Buying your first home while in your 20s? Congratulations! This is a very scary and exciting time for you, but you're almost there. The keys to your new home will be in your hands very soon. But for now, take a moment to step back and find out if you're doing any of these common mistakes without you knowing. 1. Not being financially prepared When you're young, a lot of factors can lead you to believe that you are ready to buy a house NOW, even if your financial situation may prove otherwise. This is possibly the most significant investment you’ll ever make, so make sure you won’t be left high and dry by an impulse decision. Buying a house is a choice that must stem from your honest assessment of your financial situation. So, how do you know if you’re financially ready to buy a home? You’re not merely getting pressured into buying a house just because everyone else thinks it’s a good idea You have an emergency fund set aside that will allow you to pay your mortgage in the event of sudden unemployment You can pay your own closing costs (which account for 2 to 5 percent of the home’s value) You’ve prepared enough money to pay property taxes and insurance You have a set budget for pre-move-in upgrades like painting and furniture You have a healthy relationship with debt, or better yet, you’re debt-free 2. Not hiring an agent Current technology and the internet have made it a lot easier for home buyers to search for properties online, but being able to do your homework with the help of Google does not exempt you from needing an experienced real estate agent by your side. Hiring an agent you can trust will allow you to navigate the whole buying process more efficiently, which will lead to more successful negotiations. An agent with a broad understanding of the market will know how to land you a great deal considering everything you want and need regarding location, price, and overall quality of the house. With an experienced agent doing the work on your behalf, you'll have a professional set of eyes that can oversee transactions and make the process more convenient for you – especially if it’s your first time. Also, having a professional who can be physically present during stressful times is still a lot better than hundreds of Google searches. To find the right agent for you, get referrals from friends and family whose interests align with yours. Once you narrow your choices down to a few, make sure to ask the right questions before you decide. 3. Making decisions based solely on price When you're working with a limited budget, a house that is within or even below your price range may seem like a great deal. While some people do get lucky with relatively cheap purchases, banking on price alone can be disastrous. If you decide to buy a home just because of its attractive price, you may be missing out on some critical details such as the safety of the neighborhood, its accessibility to schools and hospitals, and plenty of other things that must be on your criteria. Price is important, but it is only part of the equation. Weigh your options wisely by considering more than just the cost. For example, a more expensive house located in a safe and progressive area is a much better investment than a cheap house in a declining neighborhood. 4. Not getting a mortgage pre-approval Another mistake a lot of millennials seem to make is going on a home search without a pre-approved mortgage. While you can definitely take a look at houses without getting a mortgage pre-approval, not knowing how much you can afford might cause you to waste your time looking at homes that are actually out of your price range. A pre-approved mortgage makes searching for a home a whole lot easier, especially since it arms you with the confidence of having a committed lender who is ready to back you on your decision once you zero in on the home you want. Getting pre-approved is a must especially for young buyers who are eager to buy in a seller's market. This is because home buyers with pre-approved mortgages are taken more seriously by home sellers, and are more likely to be prioritized over other interested buyers without potential opportunities for financing. Don’t risk having your dream home taken away from you just because you didn’t bother to put your financing in order. Mortgage pre-approval is free and non-binding; there is nothing to lose and everything to gain in presenting yourself as a serious and qualified home buyer. 5. Skipping the home inspection First-time homebuyers sometimes forego home inspection when staging is impressive enough – but what a lot fail to realize is that a lot of problems associated with homes aren't readily noticeable to the naked eye. No matter how great a house may look at first sight, a home inspection is still a non-negotiable step in the home buying process. It may cost you quite a reasonable sum of money, but it will surely prove beneficial in the long run. Professional home inspectors are trained to spot problems in the house that would otherwise go unnoticed - damages that will potentially cost you more should you decide to buy the house without going through a rigorous inspection. Inspections cost around $324 on average, but prices vary depending on the size of the home and circumstances that may require more specialized inspectors to come in. But then, if you’re investing so much of your savings into a house, it’s always best to make sure you’re getting your money’s worth. 6. Focusing on how much you're able to borrow, instead of how much you should borrow Lenders may sometimes pre-approve you for a mortgage with monthly payments that are a bit more than you can genuinely afford. The lender cannot always factor in your daily expenses such as food and transportation, so you’ll have to do that on your own. Again, making a detailed and honest assessment of your financial capacity is key to knowing how much you can comfortably pay for your mortgage on a month-to-month basis. Once you factor in the amount you’ll be spending on insurance, taxes, closing costs, maintenance, and savings, only then would you know what you can afford. If you think that you’ve been pre-approved for a mortgage that is much more than what you initially set out for, we strongly advise you not to max it out. Look for homes in a lower price range, and buy one that is within the budget you can comfortably shell out. 7. Disregarding resale value When you're a young home buyer, chances are, you’re buying your very first home with a limited budget. Meaning, even if you’re about to buy a house that fits your standards at the moment, you’re not exactly getting the dream home you wish to retire and live in for the rest of your life. As someone with plenty of opportunities to increase their income, it’s very likely that you’ll be selling your first home for a better or bigger one when the time comes. Given this, it is imperative that you factor in the resale value of the home you’re planning to buy. Choose one that is highly likely to increase in value over time. You’ll spot such houses in up and coming neighborhoods, and areas where new facilities are starting to prosper. Also, aside from paying off your mortgage to build equity on your home, you can also consider an active approach in increasing its resale value. Remember, careful planning and an effort to gain foresight will help you get a great deal on your first home should you decide to sell it in the future.

For-Sale-by-Owner, more commonly known as FSBO (pronounced “fizbo”), is used to describe a homeowner who is selling their property without the help or representation of a real estate agent. This kind of transaction is commonly seen in the seller's market. The most common reason why homeowners attempt to sell on their own is that they want to save money or maximize their profit by not having to pay for real estate agent commission. However, in the NAR 2017 Profile of Home Buyers and Sellers, FSBOs remain at an all-time low of 8%. Home sellers continue to work with real estate agents to sell their homes, as statistics remain at historical highs of 89 percent. There are many reasons why FSBOs fail in real estate, especially if a seller doesn’t know how to price his or her home correctly, or if property inquiries were handled inefficiently. Here are the top reasons why we think FSBOs don’t actually work, and why it is best to hire a real estate agent who can help with the selling process. 1. They fail to properly screen potential buyers One of the biggest reasons why FSBOs don't actually work is because most homeowners don’t know how to properly screen potential buyers. Many sellers don’t know the right questions to ask to ensure only qualified buyers are walking through their home, which could save them from wasting countless hours and effort. The first thing they should know is whether the potential buyer is pre-approved, which can prove their capability to purchase the home. Also, if you decide to FSBO, there are other people you must be prepared to negotiate with, not only the potential buyers who want the best deal as possible. Some of those people include the buyer’s agent, the buyer’s attorney (if needed, in some states), the home inspection companies which work for the buyer, the appraiser, and sometimes even your bank, in case of a short sale. With the help of a realtor: Potential buyers can be properly screened and accommodated. An experienced real estate agent will recommend the buyer to talk with a licensed mortgage consultant to know their capacity before the buyer insists on viewing the home. He/She can also negotiate on behalf of you and will act as a messenger for both sides so they can properly communicate their concerns and preferences about the property. 2. They aren't always available to handle property inquiries If you decide to FSBO but have a full-time job, who will handle the incoming property inquiries throughout the working day? Oftentimes, the homeowner doesn’t always have the time and availability to handle property inquiries and showing requests. Homebuyers and buyer agents mostly want a quick response to their inquiries, so it’s possible that they will proceed to the next potential property if their concerns were not accommodated immediately. With the help of a realtor: The buyer's inquiries on the listings can be handled appropriately. Realtors can prioritize those inquiries and can coordinate and schedule the showing requests to accommodate all potential buyers. Furthermore, buyers can also be quite pressured when the seller is around, as they couldn’t speak openly about the property without worrying. Real estate agents will let buyers have space so they can view the house on their own. They can also share some insights and stories about the neighborhood while showing the house, which could greatly help buyers decide. 3. The home may be priced incorrectly It's common for FSBOs to price their home too high, which could decrease the chances of the home getting sold. This is one of the biggest reasons why FSBOs fail in the market. Most sellers only use a free home valuation tool to set a price for their property, when actual market knowledge is needed in pricing a home for sale. Likewise, FSBOs generally sell for less than the selling price of other homes. FSBO homes were sold at a median of $190,000 last year, and was significantly lower than the $250,000 median of homes assisted by agents. There’s a big $60,000 difference, so to speak! With the help of a realtor: The correct listing price of the home can be determined. Real estate agents do a Comparative Market Analysis (CMA) to provide an accurate home valuation. They will know how to price your home right so as not to turn off potential buyers or leave money on the table. 4. They have limited marketing FSBO sellers can't post their homes on the Multiple Listing Service (MLS), which is the number one source for sellers to list their home and a database where both buyers and sellers can view thousands of listings. Certainly, some websites allow sellers to pay to market their properties, but those websites don’t get as much traffic as the MLS. Sellers may also place an ad in their local newspaper, but it may even cost them more without attracting the necessary audience. Another typical FSBO method of selling a home is putting up a yard sign, which on its own is very limited. With the help of a realtor: The home can be listed on the MLS, as only licensed real estate brokers and agents can list homes on the MLS online. And unlike FSBOs, they have the tools and the necessary expertise to provide tons of market exposure to a home, whether it's online or in their local area. Most realtors have a comprehensive marketing plan and an internet strategy to promote the sale of your home. They can also promote your house to fellow agents, who can also share it with their clients. 5. Homes take longer to sell/homes stay on the market for longer FSBOs take longer to sell in the market than most agent-assisted homes unless the seller already knows someone who wants to purchase the home. In the NAR report, at least 58% of FSBO homes were sold in less than two weeks — more quickly than homes listed with an agent — often because these homes are sold to someone the seller knows. Most of the time, FSBOs were unable to sell because they can't get the selling price right. And when a home stays on the market for a long time, it’s more likely that buyers will assume there’s something wrong with the house, the neighborhood or location, or its pricing. With the help of a realtor: The home can be listed on the market with the correct price and can have proper exposure for it to be sold within the average of three weeks. It goes without saying that the home can even be marketed to potential buyers that the seller doesn't personally know. 6. They don't have a full understanding of a real estate contract Real estate contracts can be confusing and extremely difficult. Most sellers don’t have a strong understanding of a real estate contract and don’t know how to negotiate specific parts of the contract with potential buyers. With the help of a realtor: The real estate contract can be handled properly and professionally. A realtor can significantly negotiate specific parts of the contract and could address any possibilities or contingencies included. 7. Can't handle the daunting and tricky task involving paperwork The paperwork involved in buying and selling a home became more daunting and tricky as industry disclosures and regulations have become mandatory. Understanding and performing paperwork is one of the most difficult tasks for many FSBOs. The closing process itself can involve lots of pages of complicated paperwork, including the contract itself. Some states also require addenda that are designed to cover specific conditions regarding the property. A seller who doesn’t know the required paperwork in their local area and state can also be open to lawsuits. With the help of a realtor: The necessary disclosures, paperwork and documentation will be handled properly. Letting the agent handle the complicated paperwork can also help alleviate the legal and financing stress for both the seller and the buyer. The agent can also provide much-needed advice and support throughout the process. Bottom LineBefore you decide to put up a “For Sale” sign in front of your yard and take on the challenges of selling your house on your own, take the time to talk with a real estate professional in your local area and see how they can help you.

