Jonathan Parker & Sharon Kelley's Blog
Entering the housing market may be difficult for a buyer. In many instances, buyers worry about paying too much for a house. On the other hand, the temptation to overspend on a house sometimes can be overwhelming for a homebuyer who is concerned about losing his or her dream residence to a rival buyer.
Fortunately, we're here to help you determine exactly what you can afford to pay for a house, thereby reducing the risk of spending too much on a residence.
Let's take a look at three tips to ensure a buyer can purchase a great house at the right price.
1. Get Pre-Approved for a Mortgage
A mortgage generally is a must-have for a homebuyer. If you get pre-approved for a mortgage, you can start searching for houses that fall within your financial limits.
To learn about your mortgage options, you should meet with a variety of banks and credit unions. These financial institutions employ friendly, knowledgeable mortgage specialists who can teach you about myriad mortgage options.
Also, don't hesitate to ask questions as you search for a mortgage. If you understand all of the mortgage options at your disposal, you can make an informed mortgage decision. Then, you'll be able to start pursuing houses with a budget in hand.
2. Assess the Housing Market
The real estate market frequently fluctuates. As such, you should look closely at housing market data to find out whether you're preparing to search for a house in a buyer's or seller's market.
Oftentimes, it helps to look at the prices of recently sold houses in your area. This will allow you to see how much sellers received for their homes, as well as how long these houses were available before they sold. That way, you can use this housing market data to narrow your price range and establish realistic expectations for your home search.
3. Consult with a Real Estate Agent
A real estate agent is a housing market expert. Therefore, a real estate agent can make it simple for you to pay the right price for your ideal house.
Typically, a real estate agent will want to meet with you before you start your home search. He or she then can learn about you and your homebuying goals and help you craft a homebuying budget. As a result, a real estate agent will allow you to refine your home search, ensuring you can check out high-quality houses at budget-friendly prices.
Let's not forget about the support that a real estate agent delivers throughout the homebuying journey, either. A real estate agent will set up home showings and keep you up to date about new houses that fall within your price range. And if you'd like to submit an offer on a house, a real estate agent will help you put together a competitive proposal as well.
Pay the right price for your dream house – use the aforementioned tips, and you can boost the likelihood of discovering the right home, at the right price.
When choosing a house or condo to live in for the next several years, comfort, convenience, and affordability are among the most important factors to keep in mind. A fourth item that many real estate agents would add to that list is "location."
The location of your next home is crucial for many reasons -- not the least of which is future resale value. Ideally, you want the value of your home to appreciate over time, which will help improve your financial situation. Whether you decide to upgrade or downsize in your next real estate purchase, the equity you've built up can benefit both your lifestyle goals and real estate objectives.
In addition to the investment features of picking a good location for your next home, there are also several other worthwhile advantages.
- A reasonable commute time, preferable under a half an hour, will help reduce your stress level, enable you to spend more time with your family, and reduce the amount of wear and tear on your vehicle. A short commute can also help you save money on gas, highway tolls, depreciation, and insurance. One way to reduce your driving time is to look into telecommuting possibilities at your job. Even if you have a relatively long commute to work, that can be offset by having the freedom to work from home a couple days a week. Fortunately, more and more businesses are realizing the mutual benefits of allowing or even encouraging telecommuting. While it may be necessary to prove to your employer that your productivity won't suffer when you're working from home, doing so can save you money, lower your stress, and improve your overall quality of life. Let's face it: There are a lot more fulfilling things you can do with your time than getting stuck in traffic jams and feeling frazzled when you return home every night!
- A convenient location can also mean proximity to shopping, entertainment, recreation, family, friends, and places of worship. Being close to medical, dental, and veterinary services can also make your life a lot easier -- especially when you need to get there quickly.
- From a health and fitness standpoint, it also pays to live within a short distance to public parks, tennis courts, golf courses, bike paths, gyms, and bodies of water for swimming, kayaking, and other aquatic sports.
- For younger families, being close to childcare resources -- whether it be a daycare center or nearby (and available) relative -- can also be a major factor in getting to work on time, making sure your children are properly cared for, and minimizing chaos in your life!
42 Butters Row, Wilmington, MA 01887
42 Butters Row, Wilmington, MA 01887
You know that your credit score is incredibly important when you want to buy a home. There’s certain things that you could be doing in your everyday life that are hurting your credit score. Here’s what you need to avoid in order to keep your credit score up:
Don’t Allow For Too Many Credit Inquiries
When you’re at the checkout lane at the store, and the clerk informs you that you can save a lot of money if you just open this instant credit card on the spot, that can pose a problem. The issue with this is that the store will be instantly checking your credit score as well. These inquiries hang on your credit report for a certain amount of time. Certain inquiries can also make your score dip. Too many credit inquiries can make lenders suspicious of your ability to be a dependable borrower.
Unpaid Bills Can Add Up
If you forget to pay small credit card bills here and there, it could add up. Think of things like library books, medical bills, and credit card payments. That unreturned library fee that you never paid could come back to haunt you. A medical bill that was sent to collections can become a problem on your credit report. Most of the time, all you need to do is pay these fees up for your score to bounce back.
Credit Report Errors
Your credit report could have incorrect information about your financial situation and records. Your credit score could be dragged down just because of some errors on the report. If you do find an error on your report, you’ll be able to submit a claim to rectify the error.
Using Too Much Of Your Available Credit
Just because a credit limit is at $5,000, doesn’t mean that you need to max it out. Even if you pay your bills each month, using too much of your available credit can really harm your score. For your credit score to be calculated and to see how loan worthy you are, your total available credit and how much of that total credit is being used will be put into a formula. Beware of how much of your credit you use in order to keep that score up.
Not Touching Your Credit
You actually need to use your credit in order to build your score. You need credit history in order to have something for loan officers to work with. Accounts that become inactive over time will be closed by default and actually negatively impact your score.
By using your credit responsibly, you’ll keep your credit score up and be in good shape to buy a house.