A lot of practical yet stressful work needs to be done when buying a home- such as paperwork, dealing with banks, getting a mortgage approval, etc. As a result, it is easy to forget that home buying is also a significant emotional labor. There can be fear and doubt, which is expected because buying is a significant financial decision. It is also exciting and symbolic of a new beginning in someone鈥檚 life. This is especially true for people who are buying their first home.

Don鈥檛 let nerves stop you from fulfilling your goal of buying your dream home! Read on for soothing tips for anxious first-time home buyers.

Quick tips for anxious first-time home buyers

Here are a few simple yet calming tips:

• Accept uncertainty and bumps in the road
• Write it down
• Surround yourself with support
• Hire an experienced real estate agent
• Be patient

Accept Uncertainty

Anxiety makes us overthink and imagine possible scenarios, often the worst-case ones. That can be really frightening and emotionally draining for a person. In this case, the solution is letting go. No one can tell you precisely what will happen with 100% certainty, not even the most experienced real estate agent. It鈥檚 simply impossible. The real estate market is constantly changing, and you can鈥檛 always keep up. But instead of looking at that as a problem, try to maintain a relaxed attitude. It can be freeing to stop trying to figure out every detail that is going to happen. The best thing you can do is ensure you have done everything in your control. You have taken the steps for mortgage pre-approval, hired a real estate agent, and know what you want. Rely on the real estate and mortgage experts to help facilitate the buying process.

Write Down Your Thoughts

Our anxiety can make us feel like we are doing everything wrong. In some severe cases, home buyer anxiety can be so bad that it turns people away from purchasing. But this does not need to happen to you; there is a way to combat it. The way to do this is through logic, but it can sometimes be hard to calm emotions and turn on the rational part of our brain. In this situation, it is helpful to write it down. Take a piece of paper and write why buying a home is excellent and suitable for you. Things like:

• You are in a good place financially
• You want to start a family
• You have support

These affirmations are necessary because they are true, and your anxiety makes it hard for you to see them that way.

Talk to Your Family and Friends

Anxiety is often directly tied to self-doubt. That is often the case when people buying their first home are very young. They get overwhelmed by the fact that home buying is a huge financial undertaking and don鈥檛 believe they know what they are doing. Overcoming self-doubt is hard, but . If you don鈥檛 trust yourself, you should seek support from your friends and family. They will tell you why this is good for you and why you should do it. Your support group will calm your anxiety and make you see more realistically. Sometimes you need to hear it from someone else to believe it鈥檚 true. That is a prevalent feeling amongst first time home buyers, and many shared that the support of their families and friends helped them through it.

Hire Professionals

If you are feeling anxious and confused about this process, a good course of action is getting a professional to guide you. That is one of the best tips for anxious first-time home buyers. The home buying process for first timers is much easier if they have an experienced real estate agent. Real estate agents will explain all the essential details to you and answer any questions. A good real estate agent is a skilled negotiator, knows the local real estate market, and is excellent at communicating with clients. The key is to be clear when communicating with your real estate agent. Tell them everything you are worried about and what you are looking for in your new home. Having some experience to guide you through this is helpful for calming anxiety.

Be Patient

Anxiety can also stem from the fact that you have been trying to find the perfect home but still haven鈥檛 succeeded. This is normal- just ask other people who have purchased real estate! You may not find the perfect property in the first days and weeks of your search. Some people have waited for months, depending on inventory and market conditions. Do not let your eagerness push you into settling for a property that does not match your needs. Buying a new home is a considerable investment that will last a long time, sometimes a lifetime. It is worth patience and waiting until you find the right home for you and your family.

In Conclusion

Home buying anxiety is extremely common, and you are not alone in this feeling. It is completely normal to be a little spooked when doing something as big and important as this. After all, many people only buy a house once or twice in a lifetime. Needing help is understandable for both the technical tasks and the emotional journey you are going through. Hopefully, these tips for anxious first-time home buyers were helpful to you. Just remember to be patient! You deserve to get the home of your dreams. Good luck!

The post Soothing Tips for Anxious First-Time Home Buyers appeared first on Blog | 皇冠体育app.

