Showing posts with label Buying a New Home. Show all posts
Showing posts with label Buying a New Home. Show all posts

Tuesday, December 1, 2020

4 Ways to Involve Your Kids When Buying a New Home




Buying and moving to a new family home is a process that incites a mix of emotions - excitement, joy, stress, and fear, among other things. For children, it is oftentimes fear of the unknown that overpowers the other positive emotions when it comes to the reality of buying and moving to a new place. 

The idea of them leaving behind their favorite parks, close friends at school, and the whole routine make it harder for them to accept this life-changing decision. Involving your children in the buying process can help minimize this sense of fear and make it a more pleasant transition for the entire family. Here are four ways to do that:

Have Them Write Down a Wish List


If your kid is old enough to talk, he/she probably is old enough to have preferences. Although they might not be bringing it up, your children probably have some ideas and suggestions about the spaces and features they'd want for their potential new home. 

Have them write or voice out what they want in terms of their living space. And while you might get unacceptable requests, such as a bouncy castle or an indoor swimming pool, you may also get doable items, like a racing car bed frame or a backyard with a tree where they can build a treehouse on. 



Giving them this assignment serves as a distraction from their perceived fears about the move and may also yield clever ideas in terms of property features that you should be looking for in your list of prospects.

Bring Them to Open Houses


Parents might decide not to bring their kids to open houses as it's not exactly an environment that children are naturally fond of. That being said, it's a great way to get accurate input from your children regarding which house to buy. 

And while their input likely won't extend beyond cosmetic preferences, such as what colors they prefer the walls and carpets to be in and how big their rooms should be, seeing the options for themselves makes them more invested in the decision-making process. 

When you do bring your kid/s to an open house, go at the right time. You want to make sure they are well-rested and well-fed lest they become cranky and throw a tantrum. If your kids are old enough, you should also prepare them to behave in someone else's house. Layout some ground rules, such as a no-touch policy on any fragile items and no running around the property.

Take a Tour Around the Community


Drive around or take a leisure walk around the neighborhood. Check the local schools, libraries, parks, and other public facilities that are close by. Before you buy homes for sale in Temecula, do thorough online research and ground recon on what a typical day is like in the area. Is it too cold or too warm? 



Is there a strong presence of sketchy neighbors or drifters roaming around? Are the parks maintained? What public transportation options do you have? Again, since you are scanning the area with a child, you should plan ahead of your tour. It's best to do it during the daytime and when weather conditions are permitting.

Take Them Shopping


Arguably the most exciting about buying a new home is decorating it with new stuff, which means you'll have to go shopping. Even before you go out to shop, sit down with your family and do some online research on home decorating websites, social media platforms, i.e., Pinterest, and magazines. 

Once you have a clearer picture of what you want your new home to look like, visit furniture and hardware stores to buy some paint, fabric, and other materials, you'll need. Doing your shopping and decorating as a family not only makes them feel involved in the whole home-buying process, but it's also an excellent way to strengthen the bond between parents and children.

Buying a new family home affects the entire family as well as their life trajectories in the future. It is a slow path to take whenever taking the entire family’s feelings into consideration, you can call it an investment process so to speak. It's only fair that you involve them in the decision-making process as they will live in this new space for years to come.




Friday, August 21, 2020

How to Reduce Debt When Buying a New Home



Owning a home is one of the most rewarding and life-changing events that you can experience. Before you can own a home, though, you have to buy a home, which can sometimes be fairly complicated. 

If you’re carrying a lot of debt, this can make the process even more complicated, which is why it’s good to try and reduce this debt before you commit to purchasing the home of your dreams.

Cut Back on Non-Essential Spending


When working to reduce debt, it’s important to take a long, hard look at your spending habits. Every dollar that you spend needs to be accounted for to determine how you can cut back so that more money can go toward servicing your debt. 

Of special importance is your non-essential spending. Once you figure out your non-essential expenses, it’s important to cut these out quickly so that you can free-up much-needed capital.

Look for Alternative Mortgage Programs


The best way to reduce your debt is to avoid going into debt in the first place. Fortunately, when it comes to buying a home, there are several alternative mortgage programs available that can get you in a home while reducing the amount of debt that you’ll owe after you move in. 



To get an unbiased opinion on the best mortgage options for you, it’s a good idea to talk to your real estate agent about your current needs.

Take on A Side Hustle


Though being a workaholic certainly has its drawbacks, there’s nothing wrong with working a little extra to earn money to help you reduce your debt. Whether you’re delivering groceries, writing articles, walking dogs, or doing something else you enjoy, you’d be surprised at how quickly the income from these second jobs can add up. 

Plus, you may discover that you enjoy your side hustle so much that you opt to make it a full-time career.

Negotiate Your Rates


The largest amount that you’ll spend when servicing debt is paying for the interest that you accrue. If you can, then, it makes sense to negotiate with your lenders to see if you can get a lower interest rate on any of your debt. 

Considering how quickly interest can accrue, you could end up saving thousands of dollars with even a small reduction in your interest rate, meaning that this pursuit is definitely worth the effort.

Gaining Momentum


The good news about lowering your debt is that this process tends to gain momentum the longer you stick with it. As you reduce your debt, your credit score will increase, meaning that you’ll be eligible for lower interest rates that will help you save money. No matter how big your debt is, though, the most important part of the debt-reduction process is taking the first step to allow the process to begin.

