looking for your first home or your forever home? If you don't plan on fully paying off the home you might look for a low, adjustable rate while you earn money. But if you want to stay in your home until it's paid off, a fixed rate might be better for you.

Finding and buying your home

Once you've determined your price range, start thinking about things like location and the kind of home you can afford. If you're handy with tools and have the time, it might be in your best interest to buy a home than needs some work at a lower cost. If you'd rather put in more hours at work, go with the home that needs less work and save money that way. Depending on whether or not you're in a buyer's market or a seller's market, the ball can be in your court or the seller's. In a seller's market, which is more likely today in many parts of the country, the seller will have more leverage in negotiations, including closing dates and move-out dates. Due to high competition, you should also be prepared to miss out on some offers. But be patient, and you should find the home you're looking for.  





Posted by Muneeza Realty Group on 11/4/2017

When you make the decision to buy your first home, you should be certain that you’re ready to make the leap into homeownership. There’s many different things that you should do as a buyer to get ready before you even set out on the search of a perfect home.


Choose An Agent


You may think that one real estate agent is the same as any real estate agent that you’ll find. This is far from the truth. Some agents have certain specialties. The knowledge that an agent will bring to your house hunt is often invaluable. You are making one of the biggest purchases that you’ll ever make in your lifetime. While many buyers think that they can simply do an online search themselves to find a home, your realtor will have many more resources to assist you in finding exactly what you’re looking for.


Figure Out The Financial Portion Of Buying A Home


While knowing how many bedrooms you need and where you hope to live is important, understanding your finances is even more important. You’ll need to talk to a lender to get the process started. After looking at your own personal budget, you should get pre-qualified. Getting pre-qualified allows you to see a general number of how much house you can afford. That can help you start the process, however, there’s still a few more steps. 


From here, you can do what needs to be done to get your entire financial picture ready to buy a home. This includes saving for a downpayment, improving your credit score, and continuing to keep up bill payments and consistent work history. 


Next, you’ll want to get pre-approved. This allows your lender to dig into your financial picture. Everything from your credit score to your income and employment history will be considered. Your lender will then give you a more definitive number of how much you’ll actually be able to get for a loan when you buy a home. To get pre-approved, be prepared with 1099 forms, pay stubs, tax returns, and bank statements. You’ll then have the concrete amount that you’re approved for along with the interest rate that you qualify for. 


Once You Have Applied For A Home Loan


Once you find the realtor to assist you and secure the home of your dreams, you’re not free to head out and buy all the furniture that you need to fill up your house. The home loan must go through the underwriting process and until that is complete, your finances are essentially on lockdown. If you start opening new credit cards, decide to buy a car, or fall behind on payments, you could end up in a lot of trouble. You want to keep your credit score stable throughout the process of buying a home for smooth sailing.





Posted by Muneeza Realty Group on 9/17/2016

Many people think of their first home as a “starter home.” This refers to a home that is fairly small and typically is for young people who are just starting out in a new phase of life. These types of homes are generally not thought of as “forever homes.” Many times, as families expand, they will move on from their starter homes to bigger and better homes. This includes living in desirable neighborhoods and adding extra comforts that the first home may not have had. Other times, people expand on their starter home in order to make more room for children and the needs of a growing family. These homes truly are jumping off points. Studies show that the idea of starter homes is disappearing. It could be that the requirements of first-time homebuyers are changing and therefore the types of homes that are being sought after are few and far between. The expectations of buyers have increased greatly. Buyers would like adequate space and hope that their first home is not only in a great location, but ready for them to move in without much work as well. Really, buyers are looking for everything anyone would want in their forever home in their starter homes. So, is it a smart idea to search for a starter home, only to move a few years later? The answer is multi-faceted. Starter homes are typically the homes that you can afford at the present time in your life. If you decide that you can save up longer and go for the house you really want, that may be a smarter financial decision for you. There’s always an option to wait for more homes to go on the market while you rent a place. If you do decide to go for a starter home, here’s some tips for you: Don’t Try To Get Everything You Want For A Low Price Buyers tend to have wish lists of the things they desire in a house. While that’s a great idea, don’t expect to get everything you want in your starter home. Manage your expectations along with the cost of the home. See Where You Can Expand Many homes have great potential, but buyers have what they see set in their minds and fail to see what can be done in the future. Look at homes with open eyes and picture the possibilities. Know There Will Be Work Involved Purchasing a starter home means that you’ll usually need to participate in home improvement projects. Don’t go for a home that needs major work done if you’re not up for the challenge. Typically, you’ll need to be able to get your hands dirty by doing things like changing out wallpaper, painting walls, or sanding cabinets. These are the little projects that make your house your own.







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