Should You Buy a Historic House?

There is nothing quite like the quaintness and uniqueness of a historic home. Many homebuyers and investors fall in love with historic houses because they are richly attractive pieces of historical beauty. They are also known for their established neighborhoods. But are historic homes worth the purchase?

If you have been considering buying a historic home, there are some things you should consider. This article from Total Mortgage  discusses factors that you need to think about before making an offer. Some of these factors include higher property taxes, possible repairs, and the cost of keeping the historic home looking authentic.

According to the article, you may pay more for a historic home in the long run, but your home value will be higher. Plus, you can enjoy the beauty and charm of your historic home!

Should You Buy a Cul-de-Sac House?

The cul-de-sac home has been a symbol of traditional suburban life for decades. While cul-de-sacs have been built for centuries in the form of dead-end streets, they are commonly built nowadays for other reasons—one of which is to alleviate vehicle traffic.

Basically, a cul-de-sac is a street that has only one inlet/outlet. They became popular in America cities after World War II, and they are a classic symbol of suburban life. However, lately cul-de-sacs have been viewed in a negative light by some urban planners. But the popularity and charm of the cul-de-sac will always be present with homebuyers, and for good reasons.

If you’re thinking about buying a cul-de-sac home, here are some pros and cons that you should consider:

Pros

Privacy- Cul-de-sac homes offer more privacy than others because most of the traffic will come from the people that live in the cul-de-sac itself.

Good for families- Less traffic means a safer play area for children. Plus, many families who live in the same cul-de-sac often become tightly knit.

Good resell opportunities- Buyers will pay 20% more for cu-de-sac homes. (Hopefully you won’t have to when you initially buy!) But this is good news if and when you decide to resell.

Cons

More driving- It’s rather difficult to get anywhere without driving when you live in a cul-de-sac because you have to funnel the roads to get to the main road. Traffic can be a challenge once you get to the main trunk.

Less privacy- While you have more privacy from other traffic and pedestrians, you are basically living in close proximity to at least five other homes when you buy a home in a cul-de-sac. All of your neighbors will know a great deal about you.

Vehicles turning around- Many cars will drive to the cul-de-sac to turn around, and this extra traffic can pose safety issues for children who are playing.

 

Costs Involved With Homebuying

So you’ve decide to buy a home. Congratulations! Before you go shopping for the home of your dreams, you should know that homebuying involves more than simply picking out a home and paying for it. There are many costs and expenses you need to know about before you sign on the dotted line. It is wise to be prepared and know the costs ahead of time so that you can budget accordingly.

Here is a list of expenses that every new homeowner should expect and budget for:

Homeowner’s insurance- While many home buyers don’t think about it initially, insurance is necessary to protect your property in case of fire and inevitable disasters. The cost varies from company to company, and it also depends on type of policy that you need.

Moving expenses- As you probably may already know, moving can be very expensive. From packing supplies to a moving van, the expenses can run well into the hundreds of dollars. The cost will be higher if you need to hire a moving company, and it also depends on how far you are moving.

Upgrades- Your new home may not come with the appliances and features that you desire. The base price may not include the finishes and flooring that the model home. Countertops, cabinets, marble flooring, crown molding and other fixtures may not be included with the house that you fell in love with.

Necessities- You may need to have things like window coverings, fences, gates and doors installed that weren’t included on the property. Even smaller expenses like mailboxes and having the locks changed can add up for a new homeowner.

Landscaping and gardening- While perfectly cut green grass and flowers are beautiful, they can be a big expense that adds up. If you can handle the workload, you will save money, but you still need the appropriate equipment. It should go without saying that the bigger your yard and lawn are, the more money it will cost in the upkeep and maintenance. Fertilizer alone is quite expensive, not including the tools. You can hire someone to do the job on a regular basis, but naturally it is much cheaper to do it yourself.

Cable, phone and internet services- Many people don’t account for the transfer of these services, and there are additional costs for companies to set up your services in your new home.

Décor and furniture- Of course you will want to decorate your new home as soon as you move in to give a personalized look and feel. You’ll need items such as blinds, draperies and rugs to create a lived-in environment. Chances are good that you are moving to a bigger home, so you will probably need to fill it with more furniture.

Summer Home Improvement Ideas

Now that the weather is finally getting warmer, it’s time to think about what kind of summer home improvements you’d like to make. Not only can summer additions and improvements add to the value of your home, they can make your house much more desirable to potential buyers should you decide to sell in the next few years.