The home buying process is an intricate maze full of both success stories and pitfalls. What's especially difficult is figuring out its financing part. When dealing with a mortgage, you couldn’t be too complacent and not invest your time and negotiate properly for the best one that suits you. Moreover, making one mortgage mistake can be the difference between getting approved for your loan application or not. Here are nine of the most common mortgage blunders that buyers make. Make sure you think about how you could avoid them for you to have a pleasant and meaningful home buying experience.   Mistake #1: Not checking your credit score and reviewing your credit reports first Even before you consider buying your own home, your first homework is to check and review your credit and make sure everything in your report is accurate. Checking your credit report firsthand could help you avoid any issues further down the process. Review all three of your credit reports from the main credit bureaus, and if there are errors or any inaccurate information in your report, take the necessary steps to dispute them immediately. If your credit score isn't in its best shape, you can consider these helpful measures to improve it. Ensuring that everything on your credit report is positive and accurate is the first step for you to have a swift and smooth loan approval process.   Mistake #2: Failing to get pre-approved Not getting pre-approved is the most common mortgage mistake home buyers make. There’s also a big difference between getting a pre-qualification letter and getting a pre-approval. More than getting pre-qualified, where you can get an idea of what home you can afford and what your monthly payment will be, getting a mortgage pre-approval is a notch better. Getting pre-approved will provide you with a crucial guideline of what loan you can get, how much you can afford, and can also give you an accurate estimate of how much the bank will lend you. The lender will verify your credit and employment which will help you avoid potential issues that could prevent you from getting your dream home.   Mistake #3: Changing your job in the middle of the process One popular mistake when buying a home is changing jobs while you’re in the process of receiving a mortgage loan. Job stability is very important when getting a home loan because mortgage companies greatly take into consideration the borrower’s job history when approving or denying. Changing your job could complicate the process since the mortgage lender will need to reevaluate the stability of your position and your capability to pay off your debt. Even if you’re moving into a higher position, it is best to ask your employer if you could start after your closing date.   Mistake #4: Applying for a new credit or taking on new debts Another big mistake home buyers make is taking on new debts or applying for new credit. Making a big purchase while the mortgage loan process is ongoing could delay the closing. It could also mess up the borrower’s debt-to-income ratio, which could result in being denied a mortgage. Applying for new credit can hurt your credit score and increase your debt load. So if you’re eyeing a new car or an enormous flat-screen TV, it is best to buy it when the loan is already funded and closed.   Mistake #5: Not reading your documents thoroughly Before signing your loan documents, it would really help if you read each page carefully and not be afraid to ask questions to your lender if there’s something you’re not confident with. Some loan and mortgage terminologies can be very technical or confusing, but it wouldn’t hurt to put on your nerdy cap and review your documents thoroughly to know the terms and inclusions.   Mistake #6: Not shopping around for the right mortgage product Just like how you’d take time to compare and review other products before buying them, devoting time to do “mortgage rate shopping” can save you thousands of dollars in fees and interests later on. Take time to shop around and compare the prices and terms of loan products. You may be surprised to know that sometimes, even the one with the lowest interest rates may not be the best offer. Lower rates may have steep fees and other terms that may prove to be not desirable at all. Likewise, don’t get intimidated by the mortgage transaction itself. Compare good and bad recommendations and reviews. Shop around for the best possible terms applicable to you, and decide which type of mortgage best suits your situation and capability.   Mistake #7: Failing to consider the true costs of homeownership What many first-time homebuyers fail to realize is that there are other expenses associated with purchasing a home aside from the mortgage payment itself. Once you open the door and step into homeownership, other costs associated with it will come rushing in. You have to pay for property taxes, homeowners’ insurance, and HOA fees if applicable. You also have to allocate a budget for other necessary purchases, potential repairs and maintenance, and other incidentals.   Mistake #8: Failing to lock in your mortgage rate In completing a mortgage application, buyers also have to decide whether they’d like to float or lock their mortgage rate. Not locking in your mortgage rate is a big risk since interests are expected to rise every quarter of the year. The 2018 Mortgage Rate Forecast of the Mortgage Bankers Association suggests the first quarter will have a 4.3% interest rate and will rise to 4.8% by the last quarter. If you decide to buy a home, take advantage of the current lower rates and be sure to lock in your mortgage rate. Also, it is best to closely monitor the interest rates before and during the closing process.   Mistake #9: Not keeping your mortgage loan simple Keeping your mortgage loan simple could be your best option if you want a less stressful process. Despite the many unique loan packages available out there, many of them come with complications and terms that may pose more restrictions. Some mortgage options even have superficial collections or charge-offs that could affect your credit score. It’s better to choose a conventional mortgage package, such as FHA loans, or have a standard alternative loan like VA loans if it’s applicable. Likewise, don’t be afraid to always consult with your top real estate agent about your financial needs and about the whole mortgage process. Newer Post