The real estate world is full of myths. Myths that prevent people from making smart decisions when buying and selling and keep people from maximizing their real estate returns.

Let鈥檚 count down the top five biggest real estate myths. And debunk聽each one!

Myth #5. You shouldn鈥檛 buy right now because interest rates are rising.

Rising interest rates are a great reason to buy right now!

Historically speaking, interest rates are still exceptionally low. Throughout the 70s, interest rates ranged between seven and 12 percent. The 80s saw double-digits, reaching over 18 percent at one point. The 90s were more in the seven to nine percent range.

Today, you can still get a mortgage loan under five percent with good credit. If you plan to buy, do it now before rates rise!

Myth #4. You need a 20% down payment to buy a house.

This myth is a relic of previous generations, when you really did need a 20 percent down payment to get a mortgage and buy a house. That was when homes prices were $100,000, so 20 percent down was a large but manageable $20,000. Now that home prices in some major metro areas top $400,000, lenders have come up with different financing arrangements for all of us who couldn鈥檛 possibly come up with an $80,000 down payment.

One of the most popular options for low down payments is an FHA (Federal Housing Administration) loan. Not only do FHA loans provide a route to home ownership with as little as 3.5 percent down (just $14,000 on a $400,000 home), but they can also work with less-than-stellar credit.

Don’t dismiss buying a home because of the down payment, talk to a lender and explore your options.

Myth #3. Real estate investing is just for the rich.

It鈥檚 easy to see where this myth comes from: real estate typically requires a substantial investment, so people assume it鈥檚 only for investors who have money to spare.

But there are so many ways for the 99 percent to start investing in real estate! Instead of buying a single-family home, buy a duplex or triplex. You can live in one unit while you make money renting out the other units. You can also take advantage of low down payment programs or find investment partners and pool your money to purchase your first investment property.

Myth #2. You need to leave yourself room to negotiate when deciding on a list price or offer.

Sophisticated buyers and sellers don鈥檛 have time for games.

If you over-price your house to 鈥渓eave room to negotiate鈥�, buyers will assume you鈥檙e unreasonable and will steer clear. And sellers will dismiss low-ball offers from buyers just as easily.

If you鈥檙e serious about buying or selling, stick with real, reasonable numbers from the very beginning.

Myth #1. Going for sale-by-owner will save you money.

It鈥檚 tempting to cut real estate agents out of a real estate transaction to avoid paying the commission. But it can actually cost you money.

First, your home will sell for less. You don鈥檛 have the connections or marketing reach of a real estate professional and buyers who only look at for sale-by-owner are typically looking for a steal, so they offer less.

Second, you鈥檒l spend your own time and energy on the transaction, and your home will sit on the market longer. Time is money!

Third, what if something goes wrong? Are you prepared to navigate the unusual legal and financial issues real estate agents deal with routinely? A single missed clause in the contract could potentially cost you thousands.

Don鈥檛 fall for this myth. To protect your financial interests, hire a professional to represent you in your real estate transactions.

This post is intended for informational purposes only and should not be taken as professional advice. The point of view and opinions expressed in this post are those of the author and do not necessarily reflect the position of 皇冠体育app International. This post was written by Michelle Clardie.听Michelle is a professional real estate blogger, specializing in ghostwriting Realtor庐 blogs. Her engaging content helps real estate agents become more visible online, generate more qualified leads, and increase their revenues. You can learn more at聽www.michelleclardie.com

The post Top Five Real Estate Myths – Debunked! appeared first on Blog | 皇冠体育app.

Whether you鈥檙e early in your career or a long-time renter, there are many reasons why you may want to consider renting or buying a home. Here are some questions to ask yourself when debating whether to rent or buy your next home.

Are you financially able to buy?

Perhaps the most important question to consider is if you are currently financially able to buy a home. Calculate your current monthly expenses, debt and bill payments, and priorities (such as vacationing and retirement funds). Then, consider how much you currently pay on housing every month and see if you are able to pay a mortgage instead, without losing money in the process. If you are currently financially stable and you are able to stay that way if you buy a home, then buying may be a practical decision for you. But if buying a home would negatively impact your finances, it could be something to reconsider.

