Tag Archives: Homeowner Tips

The Pros and Cons of Paying Cash When You Buy Your Next Home

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The Pros and Cons of Paying Cash When You Buy Your Next HomeWith mortgage bubbles and real estate issues still in recent memory, one might feel that their best option is to buy their next home using cash instead of borrowing the necessary funds. In today’s article we’ll explore the pros and cons of paying cash for that next house or condo.

The Pros Include A Feeling of Complete Ownership

There’s a feeling of pride and joy that comes with owning a home outright. There are several other reasons for paying cash instead of signing on the dotted line and getting and being strapped to a 30-year mortgage. Perhaps the best reason is having 100 percent equity in the home.

The cash will be there to borrow in case of an emergency. Having cash on hand is great if a water pipe bursts or there’s a huge car repair bill. In addition, instead of paying a monthly mortgage, that money could be used to start a college fund, to grow savings or to invest.

And, credit problems wouldn’t be an issue since there wouldn’t be a need to check credit history in the first place. The homeowner may be able to negotiate a better price, which may result in a likelihood of a smoother sale, and attract more prospective buyers.

The Not So Great Reasons To Pay With Cash

Buying a home is one of the largest financial investments a person will make in his or her lifetime.

However, buying a home outright most likely means that a significant percentage of cash will be tied up in the house. Less cash will be on hand for savings, college funds, and emergencies like a plumbing malfunction or an expensive car repair.

While paying in cash may result in a mortgage life, if the property value drops for whatever reason, there’s no purchase protection. For instance, if the market value of a $100,000 home loses 10 percent that will be a loss of $10,000. Take this example and apply it to a mortgage down payment. If the market value falls, there’ll be a loss of $10,000, but the bank would take a loss for the remainder of the property value.

Also, when paying with cash, there is no third party property evaluation to ensure the buyer isn’t overpaying for the home. Banks will send a professional to provide a property evaluation check to verify the correct home value.

Buying a home is a significant personal decision. In today’s tough economy, homeowners are finding ways of cutting back on expenses. Owning a home outright, without the stress of mortgage payments can be extremely liberating. Comminting a large amount of your cash to this large of an investment needs careful planning.  Sit down with your trusted mortgage professional today before making the decision to use cash to pay for a home.

The HARP Mortgage Program is Coming to an End Soon – Here’s What You Need to Know

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The HARP Mortgage Program is Coming to an End Soon - Here's What You Need to KnowThe United States government established the HARP program, otherwise known as the Home Affordable Refinance Program, to assist homeowners who are struggling with their mortgage payments. Initially, the program was founded in March 2009, and it has provided many homeowners with an easier route to adjusting their mortgage payments to make them more affordable. However, the program will be ending soon, and homeowners who have not yet taken advantage of the program and who intend to do so may need to act quickly.

When Does the Program End?

The HARP mortgage program will officially end on December 31, 2015. If you intend to apply for a mortgage under this program, you must have your application submitted by this date. However, a closing date may extend into early 2016. There are special rules and eligibility requirements that must be met in order for you to take advantage of this program, and these must be in place before you submit a full application. Therefore, it is important that anyone who is interested in applying for a mortgage under the HARP program take time initially to understand more about the rules and eligibility requirements in place.

What Are the Requirements?

It is important to note that the HARP program is not suitable for all homeowners who wish to refinance, and special requirements must be in place. Just a few of the requirements include that you must be in good standing with your current mortgage with no late payments within the last six months. You also cannot have had more than one late payment within the last 12 months. In addition, you must be able to pay for the new mortgage payment, and the mortgage must be a Fannie Mae or Freddie Mac loan. These are just a few of the requirements, and you will need to work with a mortgage professional to ensure that you qualify for these and other requirements that are in place.