  Why Your Credit Report is Important Your credit report is the sole source of information for your credit score — a number that lenders sometimes use instead of or in addition to your credit report. A variety of businesses may also view your credit report to make decisions related to you. Banks check your credit report and use it to evaluate your applications for credit cards and loans, including a mortgage or auto loan. Especially for homebuyers who plan to apply for a mortgage loan, you must have an idea of your status in terms of credit based on your credit score. For renters, even landlords may review your credit report to decide whether to rent you. Hence, your credit report affects many parts of your financial life, so it's important that the information included is accurate and positive. Right To Dispute Errors However, it's very common for credit reports to contain errors, and these occur for a number of reasons. Some of the information that could mistakenly end up on your credit report can be anything from inaccurate late payments, to even a falsely reported bankruptcy. As of 2017, the Consumer Financial Protection Bureau (CFPB) had handled approximately 185,700 credit reporting complaints. Some of those submitted by consumers include problems disputing complaints on their credit reports, complaints about inaccurate information on credit reports, and reports of confusion about credit scoring. The federal Fair Credit Reporting Act gives you the right to an accurate and complete credit report. If you find any outdated, incomplete, or inaccurate information on your credit report, you have the right to dispute it and have it deleted or updated. Steps On How To Dispute Inaccurate Information On Your Credit Report 1. Check and review your credit report for errors The best way to find any inaccurate information on your credit report is to check a copy of it. There are several ways that you can get a copy. You can even get a free annual credit report from each bureau through the AnnualCreditReport.com, or order one directly from the bureau. Once you have your credit reports, you should review all three of them to be sure that the information in each is complete and accurate, since you’ll never know which credit report will be used in a lending decision. Take some time to look through them and highlight the items to include in your credit report dispute. Credit Report Errors You Can Dispute You can dispute credit report items that are inaccurate, incomplete, out of date or that which cannot be verified. It can vary from minor and innocuous errors such as a misspelled name, an old address, birth date or your social security number. However, other errors could be detrimental to your credit score and could potentially cost you tens of thousands of dollars. Negative items should only appear on your credit report for seven years, except bankruptcy, which can remain for ten. Thus, you can dispute any negative entries you have that are older than seven years. Other specific things you can dispute include but may not be limited to: payments reported late that were actually on time, accounts that aren’t yours, inaccurate credit limit/loan amount or account balance, inaccurate creditor, and inaccurate account status. Options for Disputing Credit Report Information With the credit bureau, the company responsible for compiling your credit report based on information received from your creditors. The three major credit bureaus are Equifax, Experian, and TransUnion. Directly with the creditor or business who provided the information to the credit bureaus (also known as the information provider). You may do this when the credit bureau responds that the error you disputed was verified by the creditor. 2.  Place your credit card dispute Here are 3 ways to place your credit card dispute: Online - Disputing credit report errors online is probably the most convenient way. You can dispute inaccurate information directly on the credit bureau's website. Each credit bureau should provide a way to upload, fax, or email documentation supporting your dispute. You can also check the status of your dispute online by providing your confirmation number. However, you can only get the results online and not by mail. Mail - Placing your dispute by mail takes more time, but it provides you with the paper trail you’d need if the credit bureau doesn’t respond in a timely manner. You must write a dispute letter explaining the information that should be removed and specify the reason for why it is inaccurate. Also, include a copy of proof of the error and other supporting documentation (not the original copies). Send the letter via certified mail with return receipt requested so you’ll have proof of when you made the dispute and when the creditor receives it. Phone - To dispute by phone, you need to have ordered a copy of your credit report within the past month and also provide your credit report number. However, you’ll still have to mail in any documentation or proof that supports your dispute. 3. Wait for the response of the credit bureau or the creditor to your credit report dispute Businesses and credit bureaus have the same amount of time to investigate a dispute — 30 to 45 days from the date they received it. Once the investigation is complete, the credit bureau should provide you with the results, along with a free copy of your credit report if there had been some changes. If they don’t respond in that time frame, you have the right to sue in Federal court for up to $1,000. Bonus Tips: Make sure your disputes are legitimate and that you provided enough information to investigate it. Be careful not to do anything to make the credit bureaus think your credit report disputes are frivolous. Don’t dispute everything on your credit report and don’t send all your disputes at once. Also, avoid disputing an item multiple times. The credit bureau or the creditor can determine that your dispute is frivolous or irrelevant if you don’t give them enough information to investigate the dispute. They also have every right to reject it. Check your credit reports periodically. Financial advisors and consumer advocates suggest that you review your credit report periodically to make sure the information is accurate, complete, and up-to-date before you apply for a loan for a major purchase like a house or car, buy insurance, or apply for a job. Likewise, when applying for a mortgage loan, improving your credit score will give you a better chance to get pre-approved, which is the first step in purchasing your dream home.

Applying for a mortgage is not a walk in the park, especially when your credit score falls below 740, which is what lenders consider to be a “very good” score. Typically, the higher your score, the lower your interest rates will be. However, if your credit score is on the lower side, don't lose hope. There are measures you can take to improve it before you apply for a mortgage loan. Get a copy of your credit report and analyze it to know where you stand. When applying for a mortgage loan, the first thing you should do as a homebuyer is to know where you stand in terms of credit. To have a clear idea of your status, you must request a copy of your credit report from the three major reporting agencies (TransUnion, Experian, Equifax). Having copies of all three reports will allow you to perform an in-depth comparison, as some creditors only send reports to one or two agencies. Getting all three will also make it possible for you to compute your average score – which is likely what a mortgage lender would do to decide if you are qualified for a loan or not. Ideally, what the mortgage lender should find in your credit report is a solid credit history. Add that to the condition that you should have a steady income and down payment to show – and the pressure can pile up, making the rest of the process of applying for a mortgage even more daunting as it is. However, you're not alone, and your case isn’t hopeless. Now that you have analyzed your credit report, you can now work on improving the problem areas to qualify for the best possible mortgage. Dispute any errors on your credit report. When you get a hold of your credit report, it is not unlikely for it to contain errors. You may find some inaccurate or incomplete items, as well as some that are out of date, or unverifiable. These kinds of misinformation can be detrimental to your application, so the sooner you can dispute them, the better. Gather supporting documents that can prove your cases and request to have the mistakes either removed or corrected in your report. Also make sure that you follow the correct process. Pay your bills on time, but note the ones that will actually boost your credit score. It goes without saying that paying your bills on time is always the best thing to do, and it does help you land more points on your credit score. However, not all bills will have the same positive impact. According to credit.com, there are on-time payments that won't directly build up your score no matter how diligent you are in settling them. These bills include rent, utilities, cable, internet, and cell phone bills. Turns out, paying these bills on time won’t land you a higher score – but missing payment on these may hurt your standing. For example, unpaid cable or internet bills that are sent to collections will be put down on record, so it will serve you best to still make on-time payments for any bill. The ones that directly affect your credit score are credit card bills, student loan payments, mortgage payments, and car payments – so be sure to that you’re able to make timely payments for these if you’re looking to improve your credit score. Reduce credit card balances. If you have small balances on several credit cards, you might want to pay these off. Having your credit report polluted with a lot of balances will bring down your credit score and potentially turn off lenders. Your credit score is affected by how many of your cards have balances, so it's best to eliminate nuisance balances from separate cards and just choose one or two go-to credit cards that you can use every time you have to make purchases. Avoid incurring any new debt. For the lender to see that you are financially stable, do not take on new debt until you've been approved for a mortgage. Credit inquiries greatly affect your credit score, so avoid applying for a credit card and making credit-based transactions the same time you’re applying for a mortgage loan. Reduce your debt-to-income ratio. Your debt-to-income ratio indicates the percentage of your income that goes into paying your monthly debt. A low debt-to-income ratio means that majority of your income isn't spent on paying off your debts, whereas a high debt-to-income ratio means that a huge percentage of your income is spent on debt. If you have a relatively high income, a lender may not view you as much of a risk. However, if your fixed expenses – such as rent and car payments – are also exceptionally high, your income may not help you get a better rate on your mortgage. To qualify for a good mortgage loan, make sure that your total debt-to-income ratio is 40% or lower. Otherwise, your mortgage underwriter may have some doubts about your ability to make mortgage payments. Leave good debt on your report. You may think that leaving a record of debt on your credit report might hurt your chances of getting a good mortgage. When your report shows that you've handled your debt well by paying as agreed – that’s a good thing. The more history of good debt you have, the more it helps improve your score. So, if you’ve had a car loan that’s been paid off or other debt that was correctly settled without the need to involve collection agencies, don’t be in a rush to have these records removed.