Are you looking to live there long term?

Another question to ask yourself is whether you are looking for a long-term home. Do you see yourself living in the same home for five years or more? Is long-term housing what you are looking for, or is there another reason why buying a home is appealing to you? Analyzing your reasons behind wanting to rent or buy may help you decide whether a long-term housing option is the best for you.

How is the housing market today?

Your experience buying a home can vary depending on the current state of the housing market. If you purchase a home at the wrong time, you may end up losing money when you decide to sell the home later on. Do some research to figure out the state of the housing market and consult a realtor who can help you decide when the optimal buying time would be for you.

Is a mortgage cheaper than renting?

Just as you need to consider your financial capabilities when looking to buy or rent, you also need to figure out whether a mortgage is less expensive than renting. You could be considering the purchase of a home with a mortgage far less than what you are currently paying in rent. If that is the case, buying may be the best option for you, both now and in the long run. However, if you find out that your rent would be far less expensive than your mortgage payments, buying may not be the best financial decision.

Are you looking for ease or stability?

Are you someone who likes to move easily, or do you like the stability of owning a home? Buying and renting each present their benefits and it is important to compare them with what your current priorities are. If you like the idea of being able to move quickly and not feeling obligated to stay in one place, for an extended period of time, renting may be the best lifestyle choice for you. If you are someone who likes the stability of owning a home and the permanence of living in one place for many years, buying could be up your alley. Consider what you value in a living situation and compare that to the costs and benefits of renting and buying.

No matter what stage you are in the moving process, consider these questions before you decide whether renting or buying is right for you.

This post is intended for informational purposes only and should not be taken as professional advice. The point of view and opinions expressed in this post are those of the author and do not necessarily reflect the position of 皇冠体育app International. This post was written by Bailee Abell.听Bailee Abell is a writer born and raised in California. A graduate of University of California, Santa Barbara, she loves reading classic literature, sipping warm beverages, and visiting theme parks every chance she gets. Find her at聽.听

The post To Rent or Buy – Which One is Best for Me? appeared first on Blog | 皇冠体育app.

Is it time to purchase your first home? 聽Owning your own home may offer many advantages including building equity, qualifying for tax deductions, and having a place to call your own. It also requires a level of financial and emotional readiness. 聽Evaluating your position in each of the following categories can help guide you as you make this important decision.

Monthly Finances

Purchasing a home is a big financial decision. In addition to making mortgage payments you also have to factor in additional costs such as taxes, homeowner鈥檚 insurance, homeowner鈥檚 association fees, city assessments, and household repairs. Mortgage companies use a debt to income ratio (DTI) to determine loan eligibility.

The debt to income ratio involves taking your. In most cases, 43% is the maximum DTI you can get approved for a qualified mortgage. However, many financial experts agree that the recommended number should actually be closer to 36%. This gives you added room for fluctuating income levels and unexpected household or life expenses. Paying off credit card debts, auto loans, and student loans can decrease your DTI and bring it to a more comfortable number.

Immediate Payments

In addition to considering the monthly mortgage and maintenance costs, is also important to consider the immediate costs of purchasing a house. In order to close on the sale of a house, you will have to pay additional fees like inspection, down payment, and closing costs. You also have to factor in moving costs and any needed repairs before moving in.

Credit Score

Credit score is just one of the factors considered when applying for a mortgage. While an approval will allow you to take out a mortgage, it does not necessarily mean that you are ready to purchase. Lower credit scores can qualify for lending, but at much higher of interest rates. Higher interest rates can significantly increase your monthly payment. Improving your credit score can help prepare you for purchasing a home at a monthly payment that you are comfortable with.

Ability to Complete Maintenance

Homes require preventative maintenance and regular upkeep. Some of these preventative tasks can be completed on a DIY basis,. Either way, it is important to know how to handle a housing emergency. Do you know how to handle a leaking pipe? Do you have the available resources to quickly fix a household problem? Responsibilities of homeowners differ from the maintenance responsibilities of renters. Having a savings and emergency fund in place for home maintenance is a proactive move. Your real estate agent can often help connect you with professionals in your area to help keep your home at its best.