The HARP program has already helped many homeowners who have been struggling with their mortgage payments. While the program offers a permanent solution to homeowners by re-establishing a new mortgage payment amount, the program itself was only intended to be temporary in nature. Because it will officially end at the end of 2015, any homeowners who are still interested in taking advantage of the benefits of the HARP program should consider speaking with their trusted mortgage professional soon to learn more about the requirements and to begin the application process.

Dealing with the Summer Heat? How to Keep Your Home Cool Without Using a Ton of Energy

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Dealing with the Summer Heat? How to Keep Your Home Cool Without Using a Ton of EnergyMany people look forward to the long, relaxed, sunny days of summer, but they also dread opening up their energy bills throughout the summer months. Cooling a home can be costly, and many are searching for convenient ways to lower cooling costs without sacrificing on comfort inside the home on the warmest days of the year. These are just a few of the cost-effective and convenient options that can help homeowners to reduce cooling costs throughout the summer.

Keep The Blinds Closed

A significant amount of heat can enter a home through the windows, and blinds and curtains provide an extra layer of insulation between the window glass and the interior of the home. Some types of blinds and curtains are more effective at blocking heat than others, and homeowners may consider making an upgrade for the best results. For example, wood blinds can block significantly more heat than thin, almost translucent sheers.

Run The Ceiling Fans

Another way to keep cooling costs lower throughout the summer months is to run ceiling fans regularly. Ceiling fans help to circulate the air, and this helps the central cooling system function more efficiently. In addition, ceiling fans also can make those who are in the room feel cooler, and this may mean that homeowners can keep the home’s thermostat set at a slightly higher level than it otherwise would need to be set at for comfort indoors.

Use Heat-Generating Features At Night

There are numerous appliances and types of equipment that may be used indoors throughout the summer that can generate a considerable amount of heat, and running these at night can reduce the need to run the central cooling system as much during warm days. Consider that everything from running the washing machine and dryer to using the dishwasher and oven or range can emit heat in the home, and these serve to counteract the work that the cooling system is doing. When possible, limit the use of these features to cooler nighttime hours.

Keeping the home cool throughout the summer is a top priority for most, and the good news is that there are easy ways to reduce the cost associated with keeping a home cool. These ideas all can be beneficial in a homeowner’s quest to reduce energy costs during the summer.

Safety Tips: 5 Ways to Prepare for a House Fire – and What to Do if One Breaks Out

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Safety Tips: 5 Ways to Prepare for a House Fire - and What to Do if One Breaks Out House fires can break out for a wide range of reasons, and these include everything from grease fires while cooking in the kitchen to lightning striking the home. They can cause a significant amount of property damage as well as personal injury or even loss of life, so preventing them and knowing how to properly respond if a fire does break out are important. Whether buying a new home or residing in an existing home, everyone can benefit from learning more about fire safety rules.

Have An Exit Strategy

Fires can break out whether residents are awake in the living room or kitchen, taking a bath or sleeping in the bedrooms. It is important to have a fire exit strategy for every floor of the home and every room of the home. In addition, it is equally important that all residents in the home understand the strategies and know how to get out.

Invest In Fire Safety Ladders

Fire safety ladders are designed to give residents a safe escape route from second story windows, and they should be placed in a convenient location in every second floor room in the home. Residents should know how to attach them securely to the window as well as how to get down the ladder safely.

Purchase A Fire Extinguisher

Generally, it is safer for residents to get out of the home in the event of a fire rather than to attempt to put the fire out, and personal safety should also come before thoughts about saving the property. However, in the event a very small fire has broken out, a fire extinguisher can provide a homeowner with a safe way to put the fire out. It is best to keep a fire extinguisher in a convenient location on each floor of the home.

Place Fire Detectors In Strategic Locations

There are codes regarding the placement of fire detectors in a home, be sure you arefamiliar with and are in compliance with these standards. In many cases, homeowners may benefit from having additional fire detectors placed in strategic locations throughout the home in addition to the locations required by code.

