Buying your first home can be one of the most exciting experiences of your life. But it can also be one of the scariest. Buying real estate is a complicated process. And if you've never purchased a home before, the fear of all those unknown variables can make the experience stressful, frustrating, and downright terrifying. If you're thinking about purchasing a home but are dealing with the fear that comes along with it, don't worry! You're not alone. Most first time home-buyers deal with a certain level of fear as they get ready to buy their first home. But that fear doesn't have to hold you back. Here are three of the most common fears of first time home-buyers (and how you can overcome them).
The number one fear most first time home-buyers struggle with is the fear they can't afford to buy a home. But while there are certainly people who aren't in the financial position to purchase a home, becoming a homeowner isn't as expensive as you might think — and sometimes all it takes to be able to buy a home is a little budgeting. If you're worried about being able to afford a home, it's time to take a good, hard look at your finances. Make a list of all of your monthly expenses and all of your debt. How much are you spending per month on living expenses? How does that compare to how much you'd be spending per month on living expenses if you were to purchase a home? How much are you saving each month? Are there any opportunities to cut back on spending and pad your savings a little more each month? How much debt do you carry and what's your plan to pay it down? Getting a firm understanding of your financial situation will a) give you a better idea of how much you can afford to comfortably spend on a house, and b) help you come up with a plan to get there.
If you have less-than-perfect credit, a major fear you might be dealing with is how you're going to get a mortgage. Many first time home-buyers fear that their credit report might hold them back from securing a loan. But while getting a mortgage with not-so-hot credit can be a challenge, it's certainly not impossible. First things first: if you're thinking about purchasing a home, you need to get a copy of your credit report. According to an FTC Report , 1 in 5 Americans have a mistake on their credit report — and those mistakes can end up costing you in the long run. The lower your credit score, the higher your interest rates will be, so it's important to make sure there's nothing inaccurate on your report that's dragging down your score. Once you've reviewed your credit report, you'll want to do everything you can to bring up your score before you apply for a loan, like pay down any high credit card balances, which will bring down your credit utilization and bump your score. You'll also want to make sure to pay all of your bills (including your rent and utility bills) on time, which will help show lenders that you're responsible with your debts. If you do all of these things and still get stuck with a high-interest mortgage, it's not the end of the world! You can always continue to work on increasing your credit score and refinance in the future.
As mentioned, buying a home is a complicated process. From getting to know the market to finding the right kinds of properties to negotiating with sellers, there's a lot to handle. And if you've never purchased a home, it can feel overwhelming. The sense of "I have no idea what I'm doing!" can be pretty terrifying. But luckily, you don't have to know what you're doing when it comes to buying a home… as long as you work with someone who does. Working with a real estate agent who understands your market is an invaluable resource, especially to first time home-buyers. Your real estate agent can not only walk you through the entire process, but they also handle the hard stuff — like finding that perfect property and negotiating with tough sellers — so you don't have to. You might be afraid that the fact you've never purchased a house before will hinder the process, but when you work with the right real estate agent, there's nothing to be afraid of. Purchasing your first home can be a scary process. But now that you know the most common fears — and how to overcome them — it's time to transform that fear into excitement, get out there, and find the home of your dreams!
Charlotte is trying to win the bid for the next Amazon headquarters. Below is a video from Charlotte USA, which was created by FLICK studios. We are sharing - simply because it gives any of you looking to move to the Charlotte area an idea of just how great this city is - and we hope you will make Charlotte your next new home.
A lot of people think the best time to buy a house is during the Spring market.
And, it is... ...
in the sense that more houses are listed for sale in the Spring. But, there's also a heck of a lot more buyers trying to buy those listings.
The thing is, some of the houses listed back in the Spring don't end up selling. (Usually just because they were overpriced.)
Now, it isn't like new listings don't happen in the Fall. There's always new listings coming on the market. But it's not like, just because it's Fall and not Spring, prices are necessarily going to fall. In other words, new listings aren't likely to list for a lot lower than you would have seen in the Spring.