The Commitment

Purchasing a home is a longer term commitment compared to renting. The home is financially and legally tied to you, and while this can bring incredible benefits, new responsibilities also come with the decision to buy a home. If you decide to later sell your home, your real estate agent can help you list your home and evaluate purchase offers. It鈥檚 important to consider that the real estate market fluctuates and market conditions will impact your home鈥檚 re-sale price in the future.

Canadian residents also have, which might be more suited to fit specific commitment needs. While freeholds are the most common type of buying choice, leaseholds allow buyers to lease the land the house sits on. Mortgage co-operatives are also another option that allows buyers to purchase a share within the building.

Some professionals suggest not purchasing a home unless you plan on Additionally, having a secure job that you are committed to is also a factor. You establish the size, cost, and type of the house you purchase based on your current income. If you are changing careers frequently or your job is not reliable enough, this can make it difficult to plan for homeownership.

Choosing the Right Home

If you have evaluated your readiness to buy a home and have decided that you are ready to move forward, it important to choose the right home in the right price range. Choosing a house within your budget will allow you to make payments comfortably without neglecting other important parts of your life. Many homebuyers prioritize homeownership over other expensive purchases like cars and vacations. 聽But stretching your housing budget too far could lead you to your purchase. 聽Your real estate and mortgage professionals can help equip you with information and resources to make an empowered choice.

Purchasing your first home can be a rewarding and thrilling experience. Jumping into home ownership before you are ready can have adverse effects to your finances, credit score, and life goals. It is necessary to evaluate each of the components involved in purchasing a home and ensure that you are ready to take on the responsibilities along with the rewards of buying your own home.

This post is intended for informational purposes only and should not be taken as professional advice. The point of view and opinions expressed in this post are those of the author and do not necessarily reflect the position of 皇冠体育app International.

This post was written for 皇冠体育app by Heather Hardy. Heather is an avid writer who has contributed to numerous blogs and internet news sources. 聽While she writes on a variety of topics, her specialties include real estate, home improvement, and travel. After obtaining two degrees, Heather has found her passion in writing content that improves both readability and knowledge.

The post Evaluating your Readiness to Buy a Home appeared first on Blog | 皇冠体育app.

What type of house should you buy? Do you think you鈥檙e more suited to a tiny house in a modern community, or a traditional home with a white picket fence? Take our quiz to determine what housing option best suits your needs.

1. How well do you get along with people?

A) I love people

B) I don鈥檛 mind them that much

C) I want the option of complete privacy if I need it

2. Are you looking for a small or large space?

A) Small space, I don鈥檛 need much room

B) A medium-sized home with a small yard will do

C) I want a big house with a yard

3. How much storage space do you need?

A) Not much

B) Just enough for my belongings

C) I need a two-car garage at a minimum

4. Do you want pets?

A) No

B) I might get pets in the future

C) Yes

5. Are you interested in co-living or renting out some of your space in the future?

A) No

B) I might consider this if the opportunity arises

C) Yes, I would like the extra income

6. Do you want a space with amenities such as a gym, concierge services etc.?

A) Yes

B) Extra amenities would be nice, but they aren鈥檛 a must

C) No

7. Are you willing to pay extra fees for maintenance and upkeep?

A) Yes

B) Only if they鈥檙e reasonable

C) No

8. Would you like to be able to remodel your home?

A) No

B) Maybe, but this is not a deal-breaker

C) Yes, I want to be able to customize my home

9. How long do you plan to live in the home?

A) For three to four years

B) Five to 10 years

C) For the next decade, at least

How did you score?

Mostly A鈥檚: Condominium

Condos offer the benefits of a home, without the admin since you pay association fees to maintain common areas like swimming pools 聽within the complex. They range in size, but typically make good starter homes for first-time homebuyers and individuals with small families. And if you decide to upgrade to a larger home, you can always keep the home as a rental property if you are not ready to sell.

Note: Banks may charge higher interest rates for condos in comparison to other housing options.