Check Fire Safety Equipment Regularly

Fire safety and prevention equipment is only useful if it works, so it is important to test the equipment and supplies regularly. For example, a homeowner may test the batteries in a fire detector monthly and may take extinguishers to the local fire department for testing annually. These steps will help to ensure that residents have access to functional safety equipment regularly.

Residents should also know what to do if a fire breaks out in a home, and in most cases, the answer is to get out of the home quickly and to call the fire department. Attempts to save personal belongings should not be made, and all residents should know where the family will meet outside of the home in the event of a fire.

Family Matters: How to Choose the Perfect Home for a Large or Growing Family

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Family Matters: How to Choose the Perfect Home for a Large or Growing Family Selecting the right home to purchase for a family is a monumental task, and this process can seem even more challenging for those with a large or growing family. A common goal may be to give everyone ample space to stretch out and feel relaxed, but some home buyers may also be focused on other factors like location, cost and even the general style of the home. While choosing the perfect home for a large or growing family is not easy, the process can be simplified by focusing on a few points.

Focus On Storage Space

There are few things that can make home life more miserable in the coming years than a lack of storage space. When a large family does not have adequate storage space in closets, the attic, the garage and your cabinets, their items will likely find a home on the counters, on the floor and in other undesirable locations. Home buyers can consider looking for a home that has more storage space than is needed right now to ensure that the new home can accommodate growing needs over the years.

Think About Function Over Size

Many people who are looking a new home will focus on finding a home that has a specific minimum square footage or a minimum number of bedrooms, but function is generally more important. For example, if a home has bar-style seating at the kitchen counter, the family may not need as large of a breakfast room to accommodate its needs. The family may also get more use out of a home that has a second living area, such as a game room, rather than a formal dining room that may rarely be used.

Choose The Right Floor Plan

In addition, consider reviewing the floor plan of the home carefully. Many prefer to have the kids’ rooms away from the master room, a study placed away from the kids’ game room or an open area where the kitchen and family room are connected so that a parent can oversee the kids while making meals. Home buyers should consider how they live and their likes and dislikes about their current space to determine which floor plan is best for them.

Deciding which home to purchase is rarely easy to do, but be sure to keep these tips in mind when making your decision.

First-time Mortgage Borrowers: Avoid These “Rookie Mistakes”

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First-time Mortgage Borrowers: Avoid These Many home buyers who are applying for their first mortgage will go to great lengths to research the options, learn more about loan terms and generally educate themselves about a process that they are unfamiliar with. Despite these common steps that rookie mortgage applicants make, they often make similar mistakes when applying for their first mortgage. By learning about these common mistakes, you can take steps to prevent making them yourself.

Not Focusing on All Costs of Home Ownership

Many first-time home buyers are overwhelmingly focused on setting up a mortgage payment that is affordable for their budget. While this is important, the mortgage payment is not the only expense associated with home ownership. For example, there are property taxes, insurance, repair and maintenance expenses, homeowners’ association dues and more. All of these expenses should be reviewed when you consider what mortgage payment is affordable for your budget.

Not Thinking About Short and Long-Term Plans

You should also think about short and long-term plans for your home ownership experience. Some will choose a long term or an adjustable rate to keep the payments low. However, they will not consider the fact that the payment will be in place until the home is sold or the loan is refinanced. It is not certain what mortgage rates will be in the future or if you may qualify for a great rate on a refinance loan in the future, so you should always ensure that you can maintain the payment structure for as long as needed.

Not Getting Pre-Qualified

It can be intimidating to get pre-qualified for a home mortgage. Some may fear rejection or denial altogether, and some may estimate an amount they may qualify for without actually getting pre-qualified. This can backfire for you. The pre-qualification process helps you to learn the maximum loan amount you may qualify for and the payment for that amount, and this is sound, valuable information that can help you to make a more informed decision when selecting your home.

