Better Homes and Gardens Real Estate Life

Category: Home Buying

Steps to Buying a Home Series: Introduction
Buying a home is the quintessential American Dream for many and the reality isn’t too far off the mark. Purchasing a home is one of the easiest ways for a family to attain wealth with minimal risk when the home is chosen strategically. The key is to understand the entire buying process and how each step can affect your investment returns. An informed buyer is a prepared buyer.

What are the steps to purchasing a home? There is more to purchasing a home than scrolling and dreaming of homes on a website. It is taking informative steps, researching, interviewing lenders, agents, title agencies and more. It is understanding the market, finding desirable neighborhoods and feeling out the market demand.

Looking at buying your first home? This 10-part blog series will provide tips and guidelines. Helping you understand the buying process, enjoy the experience and improve profitability of this purchase. We want to help prepare you on your journey to purchase your first home.

Identify Your Goals. Understand the long-term wants for you and your family.
- What are your goals?
- How much can you afford?
- What is the ideal home for my budget?
Find the Right Lender. It often surprises people to learn that pre-qualification can take less than 15 minutes. We can make it happen in person, by video or by email. Even if you’re on the fence about if homeownership is right for you, you should meet with a loan officer and discuss options. Often, the issue is that people are not sure about their credit. But generally, if you’ve been working for the last two years and have decent credit, you can get into a home.. –Jamie Tapia, Alterra LA Area
- Find a lender you trust, providing excellent service.
- Get pre-qualified in a matter of minutes.
- Receive a Loan Estimate, outlining the costs associated with your purchase.
Agents, Home Choice & Offers
- Find an agent with recommendations from friends, family and your lender.
- Shop for the ideal home, considering budget, amenities and neighborhoods.
- Discuss an offer with your agent. Consider all offer details. Be prepared to counter offer.
Complete Home Inspections and Appraisal
- Always perform a home inspection prior to purchase. Be prepared to spend $500.
- Receive the home appraisal. This is the market value of the home and required by all lenders.
Find Home Insurance
- Find an insurance agent with recommendations from friends and family.
- Research policies, ask questions about coverage situations and work with the lender and agent to see if additional coverage is needed (like flood, personal property, jewelry)
Closing
- The closing is the process of transferring ownership to the buyer. You’ll receive a Closing Disclosure (CD) a few days prior to closing. Read it closely.
- At closing, you’ll sign all of the documents, transfer necessary funds and receive your keys. CONGRATS!
August 15, 2018
How to Know When a Home is Worth Buying

To buy a home, or to not buy a home. It’s a common debate for many people. There’s no denying that renting is basically paying for someone else’s monthly mortgage without receiving any equity from the property, but that does not always mean that buying a home is the better option for each individual. Everyone’s situation is different, and home buying can be expensive. People’s lifestyles also change and their motives for wanting to buy a house are just as varied. Determining whether or not it’s worth buying a home has a lot to do with individual specifics. It’s highly recommended to speak with a real estate agent who can give you detailed real estate advice based on the information you provide. However, the general costs and rewards of home buying can be found right now to help steer you in the right direction.

Maintenance Costs

When you buy a home, you are taking on the responsibility of maintenance costs. They’re inevitable for all homeowners, but they can be significant depending on the specific property. Before buying a home, maintenance costs and unexpected repairs must be considered. It’s recommended to hold back 1% of the home’s value annually for maintenance and appliance replacement, but that does not cover unexpected repairs.

Property Taxes

Property taxes can be a significant expense. The actual amount can fluctuate, and this must be considered before buying a home. There are a variety of factors to determine the amount of property taxes, such as the area, state, and local budget cuts, renovations, as well as many other things.

House Insurance

Many mortgage loan lenders require homeowners to have house insurance. Unlike rental insurance, which covers possessions, homeowners’ insurance covers both possessions and the cost of the property. Although it’s an extra expense, it’s beneficial to have even if it is not required. As for the cost of home insurance, it depends on the specifics, but you can get an estimate by dividing the home’s value by 1000, and then multiplying that by 3.5 (HomeGuides).

Tax Deductibility

A benefit that comes when you buy a home is the tax deductibility of mortgage interest. This number is hard to estimate from a general standpoint because it greatly depends on your specific financial situation. However, owning a home can provide you more savings than if you were to rent, simply because of the tax deductible.

Home’s Value Appreciating

The appreciation of a home’s value is generally high. However, this can change rather quickly depending on the housing market, as well as many other factors. ABC News estimates home prices will appreciate around 3%, according to the historical average. The thing that many people forget is that as a home’s value increases, the cost of maintenance and insurance does as well, due to inflation.

In terms of liquid money, home ownership won’t bring you much of that. However, buying a home does have the potential to bring you a high return on investment. More importantly, your monthly bills go towards something you own. When renting, you’re essentially paying someone else’s mortgage without receiving any ownership. Many additional factors also need to be considered when determining if buying a home is worth it, such as whether you want to buy a home as an investment property, plan on flipping the house, or want to retire in it. The first step is to answer the inevitable question, “Can I afford a home?” and these general guidelines can help you determine that.

December 6, 2017
5 Tips on How You Can Survive a Seller’s Market

Searching for the perfect home can be challenging, regardless of the market, and even more so when it’s a seller’s market. It can feel like you’re constantly hitting roadblocks and meeting dead ends, as the sellers are in full control. However, all you need is a bit of momentum, encouragement, and these five tips from our Ask a Pro expert Karlton Utter to survive a seller’s market and find your perfect home:

1. Come to the Table Prepared with a Prequalified Loan

Be fully prepared with a prequalified loan as soon as possible. Obtaining a prequalified mortgage shows sellers that you are a serious buyer who is able to meet your end of the sale to close the deal. This puts you on an entirely new playing field, with a little more control than what you would have had without a prequalified mortgage.