For first-time homebuyers, acquiring your dream home may not be as simple as saying that you want a “two-story house with a garage in a quiet neighborhood.” Clearly, there's so much more to a home than that. You should not be restricted to the price either since it is only part of the bigger process. You must closely think of what you really desire in your home. Perhaps it will help to prepare a list of features that you prefer. Here’s a quick list of the parameters, home features and amenities that could guide you in finding that dream home of yours. Location and Neighborhood Suburbs or Country - The houses here are generally more expensive but often newer. These are also farther away from the cities. Urban - Closer to many employers, entertainment districts, restaurants and schools, but also often noisier. Busy Streets - Often, these are homes on streets with more traffic. Cul de sac - Cul de sac is a short road which is closed off at one end. It is a common choice for buyers with children. Corner lots - These are often larger lots with fewer neighbors. School Districts   Number of Stories Single Story - A single story house is easier to clean and gives easy access for individuals with certain medical conditions. More than One Story - These houses provide more living space. There is also less noise if members of the family have their bedrooms upstairs. Split Levels - A house style in which floor levels are staggered. It typically has a square footage on same size lots as ranch homes.  Interior Specifications Number of Bedrooms - The common minimum requirement is three bedrooms. However, two bedrooms appeal mostly to first-time homebuyers and seniors. Number of Bathrooms - A house with more than one bathroom is preferred by most people. Additional rooms - Extra space for children's playroom, media/art rooms, hobbies and others. Square footage - Larger spaces offer more room. But in the end, it is still the layout of the room that is the most important.  Home Style and Home Exterior Garage - You can choose from an attached or detached garage. Home Construction - Specify your preferred roof, flooring, yard and primary material of the house. Special Amenities - Include fireplaces, pools, among others.   Specific Home Features Condition of plumbing, electrical, heating & cooling units. Available utilities such as DSL, cable, satellite and others. Bottom Line If you’ve decided to buy your dream home, hire an experienced real estate agent who will help you through the whole home buying process. He/She will guide you through your house-hunting, whether it is through the local MLS, or through his/her property listings.

You might be dreading the idea of improving your home because it might cost you a fortune. Don't fret! This list will enlighten you that simple and easy measures which you can do yourself will make a big (and positive!) difference in your home. You can ask your agent how to stage your home best, but it won’t hurt to get a headstart on making your home as presentable as it may be – without having to spend thousands of dollars. De-clutter – Making your place organized and free from clutter will give your potential buyers a good impression of you and your home, and what's great about it is that it won’t cost you a cent. Start by clearing unnecessary items not just from easily visible spaces in the house but also in closets so that your clients can have a good idea of how much storage they could have. Hide signs of pets – Your client may be a dog or cat lover like you, but thick animal stench can still be off-putting for them when they’re trying to purchase their new home. If possible, ask someone to babysit your pets while potential buyers view your house. Make sure to stow away litter boxes, remove pet-related stains, and fix damages on furniture or any part of the house that have been caused by your pets. Arrange your furniture – Don’t overlook the small details! Even the simple act of reducing chairs on your porch will make your space look bigger and more presentable. Another thing you could do is to move furniture that obstructs entryways. Stage your house in a way that makes it more welcoming for potential buyers. Depersonalize your home – Make your house as base as possible, save for a few wall clocks and tasteful art. You want to make sure that your clients have plenty of room to visualize how they could make the space their own, and it’ll be hard for them to do that if you have too many photos of you and your family hanging on the walls. Upgrade your curb appeal – Again, small details can make or break your chances of selling your house. And when it comes to marketing property, it’s crucial that you make potential buyers fall in love with it at first sight. And, the first thing your client sees when they go to your house is your curb – so a swept walkway, nicely mowed lawn, and well-placed shrubs will make a really great impression. Add visible storage – A place for storage will always be a useful feature for your house. Hidden storage also helps, but visible ones will assist your clients’ visualization of where they could keep their stuff in place. Paint your walls and ceilings – This will surely brighten up your home and make it look clean. Take note that it’s always better to have your paint in neutral colors than in bold ones. Make your space look spacious and elegant by going with light colors such as white and beige. Change bulbs – In line with painting your walls, better lighting also makes for a brighter space which makes your house instantly appealing and inviting. Spruce up your kitchen – The kitchen can often make or break your chances of selling your home, and the best way to upgrade it is to make sure that things in it work properly. You can start out by adding new cabinet handles, updating lighting fixtures, and replacing faucet sets. Boost your bathroom - Next to the kitchen, the bathroom is what most buyers tend to be meticulous about. Spruce it up by cleaning your tiles and replacing your toilet seat.

You may get the idea that selling your house would mean reaping lots of cash, but it is good to be reminded of the costs that you still have to settle as a seller before you start making plans on what to do with your estimated profit. Several factors can affect the cost of selling your home. It would be wise to factor in these costs beforehand so that you can have a precise estimate of your profit come settlement. As a seller, you should also clarify with both your agent and the buyer's agent which fees are customary and which are not. Here are the standard fees associated with selling a house: 1. Realtor's commission – While this fee is negotiable and varies within markets and property values, it usually takes a big chunk off the selling price, generally amounting to 5-6% of the sale cost. Some arrangements may require you to pay a flat fee, where you and the agent will agree on a fixed price for the sale of the house no matter how much the property sells for. Take note that this fee is split between your agent and the buyer’s agent. You may opt not to hire an agent to sell your house, but keep in mind that the realtor’s responsibilities would cost you money and much of your time, too. Professional agents would also have better access to information on your market and contacts to prospective buyers. 2. Closing costs – This string of fees could be split between the buyer and the seller based on agreements from both parties, but you can expect to pay 6-10% of the house’s sales price upon settlement. Closing costs for sellers vary according to where you live but what the seller usually shoulders are the title transfer fees, notary fees, and escrow expenses. The closing costs could also include outstanding balances from property taxes and mortgage fees. You may also need to pay for a prorated share of the water and sewage bills. It is worth to take note that – unless you are selling with very low equity --  payment for closing costs will not be coming directly from your pocket but would instead be deducted from the profit of selling your home. 3. Home repairs – For your house to have a high market value and to look appealing to buyers, you may want to present your home for sale in its best condition possible. Do not skimp on repainting and having a second look on the functional spaces of the house (such as the kitchen and bathrooms) if ever something needs repairing. 4. Inspection fixes – If the buyer’s home inspection detects major faults in your house such as sewage leakage and roof issues, you have to be ready to cover these costs. 5. Marketing – Your agent may recommend a marketing campaign that includes online listing and physical posters. You will have to pay for these costs which include professional photography, the creation of a floor plan, and press advertising.

Selling your luxury home means selling one of your most important investments. The task may be more difficult and daunting than selling a mid-priced home, especially since luxury home buyers have a specific taste for high-end homes that will greatly suit their lifestyle. That's why it is important to take the proper steps to ensure your luxury home is sold in a timely fashion and at its best market value.   1. Price your home right In whatever market you're in, pricing a home correctly is extremely important. However, pricing a luxury home is even more challenging. Custom features, upgrades, high-tech automation systems, amenities and even the outdoor view vary from one home to the next. Consider the dangers of overpricing, or even underpricing it. The luxury price range of homes also vary per region. Pricing your luxury home competitively from the very beginning will attract more buyers and won’t let it sit on the market for too long.   2. Hire a realtor who has extensive knowledge of the luxury home market Hiring a real estate agent who is also a local luxury home expert could be for the best if you are selling one of your most prized investments. Your chosen realtor should have a comprehensive marketing plan/system that they can use in promoting your home. Ask whether they have a team of other agents who also work in the luxury market and can help him/her promote your property to potential and qualified luxury buyers. Know whether the agent has other listings in your specific neighborhood, as proof of his/her expertise. It may also help if the realtor and his team have a custom website where they can also feature property listings.     3. Use professional photos/videos and utilize effective marketing Using amateur photos in promoting your luxury home is a big no-no, especially if you decide to promote it publicly. In the NAR Real Estate in A Digital Age Report (2016), 44% of homebuyers in this digital age looked for properties online first, so it’s a no-brainer to use quality photos and videos when presenting your home online. In taking photos of your luxury home, greatly consider the lighting, photograph your home’s best amenities and custom features, and highlight its exquisite location and the panoramic view surrounding it. Most local MLSs also have a limit on the number of photos you can showcase online, so a professionally-created video or a virtual tour could be an advantage in selling your property. A virtual tour could give potential buyers a “walkthrough” of your luxury home.   4. Present your home’s location and lifestyle correctly Luxury homes are all about lifestyle and location. Utilizing a video or virtual tour is also a great marketing tool as it can accurately portray the location and lifestyle your home provides to its future owner. Prospective buyers would want to know if the home not only suits their preferences, but also the lifestyle it portrays. It is important for them to also know who else is living in the vicinity.   5. Consider the right timing when selling your home Timing plays a large role in selling your luxury home and showcasing its feature amenities. It’s important to select the correct time of the year to sell, and to consider the current luxury housing market. For example, selling a home with a luxury waterfront and resort-style infinity pool in the middle of a cold and stormy winter may not seem to be the best idea. The same goes for listing in areas with weather events that may not complement the house’s features.   6. Clean, declutter and stage your home Staging any home before selling could definitely help, especially in million-dollar luxury homes. Some luxury homeowners enlist help in keeping their home clean, so staging could be the only thing that’s needed. The luxurious amenities in a home should be showcased to help potential buyers envision themselves in it. For an instance, a magnificent formal dining room should be staged with elegant dinnerware to help buyers visualize having their fine dining and memorable parties.

