How to Buy Your First Home

February 9, 2011 By

Buying your first home is an exciting experience. At the same time, it is easy to become overwhelmed and confused by the whole experience. By having a better understanding of what to expect as you buy your first home, however, you will significantly increase your chances of enjoying a smooth buying process. To that end, here are a few things to expect when buying your first home.

Step #1: Start Saving

In order to increase your chances of qualifying for a loan with a good interest rate and to keep your monthly payments at a minimum, it is in your best interest to put a large down payment on your home. Ideally, you should have enough saved up to pay 10 percent of the cost of the home. At a minimum, you will need to have enough saved up to place a hold on the home in the form of earnest money.

Step #2: Plan Ahead

Before you even start your search for a new home, you need to be sure you are ready to take this huge step. First, take a closer look at your budget to make sure you are financially prepared to purchase and to maintain a home. Next, ask family and friends to recommend experts that can help you in the process, such as a home inspector and a lawyer. Third, consider your lifestyle and the type of home you will need to suit that lifestyle and, finally, research the prices on homes in the neighborhoods where you are considering buying.

Step #3: Determine How Much You Can Afford

The next step in buying your first home is to determine how much you can afford. When making this decision, you will first need to consider how much you will be able to receive from a mortgage lender. Your housing cost to income ratio is one factor that mortgage lenders consider when determining how much they will lend to you. Lenders do not want your basic housing costs, which include your mortgage, property taxes and insurance, to exceed more than 28 percent of your monthly gross income. Similarly, they do not want to see your total debt, which would include your housing costs as well as installment loans, credit card balances that are more than 10 months old and student loans, exceeding more than 36 percent of your monthly gross income.

Step #4: Get Prequalified for a Mortgage Loan

Once you have a clear idea of how much you can afford and are likely to qualify for in terms of a loan, it is a good idea to get prequalified for a loan. Not only will this help you know for sure how much you can borrow, but it will also give you a bargaining chip when it comes time to negotiate a price on the home of your dreams. In fact, many sellers are willing to negotiate a lower price with those who are pre-qualified because they can be relatively certain the deal will go through.  In Boston, it’s commonplace for buyers to submit a prequalification or preapproval letter along with their Offer to Purchase.

Step #5: Hire a Real Estate Agent

Now that you have a clear idea of how much you can afford and what you are looking for in a home, it is time to hire a real estate agent. By communicating all of this information to your agent, you should have no problem with finding the perfect home to fit your budget.

Filed Under: Buyer Advice

5 Home Hazards to Watch Out for This Holiday Season

December 9, 2010 By

The twinkle of holiday lights is something that brings much joy to both children and adults alike. At the same time, while these lights and other decorations are beautiful and are the source of a great deal of excitement, they can also be a source of danger if they are not installed and maintained properly. To ensure that your holiday season is bright, but does not endanger you or the ones you love, be sure to keep these 5 tips in mind.

Tip #1: Inspect Lights Thoroughly

Before you hang your lights, make certain they are not frayed, cracked or damaged in any way. Also, inspect the sockets to ensure they are not broken. If you find anything wrong with the cord or socket, discard the lights and purchase new ones, as damaged holiday lights pose a significant fire risk. Similarly, burned out bulbs should be replaced in order to prevent overheating the entire string.

Tip #2: Follow the Manufacturer’s Instructions

Following the manufacturer’s instructions is an important step toward preventing accidental fire. In general, you should not string more than three strands of lights together, but some lights may not even be able to handle this load. So, be sure to read the instructions in order to ensure you do not overload the lights. Similarly, if the lights say they are for indoor use only, do not use them outside because they will not be able to withstand the outdoor elements. Furthermore, outdoor lights should not be used inside, as they are too hot for interior use.

Tip #3: Use Care When Hanging Lights

If you are hanging lights somewhere that requires the use of a ladder, make certain the one you have selected is appropriate for the job. Furthermore, never use nails or staples when hanging lights, as these can puncture the wire and create a fire risk. Rather, use plastic hangers or insulated tape for the job.

Tip #4: Use Your Lights with Care

In order to prevent accidental fire, you should turn your lights off whenever you go to sleep or leave your home. In addition, if you have lights placed on a real Christmas tree, make sure you keep the tree well-watered, as dry trees are more likely to catch on fire than fake trees or real trees that are well-maintained.

Tip #5: Store Your Lights Safely

To avoid damage from weather and curious animals, lights should not be left up for more than 90 days. After you take them down, coil each one around a piece of cardboard and wrap it in fabric or paper and place it in a sturdy container in order to keep the bulbs protected.