Mostly B鈥檚: Townhouse

If you鈥檙e looking for an affordable option but would prefer more privacy than what a condominium offers, a townhouse is your best bet. While you may share walls with your neighbors, you won鈥檛 have to deal with anybody above or below you, and you鈥檒l likely have your own garden and space in front of the property. Townhouses can have common areas as well, so you may have access to a pool, gym, spa etc. albeit at added cost. And since they usually have more room than condos, you also have the option of subletting some of the space.

Note: Some banks classify townhouses as single-family residences, so they do not charge higher interest rates for this housing option.

Mostly C鈥檚: Single-family Residence

A single-family residence is a stand-alone structure with space on all sides of the property, so no shared walls with neighbors. There are no common areas, although some single-family residences in subdivisions do share amenities like dog parks. These homes can be multiple stories, with room for extended family or for tenants if you decide to rent out extra space. And if you want renovate your home, you can do so without having to consult a board or association (unless the home is part of an HOA), the way you would need to for a condo or townhome.

Note: This housing option is usually the most affordable in terms of financing.

Next, take our Are you ready to buy a home? quiz.

The post Quiz: What type of housing is best for you? appeared first on Blog | 皇冠体育app.

Is it worth buying a starter home? Or should you be prioritizing your long-term needs and searching for a 鈥渇orever home鈥� instead? Here are some things to consider before you take the homeownership leap:

What鈥檚 your budget?

Calculating how much home you can afford is the first step in deciding what type of home is best suited for you.

鈥淪tarter homes typically have a lower home price value, meaning your down payment will likely be less than that of a forever home,鈥� says , regional mortgage sales manager at TD Bank.

Can you afford the down payment on a forever home? If yes, proceed to the next question. If no and you do plan to buy a starter home, keep in mind that sticking to your budget when you鈥檙e shopping for a house will determine the difference between your home being an investment or a financial leak.

鈥淏uying too much home can decrease your savings and deplete your investments. It can also cut into how much you have left to save, invest and use to enjoy other aspects of your life,鈥� says financial planner .

However, keeping your starter home small and affordable, and limiting any improvements that you make to renovations that will increase your return on investment will tip the scale in your favor.

Buying an affordable home also gives you the ability to get a shorter-term mortgage, which means less money spent on interest in the long term.

What鈥檚 your long-term plan?

Do you plan to sell the home for a profit in a few years? Or keep it as an investment property to rent out when you鈥檙e ready to move onto something bigger?

If you plan to live in the home for less than five years, the closing costs may offset any profit that you make with the sale. And because you just pay off the interest on your mortgage for the first few years, you could end up building very little equity if you move too early in the lifespan of the loan.

鈥淒uring the first half of a 30-year fixed-rate loan, most of the monthly payment goes to paying down interest, with very little principal actually paid off. Towards the last 15 years of the loan you will begin to pay off a greater amount of principal, until the monthly payment is largely principal, and very little interest,鈥� says mortgage loan expert .

Ultimately, your end-goal should be written into your master plan to reduce risk and minimize financial loss.

What are your homeownership goals?

Are you looking for a home or an investment? Do your short-term housing needs outweigh your long-term needs? Once you鈥檝e fleshed out your home-buying goals, discuss your needs with your real estate agent to get a better idea of what your options are. Your agent may have information and insights on the local housing market that could affect your decision.

The post Is buying a starter home a good idea? appeared first on Blog | 皇冠体育app.

According to the聽, 48% of homebuyers in 2015 purchased a home because it was the right time and they were ready to buy a house. But how do you know when you鈥檙e ready to buy a home? Take our quiz to find out.

1. Have you researched the homebuying process?

A) Yes, I can tell you everything about buying a house, from getting pre-approved to having money saved up for hidden and after-tax costs

B) I鈥檝e done a little research but still have some questions

C) Not really

2. What is your current financial situation?

A) Great, I plan to buy a house with cash

B) I have a job and savings

C) I live from paycheck to paycheck

3. Do you have a regular income?

A) Yes, I work full-time

B) I work part-time, but I have savings

C) Not right now

4. What is your credit score?

A) 700 and above

B) Between 620 and 699

C) Lower than 620

5. Do you have any debt?

A) I have minimal debt

B) Yes, but my debt-to-income ratio is less than 43%

C) Most of my income goes towards paying off my debt

6. Describe your expenses.

A) I manage my expenses easily

B) I鈥檓 able to pay my expenses, as well as save every month

C) More than half of my monthly income goes towards paying off credit cards

7. How much money do you have saved for a down payment?

A) I have more than 20% saved for a down payment for a home within my price range