According to NAR, 87% of homebuyers still choose to hire realtors. You might think that not hiring an agent will save you money, but being your own agent can actually cost you more in the long run. Also keep in mind that time is a resource, too. Hiring an agent can save you lots of time and spare you the hassle of juggling all your personal and home buying tasks. 1.    Provide you with excellent options – It could be a tiring and overwhelming experience when you're house hunting, and as a buyer, there would be a good deal of emotions involved when choosing the home that you like and fits you and your family’s needs. On top of that, you also have to get a good deal that would fit your budget. An agent who is knowledgeable in the market and duly takes note of your preferences will make the buying process more comfortable for you. Given that, they could give you a list of homes to visit and provide you with advice on the neighborhood, surrounding schools in the area, spaces for recreation, weather/season hazards, and other valuable information that you need to know. 2.    Guide you through the whole process – It’s useful to educate yourself on the buying process, but there might be real estate jargon and some skills that only professional real estate agents would know and could play out well. It’s not a walk in the park to buy a home, and one of the most important things that you have to work through is examining a contract from the seller (and in some cases, making one of your own with the help of a lawyer) to protect you and would enable you to back out from the deal if certain conditions are not met. Contracts and conditions are what experienced agents work with on a regular basis, so you could trust them to know what you should and shouldn’t agree to, and what important conditions you have to lay out as a buyer. A good agent will also willingly suggest to you that you have the property be inspected by professional home inspectors so that you can know if there are any repairs to be made. 3.    Negotiate on behalf of you – Negotiating between a buyer and a seller is always tricky. An agent will act as a messenger for both sides and can properly communicate your preferences and apprehensions about the property that you’re buying – without offending the seller and putting the deal at stake. 4.    Monitor your loan commitments – One of the most important things to ensure when home buying is financing your home through a mortgage. According to The US Federal Reserve Survey of Consumer Finances, home-secured debt remains the most common type of debt held by families in the US. A good agent will have a huge network of lenders and other professionals that could make even the loaning process – from being pre-approved to being pre-qualified – safe and secure for you. If you’re a first-time buyer, it’s common to get yourself into mortgage mistakes, but an excellent agent would monitor your loan status and advise you on how to protect your approval. A good agent will remind you to put significant purchases on hold and to avoid taking new loans before you close the deal on buying a home. 5.    Get you through the closing – There is still is a pile of things involved in closing a home purchase deal, such as dealing with closing costs that include lender fees, insurance fees, and title fees. A diligent agent will walk you through everything that needs to be done upon closing and will tie loose ends for a smooth transaction.

A home is possibly the largest purchase you'll ever make, and it’s normal to overthink even the smallest details in the process – especially if it’s your first time to invest in real estate. A lot of cash is at stake, and you want to make sure that you’re getting the best deal for every penny. While buying real estate entails a lot of careful planning and extensive research, you won’t be going through it alone. Your agent will be there to help you every step of the way. Even so, we understand that peace of mind can still seem elusive and that your fears can bubble up to the surface even when you least expect it. To help you with this, we have listed down the top 5 fears homebuyers have, and a guide on how to overcome them: 1. Dealing with a less-than-perfect credit score The thought of securing a loan when you have a less-than-perfect credit score can be quite stressful, and the fear of not getting approved may hold you back from working on a significant purchase such as buying a home. If you're convinced that you’re ready to buy a home, first get a copy of your credit report and make sure that there are no errors. According to a report done by the Federal Trade Commission, 1 in 5 Americans is being overcharged for his/her financial obligations due to a mistake in his/her credit report. If you’re familiar with loans, you know that the lower your credit score, the higher your interest rates will be. The accuracy of your credit report is crucial in ensuring that you won’t be unrightfully burdened with higher interest rates. Still, if your credit is less than perfect, you have no reason to feel embarrassed and helpless. Many homebuyers are dealing with the same thing. The most practical thing you could do is to gradually pay off your delinquent accounts, improve your debt-to-income ratio, and try not to incur any new debt. Be proactive about your credit and start improving it until you’re confident enough to apply for a loan.   2. Biting off more mortgage than you can chew A sizeable monthly payment can be overwhelming to think about, but you can combat your fears by having a firm understanding of your financial situation. To achieve this, you will have to prepare a budget that factors in all your current and ongoing bills. List down all your monthly payables, including credit cards, student loans, car amortizations, etc. When you have an accurate account of your monthly cash flow, you’ll find it easier to determine how much you can afford to comfortably spend on a house. And, if you’re serious about purchasing a home in the very near future, the financial boundaries you’ve set for yourself will help you create sound decisions.   3. Sudden or gradual decline in property value A decline in property value may occur for any home, regardless of size and location, and even without any form of disaster. While it is impossible to completely predict what will happen to home prices, you can still do your part in taking wise precautions to reduce your risks. Nearby homes, surrounding facilities, and neighborhood features play a huge role in determining a home’s property value. If you want to ensure that your home wouldn’t suffer from a steadily decreasing value, learn how to spot unhealthy neighborhoods and avoid purchasing a home from those kinds of areas. Choose a well-kept neighborhood with a thriving community – a low crime area in which people feel safe walking down the street at night, especially children and women. Make sure that the area is mainly owner-occupied and with quality schools and hospitals nearby. You can even inquire with the local government about future development plans in the area.   4. Keeping up with upkeep costs Even homes that are in the best shape will require some amount of upkeep, and every homeowner will have to deal with maintenance costs one way or another. Don’t worry, though, because while these expenses are inevitable, there are proven ways to mitigate them: a)    Choose a well-maintained home that has recent upgrades and replacements, such as new plumbing and a strengthened roof. b)    Hire a professional inspector to spot home defects that would otherwise go unnoticed. c)    Repair small problems right away before they become major repairs. d)    Set aside a substantial emergency fund, and regularly add to it over time.   5. Unsatisfactory purchase that leads to buyer’s remorse It is natural to doubt your decisions before a major purchase, and it’s not uncommon for home buyers to question a lot of things even after closing a deal. However, if you want to lessen the anxiety that comes with buying a home, prepare a detailed list of everything you need AND want in a house. Discuss it thoroughly only with your immediate family, as too many people pitching in their advice will just be confusing and unhelpful. Being firm with your standards and sticking to your budget will not guarantee that you’ll feel perfect after buying a home, but it will help you properly justify the decisions you’ve made and make you feel better about your purchase.

Life in the city can be too stifling sometimes – there are plenty of spaces for bustling enjoyment but not much for tranquil relaxation, plus there could be too many people and not much community. You know that it would do you and your family so much good if you could escape from the city when the times call for it, without all the hassle of booking hotel rooms, carrying luggage, and constantly needing to plan out itineraries. A vacation place in the right location with an engaging community that suits you and your family whims and needs should very well be a house that you are always welcome to come home to. Also, you could opt to rent it out whenever you're not going to visit. This poses your vacation home as a viable investment. But for now, let’s focus on helping you find the perfect vacation home. Visualize and list down how you want your vacation home to be – If you're living in an apartment in the city with just the right amount of space for you and your family, you may want your vacation home to be bigger, where you and your kids can comfortably lounge in and invite some friends over. You could also be dreaming of having it near the sea so you can often hear the calming sound of the waves. Be clear about what you want in your house; list it down or make sketches if you could. When you know what you want, finding the perfect home will be easier for you and your agent since you can narrow down your options and save time, effort, and money. Top point to consider: location – you might want to consider its proximity to your main residence. According to an article on CNBC, over 80% of second-home buyers choose a house within driving distance. If that’s the case you choose, you and your family can frequently visit and maintain the house. Also take into account its proximity to places such as police and fire stations, and hospitals. If it would require you to fly out every time just to go there, you might want to reconsider. But really, if you long to be near bodies of water such as beaches or lakes and your home is away from all of that, then by all means, buy your vacation home near such areas. Just make sure to check your local airport so that you’d know if they offer regular flights. Hire an agent with great knowledge on the area – More than just helping you with the whole buying process, hiring a local agent in the area that you’re choosing to buy would be to your advantage. They’d be giving you vital information for you to consider such as weather and environmental hazard issues, property rental rules and local zoning. They could also give you information on local novelty places to hang out or dine in with your family, and could even acquaint you with the local community. Consider the long-term family appeal – What are your family’s passions and hobbies? Are they lovers of the great outdoors and are always up for a hike or a surf session? Or do they prefer to stay indoors and play board games? Note that this vacation home is a place you will create memories for years, so let your family have their slice on the decision making. Choose to be in a community that you and your family can engage in –  According to NAR, 78% of home buyers surveyed that neighborhood quality is more important  than the size of the home. We are social animals, and as said in the previous number, the vacation home will be used for years, and one of the best reasons to utilize it and stay there for long is to have you and your family be part of the local community. You guys could get together for common hobbies (or you might find yourself a new one because of them, too!) and even advocacies. Belonging to a community will surely enrich you and your family’s experience in your vacation home.

