Start Your Home Search with the Right Budget

Ready to buy a new home? Not so fast! You’ll first want to establish a budget to understand exactly what you can afford month after month.

What does it take to set up a homebuying budget? Here are three tips to help you establish the right homebuying budget.

1. Consider Your Monthly Expenses

How much do you spend on food, electricity and other monthly essentials? You’ll want to consider these costs closely before you begin your search for the perfect home.

Ultimately, your monthly expenses can play an important role in your ability to afford your dream house. And if you can assess your monthly expenses, you can map out your home costs accordingly.

Make a list of your monthly expenses versus your monthly earnings. Then, consider if there are non-essential items that you can remove from your monthly budget.

Remember, if you save money now, you may be better equipped to land your dream house when you kick off you your home search. If you can cut non-essential items from your monthly expenses, you can start saving for a down payment on a new house.

2. Get Pre-Approved for a Mortgage

Banks and credit unions across the United States offer a wide range of mortgage options. Review all of the mortgage options at your disposal, and you should have no trouble getting pre-approved for a mortgage that meets your needs.

Adjustable- and fixed-rate mortgages are two of the most common mortgage options for homebuyers. However, if you discuss your financial needs with a bank or credit union, this lender may be able to provide you with additional mortgage options as well.

After you are pre-approved for a mortgage, you will be able to set a price range for your home search. As a result, you can narrow your search and accelerate the process of finding the perfect home at the best price.

3. Consult with a Real Estate Agent

Real estate agents are available to assist you throughout the homebuying journey. These real estate professionals can put you in touch with lenders, keep you informed about new homes that fall within your price range and even offer tips to establish a homebuying budget.

Perhaps best of all, real estate agents will make it easy for you to explore a broad array of homes that match your budget. These real estate agents can help you determine which homes you can afford – and which ones you can’t – and ensure that you can stick to your homebuying budget.

Your real estate agent is committed to helping you get the best results, and he or she is happy to respond to any homebuying queries. That way, you can receive expert guidance as you start your search for your ideal residence.

When it comes to buying a home, there is no reason to browse the real estate market on your own. Instead, work with an experienced real estate agent, and you can find a great home at a budget-friendly price.

Why Should I Invest ?

Many individuals cannot fully understand why they should invest in anything.  When looking at it from the perspective that the right investment could provide a secure financial future, one might see reasons why they should. The goal being not having to work for the rest of your life, instead, have your money working for you. A secure financial future is achievable by investing in the right areas.

After savings, the next way to watch your money grow is through investment.  If you are a business owner, profits need to be reinvested in the company to support expansion. In general, whether you invest in precious metals, real estate, stocks or bonds, it does not matter as the objective is the same, the generation of more cash. Although there are risks associated with investing, the financial gain is typically faster than the interest earned through a savings account.

Types of Investment

Let us have a look at some classes of investments as there are several methods to consider. This is just a few in the financial sector.

  • Cash
  • Bonds
  • Shares
  • Property

Cash

This is the most basic form of investment. It can be made in the form of a savings deposit with a bank, credit union or society. This is a relatively secure form of investment. The risk involved with this type of investment is that it may lose value if the interest rate is not above the rate of inflation.

Bonds

This is a loan you make to a company or the government.  As an investor you will receive back your initial investment plus the interest generated at the predetermined maturity date of the bond. This is a secure form of investment with regular income, however, in some cases, the bond issuer is unable to pay in full.

Shares

Investing in shares is investing in a company. In return, you are paid returns on your investment if the company makes profit.  You may also be entitled to have a say in the company’s method of operation. This form of investment has growth potential over time. The downside is that the price of shares fluctuate and a fall in share prices reduces the value of your investment.

Property

Owning rental property can be a great source of extra income. There is a wide range of properties to invest in, such as residential buildings, events centers, commercial centers or even a piece of undeveloped land. This is an investment with stable revenue, having the potential of growth over time. The downside is that prices can fall, negatively affecting the return on your investment. Secondly, it could take a long time to recoup your investment, keeping your money tied up longer than expected.

Everyone should consider investing to help secure their financial future.  Research will help you determine what form of investment will best meet your individual financial needs.

 

Bad Advice About Home Buying

There’s many different myths about buying a home that may have been presented to you as fact. All of these rumors could have you believing that being a home owner is a dream. Here, we’ll debunk some of the most common misconceptions about home buying and give you the tools to solve any issues that you may come across in the process of securing a home loan.

If You Don’t Have 20% To Put Down On A Home, You Can’t Buy

Many conventional loans do require a 20% down payment on a home. There’s also many different loans available that may suit your needs. From Federal Housing Administration loans to Veteran’s programs to down payment assistance programs, there’s many different things that can be done to help you buy a home. Keep in mind that any time you put less than 20% down, you’ll need to provide additional mortgage insurance, also known as PMI or private mortgage insurance.  

If Your Credit Score Is Terrible You’re Out Of Luck

If you want really good mortgage rates, having great credit is very important. If your credit score is low, your rates tend to be much higher. A really low credit score could keep you from getting a loan completely. FHA loans allow you to still qualify for a loan with a credit score as low as 580.

You Need To Make Bank To Get Money From The Bank

Monthly annual income is just one of the factors that’s considered when it comes to getting a loan to purchase a home. Your debts matter just as much if not more. People with significant credit card debt and other loans may be denied a home loan even if they have a substantial income. 

You’re In The Clear If You’re Pre-Qualified

Pre-qualification is much different than pre-approval. Pre-qualification involves giving your lender basic information about your finances in order to estimate how much of a loan you can get. This will give you a ballpark figure of about how much you’ll be able to borrow. Of course, this is very helpful in the home search process, but you’re not done. To get pre-approved, you’ll need a complete mortgage application in order to have your complete financial background check and credit rating.  

If You’ve Met One Real Estate Agent, You’ve Met Them All

This couldn’t be further from the truth. Your relationship with your real estate agent is going to be quite close. You’ll need to share somewhat personal information in order to secure a house you’ll love. Agents are involved in one of the biggest decisions that you’ll ever make. Each agent has his or her specialties and knows different neighborhoods better than others. Definitely go with a real estate agent that you feel comfortable with and knows their stuff.  

Closing Costs Aren’t Your Responsibility

Sometimes, sellers do pay the closing costs in the sale of a home. It all depends upon how the negotiations go with the home. You’ll need to be prepared for upfront costs in buying a home. These include a credit check, attorney fees and property insurance. As a buyer, you’ll be paying anywhere between 2 and 5 percent of the purchase price of the home.  

It’s important to be prepared and to stay informed in order to make sound financial decisions throughout the process of purchasing a home. Everything will be that much more exciting when you have all of the pertinent information that you’ll need.

Rental – 7 Alyssum Billerica, MA 01821 is now new to the market!

Perfect Commuter location for this Single Family home for Rent. Renovated kitchen shiny new hardwood floors 3 bedrooms and 3 baths, 2 additional rooms in lower level for office space or storage as well as a front to back family room and laundry room. A new roof ,large deck great for those warm summer nights and a one car garage complete this split entry. Owner looking for 1 year lease with option to extend.

This property features 5 total rooms, 2 full baths, 1 half bath, 3 bedrooms, and is currently available for $2,250.

For complete details click here.