Jeffrey Harrington's Blog
Entering the real estate market and buying your dream home may seem simple at first. However, problems may arise that make it tough to secure your ideal house at a price that matches your budget.
When it comes to finding the right home at the right price, it helps to prepare. Fortunately, we're here to help you get ready to enter the housing market and ensure you can quickly and effortlessly discover your dream residence.
Now, let's take a look at three tips to simplify the homebuying process.
1. Create Homebuying Criteria
Purchasing a house is rarely easy, particularly for a property buyer who has no idea how to kick off a home search. But if you establish homebuying criteria, you can speed up the process of going from homebuyer to homeowner.
Allocating time and resources to create homebuying criteria is essential because it forces you to consider where you want to live and what amenities you want to find in your dream residence. Plus, once you have homebuying criteria at your disposal, you can start your home search and move one step closer to acquiring your ideal residence.
2. Obtain Home Financing
Home financing is paramount, particularly for property buyers who want to avoid the risk of spending too much to purchase a house. Thankfully, banks and credit unions can teach you about a variety of mortgage options and help you secure the financing you need to buy a home.
Typically, a lender will meet with you and outline your mortgage options. It also will explain the differences between fixed- and adjustable-rate mortgages and respond to any of your mortgage concerns and questions. Then, after you review your mortgage options, a lender will help you make an informed home financing decision.
Don't wait to get home financing, either. If you have home financing in hand when you launch a home search, you may be better equipped than other buyers to quickly submit an offer to purchase a home.
3. Work with a Real Estate Agent
For those who want to avoid challenges throughout the homebuying journey, it generally is a good idea to collaborate with a real estate agent. In fact, a real estate agent will do everything possible to help you identify and resolve homebuying problems before they escalate.
A real estate agent is a housing market expert and is happy to assist you as you proceed along the homebuying journey. If you are interested in houses in specific cities and towns, a real estate agent will keep you up to date about residences that become available in these areas. Or, if you want to submit an offer to purchase a house, a real estate agent will help you put together a competitive homebuying proposal. Best of all, if you have homebuying concerns, a real estate agent will address them right away.
Ultimately, buying a house can be easy. Use the aforementioned tips, and you can streamline the homebuying cycle.
You've found your dream home – at least, you initially thought you discovered your ideal house. But following the home inspection, you're starting to have second thoughts about whether you want to purchase a particular residence.
A home inspection is a valuable opportunity for a homebuyer. It enables a buyer to receive expert insights from a property inspector about a house's age and condition. Thus, if a home inspection reveals myriad problems with a residence, a homebuyer still has an opportunity to walk away from a home sale.
Ultimately, there are many factors for a homebuyer to evaluate after a home inspection, including:
1. The Home's Condition
When it comes to evaluating a home's condition, there may be more than meets the eye. Fortunately, a home inspection enables a property inspector to take a deep look at a house's interior and exterior and provide detailed findings.
If a home's condition fails to match your expectations, don't hesitate to walk away from a home sale. By doing so, you can reenter the housing market and begin your search for the perfect residence once again.
On the other hand, if a home's condition is not a deal-breaker, feel free to move forward with a home sale. And in a short period of time, you'll likely soon be the owner of a great house.
2. The Home's Age
A home's age may dictate whether substantial home repairs or improvements may be needed down the line.
For example, a home's furnace usually needs to be replaced every 10 to 15 years. If a 30-year-old residence still has its original furnace in place, this device may need to be replaced sooner rather than later.
A home inspection should provide clear-cut insights into potential home improvements that you may need to perform in the near future. Use these insights to your advantage, as they may help you if you try to renegotiate the price of a house.
3. Long-Term Home Improvements
Spend plenty of time with a home inspector and don't hesitate to ask this professional plenty of questions. Remember, he or she is available to help you make an informed homebuying decision. And if you learn about potential long-term home improvements now, you may be able to avoid severe home problems down the line.
If a home inspector discovers roof problems or other substantial house issues, take his or her recommendations seriously. That way, you can avoid the danger of buying a "money pit," i.e. a house that may prove to be more trouble than it's worth.
Lastly, if you need help at any point during the homebuying journey, reach out to a real estate agent. This housing market professional can put you in touch with the best home inspectors in your area and allow you to minimize stress throughout the homebuying cycle.
Ready to make your homeownership dreams come true? Consider the aforementioned factors after a home inspection, and you can move one step closer to purchasing a terrific house at a budget-friendly price.
Buying your first home is probably one of the biggest purchases you’ll make in your life. But, it does come with its advantages. Among them are tax breaks and deductions that you can take advantage of to save money if you play your cards right.
In today’s post, I’m going to cover some of the tax breaks and deductions that first-time homeowners should seek out this tax season to help them lower their tax bill.
While earning points is a good thing on the basketball court, it can be a financial drain on a mortgage. Mortgage points are what buyers pay to the lender to secure their loan. They’re usually given as percentage points of the total loan amount.
If you pay these points with your closing costs, then they are deductible. Taxpayers who itemize deductions on their IRS Form 1040 can typically deduct all of the points they paid in a year, with the exception of some high-income taxpayers whose itemized deductions are limited.
If you’re one of the many people who made a down payment of less than 20% on your home, odds are that you’re going to be stuck with PMI, or private mortgage insurance, until you pay off at least 20% of the loan balance.