Let’s take a look at some cool summer home improvement ideas that are sure to make your home more enjoyable for years to come:

Pool

What could be better than a new pool for summer? It’s a fact that pools are extremely desirable home features for buyers. Be sure to figure out your budget as pool additions can get pricey, especially when it comes to pools that are below the ground.

New roof

The installation of a new roof should be done in warmer weather, and the summertime is perfect! The sun’s rays are warm enough to melt the tar paper so that it bonds. A new roof can give you peace of mind plus add great value to your home.

Sunroom

Enjoy the sun’s warm rays with the addition of a cool sunroom. Glass walls with screen options are a good idea when considering sunroom addition. The sunroom can even act as a family or reading room during the winter months.

Exercise room

Don’t pay for the gym anymore! Take that spare bedroom  and transform it into a calorie-busting gym. Your health will appreciate it, and so will potential buyers.

Backyard deck

A deck addition is most likely that biggest remodel that you can make for the summer. This is true whether you are remodeling an existing deck or building a new one from scratch. Keep in mind a deck addition takes a great deal of planning.

 

What You Should Consider While Shopping for an Adjustable Mortgage

The interest rate on an adjustable mortgage (ARM) can change at every adjustment. Actually, this is the main difference between a fixed rate mortgage and an adjustable mortgage. ARMs are also called flexible rate mortgages.

All adjustable mortgages have an initial period during which the rate of interest is lower than fixed rates. In fact, these low initial rates are the biggest USP of ARMs. They make mortgage payments affordable, at least during the initial period. But things can change for the worse when the rates adjust after the initial period.

Advantages of adjustable mortgages

·         Interest rates are low during the initial period. In fact, the rates on an ARM can be lower than fixed rates by 2 – 3%. This will translate into significant savings for the borrower.

·         Getting an ARM is easier than getting a fixed-rate mortgage.

·         Payments can drop if index rates fall.

·         Processing times are quicker and lenders are more willing to offer ARMs.

·         Most ARMs do not have a prepayment penalty.

Drawbacks

Monthly mortgage payments can increase when interest rates rise. On the other hand, when you have a fixed-rate mortgage, you are immune to rate changes.

There is the risk of negative amortization. Adjustable mortgages have rate and payment caps. That means your monthly payment can't go beyond a certain amount. As a result, sometimes your payment may not cover the whole of the interest costs. In this case, the difference will be added to the principal amount. If this happens even after making several mortgage payments, you will still owe more money than you did when took the loan.

Who should consider getting an ARM?

People who are purchasing a starter home should consider getting an ARM because they are more likely to sell that home and move into a bigger home during the initial period itself.

People who are likely to get a transfer in the next two - three years also make good candidates for ARM.

Who should not consider getting an ARM?

Homeowners who plan to live in the same house for the rest of their life should consider getting a fixed rate mortgage, not an adjustable mortgage.

People who don't expect their income to increase in the immediate future, too, should not get an ARM.

While shopping for an ARM, you should ask the following questions to the lender.

·         What is the initial interest rate?

·         What is the annual percentage rate?

·         What index does the lender use to adjust the loan? The borrower should also ask how this index performed over the last few years.

·         What is the lender's margin? (The lender will add margin to the index rate to calculate the ARM interest rate. The margin will be the same throughout the life of your loan.)

·         How long does the initial period last?

·         Will the rate go up at the first adjustment even if the benchmark index hasn't moved?

·         Is there a rate cap?

·         How often will the rate change?

·         Does the mortgage require private insurance? If so, how much will it cost?

·         Is there a prepayment penalty?

·         Does the loan carry the risk of negative amortization?

Getting an ARM is not a wise idea if you intend to get an educational or an auto loan in the future.

Minor Oversights That Can Land You In an Undesirable Mortgage

If you are not an all cash buyer, you will definitely need to get a home loan. The home loan application process can be both stressful and time consuming. A minor oversight can lead to big headaches in the future. So take your own sweet time to review your loan documents.

Do your research

Do your research to keep yourself informed about the process. You should be crystal clear about the terms and conditions before signing the loan document. If you come across terms that you do not understand, ask about them. Don't assume that things will work out fine. They probably won't. This doesn't mean that your lender is trying to cheat you. They aren't, but you might assume that your mortgage will work in a certain way. And when you later discover that your assumptions were wrong, you will be in for an unpleasant surprise.

An inability to understand the terms specified in the loan document will land you in trouble. Some mortgages, for example, come with prepayment penalties. These penalties limit the repayment options you have. If the mortgage comes with a prepayment penalty, you will have to pay additional fees if you pay off the loan in 1- 3 years. Now that interest rates are pretty low, you will definitely not want to choose a mortgage with a prepayment penalty.

