What are you thinking about when buying a new home? Are you thinking about the way that you can start your new life there? How about the money that you are going to spend? While there are some things which keep your mind busy when you are shopping for a real estate and there is one thing which you should not forget. Do you know what that may be? Whether you buy real estate with the idea of reselling. Sure, you may live in your home for a long years but you should not forget the resale opportunities.
When buying a home you need to remember that you are not going to live your rest of your life in the same house. This means you want to own the real estate and resell it to somebody else. For most people this is not a difficult, but if you do take this into consideration when buying in the first place you may find yourself in deep conflict. Take this situation for example.
You may find a great home that suits your every need, including your budget. The only issue is that the home is in a part of town that has been on the deterioration in recent years. If you really want the home you may end up buying it, and hoping that everything works out; and it may work for you. But what happens if the neighborhood continues to rapidly decline?
Very soon you will be living in your dream home in an unsafe area. In turn,it may be complicated when you go to resell this real estate . This will lead to losing money on the deal in the long run. And anytime that you lose money on real estate you should not be happy with yourself.
There are sufficient of lands that you can buy which will increase in value over time. Overall, you need to buy real estate with the idea that you may have to sell it sooner or later. Anyhow this should not be the only thing that you consider, but it is definitely something that should be ingrained in the back of your mind.
http://www.realestatearticledirectory.com/articles/home-buying/article230.html
Wednesday, November 14, 2007
Budget your Money before you buy
If you are going to buy a new house there are several details that you should refer before getting started .One of the highly imperative is your budget. It will be complicated if you don't know how much you are going to afford and how much you are left with .
Your budget plays a major role in buying a home and how you are going to move further. There are two different things that go into your budget. First, you need to look at your monthly income .If you are getting a steady paycheck then it is easy to move forward . On the other side if you are self employed it will be little bit complicated.
Just make sure that when you are looking at these things that you write down information. If you mess up this process you could end up in a bad situation. Now you know your monthly income , the next step is to consider your expenses. This includes everything from utilities to loans to money that you need for fun. When you know all of your expenses, you can then decrease that number from the money that you make each month.
This will give you a very good idea as to how much money you have left over on a monthly basis. From there, you can probably guess how much you can afford to a home. As you can see, a budget is very important if you are going to be buying a new home. Not only it will help you to prepare for the buying procedure, but it will also help you when you own your home . Sure, you may be able to get away without planning your budget but this is not a risk that you should be willing to take. Instead, take a few minutes and plan out an exact budget that you can follow during the entire buying process.If you are going to buy a new house there are several details that you should refer before getting started .One of the highly imperative is your budget. It will be complicated if you don't know how much you are going to afford and how much you are left with .
Your budget plays a major role in buying a home and how you are going to move further. There are two different things that go into your budget. First, you need to look at your monthly income .If you are getting a steady paycheck then it is easy to move forward . On the other side if you are self employed it will be little bit complicated.
Just make sure that when you are looking at these things that you write down information. If you mess up this process you could end up in a bad situation. Now you know your monthly income , the next step is to consider your expenses. This includes everything from utilities to loans to money that you need for fun. When you know all of your expenses, you can then decrease that number from the money that you make each month.
This will give you a very good idea as to how much money you have left over on a monthly basis. From there, you can probably guess how much you can afford to a home. As you can see, a budget is very important if you are going to be buying a new home. Not only it will help you to prepare for the buying procedure, but it will also help you when you own your home . Sure, you may be able to get away without planning your budget but this is not a risk that you should be willing to take. Instead, take a few minutes and plan out an exact budget that you can follow during the entire buying process.
http://www.realestatearticledirectory.com/articles/home-buying/article228.html
Your budget plays a major role in buying a home and how you are going to move further. There are two different things that go into your budget. First, you need to look at your monthly income .If you are getting a steady paycheck then it is easy to move forward . On the other side if you are self employed it will be little bit complicated.
Just make sure that when you are looking at these things that you write down information. If you mess up this process you could end up in a bad situation. Now you know your monthly income , the next step is to consider your expenses. This includes everything from utilities to loans to money that you need for fun. When you know all of your expenses, you can then decrease that number from the money that you make each month.
This will give you a very good idea as to how much money you have left over on a monthly basis. From there, you can probably guess how much you can afford to a home. As you can see, a budget is very important if you are going to be buying a new home. Not only it will help you to prepare for the buying procedure, but it will also help you when you own your home . Sure, you may be able to get away without planning your budget but this is not a risk that you should be willing to take. Instead, take a few minutes and plan out an exact budget that you can follow during the entire buying process.If you are going to buy a new house there are several details that you should refer before getting started .One of the highly imperative is your budget. It will be complicated if you don't know how much you are going to afford and how much you are left with .
