William Raveis Real Estate and Home Services



Posted by Deborah Schilling on 1/11/2018

 

We’re not taught much about homeownership when we’re young. Like paying bills and taxes, it’s something we’re all expected to pick up along the way. But with something as important and expensive as buying a home, there should be a guide to help first time homeowners determine if they’re ready to enter the real estate market.

Today, we’re going to attempt to provide you with that guide. We’ll offer some of the prerequisites to homeownership to help you determine if you’re ready to buy your first home.


A rite of passage 

Buying a house is a significant moment in anyone’s life. It’s often a precursor to starting a career, a family, and settling in a part of the country you will likely call home for a large portion of your life.

It’s also overwhelming.

There’s much to prepare for before buying your first home. You’ll be calculating a lot of expenses, thinking about jobs and schools, and learning new things about home maintenance. Here are some things to think about before buying your first home.


Can I afford it?

The most obvious question first time buyers ask themselves is whether they can afford a home. What many don’t ask, however, is if they can afford all of the unexpected expenses that come with homeownership.

Everyone knows they’ll be making mortgage payments. But to decide if you can really afford a home you’ll have to make a detailed budget. Here are some other expenses to consider:

  • Mortgage closing costs

  • Property tax

  • Home insurance

  • Maintenance and repairs

  • Home improvement

  • All utilities

  • Moving costs


Do I plan on staying in the area?

When you buy a home, you’re not just committing yourself to the house itself, but also to the area you live in. Typically, it only makes sense to buy a home if you’re planning on staying in it for a number of years (usually five or more). Ask yourself the following questions to determine if you can truly commit yourself to your area.

  • Could my career lead me to transferring to another location?

  • Could my spouse’s career lead them to transferring?

  • If children are in the present/future, is the local school district what I’m looking for in terms of education for my child?

  • Will I want to move live to family?

  • Will I have to move soon to care for aging parents?

  • Do I like the weather and culture in the area?


Is my income stable?

Owning a home is much easier when you have a stable income or two stable incomes between you and your significant other. It help you get preapproved for a mortgage and help you rest easy knowing that you can keep up with the bills each month to maintain or build your credit.

Stability doesn’t just mean feeling comfortable that your company won’t get closed down or that you’ll be dismissed from your job. It also means that there are frequent openings in your field of work in the area you choose to live. So, when planning to buy a home, make sure you factor in the potential travel distance to cities or places you could potentially work.


Am I prepared to put in extra work?

If you currently rent an apartment, you’re most likely not responsible for maintenance outside of basic cleaning. Owning a home is a different story. You’ll be taking care of the house inside and out. That means learning basic maintenance and buying the tools for the job.

It also means mowing the lawn, cleaning the gutters, shoveling snow off of the roof, and other menial tasks that you’ll need to make time for.





Posted by Deborah Schilling on 2/16/2017

Buying a home is a complicated process with a lot of opportunities to make costly mistakes. There’s no high school class to prepare you for buying a home but there probably should be. If you’re a first time homebuyer and you came across this article looking for advice, congratulations--you’re already doing the most important thing you can when making a big financial decision: the research.

In this article, we’ll cover some of the most common mistakes that first time homebuyers make when entering the real estate market. We’ll break it down by the three main phases of home-buying: saving for a home, hunting for a home, and signing a mortgage.

Saving for a home

One of the first lessons that all first time homeowners quickly learn is that being able to afford your monthly mortgage payments doesn’t mean you can afford a home. Many first time buyers are often coming from living situations where certain utilities are included (water, heat, electricity, etc.). Aside from those obvious expenses, there are also things like property tax and home insurance to budget for, both of which may increase. Finally, when you’re living in an apartment and your faucet breaks, you simply call the landlord. When you own a home, especially an older home, be prepared to spend on repairs and to start learning basic maintenance skills that will save you money.

The hunt for your first home

Now that you’re aware of the costs, it might be tempting to jump in and start looking at homes. Another common mistake first time homebuyers make is to waste time looking at homes before they’ve met with a real estate agent or have gotten pre-approved for a loan. Start there, then once you know the scope of your home search, you’ll have a much more relaxing hunt for your new home.

Another mistake that first time homebuyers make is to underestimate the time and commitment it takes to find a home. When you work with a real estate agent, make sure you are available at all times. Keep your phone nearby, stick to your schedule for viewing homes, and keep a list of each home you’re considering. Showing initiative and dedication won’t just help you stay organized, it will also show your agent and the home seller that you are worth their time.

Mortgage mistakes

One of the most common mistakes that buyers make when it comes to their mortgage is to fail to shop around for a lender. In fact, the Consumer Financial Protection Bureau found that only half of all buyers considered more than one lender for their home.

Buyers, first time and repeat, often think their credit report is set in stone. What they don’t realize is that the three main credit Bureaus (Experian, Equifax, and TransUnion) can all make mistakes on your credit. Check your detailed credit reports and fix any errors long before applying for a mortgage to increase your chances of getting a good rate.

If you avoid these common mistakes and continue to do your research along the way, you should be able to save yourself some headaches and some money in the long term.




Categories: Uncategorized  


Posted by Deborah Schilling on 12/8/2016

Buying a home can be a daunting and nerve-wracking experience, especially if it's your first time. Many first time homebuyers go into the process with little preparation other than financial planning. One great tool to have if you're entering the housing market for the first time is a timeline to owning your first home.

Why you need a timeline

There are innumerable benefits to having a timeline for buying a home. There's are several steps and a lot of information to remember during the buying process. Having a timeline will make sure you stay on top of those steps. Knowing that you're keeping up with your end of the deal will help you feel more relaxed and confident as you enter into this important step of your life. It will relieve anxieties that you are forgetting something or that you are overwhelmed and behind on the process.

Before you start...

There are a number of helpful tools to making a timeline. If you're the type who is constantly on your laptop or smartphone, you can keep your timeline in a document or spreadsheet there and make sure it's synced up between your devices so you can refer to it when needed. If you're more of an App kind of person, there are several apps on the market for helping you keep on schedule. They'll give you updates periodically and remind you when an upcoming task is due. Do you still keep a hard copy planner and carry it in your bag wherever you go? If so, consider drawing up a physical timeline that you can refer to. Just make sure you write it in pencil because you will invariably need to update it now and then.

Dates for your timeline

Here are some items you should strongly consider putting on your home buying timeline. Everyone's timeline is different because each person has their own requirements when it comes to how soon they want to move. Give yourself realistic dates and look ahead on the calendar to make sure your items don't conflict with holidays or upcoming vacations. TIMELINE ITEMS
  1. Consider more than finances. Before contacting realtors or even before browsing listings online think about your own goals. If you're moving with another person think about your futures and where your careers may take you. The first date on your timeline should be a long discussion about the future and what you would like it to look like.
  2. Crunch the numbers. Consider your savings, expenses, current income, and projected income. As a general rule, don't look into buying homes over 2-3 times your income.
  3. Research lenders. Odds are you'll have a mortgage for quite some time, therefore you'll want to make sure your relationship with your lender is ideal. Read reviews, speak with several lenders, and talk to your friends and family about their experiences.
  4. Research insurance. The sooner you know how much you'll be paying in insurance the better.
  5. Get pre-approved.  Doing this early tells home sellers that you are a qualified buyer.
  6. House hunt. This is the fun part. Give yourself plenty of time to consider options.
  7. Make an offer. Consider the features of the home, the cost of he homes in the neighborhood, and the seller's disposition toward the home (whether they need to sell it quickly or are just testing the water).
  8. Double check your contracts. Re-read all of your paperwork and make copies/back it up.







Deborah Schilling
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