4 Tips on How to Successfully Purchase Your New Home

For many realtors, property ownership is only part of the business in real estate. However, it is fairly different than any other investment. It is important to understand the industry and what you need to do as a first-time buyer.

Here, we will discuss our top 4 tips on how to successfully purchase your new home.

Pay Off All Debts

Are you in any sort of debt at the moment? Do you still have to pay off your car and student loans? Are you preparing on how much you need to spend when you send your child to college? Consider not just your current situation but also your future plans in your finances.

Prepare Your Down Payment

Properties require a large down payment and approval requirements that buildings. Instead of the average 3%, you will need to provide at least a 20% down payment to secure the purchase of the property.

Furthermore, the main objective of purchasing a new home is to keep all expectations realistic and within your budget. Just as with any investment, buying your first home for rent will not gain you a high monthly income. Consider working with someone with experience to help you gain hands-on experience.

Don’t Opt for A Flip House

While you might be tempted to buy a cheaper house that you can flip, this will only create more hardships if you have little experience. Unless you are a contractor or are partnered with one, you will need to splurge on home improvement and everything that goes into a home remodel. Opt for a house that is within your budget but requires little to no repairs.

Calculate the Costs of Operation

The overall cost will range from 30 – 80% of your gross income on the home. If you decide to charge around $1500 per month, you will be left at 40% as your expenses will cover $600. Just be sure to consider what you expect to pay for the total expenses of operation.

Got any tips that you would like to share with us? Comment below and let us know!

4 Things to Do Before You Make Your First Home Purchase

Investing in real estate is a great investment that will last for years to come. You will gain reaps of benefits to owning a home and adding value to the overall income. Before you make the move, it is important to ensure that you are completely ready to make this investment.

In this guide, we will discuss the top must-dos of buying a home such as your mortgage, credit score, and more. Here are 4 things do before you make your first home purchase.

High Credit Score

Before you make your decision in purchasing a new home, ensure that you meet all the credit requirements need to apply for a mortgage. The higher your score is, the lower your payments will be. However, with a low credit score, you will end up paying more.

Determine Your Financial Ability

Before you can start your search, it is important to find a home that you are financially comfortable paying monthly. There will be plenty of rules and requires that will guide you in how much you can really afford for your home’s monthly payments. If you plan to finance your home, payments should not be more than 30% of your monthly income.

Save For a Down Payment

Depending on the credit score and your current finances, you will need to have enough funds to pay for a down payment. This should range around 20% of its market price. When you do plan to apply for a loan, you will also need money to pay the closing costs of the home.

Establish A Flexible Savings Account

Your lender will want to see how responsible you are and how well you maintain your monthly income. That means that you are not living paycheck to paycheck and have a satisfactory amount of your saving. The extra costs will help cover repair and maintenance issues that may be needed in a new home.

Are you financially ready to make your home purchase? Have you followed these steps in purchasing your home? Comment below and share your story with us!

5 Factors to Consider When Looking for A Profitable House

Are you planning to buy your first home for a profit? These factors will help guide you in what to do and things to consider for your best achievement. In this guide, we will discuss some of the most vital factors and what to keep in mind during your search.

Here are 5 factors to consider when looking for a profitable house.

Quality of the Neighborhood

The neighbor will play a strong role in the type of tenants you are going to rent to. If you plan to accommodate students, plan to choose a property near a university. However, keep in mind that you may still face the summer vacancies when students move out.

Location near Schools

Families who plan to rent a home often prioritize locations near the local schools. If your tenant has children or planning to, they will favor a home that is conveniently located nearby.

Opportunities for Employment

Tenants are often attracted to areas with a high rise in employment openings. If you noticed a company moving to the area, new tenants are guaranteed to flock to the area. However, it is important to keep in mind that the cost of housing may depend on the company nearby.

Property Taxes

While property taxes are not stated in all parts of the country, make sure to inquire just how much you will rent after all the taxes are covered. Keep in mind the high property tax may not be a bad thing if the property is in the right location.

Criminal Rate

No renter will want to live in areas with high rates of criminal activity. Before you purchase your home, be sure to research and find the accurate statistics to the areas crime rate. You will need to consider crimes of all kinds, vandalism, and recent activity.

Conclusion

Keep in mind that every location has its own share of good and bad parts of the city. While searching for the right property requires time and hard work, it is important to manage your expectations.