Your budget plays a major role in buying a home and how you are going to move further. There are two different things that go into your budget. First, you need to look at your monthly income .If you are getting a steady paycheck then it is easy to move forward . On the other side if you are self employed it will be little bit complicated.
Just make sure that when you are looking at these things that you write down information. If you mess up this process you could end up in a bad situation. Now you know your monthly income , the next step is to consider your expenses. This includes everything from utilities to loans to money that you need for fun. When you know all of your expenses, you can then decrease that number from the money that you make each month.
This will give you a very good idea as to how much money you have left over on a monthly basis. From there, you can probably guess how much you can afford to a home. As you can see, a budget is very important if you are going to be buying a new home. Not only it will help you to prepare for the buying procedure, but it will also help you when you own your home . Sure, you may be able to get away without planning your budget but this is not a risk that you should be willing to take. Instead, take a few minutes and plan out an exact budget that you can follow during the entire buying process.
http://www.realestatearticledirectory.com/articles/home-buying/article228.html
How to buy a house - a step by step guide for first time buyers (UK)
Buying a house can be quite a confusing process especially if you haven't done so before. To help make it easier to understand the process of buying a property we have created a helpful list.
Take a good hard look at your lifestyle and decide which type of property is the most suitable for the way you live. Do you need a house with a garden or an apartment which is not on the ground floor? Where do you want to live? How many bedrooms do you need? Do you need a garage or parking space?
For most people, the cost of their home depends on how much they earn and therefore how big a mortgage they can secure. As a rough guide, most lenders will allow you up to two and a half times your salary, some more than this. Based on this calculation you should be able to find out how much you have to spend. It may be that at this point your dreams of a country mansion transform into a two bedroom city flat. Be realistic about the amount of money you have to spend. Save up as much deposit as you can - aim for at least 10% of the property value if possible.
Arrange a mortgage in principle with a lender - this will help you when you start viewing properties as you will taken more seriously by the estate agents and vendors.
Make contact with a solicitor who will be able to take charge of all the legal aspects of buying a property. A good starting point is to ask friends and family if they know of any good solicitors who they can recommend to you. You can speak to several and ask for an estimate of what their services will cost you before choosing which one to stick with.
Now that you have decided on the type of property you would like to buy, have your finances agreed in principle and have found a suitable solicitor you can contact/register with estate agents and start viewing suitable property.
Once you have found a property that you like you can make an offer via the estate agent. If you feel that the property is correctly priced and do not want to miss out on your ideal home you may wish to offer the full or near asking price.
If your offer is accepted it is a good idea to ask for the property to be taken off the market which will help deter other offers on the property.
At this point your solicitor should be asked to start work on the legal process of buying a house.
A survey will need to be undertaken on the property. You may like to conduct a full survey to be sure that the property is in good condition and that you will not have any nasty/costly surprises in the future.
Once the survey is completed and as long as there are no problems with the property the lender will agree to lend you the money.
The survey report will be sent to the solicitor to check. Your legal team will carry out a local search to make sure there are no plans for anything which will affect the value of your property. The contract is then finalised and they will then confirm with the lender the mortgage.
The deposit for the property should now be given to the solicitor who will hold it for you.
Contracts are exchanged between the solicitors of both parties concerned (the seller/vendor and you the buyer), deposit is given over to the seller and a date for completion is agreed.
Transfer deeds are prepared by the solicitor to be signed.
The mortgage money is transferred into the seller's account via your solicitor. You will then receive the transfer deeds, land registry certificate and keys to your new home.
On completion you can now move in to your new home which you now legally own.
Your solicitor should pay stamp duty, have the deeds stamped and pass title deeds to the mortgage lender. You will only receive the title deeds once your mortgage is completely paid back.
You will have to pay your solicitor for the work he has carried out on your behalf.
http://www.realestatearticledirectory.com/articles/home-buying/article18.html
Take a good hard look at your lifestyle and decide which type of property is the most suitable for the way you live. Do you need a house with a garden or an apartment which is not on the ground floor? Where do you want to live? How many bedrooms do you need? Do you need a garage or parking space?
For most people, the cost of their home depends on how much they earn and therefore how big a mortgage they can secure. As a rough guide, most lenders will allow you up to two and a half times your salary, some more than this. Based on this calculation you should be able to find out how much you have to spend. It may be that at this point your dreams of a country mansion transform into a two bedroom city flat. Be realistic about the amount of money you have to spend. Save up as much deposit as you can - aim for at least 10% of the property value if possible.
Arrange a mortgage in principle with a lender - this will help you when you start viewing properties as you will taken more seriously by the estate agents and vendors.
Make contact with a solicitor who will be able to take charge of all the legal aspects of buying a property. A good starting point is to ask friends and family if they know of any good solicitors who they can recommend to you. You can speak to several and ask for an estimate of what their services will cost you before choosing which one to stick with.