There are several reasons why you are looking at a property outside of your state – you want or need to relocate, you want a vacation home, you're looking for an investment, or you’re buying for children. As you might know, buying a house isn’t really an easy task, and maybe even more so if it’s not within your local area. The whole process would double your need for time and money resources if you want to be more hands on it. But if that mode can’t fit into your busy schedule and tight budget, here are some tips to help you with buying a house remotely. Hire a good agent. It's always important to hire a good agent when you’re buying property because they’re the ones who would communicate in behalf of you to the sellers, would deal with most of the paperwork, have you in the know on some real estate jargon, and optimally, put you up with a good deal on the house of your liking. And if you’re buying outside of your state, they would act as your proxy which means that your agent would have to deal with nearly the entire home-buying process. Do your homework; research and ask for suggestions from trusted friends so that you can make sure that you find an agent that you could communicate well with. You could have a pool of choices and conduct and interview. If you want to know the right questions to ask during an interview, see How To Choose The Right Real Estate Broker.  Be clear on what you want, and what you’re buying. It’s good that you are clear on what you want on your house so that your agent can find properties that are suitable for you. Make a list and give him or her examples of houses with features that fit your needs and liking. But don’t just settle in giving them details about the aesthetics and layout! Also give your agent details about your preferences in the neighborhood, whether you want it close to schools and hospitals or if you want it to be in a tranquil, secluded area. Also, list down things that you want to be sure of will be included in the sale such as fencing and fencing posts, benches, feeders, shelters and livestock pens, existing farm or hunting leases that give other people the right to be on – farm, graze, hunt, or camp on.  Map your time.Consider your schedule. If you could squeeze in a day or two for a trip to the property, that would be good so that you could personally look and check the house. But if your busy life doesn’t permit it, still give it ample time in your schedule to have meetings with your agent and your lawyer so that you can be assured that things are doing well and even if you’re not firsthand dealing with the transaction.   Do your research. Buying a house is a serious task that involves a hefty amount of resources such as time and money, so be sure to be well-informed on what you’re buying. First thing to consider is that you might want to select a property in an area that features healthy housing markets and a strong economy so that your financing doesn’t fall through. Also, if you want to be sure of what you’re buying and will be taxed on, you (or your agent) will need to visit the county assessor’s office. Compare the information on the property from the office with that from what the seller is listing. If you find any discrepancies, talk to the assessor to find out why. Another important matter to consider, especially now that you want to purchase in a rural area is to check their rural resources. Acquaint yourself with the County USDA Farm Service (FSA) office so that you could be familiarized with conservation issues such as erosion control, wildlife habitat, pond construction and other challenges that you may not be ready for as a city dweller. They can tell you about the resources you may need and answer your questions about rural living.   Consider renting first before buying.Moving from the chaos of the city to the peace and quiet of the rural seems like a good and refreshing idea. But sometimes, ideas just look good in your head. If you have the luxury of time and money to test the waters and rent out the house before you buy it, consider doing so. According to Paula Pant from AffordAnything.com, an expert on buy-and-hold real estate investing, it’s worth a try to rent first since housing is an investment that cannot easily be liquidated. She suggests spending at least 6 months in the place. This could brace you and your family for life away from the city. You could also have the chance to familiarize yourself with the area and the house to see if it suits your lifestyle or if it’s worth making a switch in your lifestyle to.  Make sure to check the title search and insurance.If you’re buying a rural property, it’s possible that the land has been listed as a dump-site or a hazardous waste site. Have your agent check the title for the specific property or buy the title insurance so that you can be sure that it’s safe for you to stay in. Another issue that could be addressed by checking into the title is for avoiding liens or encumbrances. This will make sure that the property is really owned by the seller, if there are any tax liens or legal actions against the property.   Consider financing matters. You know that a real estate purchase can be financed using a mortgage. If you want to purchase through this way, have your credit reports ready. The leveraging offered by financing is a huge advantage to you as a buyer, but there are some caveats to consider if you’re buying the house as an investment. According to Bankrate, mortage insurance doesn’t cover investment properties, which means that you have to pay more than 20% of the total purchase price to gain financing.   Request a walk-through contingency.If you haven’t had the time to physically see the property, it’s advisable to negotiate in the contract a walk-through contingency so that if the property does not measure up to expectations in person, you will be safeguarded. Do take note though that sellers are not required to agree to it and may ask for a higher purchase price in order to comply.   Know about remote closing.When you’re about to close the deal, remember that purchase paperwork is full of a lot of lingo that you may not understand as a buyer. Have your agent assist you with those and make some research of your own. Also remember that remote closings hinge on the ability to locate a mobile notary, so you'll need to ask your lender, agent, or title company for recommendations early on in the process.  Have an exit plan.In case you need to move out for some reason, assess what’s the best option for you to make and consider the time and costs involved. Would it be better to rent the place out or sell it? Have yourself and your trusted agent assess what option could be a better return for your investment.

For active-duty military members and their families, purchasing a family home is a complex and weighty decision. Following their Permanent Change of Station (PCS) move, the decision to buy a piece of the American dream they fought to protect could be affected by numerous financial and personal factors. Here are some things military members and their families should consider before deciding to buy their next home: Financial Considerations #1 Cost and Monthly Payment Among many active military families, there is a great debate regarding the cost of renting vs buying a home and paying the monthly mortgage. Rental costs and average home prices may vary greatly depending on where you are moving in the US. #2 Market Prices Aside from mortgage and downpayment, military homebuyers must also consider other factors such as the average price within the local area, the rate of foreclosure, and the condition of the local market. It is best to consult a local military-friendly real estate agent, whom you can discuss with other factors that will increase your monthly cost, including real estate taxes, HOA fees, and the cost of insurance, among others. #3 Tax Benefits When you own a home, you get to deduct the mortgage interest you pay on your loan from your taxes. This tax benefit lowers your monthly home expenses. You should consider calculating your tax benefits vs your actual costs for you to determine your cost of ownership. Likewise, when it comes to property taxes, you know you're paying for a home that you really own. Those property taxes are also deductible from taxable income on your federal income tax return and some state income tax returns, and thus offer you additional income tax savings. #4 Using Your Basic Allowance for Housing (BAH) Many military members receive a monthly housing allowance, and what most of them don't know is that they can use this money to qualify for a home loan. Especially in higher-cost areas where the service member wants to move, BAH can help them make that big transition. BAH is a tool that can help lenders gauge what kind of mortgage payment an eligible veteran can handle. This housing allowance is based on several factors and can change on an annual basis, so it's important to consider this as well. #5 Eligibility for a VA Home Loan If you've chosen to finance your home using Veterans Affairs (VA) home loans, be aware of the eligibility requirements and how it may impact your future relocation. VA home loans are flexible loans that come with outstanding benefits like no down payment, no mortgage insurance, and more lenient credit requirements. VA loans are best for the purchase of your family's primary residence. #6 Expected Time in Current Duty Station Because military members may be called upon to deploy or change duty stations at any moment, there should be a compelling reason to buy a home. You'll want to consider closing costs ahead of time when you buy and sell. It may help to also assess the expected costs of purchasing and subsequently selling your home. #7 Potential For Renting Or Selling The Property There is a need to ensure that a purchased home is one that can be very marketable for the purposes of selling or renting. It's important to know the best type of home that people are buying or renting in a certain area. Moreover, if you're considering purchasing a home near a military base of operations, chances are you’ll be able to rent or sell the property to other military personnel who wants a home of their own. Personal and Emotional Considerations #8 Personal Concerns Even before all financial considerations, you should know yourself whether you are ready to buy or not. Are you ready to call yourself a homeowner or a landlord? Are you ready to have another responsibility? Will you be able to handle the necessary repairs and maintenance associated with home ownership? Are you looking at it as part of an investment? These are just some of the questions you need to ask yourself before making that big decision to buy. #9 Proximity to Family and Friends Your family, friends and loved ones are your support system. If you're used to living near them, you probably don't want to be stuck in a place where you're all alone or where it may take a long ride for you to visit them. However, compared to renting, even owning a home in a new neighborhood could give you a sense of belonging and stability. #10 Retirement Considerations and Future Plans This may be connected to your financial concerns and stability, but it can be personal as well. If you are stationed in an area where you may soon want to retire, consider the state tax rates, treatment of military pay and benefits, and whether your potential home is near any military healthcare facilities. Thinking of these things ahead of time is also taking care of your physical and financial health in the future.