Filed Under: USA Real Estate

5 Simple Boston Home Staging Tips

September 5, 2010 By

When it comes to getting your home sold, you need to do everything possible to set it apart from other homes that are on the market. Furthermore, you need to present your home in the best light possible, which means adding a few extra touches that will make your home more appealing to potential buyers. This process of creating a more appealing home is known as staging and here are 5 simple things you can do to help your home sell.

Home Staging Tip #1: Create Curb Appeal

The first time a potential buyer drives by or up to your home, you want it to leave a good impression. Therefore, you should take steps to make the exterior of your home stand out and look great. To do this, you might need to make a few minor repairs, such as applying a fresh coat of paint if the current paint has become faded or chipped or repainting the shutters, door and trim to create a neutral color scheme. You should also remove any clutter from your driveway and yard while also making certain the lawn is neatly mowed and edged. Adding fresh mulch to your flower beds and placing some potted plants outside of your front door will also make your home seem more inviting.

Home Staging Tip #2: Make the Entryway Welcoming

Your entryway, which is the area the potential buyer will first see when opening the door to your house, will also play a strong part in creating a first impression. Therefore, care should be taken to make certain it is both attractive and inviting. To accomplish this goal, you should keep the entryway free of clutter while also making certain it is well-lit. This way, your home will appear larger while also feeling warm and inviting.

Home Staging Tip #3: Depersonalize the Space

Personal knick-knacks and portraits scattered throughout the house make it difficult for potential buyers to visualize anyone other than you living in the home. Remember, you want the buyer to be able to picture him or herself living in the home, so you should remove those personal touches before your Realtor takes the buyer for a tour of the home. In addition to removing personal belongings, you should also paint walls with a neutral color so the buyer can more easily envision the colors that he or she might like.

Home Staging Tip #4: Update and Upgrade

Spending a little money in order to upgrade or update parts of your home, particularly your kitchen and bathrooms, is always a good idea. If your cabinets are outdated, simply purchasing modern knobs and handles can go a long way toward making your home more attractive to potential buyers. Similarly, upgrading to a water-efficient faucet will appeal to today’s eco-friendly buyers.

Upgraded Boston Kitchen

Home Staging Tip #5: Create a Comfortable Space

As part of the staging process, you want to make every room in the house appears as comfortable as possible. You can accomplish this by limiting the amount of furniture placed in rooms such as the living room and bedrooms while also arranging the furniture in a way that is easy to walk around and is conducive to conversation.

Filed Under: Seller Advice Tagged With:

Five Reasons To Buy a Home Now

August 9, 2010 By

Have you been considering purchasing a new home? Whether you are a first time homebuyer or you are considering moving to a larger or smaller home to suit your personal needs, now is a very good time to make the move. In fact, there are five very good reasons to consider buying a new home.

Reason #1: Mortgage Rates are Low

Today’s mortgage rates have reached a record low, which means you stand to save a significant amount in terms of interest. Furthermore, because the rates are so low, you actually start to build equity in your home as soon as you buy it, which means you don’t have to stress out about the ups and downs of the economy as it still works toward a recovery.

Reason #2: Home Prices are Down

It is no secret that housing costs are down. Even better, many of the homes coming on the market today are quite beautiful and contain many luxury features that were once too costly for many people to afford. The number of terrific houses coming on the market is on the rise. At the same time, because many sellers are interested in selling their houses as quickly as possible, you enjoy a great deal of leverage as a buyer.

Reason #3: Many Available Houses are in Great Condition

Not only are there many beautiful houses coming onto the market, but many are in move-in condition as well. In fact, the Harvard Joint Center on Housing reports that homeowners have continued to spend the money necessary to maintain and repair their homes. This is because most of those who had been holding back on putting their houses on the market were keeping their houses in good shape until the time was right to list it for sale.

Reason #4: Appraisal Guidelines Have Been Adjusted

Shortly after the economic fallout, appraisal guidelines were changed in such a way that it seriously impeded the purchasing process. Thankfully, Fannie Mae has made some adjustments to these guidelines, which gives appraisers more flexibility when it comes to setting values. The result? Closing on deals is a much faster process than it was just a year ago.

Reason #5: Programs Make Home Buying More Affordable

Thanks to the many different grants, loans and other housing assistance programs available to homebuyers, buying a home is quite affordable. Many communities still offer “workforce housing” programs, which help middle-class families afford purchasing a home. For those who qualify for one of these programs, they can enjoy a helping hand with their home buying expenses.

According to many experts, most real estate markets throughout the country have reached their bottoms. Combine these low prices with low interest rates, eager sellers, faster appraisal guidelines and numerous financial assistance programs, and there really has never been a better time to buy a home. So, if you have been thinking of making a home purchase, there is no reason to put it off any longer!

Filed Under: USA Real Estate