Now that you have decided on the type of property you would like to buy, have your finances agreed in principle and have found a suitable solicitor you can contact/register with estate agents and start viewing suitable property.
Once you have found a property that you like you can make an offer via the estate agent. If you feel that the property is correctly priced and do not want to miss out on your ideal home you may wish to offer the full or near asking price.
If your offer is accepted it is a good idea to ask for the property to be taken off the market which will help deter other offers on the property.
At this point your solicitor should be asked to start work on the legal process of buying a house.
A survey will need to be undertaken on the property. You may like to conduct a full survey to be sure that the property is in good condition and that you will not have any nasty/costly surprises in the future.
Once the survey is completed and as long as there are no problems with the property the lender will agree to lend you the money.
The survey report will be sent to the solicitor to check. Your legal team will carry out a local search to make sure there are no plans for anything which will affect the value of your property. The contract is then finalised and they will then confirm with the lender the mortgage.
The deposit for the property should now be given to the solicitor who will hold it for you.
Contracts are exchanged between the solicitors of both parties concerned (the seller/vendor and you the buyer), deposit is given over to the seller and a date for completion is agreed.
Transfer deeds are prepared by the solicitor to be signed.
The mortgage money is transferred into the seller's account via your solicitor. You will then receive the transfer deeds, land registry certificate and keys to your new home.
On completion you can now move in to your new home which you now legally own.
Your solicitor should pay stamp duty, have the deeds stamped and pass title deeds to the mortgage lender. You will only receive the title deeds once your mortgage is completely paid back.
You will have to pay your solicitor for the work he has carried out on your behalf.
http://www.realestatearticledirectory.com/articles/home-buying/article18.html
Re-Financing with an Interest Only Mortgage
Interest only mortgages are a relatively new phenomenon in the re-financing industry as well as the home buying industry. While the appeal of an interest only mortgage is typically a greater monthly cash flow, this increased cash flow can come with a hefty price tag. In exchange for more cash flow each month, the homeowner may be sacrificing the ability to obtain a fixed rate mortgage as well as the ability to build equity.
Greater Monthly Cash Flow - The one main advantage for many homeowners in an interest only mortgage is the ability to increase monthly cash flow. Homeowners who re-finance by utilizing an interest only mortgage will likely have more money available each month because they will only be paying interest on their mortgage initially.
While interest only loans may not be ideal, they can be beneficial in the situation where the homeowner is having a great deal fulfilling his monthly obligations. In this case, the homeowner may be willing to sacrifice an overall financial loss for the ability to continue to pay monthly bills in a timely fashion.
Unknown Risks of an ARM - Interest only re-finance loans are typically offered with an adjustable rate mortgage (ARM) this means the interest rate is not fixed and may fluctuate with the rise and fall of the prime index. This risk can be quite costly for the homeowner if the interest rate rises significantly. There is usually a cap placed on the amount, in terms of percentage, the interest rate can rise in a certain period but this can still be a very costly mistake for the homeowners.
An ARM re-finance option with an interest only component may be worthwhile in some situations. For example if the homeowner has a hybrid mortgage which features a fixed interest rate during the interest only portion and an ARM during the principal and interest portion of the loan they might benefit from this situation if they do not plan to stay in the home for longer than the interest only period. This period may vary depending on the lender and the circumstances.
No Equity in the Home - Another disadvantage to the interest only re-finance loans is they do not allow the homeowner to build equity in the home during the initial period where only the interest on the loan is repaid. This can be a problem for homeowners who are looking to profit through the sale of their home. These homeowners may find the participation in an interest only re-finance has had a damaging effect on the profit they are able to generate from the resale of their home.
http://www.realestatearticledirectory.com/articles/home-buying/article252.html
Greater Monthly Cash Flow - The one main advantage for many homeowners in an interest only mortgage is the ability to increase monthly cash flow. Homeowners who re-finance by utilizing an interest only mortgage will likely have more money available each month because they will only be paying interest on their mortgage initially.
While interest only loans may not be ideal, they can be beneficial in the situation where the homeowner is having a great deal fulfilling his monthly obligations. In this case, the homeowner may be willing to sacrifice an overall financial loss for the ability to continue to pay monthly bills in a timely fashion.
Unknown Risks of an ARM - Interest only re-finance loans are typically offered with an adjustable rate mortgage (ARM) this means the interest rate is not fixed and may fluctuate with the rise and fall of the prime index. This risk can be quite costly for the homeowner if the interest rate rises significantly. There is usually a cap placed on the amount, in terms of percentage, the interest rate can rise in a certain period but this can still be a very costly mistake for the homeowners.
An ARM re-finance option with an interest only component may be worthwhile in some situations. For example if the homeowner has a hybrid mortgage which features a fixed interest rate during the interest only portion and an ARM during the principal and interest portion of the loan they might benefit from this situation if they do not plan to stay in the home for longer than the interest only period. This period may vary depending on the lender and the circumstances.