B) I do not have 20% saved, but I鈥檓 confident that I鈥檒l get pre-approved for a home loan

C) I don鈥檛 have any money saved for a down payment

8. How good are you at home maintenance?

A) I鈥檓 comfortable working around plumbing and electrical systems

B) Not great, but I do have money saved up for home maintenance expenses

C) I don鈥檛 do home maintenance

9. How long are you planning on living in the house?

A) At least 10 years

B) Not less than three

C) I鈥檓 thinking about moving in a year or so

10. Have you spoken to a real estate professional?

A) Yes, I鈥檓 pre-approved for a loan for a house in my price range

B) No, but I鈥檝e looked into the聽real estate agents and lenders in my area

C) Not yet

How did you score?

Mostly A鈥檚

You鈥檙e well-prepared and have everything in place to get the process started. Once you start聽searching for a home it鈥檒l just be a matter of time before you close the deal.听

Mostly B鈥檚

It sounds like you鈥檙e going in the right direction and have a good idea of what the homebuying process entails. Here are some resources to help complete your preparations:

• How much home can I afford?
• Real estate terms that you need to know
• Things to have on your checklist when choosing a real estate agent

Mostly C鈥檚

It sounds like you鈥檙e very early in the process but working your way towards owning your dream home. You鈥檙e in the right place. Start by figuring out what you can afford and calculating what your聽monthly housing payment (principal, interest, taxes and insurance) will be. Use this amount to determine how much money you鈥檒l need to save up to get the best interest rate on your home loan, while aggressively paying down any debt and actively working to improve your credit score. Once your financial standing is strong, speak to a lender about getting pre-approved for a home loan and find a trusted agent to guide you through the rest of the process. Good luck!

The post Quiz: Are you ready to buy a home? appeared first on Blog | 皇冠体育app.

During the home buying process, you鈥檒l be working with a range of professionals, including a real estate agent, loan officer, home inspector, appraiser, and a lawyer or representative from a title company. And while you may need to divulge some very personal information, like your annual income and debt history, not all of these people need to know the intricate details of your life.

However, knowing what kind of information you should be prepared to share at various stages of the home-buying process will eliminate some of the guesswork and stress associated with this major life event. Plus, you can get a head start and begin the documentation gathering process now.

What real estate pros need to know

The typical home-buying experience begins with pre-qualifying for a home loan, during which you鈥檒l be working with a loan officer or mortgage loan originator. Out of all of those professionals, your loan officer will probably require the most information.

Here are some things that a loan officer might require:

Information	Documentation
Personal information
鈥� Full name 鈥� SSN or SIN 鈥� Current address and residential history 鈥� Legal issues	Driver鈥檚 license, passport or state-issued ID Social security card / Social insurance number Landlord names and contact information (or letters showing positive rental history) Copy of divorce decree, documents detailing any financial obligations not included in your credit report
Financial information
鈥� Annual income 鈥� Personal assets 鈥� Credit 鈥� Debt and debt history	Paystubs, W2s and federal tax returns (for US residents), proof of income statement from the Canada Revenue Agency, and any paperwork indicating other sources of income, such as alimony and child support payments Bank and investment account statements, asset statements for stocks, bonds etc., documentation for current real estate holdings Credit report Credit report and paperwork for debts not included in report

Proper documentation helps to provide a complete picture of your financial standings, avoid any errors or confusion and speed up the loan approval process.

Once you鈥檝e been approved and start working with a real estate agent聽or a buyer鈥檚 agent, your agent will simply need to know your budget, what you鈥檙e wanting in a home, and any needs as they relate to your lifestyle.

Safeguarding confidential information

Mortgage professionals and real estate agents have strict professional standards when it comes to handling personal information and preserving confidentiality.听 and the聽 (NAMB) both protect information arising from professional relationships with clients, noting that their members cannot divulge this information without the express authorization of said client, or as required by law. Similarly, the聽 and the聽 promote the privacy rights and interests of consumers, and have specific guidelines around data security and the handling of private information.