Purchasing your first home can be the largest financial decision of your life, but it can also be an exciting financial milestone. However, while a trusted realtor will offer you invaluable advice, you will still need to do a lot of work to have a good sense of a realistic budget. Only you can determine how much you can really afford, and the biggest mistake you can make will be to overlook some important details of your financial situation. Strive to be very careful, and let this list guide you towards making the right decisions. 1. Prepare a detailed computation of your expenses. Prepare a budget that factors in all your current and ongoing bills, while leaving enough wiggle room for unexpected bills you may need to deal with. An old rule you'll be unwise to follow still is allowing yourself to buy a home that is priced two to three times your gross income. This computation doesn’t take into account your debts and monthly family expenses. Make a list of everything you pay for on a monthly basis, including credit cards, student loans, car amortizations, savings, and even date nights with your spouse. Allot a fixed budget for each so that you can have a precise idea of exactly how much would be left to spend on homeownership costs. 2. Use mortgage calculators only as a guide. It’s great to take advantage of the available mortgage calculators at your disposal, but use these only as a starting point. Take a closer look at the results and make further computations based on the stability of your income and how personal choices in the future may affect your cash flow. Are you planning to have a baby in the next two to three years? Are you thinking of going to graduate school? These kinds of plans will have a major impact on your finances, so make accurate predictions and think as far ahead as you possibly can. Also note that very few calculators will be thorough enough to allow a holistic look at your current financial situation, so be careful with the ones you choose to use as you may end up overestimating your financial capacity. Try slashing a good 20% off the affordability results shown by the typical online calculator, and you’ll see that this figure is a more realistic or practical amount. 3. Don’t max out your budget. Getting qualified for a certain amount doesn’t necessarily mean you should spend it all. The costs of homeownership are highly variable since property taxes and insurance costs change every year. However, most lenders will qualify you for a mortgage payment based on your dues for the current year and will leave no room for adjustments should your expenses go up in the following years. This is why it is essential to figure out the most practical way to spend the amount you’ve been approved for. 4. Think beyond your actual mortgage. Consider the myriad of expenses that would continue long after your mortgage has been paid off, such as maintenance, utilities, and association fees. Some of these fees are even likely to increase over time, so it’s best to do the math and figure out if you’ll be comfortable handling all these simultaneous expenses. 5. Be ready for the possibility of a financial breakup. While the possibility of a breakup between you and your spouse sounds impossible at the moment, it is still advisable to cover all your bases and be comfortable with the idea of paying for the house alone. This doesn’t mean that you’re preparing for an inevitable separation – this can simply help determine whether you’ll be able to shoulder your monthly dues if your spouse suddenly loses his/her job, or if he/she cannot contribute for a particular stretch of time. This will also help you avoid taking such a risky loan.

Buying a home is a big decision that could both be exciting as it is daunting. There would definitely be a lot of emotions involved in every scenario – whether you're moving from an old house with your family, or making your first buy and just starting to build your own family, your emotions will play a part in your decision making. Be wary though that deciding on that alone can make much room for mistakes like lure you into sketchy deals and overpay for perfection. It’s important to strike that balance between emotional and logical thinking. For instance, you can list down the qualities that you want in a home or if you’re more visual, make a dream board of your dream home. Now that you have that in tow, make your research – check for homes that fit the bill within the area of your liking and which best suits you and your family’s needs, etc. And of course, don’t forget to check your finances. This mindset can get you both the house of your dreams and a good deal. Here are ways you can be a wise homebuyer: 1. Hire a good agent you can trust. Getting a professional on your side can hook you on the house of your liking since they know the local market the best, and they could also minimize risks in buying a home because they know how to deal with sellers without you getting on the losing end. For example, there are marketing buzzwords such as “short sale” and “real estate owned” which are designed to entice buyers into thinking they are buying way below market value when they're actually overpaying. 2. Don’t think that there would always be a better deal. It’s true that mortgage rates might decline and prices could drop further, but playing odds won’t be the best of moves because no one can surely predict what happens in the market. Remember that fluctuations are always an element in real estate transactions, and the only way to get around this is to do your homework, know the value of the area and home you are buying, and discuss them with your agent. 3. Maybe the first stop isn’t the best stop. This somehow goes against the previous item but don’t make the mistake of falling in love at first sight for a house and thinking that it’s the best that you could get based solely on what meets the eye. There are a lot of things to consider such as your finances, and some parts in the home that could need major fixing that you may not be aware of at first sight. Try to look around the houses in the local market with your agent so that you could get a good grasp of your choices. 4. Have an eye out for functionality. A buyer that allows her emotions to cater to her decision making would intuitively assess the layout and features of the house in terms of its functionality. She could envision life in the home and how each space can be made to meet the demands and caprices of everyday living. Sometimes the most important information are not in numbers -- if you’re too logical and are stuck with hard numbers of square footage, you might miss the value of how the layout and features of a house could cater to you and your family’s needs. 5. Envision the memories that you and your family can make in your future home. This is also in the realm of using emotions to the advantage of your decision making as a home buyer. If the house has a feature of a playground, you can imagine your kids spending their afternoons there with their friends while you make them snacks in your spacious kitchen. These may seem like simple things, but remember that you will spend years in this future home and this is where you will make memories with your loved ones so it’s a good thing to consider that. You CAN be a little bit sentimental and still maintain your sense of objectivity.

  If you're the adventurous type who's always itching to get on a holiday weekend on your favorite beach, or you want to experience living in the countryside more often, chances are you have been thinking how nice it would be to have your own vacation home. And although owning a vacation home is a decision that shouldn't be taken too lightly, it can also be profitable (and enjoyable) in the logistical and financial sense. In the 2017 NAR Investment and Vacation Home Buyer’s Survey, more than 80 percent of vacation buyers reported that now is a good time to purchase real estate. For some people, it is a matter of money and responsibility, and the process could be too intimidating. But for some, it might be a matter of experience and recreation, especially for those who are looking to have a retirement place in the future. Here are our investment tips to help you with your decision:   Determine your intentions for the home Ask yourself what you plan to do with the house. Aside from enjoying it over the holidays, would you like to rent it out during the off-peak season? You need to consider how you want to use and own your property for financing and tax issues. It's your choice if you want it to be your primary residence, your second home, or even have it as an investment property. According to NAR*, at least 42 percent of vacation home buyers plan to use their property for vacations or as a family retreat, while 18 percent plan to convert their vacation home into their primary residence in the future for retirement. Meanwhile, 37 percent of investment property buyers purchased the home to generate income through renting the property. You can rent the home and even use it when it's not rented. Tax treatment is less beneficial if you'll use it as an investment, but the extra rental income can help you with the costs.   Greatly consider your vacation home's location Even if you're lucky enough to have found your "magical place," you still need to take into consideration all the pros and cons in the area. It is best to visit the community many times over — both peak season and offseason — and check out other important factors such as the condition of roads in any time of the year, neighborhood safety, access to nearby shops and public transportation, and others. Spend more than a few weekends there and talk to the locals about any day-to-day hassles they may be encountering.   Calculate all the costs The purchase price of your vacation home isn't the only thing that needs to be taken care of. You need to factor in all extra costs for running the house — from taxes, insurance, property maintenance, HOA fees, utilities, and all other costs associated with homeownership. You might also want to consider the travel costs to your vacation home. It is also advisable to plan for personal budget items that lenders don’t use in their qualifying calculations, such as furniture and housewares. You’ll also need a budget for special equipment needed for properties near the beach or resort.   Work with a real estate agent who knows the area Your chosen country town may look great; picturesque even. But you might want to consider the state of roads leading into the area during winter. You will also need advice on local zoning and property rental rules. A local real estate agent who knows the area by heart can help you clarify any issues associated with buying in your chosen location. The agent can also help you envision your dream vacation home in any season, and is a great resource for any information related to the community.   Know the area's proximity and have a plan for emergencies They say the best vacation homes are easy to get to and have alternate routes to avoid traffic. It is also smart to choose a house that is within driving distance from your primary residence so you'll be able to check on it more often for any necessary repairs and maintenance issues. *2017 NAR Investment and Vacation Home Buyer’s Survey