Brooke Chaplan is a freelance writer and blogger. She lives and works out of her home in Los Lunas, New Mexico. She loves the outdoors and spends most of her time hiking, biking, and gardening. For more information, contact Brooke via Facebook at facebook.com/brooke.chaplan or Twitter @BrookeChaplan




Monday, September 16, 2019

You’ve Got Options—How to Pay for Your New Home



One of the major components of the American Dream is owning a home. However, purchasing a home can be a challenge for many adults. There are so many strategies and rules that it may seem impossible to figure out. Luckily, if you’re ready to buy your new home, you have options to choose a payment plan that works best for you.

Save up the 20 percent Down Payment


Most personal finance gurus recommend saving up 20 percent for the down payment before making the purchase. This strategy comes with some great benefits. First, you’ll automatically have some equity built up, so it’s unlikely you’ll go under on your loan. 

Another great benefit of taking out a conventional loan with a 20 percent down payment is the ability to avoid private mortgage insurance. Usually, if you’ve paid less than 20 percent, lenders require that you pay for PMI. 

Depending upon the price of the home, PMI can cost hundreds each month. The biggest negative associated with a 20 percent down payment is the length of time it can take to save it, but many consider the wait worth it.

Save up and Pay Cash


Another option for paying for your new home is saving up cash to pay for it in full. This will help you avoid debt, but it will likely tie up wealth that could otherwise be invested in more liquid investments. 



Having a paid-off home will greatly improve your monthly cash flow. This option will be more achievable in many areas of the Midwest. It will be very difficult for people looking to buy real estate on the coasts where housing costs are higher.


Fixed vs Adjustable Mortgages


Mortgages with adjustable rates tend to come with lower interest rates. These lower rates can make it easier for prospective homeowners to get into a new home. However, they can be adjusted upward, and your mortgage payments will be adjusted accordingly. The principal and interest portion of a fixed-rate mortgage will stay relatively steady over time.


Mortgage Programs


The US government provides incentives for new homeowners. Mortgage programs through the USDA, the VA, the FHA, and some companies who work with them can give you mortgages with no or very low down payment requirements. These can allow you to get into a house quickly without saving up tens of thousands of dollars. 

Likely, you’ll have to pay for insurance on these. If there’s a downturn in your local market, it could become difficult to sell a home without going into the hole because you’ll be less likely to have equity built up.

If you’re looking to get into a home of your own, you have options. Whether you have no money to put down or you can pay the full price in cash, it’s possible to get into your first home as long as you have reasonable credit. Regardless of the option you choose, you’ll want to perform due diligence to make it less likely you’ll wind up underwater on your purchase.


Sunday, September 27, 2015

5 Ways Buying a New Home Changes Your Personal Finances

The decision to purchase a home definitely affects your financial bottom line. The down payment alone may decimate what used to feel like a healthy savings. 

Stop and consider both sides of the process to find advantages that make it all worthwhile. Read through five ways that home purchases affect your personal finances. 



1. Tax Implications


On the whole, first-time homebuyers receive a variety of helpful-deductible options to give a bank account respite. Some of these deductions include:

  • Mortgage interest: although it may take more time to complete your tax return, you’ll find that it pays off. Whatever interest comes with your mortgage opens you up to certain helpful deductions in your overall tax payment.
  • Tax-deductible points: those who pay extra on their loan or “points” receive another chance for a tax deduction. Every point equals 1 percent of your home’s principal price. However many points you earn provide a tax-deductible percentage. Consult a tax expert to find out if you’re eligible. 
  • Private mortgage insurance: Those with a down payment that’s less than 20 percent of the purchase price usually require mortgage insurance. Although you might dislike this added cost, most private mortgage premiums qualify for additional tax deductions.

Regardless of which deductions you qualify for, make sure to consult a tax expert and the relevant official tax forms to ensure proper payment.

2. Reduced Spending Money


Those who buy a house often experience what’s referred to as feeling “house poor.” This term doesn’t refer to actual poverty, but rather a lack of extra cash due to the presence of a monthly mortgage payment.

Although your savings might feel a little reduced now, keep in mind that your home ownership adds greatly to your net worth, and even income potential. You are also gaining equity on your property as you make payments on your mortgage. 

Look at buying a new home this way, it is a large investment, but because you can put money and other things into it, you will eventually get back more than what you originally invested. Basically, you are paying yourself in a way because you own a home. Owning a home should also help you with your tax returns at the end of every year.

3. Lasting Payments


Unlike renters, homeowners make good use of every cent they pay towards their mortgage. While a renter-landlord relationship requires monthly payments that go into the landlord’s pocket, your monthly mortgage payments go towards the eventual ownership of your home.

True, mortgage payments might exceed your previous monthly rent payment, but the end result makes it all worth it. Homeowners who stay on top of their payments may end up owning their home and having access to equity, while renters never see any part of their payments again.

4. Various Expenses


On the other hand, renters may enjoy the convenience of one all-inclusive payment. Particularly in situations where landlords include utilities in the cost of rent, renters often have consolidated costs.

Homeowners pay for their own utilities, including water, gas, electricity, Internet, and garbage pick-up. And don’t forget about property taxes.



5. Home Loans


Although mentioned before, the presence of a mortgage creates a paradox for your finances. While your monthly loan payment might seem high, it’s the consistent payment that boosts your credit score and potential for future big purchases.

Remember that despite all the new expenses you might have, your financial persona now boasts of home ownership.

Informational Credit

The information in this article is credited to Sente Mortgage who specializes in home loans in Austin, Texas.

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