However, the homeowners who did list back in the Spring, are much more likely to be anxious (perhaps even desperate) to sell their home. They've created their own problem...they missed the boat by pricing too high. Which is great news for you, if you're looking to buy a home:
But it isn't always easy to find those listings. They don't wave a white flag, or lower their price to some ridiculous amount everyone would notice. If only it were that easy...
Just because someone listed their home back in the Spring doesn't mean they'll be all that negotiable.
There are certain things a great real estate agent will know to look for.
And I love rolling up my sleeves and finding the ones we can most likely negotiate the best deals on.
So, got anything you want me to roll up my sleeves and look for? Real estate deals won't just fall in your lap, but I can certainly help you find one this Fall.
Want another reason to buy a home in the Fall?
You can take advantage of year-end sales to outfit your home!
Hardly anybody buys a home who doesn't want (or need) to make improvements, however small. So why not coordinate your purchase with sales on items you'll need? According to Consumer Reports, September is an ideal time for buying carpet and paint. In October lawn mowers go on sale, and the same goes for appliances and cookware in November.
There's no arguing there's costs associated with owning a home. But the adverse is also true; there are also definite costs associated with NOT owning a home. The benefits of buying vs. renting has always been a hotly debated topic, with most people believing that — at least in the short term — renting is more cost effective. But most people don't consider the hidden costs of not owning a home and sinking all of your money into your rental. Here are four sneaky ways that not owning a home will cost you:
When you own a home, there are no surprises when it comes to your monthly housing costs. Once you lock in your mortgage, your payment will remain constant throughout the length of your loan (unless you decide to refinance in the future). The stability of having a mortgage gives you the peace of mind of knowing what to expect each month — and not having to worry about unpleasant surprises that completely throw off your budget. When you don't own a home, it's different. You're at the mercy of your landlord; they can (and often will) change the price of your rent often to keep up with market prices. So what does that mean for you? Well, it means the price you agreed to rent the house or apartment for is not necessarily the price if will rent for in the near future, which leaves you with two options: agree to a higher price or find a new place to live (which is an expensive endeavor itself).
Everyone wants to feel comfortable in the place they call home — whether they own or rent. And that means different things to different people; maybe it's cosmetic changes (like painting walls or hanging art) or more practical changes (like installing insulated windows to moderate the temperature). When you own a home, making the improvements necessary to make your home feel comfortable makes sense. Whatever you do to improve your home will only increase the value, making it a sound investment choice. But when you don't own your home, making improvements to your home is like throwing money away. If you paint your walls or hang too much art on the walls, you'll likely have the cost of getting the property repainted deducted from your security deposit when you move out. You can spend the money to install the insulated windows, but they're not coming with you (and the only person that investment makes sense for is your landlord). Some landlords might not even allow you to make any improvements or changes at all. Everyone wants to improve the place they live. But if you don't own a home, making those improvements just isn't a sound investment.
When you own a home, you get to choose the services and amenities you enjoy. You can choose between satellite and cable television. You can choose which service providers you want to work with. You can install solar panels if you want to save money on energy costs. When you don't own a home? Not so much. When you rent a home, you're locking into the services and amenities that are tied to that property. Your landlord gives you a list of approved vendors you have no choice but to work with - and often times, those vendors aren't the most cost-efficient. If you live in an apartment community, you'll also have to pay for the amenities of that apartment community, like a pool, gym, or resident's lounge - even if you don't want them or don't use them. And all of those costs can quickly add up. When you own a home, you make the choices on what you want to pay for, which can save you a lot of cash.
Perhaps the biggest cost of not owning a home is the fact that you're not building any wealth. When you rent a home, you're giving your money to someone else; you're paying for the right to live there for a predetermined period of time. When that predetermined period of time is over, you walk away with nothing; all of that money is gone. When you own your home, every time you make a mortgage payment, you're paying down your loan and building equity in your home. This is one of the fastest and most efficient ways to build wealth — and is a significantly better investment than throwing your money away on rent every month. You already know that buying a home is a better investment. But when you factor in all the hidden costs of not owning a home, it might be the less expensive one as well.