Before even planning to move to a more size appropriate home, serious decluttering should be your utmost priority. Deciding which items to give up is a time-intensive process because of everything you want to keep - be it for sentimental reasons, or the belief that you'll still be able to use them someday. It may take weeks of discussion before you and your spouse agree on keeping an old coffee table or donating some of your favorite kitchen appliances - so it's best to start early. Remember that you don't need to declutter your entire home all in one day. Start with the easiest room to declutter, and work your way through your house carefully. Here's a simplified guide on how to tackle this seemingly daunting task. When decluttering, it's best to keep your process simple: Label everything with Discard, Donate, or Sell. Everything that doesn't fall into these categories are the items worth keeping. 1. Discard the things that can no longer serve their purpose to anyone. Most empty nesters find it hard to dispose of things that have been in the family home for a long time, even if they no longer serve their function and simply just take up space in a room. However, this will not serve you when you downsize, since you’ll be needing to use up space wisely. 2. Donate the things that you no longer use but can still be used by people who need them more. Rummage through your things for spare clothes, kitchen supplies, and other usable items that no longer get used in your home. As a general rule, if you haven't used an item for more than a year, it's probably not important to you anymore. If you’re not comfortable selling them, give them away to friends or to relatives who may need them more. 3. Sell the things that you can’t just throw or give away. Some of your stuff is just too expensive to give away, but keep in mind that not all of your antique furniture and large appliances may fit in your new home. Reassess the value of these items, or have an expert do it for you. Once you all agree on the prices, you can then put them up for sale. In this age, you’ll be surprised how quickly you can sell something online. The money you raise by selling some of your things can also be used to buy more appropriate replacements that can fit inside your new home. Dealing with a newly-empty nest can be quite emotional and stressful, but getting rid of unnecessary clutter is a great way to be more positive about moving into this next phase of your life. Letting go of a few old things simply mean making room for new and better things.

Planning to buy your first luxury home? Best be prepared by following these seven expert tips! 1. Build your dream team of experts. When buying a luxury house, it is highly recommended that you employ the help of an excellent real estate agent, a trusted financial advisor and accountant, and a lawyer who will be ready to walk you through local tax and property law. Choose a real estate agent that has a solid track record in the luxury housing market. While it is fine to call your trusted agent, your first luxury home purchase may need the expertise of someone who has already had success in dealing with this unique sector. The right real estate agent will have gleaming testimonials and reviews from satisfied luxury home buyers, preferably from the area where you are planning to purchase your luxury home. Look for a trusted financial advisor and accountant who will truly have your best interests at heart. Hiring a lawyer who is familiar with local tax and property law will also save you a lot of time and headache down the line. When you successfully put together a great team that will guide you through this luxury home-buying process, you can expect to have the keys to your dream luxury home in the quickest possible time.   2. Make sure your dream luxury home is also in a dream location. Research the entire vicinity of the home you are eyeing. If you're planning to purchase a luxury home to retire in, you may want to choose one that is located in a sparsely populated area, or one that will offer you a stunning view of the city that surrounds it. Since location has a significant impact on taxes, travel time, schooling, and other areas of your lifestyle - you may want to take your time researching which luxury home location suits your purposes best. If you're planning to add more features to your home such as a large veranda, pool, or a massive garden, you have to make sure that the house you're going to buy is not in a densely populated area. Which is to say that you can't rely on online listings alone; getting a feel of the house itself, as well as its surrounding community is the best way to gauge the quality of a home's location.   3. Familiarize yourself with the pre-approval process. The process of applying for a mortgage to buy a luxury home is entirely different from getting a conventional mortgage. Lenders may require a credit score of 680 or better - and the better your credit score is, the lower your interest rate will be. Your team of experts will know about this so do not hesitate to talk to them about your concerns. Being knowledgeable of the differences between getting standard mortgages and luxury home mortgages will better prepare you for the home buying process.   4. Keep an eye on "pocket listings" A lot of high net worth individuals do not market their listings publicly. Their listings are only shown to pre-screened, qualified buyers who can show proof of financial capacity to make a multi-million dollar purchase. As you won't find their homes listed in the MLS, it is best to make sure that your realtor is in contact with other luxury agents who can help show you pocket listings that may suit your standards.   5. Take note of the resale value of the luxury home you're planning to buy. While your decision to purchase a luxury home must align with your unique tastes, you must always consider how a particular home will appeal to future buyers should you decide to resell. If you think you'll be having resale challenges due to the unique nature of a luxury home, it is best to negotiate an excellent price to offset said challenges.   6. Have a checklist of your priority features. When looking for the perfect luxury home, it is best to know exactly what you want. Having a checklist of features you want to have in a home will keep your priorities in check, and will prevent you from making an emotional purchase (i.e., when you get lured into buying a house with a massive pool that you don't need). Is your privacy the most valuable thing to you? Make sure your potential home isn't located in an area where passersby can't easily take a peek into your home. Do you spend most of your free time cooking? You may want a house with a beautiful, Tuscan-style kitchen. Knowing what you want from the get-go will make it easier for you to narrow down your options.   7. Consider foreclosure listings. If you want to purchase a luxury home that is being sold considerably below its actual value, checking out foreclosed properties can be your best bet. Roughly 60% of foreclosed homes can be financed through your lender of choice, so you don't have to worry about buying with cash. Consult with a home mortgage consultant to determine whether it would serve you better to use financing or to buy with cash. Keep in mind though, that buying foreclosed homes means that you're buying it at its current state, and no upgrades will be made available to you before the big purchase. While you'll be able to save money by buying a foreclosed home, you have to factor in the amount you'll be spending on repairs and upgrades. Hire a trusted home inspector to check whether you're overspending by purchasing a foreclosure.  

The Veterans Affairs home loans are unique mortgage options that allow current and former members of the military to own a piece of the American dream by potentially qualifying for homes that they might have thought to be out of reach. Veterans, active-duty service personnel, and select Reservists or National Guard members are among those who can qualify for VA loans. These flexible loans come with outstanding benefits like no down payment, no mortgage insurance, more lenient credit requirements, and also have the lowest average interest rates on the market. The National Association of Realtors (NAR) 2017 Profile of Home Buyers and Sellers showed that 18 percent of recent home buyers are veterans, while three percent are active-duty service members. However, misinformation and misconceptions about VA loans continue to hinder many veterans from actually benefiting from this program, which is a tangible way of showing gratitude towards their service to the people and the nation. #1 Misconception: It is a one-time benefit. FACT: Getting a VA loan is a lifetime benefit. Some veterans think that they must use the benefit immediately or lose it, or that if they used it once, they can't use it again. The reality is that it is a lifetime benefit. You can use it again to purchase another property, as long as you have paid off your previous VA loan.   #2 Misconception: VA loans take longer to close than FHA or conventional loans. FACT: There's not much time difference when closing VA loans compared to any loans. Many home buyers think that VA loans take more than 60 days to close, but it certainly isn't true. The process has become much more automated and efficient with the Guaranty Program, and it can now be closed in 30 days or less. Similarly, the average VA mortgage closes in 45 days, according to mortgage industry analysts Ellie Mae. While the average closing time for all loans is 42 days, which only has a three-day difference.   #3 Misconception: The VA appraisal is quite a nightmare. FACT: The VA appraisal isn't really different from the average conventional appraisal. Unless the buyer pursues a home in a very poor condition, then the appraisal process could really be terrible. The truth is that only VA-approved appraisers inspect the homes to make sure they meet minimum property requirements, and to make sure that they are “safe, sound and sanitary.” VA appraisers also tend to have stricter standards than a typical home appraiser. Otherwise, if the service member chooses a home that is in good condition, then the VA appraisal will be a breeze.   #4 Misconception: You can’t get a VA loan if you’ve had a foreclosure or bankruptcy. FACT: VA loans only require that there has not been a foreclosure or bankruptcy in the past two years. VA loans are more lenient than other loan products when it comes to bankruptcy and foreclosure. In some cases, it is also possible to get a loan within a year. This is a much shorter period compared to what FHA loans and conventional mortgages require, which includes a 3-year waiting period.   #5 Misconception: Hiring any real estate agent will do. FACT: An agent who's had experience working with military buyers can help you better navigate the process. While any realtor can technically help you, finding a military-friendly real estate agent who particularly had experienced working with military buyers before — and have the time to focus on your needs — can make a world of difference. For many veterans, housing needs go far beyond the usual housing criteria, such as the number of bedrooms, price range and location. An agent who specializes in VA loans can help save you an awful lot of headaches as they better understand the loan process, the VA appraisal, and has a special eye and heart towards your specific situation.