Buying a home is a process that many of us will go through in our lifetime. If we are like many other prospective buyers, we will experience this major decision three or four times in our working years. A home is often the largest purchase we will make, and it therefore deserves our careful attention.…
It seems like to me that if you work hard on raising your credit score, and you don’t finance what you don’t have too, it would be more profitable to buy a home when others cannot afford to because of inflation. Unfortunately, those who are trapped in the rat-race of credit will suffer more consequences either way around. Those type of people get finance crazy when interest rates are low, and then cannot afford to keep up when they…
Buying a house can be a challenging and expensive decision for most families. There are many things to consider in the process and could take years to finalize the project. Today, buying a house can be challenging because of the market and the economy falling every hour of the day. The purpose of…
I recommend for the risks and benefits for buying a home with the above considerations, is that all first time home buyers consider buying with the knowledge on The American Reinvestment and Recovery Act, which was created by Congress to help first time home owners with a credit for taxes of $8,000, that was lengthen to go pass the June 2010…
The housing market changes quite frequently and depending on the city, state, and neighborhood. When a home-buyer is interested in purchasing a home they look for what fits their needs, life style, and budget. This is important because it will also determine what type of house they can afford to live in and how much they can get for the amount their budget will allow. Buyers and sellers will look for certain variables when purchasing or selling a home and data must be gathered to make sure that all details match and that all requirements are met. It would be safe to assume that our theory that the larger the house and the more rooms a house has, the more expensive the price of the house will be. The three major variables in our data summary are: number of bedrooms, size of the house, and number of baths.…
No one really realizes the time and patience it takes to get a first time home buyers loan. The first and most critical step in homeownership is getting the right mindset. This principally involves making all the key financial decisions. The current financial situation of the person will determine the amount to be spent on a home loan. Financial factors like income, credit worthiness, person’s debt and the amount available for a down payment if requested, will be studied carefully to determine how much loan will be offered to the individual. Some banks will even consider debt consolidation to help eliminate the person’s debt, which could potentially help their credit score. Some will even recall the question of renting over buying and here is why, a home is an investment. When you rent, you write your monthly check and that money is gone forever. But when you own your home, you can deduct the cost of your mortgage loan interest from your federal income taxes, and usually from your state taxes. This will save you a lot each year, because the interest you pay will make up most of your monthly payment for most of the years of your mortgage. You can also deduct the property taxes you pay as a homeowner. In addition, the value of your home may go up over the years. Finally, you'll enjoy having something that's all yours - a home where your own personal style will tell the world who you are. (Common Questions from First Time…
In order for a consumer to decide whether or not now is the time to purchase a new home, there are 10 basic principles of economics that we can follow. By learning and realizing these principles, you will have the ability to make one of the largest investments that a consumer could make in a lifetime. Even though all of these principles relate to the decision of purchasing a new home, there are some that have a direct impact and influence on an investment this large. The first principle that should be considered is that people face trade-offs. In order for someone to get something they want they usually have to give up something else. If purchasing a new home seems to be the decision that is best for the consumer, they may have to give up things such as family vacations and excessive spending on clothing or food. All factors of a trade-off could be considered by looking at the pros and cons of each situation. For instance, does more space, private living or the benefit of paying on something you will eventually own justify the cost of added utilities and maintenance of a home. There are other considerations to be taken as well, such as property and house taxes that would not be present in a rental agreement. This is…
Picking a place to live is one of the biggest decisions we make in our lives. It is a decision that is not to be taken lightly and must be planned out way in advance. One thing you need to decide is whether you want to buy or rent a home. There are pros and cons of renting and buying a home; and you need to be able to decide logically what is going to work best for you.…
The decision to buy a home is one that cannot be entered into lightly. Experts say that a home purchase is one of the most important and significant decisions a person will make in their lifetime. Added with a new baby on the way, the decision becomes much more important. There are many factors that will affect one’s decision to buy a home. Many individuals make the decision to buy a home without considering some factors. This can create a negative situation beyond the individual buyer his or herself as we learned recently. Careful consideration should be made by examining the entire situation.…
Despite the current struggles of our country and the fluctuation in the economy, people will always need to buy houses. Many Americans cannot afford to buy a house in one payment. Since 1929, Americans were provided with different options in order to make their decision of buying a home more comfortable and affordable. A 30-year mortgage rate on a home is vital to the development of new families. This allows families to start a healthy line of credit with minimal risk. Also for new homeowners, government grants can help cut the cost of housing. A 30-year fixed mortgage rate along with a government grant can help new homeowners afford their…
One approach that individuals are using currently to be unique from the crowd and compete with all-cash purchasers in a hot real estate market is writing a homebuyer's letter to a seller. It is not simple to compose a letter that is engaging and personal to convince the receiver that he or she should give the home to you and not someone else. Today, it is always getting harder to win a bidding war. Persons who require financing and about sixty six percent of all home buyers do as well as those with smaller down payments frequently have trouble competing with all-cash buyers, who are able to lure sellers with spike and span offers and quick closings. Also, all-cash buyers may find themselves competing with others who also can come up with the money and this is why a letter comes to help.…
The economic recession in the last several years, has had profound effects on several industries. Rising unemployment rates coupled with increased inflation has resulted in several individuals not being able to afford their homes which have led to an increase in foreclosures and short sales and decrease in property values. Deciding to either rent or buy a property must be weighed carefully in light of the current housing crisis. Prior to the mortgage…
Real-estate market was exceptionally prosperous. The number of Americans owning their own homes reached an unprecedented record of forty nine percent. A similar phenomenon occurred between the years of 2006 and 2008. Everyone was taking advantage of the easy access to mortgages. Analysts show that during this period, about sixty eight percent of Americans owned their homes. This real-estate boom all ended when a wave of foreclosure hit the financial sector globally. This situation was worsened by the steep decline in house prices which left home owners unable to pay or refinance their…
Deciding weather or not to buy a home is a huge decision for anyone. It can be intimidating taking out a loan for over one hundred thousand dollars, finding the perfect neighborhood for you and your family or locking into what seems to be at least a 20-30 year commitment. With the economic trends plaguing our country for the past seven years, it can make one hesitant to make such a significant decision. What I have found out is that there are a lot of great loans out there for first time home buyers, and there are a lot of eager real-estate agents that want to help you find the right home, and make the transaction as easy as possible for you. There are numerous resources and market trends that are telling us that now is an excellent time to buy; assuming you are ready.…
Long term – In case you weren’t aware, buying a home is a huge commitment and often times only happens once in a lifetime, but hopefully you realized this prior to becoming a homeowner!…