If you have any privacy or security concerns, ask your loan officer and real estate agent how they handle confidential information and who in their office has access to it. CEO of NAMB, Don Frommeyer, adds, 鈥淚t is a good idea to ask your lender how they will handle your personal information and what do they do with it once they have completed your loan.鈥�

Most real estate professionals have formal security policies in place, in addition to having to follow industry standards, ethical codes and the law, but asking about their common practices and security software also should help put your mind at ease.

Precautions that you can take

As a consumer, there are several steps you can take to protect your information, as well. At home, make sure you have a firewall, antivirus and anti-spyware software properly installed and running. Check your wireless network and browser security settings to make sure any networked data is protected.

If you store any private information on your computer or external hard drives, consider encrypting it first. And if you have to share any of this information electronically, be sure to use encryption software before sending it to the recipient (but don鈥檛 include the password in the message, send it separately). Note that public networks and Wi-Fi hotspots are not secure, so try to avoid sending or accessing any private information on such networks, unless you have a personal virtual private network (VPN).

Working with trusted professionals with whom you are comfortable lends itself to good communication and a stress-free transaction. Be sure to talk to your loan officer or real estate agent about any privacy concerns or questions you may have, because not only are they your best resource, they鈥檙e also your strongest ally.

The post How Much Personal Information Do You Need to Reveal When Buying a Home? appeared first on Blog | 皇冠体育app.

According to a聽, 50% of prospective home buyers start searching between six and 12 months in advance. Because purchasing a home is the largest lifetime financial investment for many, if not most consumers, it comes as no surprise that a wealth of research usually comes before deciding on a home.

Search the neighborhood and the school district. Define which features are the highest on the family鈥檚 priority list.

Recent research, however, found that many people might not have spent long enough studying how much home they could afford.听 that 1 in 3 American homeowners 鈥� a total of 19 million people 鈥� spend 30 percent or more of their income on their mortgages and other housing expenses.

So how can you figure out how much home you can afford?

Make sure you have a few financial safeguards in place

• 听听听听 Get pre-approved (not just pre-qualified) for a mortgage
• 听听听听 Ensure you still have a rainy day fund before sinking all your savings into a home
• 听听听听 Be certain you are ready to stay in one place for several years before tying up money in a somewhat illiquid asset

Calculate a reasonable percentage of your income

Aim for between 25 and 30 percent of take-home pay on housing (this means your net pay, not your gross income). Lenders like聽 recommend something right in the middle — 28 percent. This includes any extra monthly income you might earn from freelancing, side jobs or investments. This should not include savings or retirement accounts.

Assess your current debt payments

Are you paying on student loans? How much are your car payments? What about your monthly credit card payments? Do you have any other mortgages? What other debts do you have? This is a short list of the expenses you should add up. Your debt-to-income (DTI) ratio, the amount of debt you hold in comparison to your income, should not exceed 36 percent, according to Wells Fargo. That DTI ratio will also include the mortgage and associated expenses you are applying for, so include that as well.

Figure out how much your down payment will be

The recommended amount for a down payment is 20 percent of the total cost of the house. (Remember to include closing costs!) However, buyers can access Federal Housing Administration-backed mortgages where you can put just 3.5 percent down. Keep in mind: most mortgages with less than 20 percent down will incur (PMI), which you鈥檒l need to add to your overall expenses. Whatever the amount of the down payment, calculating it will let you know how much you鈥檒l need to borrow.

Find out your interest rate

A combination of your credit score, your DTI ratio and your down payment amount will all figure into the interest rate on your mortgage. Adjustable-rate mortgages tend to start out with lower initial interest rates but can flex with time, tracked by indices such as the Federal Reserve Board. Fixed-rate mortgages might start out a little higher but remain fixed throughout the life of the loan. The length of your mortgage can also impact your interest rates.

Tools to help you with the math

Doing the math to understand the true cost of buying a home can be challenging. Fortunately,聽online calculators can help you make the entire process easy. Happy house hunting!

The post How Much Home Can You Afford? appeared first on Blog | 皇冠体育app.