As a first-time home buyer, you may be stressed about finding the right home to buy and researching the neighborhoods and schools. While these are all factors to pay attention to, you also need to focus heavily on your mortgage. Through these efforts, you can set up an affordable home loan that is comfortable for you to manage on your budget.

Real Estate Roundup: The Top 5 Apps to Use When Buying or Selling a Home

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Real Estate Roundup: The Top 5 Apps to Use When Buying or Selling a HomeWhether you are buying property, selling property or both, the process can be challenging, stressful and even overwhelming at times. Just as you may use various mobile apps to streamline and simplify other aspects of your life, you can also use some well-designed apps to improve your overall experience when you are buying or selling property. These are some of the best apps for you to use as you move forward with your real estate plans.

iBank

This app is not free for you to download, but the small fee that you pay to use iBank may be well worth paying for. This is an app that you can use to track your bank account balances and living expenses. Financial strain is one of the most significant sources of stress for those who are moving, and this is an app that you can use to ease your money management challenges.

PowerOne FinancePro Calculator

The property that you choose to purchase will impact your budget in a number of ways. The most obvious difference will be a change in your mortgage payment, but there are other expenses that will change as well. For example, there will be changes to your property insurance, property taxes, homeowners insurance and more. This is an app that will help you to better estimate your total housing expenses.

GoodReader

You can accumulate a mountain of paperwork when buying or selling property, and GoodReader is an affordable app that will help you keep track of the paperwork. You can scan the items into the system and keep them stored for easy access and portability.

Zillow

You may already use Zillow on your PC or laptop, but you may love the experience of using it on your smartphone. This is a property search app that buyers can use to get details about property listings while on the go. It can also be used to help you learn more about other listings and their prices that your own home may be competing with when you list a property for sale.

Although property search apps like Zillow are a good resource for general information, working with your trusted, local real estate agent is always a better option when you are seriously considering a property purchase. Your agent may also offer a local app that you can download to access the most current, relevant property search data.

ScannerPro

When you need to scan documents to send digital copies of them, ScannerPro is a great app to use. This is an affordable app that works with your iPhone or iPad. Essentially, it creates a photo image of your documents, and you can then transmit them or store them as desired.

Buying real estate can be cumbersome and complicated, but it does not have to be. Working with a trusted mortgage professional is always the first step to buying a home.

The Three Essential Habits That Successful Home Buyers Must Embrace

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The Three Essential Habits That Successful Home Buyers Must EmbraceWhether you are preparing to purchase your first home or it has been many years since you last walked through the home buying process, you may be starting to feel overwhelmed at the thought of all of the work that lies in front of you. From concerns about finding the right home to the physical act of relocating all of your belongings after the closing, there is certainly a lot to think about.

While each home buying transaction is unique, the most successful home buyers have typically adopted a few behaviors. You may keep these in mind to help you navigate through the process with success.

Keep An Eye On Your Budget

Financial stress when buying a home is common. You may have saved for years to afford your down payment, but there are various expenses that some may have not calculated or planned for.

It is important to leave extra funds available for unexpected expenses, such as paying for the appraisal up-front on the home you have fallen in love with. Likewise, keep a close eye on your budget so that you are aware of your financial situation at all times.

An important strategy to stay on budget is to sit down with your trusted mortgage expert to determine what you can afford before you go look at homes. This may save you from falling in love with a property that is well outside your budget.

Be Available And Flexible

It is imperative that you remain available and flexible as much as possible. Your real estate agent may call you at the last minute with a great new listing that has come on the market, and you may need to be flexible with your schedule to see this property before other buyers do. In addition, you may need to be flexible and accommodating with regards to contract negotiations, working with title company requests and more.

Seek Advice And Knowledge

Buying a home does not have to be stressful, but it also is not something that you do every day. There is a lot for even an experienced home buyer to learn, and you should be prepared to seek advice and to educate yourself along the way. Ask questions as necessary, and use the Internet for additional research.