Here is a glossary of terms you might come across in your document.

Amortization

The word amortization is used to refer to the process of reducing an amount of money owed by making regular payments. During the initial years of your mortgage, the major chunk of your monthly payments goes towards the interest. Towards the end of the term, you pay more principal and less interest.

Comparables

The term comparables refers to comparable properties in your area. While appraising your home, an appraiser will consider the price at which similar homes in the locality were sold.

Escrow

Every month, a certain percentage of your mortgage payments goes to your Escrow account. Escrow will hold this amount to pay your yearly bills such as mortgage insurance, property tax, and homeowner's insurance.

Federal Housing Administration (FHA)

FHA is a US government agency. It sets the mortgage underwriting standards and insures home loans made by banks and private lenders. FHA loans make homes more affordable because they allow people to borrow with less equity or lower down payment.

Lien

The word lien means that somebody has a legal right to somebody else's property. The mortgage is a kind of lien. It gives the lender the right to seize the borrower's property if terms specified in the mortgage are not met.

These are some of the terms you will come across during your home loan application process. There are several others, too. Here is a quick overview of some missteps you must not make.

Your credit score determines your chances of getting a loan, so review it frequently. Avoid opening any new line of credit as it may affect your score. Do not change jobs in the months before applying for a home loan. If you must change jobs, wait until you get the sanction letter.

The Best Time of Year to Buy a Home

Ah spring time! When flowers are young, the air is fresh, and people are in a home buying frenzy. This frenzy is not limited to age, gender, or marital status - it grips all classes of people.  When tender tulips start showing up through melting snow in cold climates and the rain stops falling in the rainy areas, prospective buyers start hitting the streets looking for homes.

Typically during the spring, the real estate market booms throughout the country.

Reasons Home Buyers Choose Springtime

Barring some exceptions, most home buyers select spring to begin house hunting. Here are some probable reasons why:

• Winter is over and spirits are high.
• Families get together more often with long awaited holidays in March-April.
• The school year is closing soon. Buyers plan to begin moving soon after the school ends.
• There are more inventories available in the market since many sellers decide to go for spring listings.
• This is a part of pre-vacation planning. Buyers prefer to move during vacation time.

Which Day of the Year is the Worst to Buy a Home?

You can say it's the very last Friday in the month of May. Many people might think that Christmas is possibly the worst day, but that’s not true. There are very few interested buyers at that time and competition is low. People are in good spirits and feel more generous, and home sellers might extend this generosity when they accept your offer.

The time when home buyers start scouting for a home is not an issue. The time they eventually finalize the home they’re going to buy might create a problem. This often happens in April. After that, very often a closing date of the last Friday of May is decided during the signing of the purchase offer. All at once, there are a huge number of closings scheduled for that very day of May.

Why You Should Avoid the Worst Day

The reasons are plentiful, beginning with competition offered by other buyers and concluding with the actual moving in.

• From the available inventory, the best new listings are lapped up first at higher prices. Neighborhoods play an important role. Homes in good condition with appealing prices and desirable neighborhoods get many offers. Because of the competition, buyers often end up with a higher price than planned.
• There’s often a peak of pending sales in April which results in a large quantum of May closings. Regular workloads of real estate workers sometimes triple during this period and there are backlogs which might delay your closing.
• Otherwise exemplary services can be weakened by the Memorial Day holiday. Due to long weekends, workers take off for holidays and cannot process your transaction. High volumes also delay processing of loan documents.
• Higher interest rates might result from delayed closing if the locking period of your loan ends. There is a good probability of this if there is a rising demand of properties in your area and you might be stuck with higher mortgage payments.
• Since many people shift residences at May end, movers hike their rates. So your moving costs escalate. You might find it difficult to even find a mover in peak seasons. Many movers get booked well in advance for all weekends right through July.

Make sure you don’t sign the deal during the worst time to buy a home! It’s best to start your home hunting process early.

Expenses Involved in Buying a Home

If you feel that your rented home no longer meets your family's requirements, you will probably want to move into a little space of your own. But before you start looking for homes, you need to make an honest assessment of your existing financial situation. Have you got the financial capacity to afford a home?

Interest rates are at their historical lows now, so if you have got a stable income you will not have much difficulty making monthly mortgage payments. Let’s do the math.

These days, interest rates hover around 3 percent. At that rate, if you have a 30-year mortgage of $250,000, you will have to make a monthly mortgage payment of around $1000. You will probably be paying a rent of approximately the same amount each month. In this case, you can purchase a home without having to upset your monthly budget. Better still, your home is a great investment because its value will appreciate over time.