The good news is that homebuyers who purchased their home in the year 2007 and after can deduct their PMI premiums. However, the state on premium insurance deductibles is something that frequently comes up in Congress, so homeowners should ensure that these deductions are still valid when filing their taxes.
Mortgage interest accounts for the biggest deduction for the average homeowner. When you receive your Form 1098 from your lender, you can deduct the total amount of interest you’ve paid during the year.
Another deductible that shouldn’t be overlooked by first-time buyers is local property taxes. Save the records for any property taxes you pay so that you can deduct them during tax season.
Home energy tax credits
Some states are offering generous tax credits for homeowners who make home improvements that save energy. There are a number of improvements you might qualify for, including things like insulation and roofs, as well as photovoltaic (PV) solar panels.
Many first-time buyers withdraw from an IRA account to be able to make a larger down payment on their home or to pay for closing costs. In most other cases, withdrawing from an IRA will count as taxable income. However, if your IRA withdrawal is used toward a down payment or closing costs, the tax penalty is waived.
Keep these tax breaks and deductions in mind this tax season to help you save money and get a larger refund.
A home showing represents an important opportunity for a homebuyer. And if you know the right questions to ask during a home showing, you can obtain the insights you need to determine whether a residence is right for you.
Ultimately, there are several crucial questions to ask during a home showing, and these include:
1. Why did the seller list this home?
There are many reasons why an individual may choose to sell his or her house. Yet this information rarely, if ever, is included in a home listing. Fortunately, a home showing gives you the opportunity to analyze a seller's perspective as you weigh the pros and cons of submitting an offer to acquire a residence.
If a seller listed a house due to severe home maintenance issues that have escalated over time, this is a red flag for any buyer. On the other hand, if a home seller simply is looking to upgrade or downgrade or prefers to live elsewhere, you may want to further pursue his or her residence.
2. Is there any flexibility on the home price?
The initial asking price of a home usually is flexible, but only to a certain extent. Determining the level of flexibility on an initial asking price is paramount, as this may dictate the offer that you make on a house.
However, it is important to submit a competitive home offer, regardless of whether a seller is flexible about the price of a residence. Because if you submit a competitive homebuying proposal, you can reduce the risk of missing out on an opportunity to purchase your ideal residence.
3. Is there anything else I need to know about this home?
Following an in-depth home showing, you likely will have lots of information about a house and its condition. To conclude the showing, you should ask if there is anything else you need to know about a residence. This will enable you to receive the final pieces of information you need to decide how to proceed with a home.
Remember, it is your duty as a homebuyer to make an informed decision. If you understand exactly what to ask during a home showing, you can obtain the insights you need to determine the best course of action.
When it comes to preparing for a home showing, it helps to get assistance from a real estate agent too. In fact, hiring a real estate agent will make it simple for you to navigate the ups and downs of the homebuying journey.
A real estate agent is happy to set up home showings and attend these events with you. He or she can provide comprehensive home insights throughout a home showing. Plus, after a home showing, a real estate agent will help you decide whether to submit an offer on a house or continue your pursuit of your dream residence.
Get ready for a home showing – collaborate with a real estate agent, and you can receive the help you need to fully analyze a house.
Home showings are valuable parts of the property buying cycle. If a homebuyer knows what to expect during a showing, this individual can get the information that he or she needs to determine whether a particular house is the right option.
Now, let's take a look at three things that buyers need to know about home showings.
1. A home showing is a commitment-free experience.
There is no obligation to submit an offer to purchase a house following a showing. Instead, a buyer can review his or her options and proceed accordingly.
In some cases, a buyer may want to set up a follow-up home showing as well. A follow-up showing enables a buyer to get a second look at a residence to determine whether it matches or exceeds his or her expectations.
It also may be beneficial to prepare lots of questions before a showing. That way, a buyer can gain deep insights into a home to help him or her decide the best course of action.
2. A home showing enables a buyer to get an up-close look at a house.
During a home showing, a buyer will walk through a house with a real estate agent. A buyer can ask a real estate agent questions about a residence, and he or she may even choose to take notes as the showing progresses.
It generally is a good idea to check out all areas of a house during a showing. Remember, a home purchase probably is one of the biggest decisions that an individual will make in his or her lifetime. With a comprehensive home showing, an individual can gain extensive insights into a residence's age, condition and more.
In addition, a buyer should not place a time limit on a showing. Depending on the size of a home, a showing may last a few minutes or a few hours. But a buyer who allocates the necessary time and resources to analyze a residence during a showing may be better equipped than others to make an informed decision about a house.
3. A home showing is one of many steps during the homebuying journey.
If a home showing is successful, a buyer may be inclined to submit an offer to purchase. Or, if a showing reveals a house fails to hit the mark with a buyer, this individual can continue his or her pursuit of the perfect residence.
Lastly, when it comes to setting up home showings, it often helps to hire a real estate agent. This housing market professional will make it simple for a buyer to navigate the property buying journey.
A real estate agent will schedule home showings for buyers and keep buyers up to date about open house events. Plus, a real estate agent will help a buyer submit an offer to purchase a home and ensure that a buyer can seamlessly acquire his or her ideal residence.
Reach out to a real estate agent today, and you can kick off the homebuying journey.