first-time homebuyer

Top 3 tips for first-time homebuyers

April 11, 2017 by admin

Are you a first-time homebuyer and have no clue where to start? Well, we are here to help with 3 top tips for first-time homebuyers!

1) Figure out your first-time homebuyer budget

Calculate your monthly costs and a new home budget. Consider ALL expenses when calculating your budget. Factor in the cost of property taxes, utilities, upgrades and special assessments. Even a longer commute can add extra costs to your monthly budget. Meet with a lender to get pre-approved for an amount that is within your budget. Now is the time that you will figure out how much you will need for a down payment, closing costs, and any other fees.

2) Make a list of your must-haves

Before meeting with a Realtor, create a list of your must-have items that you would like in your new home. Your must-have list can be very long, if you are too specific with some items, narrow down your list to your top 5 must-haves. Keep in mind that some items such as paint colors can easily be changed out. Focus on items that are harder to change in a room such as room size. Some ideas are:

How many bedrooms and bathrooms?
Are you looking for a new construction home or a pre-existing home?
If you’re looking for pre-existing, are you willing to replace and update items yourself?
Does the home come with appliances or do you have to supply them?
Do you want a yard that is already complete with a deck and fence?

3) Learn about the neighborhood

Research what location you would like to live in. Are there renters near by? How are the schools for young or future children? Are there any areas for future apartments that may pop-up? How close is the neighborhood to your job? These are all great questions to ask yourself when considering a neighborhood.

As a first-time homebuyer, there are a lot of details to consider, just remember don’t buy more than you can afford!

Buying a home vs. renting

March 20, 2017 by admin

Should you buy or should you rent? This is a popular topic that is often brought up around the Thomsen Homes office, especially if you are a first-time homebuyer. There are advantages and disadvantages to both renting and buying a new home. An article by Landon Dowdy on cnbc.com discusses the facts between buying a home and renting a home for millennials. Below is a snippet of the article to help you decide if buying or renting is right for you. Still have more questions? Contact us and we’d be happy to answer any questions you may have.

Here’s where it makes sense to rent:

You have limited funds. If you don’t have the money for a down payment and additional costs of owning a home, renting is the best option. Use rent-versus-buy calculators at Trulia or Bankrate.com to see what you can afford.

You are uncertain about your employment. If you are unsure about your job situation or living paycheck to paycheck, focus on conserving cash for future living expenses and building up your emergency fund, said Evelyn Zohlen, a certified financial planner and president of Inspired Financial in Huntington Beach, California.

But you are better off buying if:

You can cover the additional costs of owning. Make sure you can pay the down payment and closing costs before buying a home. “Most banks still want a 20 percent down payment,” said Ryan Severino, a senior economist and director of research at commercial real estate data provider REIS. So if you are purchasing a $250,000 home, a 20 percent down payment would be $50,000. That’s in addition to a typical 5 to 6 percent in commissions plus another 1 percent in closing costs. Maintenance costs are also a big factor to budget for.

You plan to stay in the home at least five years. It’s best to buy when you have the “long-term horizon,” Zohlen said. Staying in a house that you buy for five years or more means you are more likely to recoup what you paid in transaction costs and generate a return on your investment.

You want to reap the financial benefits of homeownership. Low interest rates make homeownership attractive because it decreases the amount borrowers pay on their loans. Mortgage rates remain near record lows after the 2008 financial crisis. The average rate on a 30-year fixed-rate mortgage is 3.9 percent, according to Bankrate. If you itemize your federal return and don’t qualify for the alternative minimum tax, you can deduct your mortgage interest and property taxes from your tax obligations. And most importantly, you can build equity in your home, something that isn’t possible with a rent payment.

Realtor.com has a useful calculator that will help you calculate the net cost of buying a home vs. the cost of renting over time. Use this beneficial tool to help you decide.

Ready to sell your home and where to start

February 3, 2017 by admin

A side to homeownership that is key to being successful in starting your new home journey is knowing where to start when you are ready to sell your home. There are some important things to consider and careful planning that should go into it. Here are a couple tips on how to prep your home and turn it into an irresistible and marketable home.

Pricing it right and work with an experienced Real Estate Agent-

Do your research and find out how much your home is worth if you are looking to sell your home. Then working with an Agent that is experienced and you can trust, decide on a price your home should be listed at. An important part to remember is that you need to disassociate yourself with your home. Make that mental decision to “let go” and start this new journey of finding a new home.

Half empty closets-

Storage. Storage. Storage. This is something every buyer can’t get enough of. Knowing this, organize your storage space like closets and take things out and neatly organize them. Buyers will peek in every nook and cranny so be sure to keep these areas tidy.

Light-

Light (especially natural light) is an important thing to buyers so maximize the light in your home. Maximize the light in your home by taking down drapes, clean windows, update lampshades and replace light bulbs. Try and think of things to make your home bight bright and cheery this will create a more appealing atmosphere for potential buyers.

Take the home out of your house-

Box up those personal photos and heirlooms. Buyers get distracted and can’t get past them. You want potential buyers to envision their own personal belongings in this space and visualize themselves living there.

The first impression is the only impression-

A buyer will judge your home before they walk in the door no matter how good the interior may look. When buying a home, second chances are slim to none. Put some effort into your curb appeal. Bright flowers and shrubs can go a long way to spruce up an exterior. You want to make sure your home is welcoming and inviting.

Stay tuned for more Thomsen Tips on everything home.

5 habits to start now if you hope to buy a home in 2017

January 25, 2017 by admin

Buying a home is a huge purchase and the more prepared you are the better off you are. An article by Cathie Ericson on realtor.com discusses 5 habits you should start now if you’re planning on buying a home in 2017. If a goal of buying a home is in the near future for you and your family these are some great ways to start preparing so you can achieve that goal and move into a new home in 2017. Below is a snippet of the article and how you can be successful in starting this process.

Habit #1 Buying a home: Automate your down payment savings

If you’re trying to squirrel away the recommended 20% down payment, that works out to about $40,000 for a $200,000 home. That’s a huge chunk of cash, so unless you’ve been the recipient of an inheritance or have recently won the lottery, you can never save too early or too much.

“The down payment takes more money than 99% of people plan for,” warns Joshua Jarvis of Jarvis Team Realty with Keller Williams Realty Atlanta Partners in Duluth, GA.

Yet one practically painless way to get started is to automate your checking account to regularly set aside a small amount of your paycheck into a separate savings account dubbed your “house fund.”

“Amassing enough for a down payment takes discipline and perseverance, but setting up automatic savings can make it easier,” points out Realtor® Marcia Goodman with Re/Max Gateway in Gainesville, VA. “If you never see the cash, you won’t spend it.”

And you don’t have to put down the full 20%, either—there are other options. But it’s best to save as much as you can.

Habit #2 Buying a home: Build your credit history and keep it clean

To get a mortgage, lenders will want to see evidence that you’ve paid off past debts. As such, keeping on top of your credit cards and car and college loans is a crucial mortgage must-do.

But don’t steer clear of credit altogether. If you’ve never had a credit card or a bank loan, you won’t have a credit history. Once you have credit established, keep it pristine. Pay all your bills on time—this cannot be overemphasized.

“I had a client who made $250,000 a year and was denied a mortgage because his credit card payments were always late,” says Alexandra Axsen, managing broker of Lake Okanagan Realty Ltd. in Kelowna, BC.

Dean Sioukas, founder of Magilla Loans in Sacramento, CA, also advises not using more than 30% of your available credit, as recommended by the credit bureaus.

(Read the full article of the 5 habits here)

Source: Realtor.com