2. Be Taken Seriously by Bringing all the Paperwork

Show the sellers that you’re not kidding around. In a seller’s market, it’s important to show them that you mean business and that you and your offer should be taken seriously. Show up to the table with not only a prequalified loan but with all the paperwork that supports the proof of funds, such as an approval letter from the lender. Actions speak louder than words, and this will definitely entice the seller to work with you!

3. Be Flexible and Discuss Compromising

In a dry market, it’s important to remain flexible. Placing too many limitations on the real estate market will make it even more challenging to find a home. Widen your horizon within the real estate market, as this could introduce you to new homes that you would have never seen otherwise. Being more flexible can also make the process of buying a home easier. If you are hesitant to look outside of your pre-determined boundaries, it’s important to consider compromising. You may be required to give something up – such as a desired feature in a home – just to stay within the area you’re set on. Sometimes by compromising a little, you could have it all and possibly for less.

4. Be Readily Available to Sellers as Much as Possible

With so many buyers looking for homes, timing is essential. It’s important to remain readily available and open for communication with your sellers, and be prepared to make a move on an offer at a moment’s notice. Make it a goal to respond quickly and follow up on requests – or just follow up to get updates if you have not heard back. Communication is not only important for timing, but it also builds rapport with your seller. This can make the difference in getting the offer and property that you want.

5. Don’t Play Hard to Get

Now is not the time to play hardball. A seller’s market leaves very little control to you as a homebuyer. As such, you need to be willing to follow the seller’s lead, as opposed to challenging it with bullheaded negotiation tactics that work in other situations. Limit the contingencies, make a bold offer and if the sellers make a counter offer, proceed carefully by negotiating from there.

With the proper approach, you can find your ideal home – at your ideal price – even in a seller’s market.

January 30, 2017
4 Important Purchases to Make for Your First Home
Congratulations! You’ve just purchased your first home. There’s no denying that this is a very exciting time in your life. Becoming a homeowner will bring many new opportunities your way, the first one being a chance to go shopping! As a first-time homebuyer, there are some things you need for your home that you may not have needed previously. So grab a piece of paper and pen because it’s time to create the ultimate first-home shopping list.

1. Lawn Equipment

One amazing thing about owning a home is that you own the lawn, the grass, the flower beds, and everything else comes with the property. However, this also means you have to take care of what you own, and unless you’re hiring a landscaping company, you will need to purchase some lawn equipment. Here are a few useful tools to help with lawn maintenance and get you started in your outdoor maintenance:
- Lawn mower
- Weed whacker
- Weed puller
- Water hose and sprinkler
- Ladder
October 3, 2016
Planning an Affordable Wedding (So You Can Buy Your First Home)

With many new couples looking to buy a home as soon as possible, knowing how to plan an affordable wedding is a valuable skill. After all, if you’re spending on elaborate centerpieces, expensive venues, and high-end catered food, you won’t have as much left over to put towards a down payment when buying your first home later. The good news is you don’t have to sacrifice your dream day just to have funds for your dream house. You just have to know the amazing wedding planning tips that are finance-friendly. So, start planning your big day with these wedding tips, and don’t forget that you and your partner will also have an incredible future together that you want to be able to invest in.

Cut the Guest List

If you have a large family, cutting the guest list may not be a plausible option. However, cutting the list is worth considering, especially if you haven’t seen your great uncle since you were three years old. Be realistic about with whom you truly want to share this special day. A smaller wedding can be much more personable and special.

August 4, 2016
5 Upgrades Every New Home Should Have
Congratulations! You’ve just made a new home purchase, and you love everything about it, but it’s lacking a bit of you. It is not unusual to want upgrades once you buy a home, and the right upgrades are excellent ways to customize your new living space to suit your style and needs more precisely. If you’re ready to turn your new house into your new home, here are some upgrades that will increase the quality of the aesthetics, design, and functionality of your new home purchase.

Start in the Kitchen

Within real estate, it is believed the kitchen and the bathroom are the two most important rooms in the home. An outdated kitchen can completely change the entire appeal of your new home for you. For this reason, many people choose to start in the kitchen when it comes to home upgrades. While a new kitchen can be costly, the below suggestions are some thrifty ideas for revamping the space without breaking your budget. In addition, these are also home upgrades that future buyers will focus on and are excellent ways to increase a return on your investment:
- Swap out old appliances for stainless steel ones
- Re-stain or paint old cupboards
- Change the hardware for items more updated and modern
July 21, 2016
10 Tips for First-time Home Buyers

After months – maybe years – of preparation, you’ve decided to finally go for it and purchase your first home. Congratulations! This is a very exciting time for you, but it is important to never let the anticipation of being a first-time home buyer get in the way of making crucial decisions in the buying process. Although purchasing your first home is an amazing experience, it can also come with some challenges. With some tips and first-time buyer knowledge, the task can be less daunting and all the more exciting.

1. Determine your budget

The very first thing every first-time home buyer needs to determine is what he or she can afford. That will make your search significantly more effective. When calculating your budget, include all additional costs, such as insurance premiums, homeowners insurance, property taxes, HOA fees (if applicable), etc. Once you have determined your budget, you will know which homes are within your reach.

2. Determine where you stand with lenders

To make the buying process easier, know where you stand with lenders. If you have a credit score of 720 or above, you can shop around for a loan with the lowest interest rate. However, if you have a lower credit score, you may be restricted to higher rates. There are still many promising options available, but this could certainly increase your budget.

3. Consider cost-saving moves

As a first-time buyer, you want to get as much bang for your buck. There are several potentially cost-saving moves you may be interested in. Look for properties that are in foreclosure, or shop in neighborhoods with a high number of properties for sale to get the highest value for your dollar.

April 14, 2016