No Equity in the Home - Another disadvantage to the interest only re-finance loans is they do not allow the homeowner to build equity in the home during the initial period where only the interest on the loan is repaid. This can be a problem for homeowners who are looking to profit through the sale of their home. These homeowners may find the participation in an interest only re-finance has had a damaging effect on the profit they are able to generate from the resale of their home.
http://www.realestatearticledirectory.com/articles/home-buying/article252.html
Home Buying 101 - How To Avoid "The One" Syndrome
When you're shopping for your first home -- of any home for that matter -- it's easy to get caught up in the excitement. And that's only natural.
Buying a new home should excite you. But you also need to be analytical and realistic about the home buying process. After all, there's a lot of money on the line.
Truth is, many buyers err on the side of emotion. In their excitement, they overlook aspects of a home or neighborhood that would normally turn them away. Next thing they know, there's a contract on the table and earnest money in the bank. In short, they succumb to "The One" Syndrome.
What is this syndrome, and how do you know if you're a victim? Here's a test:
If, during your home buying experience, you've ever pulled up to a house and blurted "This is the one!" before even getting out of the car . you've been a victim of "The One" syndrome.
There's nothing wrong with feeling good about a house based on a first impression. Truth is, first impressions say a lot about a house, so they should be part of your decision-making criteria. But you must remain objective in spite of your excitement. Here's why:
Emotion has a way of playing with our heads. A strong emotional reaction can blind you to other realities that would normally be crystal clear. In home buying terms, this means you might overlook serious flaws or disadvantages about a house as a result of your excitement.
Here are some tips to help you balance emotion with logic for a safer home buying experience.
1. Pretend you're screening the house for a friend, not for yourself. This will help you remain cool-headed and business-like throughout your visit.
2. Another take on the friend approach is to bring a friend along with you. A friend can give you an objective viewpoint and might help you remember things about a house you wouldn't otherwise recall.
3. Have a checklist before visiting each house. The list should include all the things you're looking for in a house, arranged by most to least important. Having them on paper will remind you to check the house for them -- even in a state of, shall we say, heightened emotion.
4. When you find a house you like, visit it more than once. You'll be amazed at the things you notice the second time around, after your initial excitement has worn off.
Of course, if you're in a seller's market where houses sell quickly, you'll have less time for the tactics listed above. But it still pays to be objective.
Home buying brings out all kinds of emotions. That's only natural. But for something that affects your life so dramatically -- and so financially -- it pays to keep a cool head. And don't worry, you'll find "the one" soon enough.
http://www.getitdone101.com/articles-database/Home-Buying-101---How-To-Avoid--The-One--Syndrome.html
Buying a new home should excite you. But you also need to be analytical and realistic about the home buying process. After all, there's a lot of money on the line.
Truth is, many buyers err on the side of emotion. In their excitement, they overlook aspects of a home or neighborhood that would normally turn them away. Next thing they know, there's a contract on the table and earnest money in the bank. In short, they succumb to "The One" Syndrome.
What is this syndrome, and how do you know if you're a victim? Here's a test:
If, during your home buying experience, you've ever pulled up to a house and blurted "This is the one!" before even getting out of the car . you've been a victim of "The One" syndrome.
There's nothing wrong with feeling good about a house based on a first impression. Truth is, first impressions say a lot about a house, so they should be part of your decision-making criteria. But you must remain objective in spite of your excitement. Here's why:
Emotion has a way of playing with our heads. A strong emotional reaction can blind you to other realities that would normally be crystal clear. In home buying terms, this means you might overlook serious flaws or disadvantages about a house as a result of your excitement.
Here are some tips to help you balance emotion with logic for a safer home buying experience.
1. Pretend you're screening the house for a friend, not for yourself. This will help you remain cool-headed and business-like throughout your visit.
2. Another take on the friend approach is to bring a friend along with you. A friend can give you an objective viewpoint and might help you remember things about a house you wouldn't otherwise recall.
3. Have a checklist before visiting each house. The list should include all the things you're looking for in a house, arranged by most to least important. Having them on paper will remind you to check the house for them -- even in a state of, shall we say, heightened emotion.
4. When you find a house you like, visit it more than once. You'll be amazed at the things you notice the second time around, after your initial excitement has worn off.
Of course, if you're in a seller's market where houses sell quickly, you'll have less time for the tactics listed above. But it still pays to be objective.
Home buying brings out all kinds of emotions. That's only natural. But for something that affects your life so dramatically -- and so financially -- it pays to keep a cool head. And don't worry, you'll find "the one" soon enough.
http://www.getitdone101.com/articles-database/Home-Buying-101---How-To-Avoid--The-One--Syndrome.html
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