Home buying is a process, and you may consider taking one day at a time as you proceed through the journey to reach your ultimate goal. A skilled real estate agent parnered with a trusted mortgage advisor can both guide you through the process and can help you to more successfully reach your goal. Reach out to a trustred mortgage expert today to begin looking for your new home by figuring out what you can afford.

Taking an Extended Vacation? Renting Your Home to Long-Term Tenants is a Great Option

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Taking an Extended Vacation? Renting Your Home to Long-term Tenants is a Great OptionTaking an extended vacation can seem like a dream come true. You may have plans to spend your summer in Europe, your winter in the Caribbean or even a full year or longer exploring a different region. If you have the luxury of taking an extended vacation, you may have your sights set on adventure and relaxation.

However, you also need to consider the practicality of leaving behind your home and belongings for an extended period of time. A great idea is to take on a long-term tenant for your home, and there are a number of benefits that you can enjoy by doing this.

Generate Income From Your Home

When you lease your home to a long-term tenant, you will be able to generate a monthly income from the property. This can be used to pay for your mortgage, property insurance and other related expenses while you are gone. Essentially, it can make it more affordable for you to take your trip for an extended period of time.

Decrease Your Maintenance Expenses

When you are away from your home, you may still have maintenance and upkeep chores to do. When you are home, for example, you may easily be able to water your lawn and mow the grass on your own. You may deal with a leaky pipe before it becomes problematic and causes considerable damage to the home. When you are gone, you may need to pay for a lawn service, and you have nobody to watch over the interior of the home. However, when you lease your home to a tenant, the tenant may be responsible for caring for the yard. In addition, he or she can alert you to issues that develop inside the home.

Someone to Keep an Eye on Your Property

When a home appears to be vacant, it is more likely to be vandalized or burglarized. A tenant will give your home an occupied look and will decrease the risk of criminal activity. In addition, the tenant may change your air filters, replace batteries in the smoke detectors and take other steps to keep the home in great condition for you while you are gone. You can specify your requirements in the lease.

If you are planning an extended vacation and you are looking for a convenient way to ensure that your home is taken care of while you are gone, consider the benefits of taking on a long term tenant.

Three Excellent Reasons to Buy a Home So You Can Get out of the “Renting Rut”

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Three Excellent Reasons to Buy a Home So You Can Get out of the Renting a home is a good option for some, but buying a home just might be the best thing for you. When you rent a home, you send money to someone else every month in exchange for knowing that you can call on your landlord when the roof leaks, an appliance stops working or your bathroom faucet breaks.

There are some big advantages to buying a house that will help you get out of your renting rut and focus more on your future.

Build Equity

Did you know that when you rent a home, you help someone else build equity? Any changes that you make with your landlord’s approval puts money back in his or her pocket. Keeping the yard clean and taking care of routine maintenance builds equity in that property. When you buy a home of your own, you have the chance to build equity of your own, which you can use to obtain a loan later.

Save On Your Taxes

When you rent a house, you cannot deduct the money you spend on your taxes. Though some states will let you make a small deduction based on the total amount you spend in rent each month, you cannot make any deductions on your federal taxes. When you buy a home, you can save with a few different types of deductions.

The federal government lets you make a deduction if your home is worth more than what you currently owe on your taxes. If you purchased your first home, you can make a deduction in regards to your property taxes. You can also deduct money that you spend on some renovations and energy saving appliances.

Put Your Personal Touch On Things

As long as you continue renting, you live in a home that belongs to someone else. Your landlord has final say over what you do and do not do. This often means that you cannot make repairs or significant changes without seeking approval first.

Renting a home lets you put your personal touch on things. You can paint the walls any colors you want, rip out the carpet to add hardwood flooring or even make significant changes outside to turn your new home into your dream home.

Now that you know more about the benefits of buying a home and how that purchase can get you out of the rental rut you’re in currently, turn to a mortgage professional for assistance.