Remember that you will need to make a down payment. The lender will contribute up to 95% of the sales value of the home. You need to come up with at least 5%. You will need to consider some other expenses as well.

Energy

When you move into your own home, you will have to take care of your energy expenses. Make sure that you will have no difficulty setting aside a certain amount each month to pay your utility bills.

Notary

There is a legal fee associated with the acquisition of a property. The notary fees depend upon several factors and hence a little research is required to find out how much you will have to pay. In any case, expect to pay around $1,200.

School and municipal taxes

You will have to pay the municipal tax and school tax to the municipality every year. Some lenders set aside a certain percentage of your monthly mortgage payment to save the money required to pay these taxes on the due date. This arrangement will save you the trouble of having to come up with a bulk amount, but you should be prepared to pay a slightly higher EMI.

Renovations

Your home might require some renovations. If you are really handy, you could perhaps do these projects on your own and save some money. However, if the home requires major repairs, you will have to hire a contractor. Ask the contractor to give you a quote and plan your budget accordingly.

Mortgage insurance

If you contribute less than 20 percent of the value of the property, you will have to buy mortgage insurance. The mortgage insurance premium you pay varies between 0.5 percent and 2.90 percent of the principal amount.

Life insurance

Your lender may be ready to insure your mortgage, but that is not the best solution. Buying life insurance is a better idea because the premium payable depends on your age, health, and habits e.

Inspection

Before buying the property, you should consider getting it inspected by a professional. This is necessary to ensure that the home is in great shape. A home inspector may charge around $400.

How to Inspect a Home Security System

Are you hunting for a new home? There are quite a few things that you need to consider while inspecting a home. For example, you need to ensure that the home seems safe. But what constitutes "safe?" What do safe homes look like? In this article, we will give you an overview of the important features of a home security burglar alarm system.

For many home owners, their security system is just another feature that increases the value of their home. But just about any security system will not do. Only a well-built security system can enhance the value of a home.

Here are two things you need to consider while evaluating a home security system:

Does the home security system cover all the entry points?

This is very important. A good security system should cover all entry points. Most bargain alarm systems only cover 1 or 2 doors and a few windows. These systems are usually installed at the front door on the first floor. They do not take into account the possibility of an entry through the second floor.

A burglar alarm system that does not cover all entrances cannot be considered as a good security system. While inspecting the system you must check what areas are covered by it. Don't accept a system that does not cover all entrances. And by entrances, we mean the garage and entry points in fenced areas as well.

Is the system fully functional?

Don't take the seller's word. You should ensure that the security system is in good shape and ready to use. Ideally you should get it inspected by a professional.

You can also perform some inspections on your own. Here are a few things to consider:

Make sure that batteries are well-maintained. If batteries are low, the system may produce those dreaded false alarms. Worse still, it may not raise an alarm when it should.

You should also ensure that all door and window contacts are properly calibrated. If the alarm contacts on your system are too sensitive, they may go off unnecessarily. In this case, even a gentle breeze can set off the alarm. On the other hand, if they are not sensitive enough, the contacts may miss a burglar.

The motion sensors, too, need to be properly calibrated. They are often calibrated in such a way that they do not normally register anything too low. However, this is a major mistake and it is often easily exploited.

Does the security system include cameras? And if so how are they installed?

The security cameras need to be installed in a sturdy location that cannot be reached easily. The cameras must have a clear and unobstructed view of the property.

The noise detectors are equally important. They are installed with the objective of detecting the sounds of forced entry and breaking glasses. However, noisy pets can complicate things pretty easily. The noise detector should be adjusted in such a way that it makes allowances for these.

If you don't know the important aspects of a security system you won't be able to know whether the home is well-defended. Consider these important aspects while checking a home security system.

Investors Beware: Don’t Fall for These Real Estate Blunders

At times, the real estate market appears truly hot and moves up really fast. Many people think it’s similar to a stock market, but the reality is different. For a successful real estate investment, a long-term approach is required.

Here’s a list of some common, but costly mistakes to avoid in the real estate field:

Selecting a house on the basis of current décor

Keep in mind that when you buy a home – the house is more important than the things within it. Look beyond decorative items and try to see how strong the bones are. Pay attention to things like the square footage and floor plan to figure out whether your belongings will fit appropriately.

Buying without research

Researching the neighborhood is of utmost importance before you select a property. You’re buying more than simply a house – you’re buying a piece of real estate with land around it. Find out details of the area and amenities. Also study the school system to ensure your address is in line with the appropriate school district. Try attending a community meeting if you can.

Buying without an expert inspection

Home inspection professionals can reveal many things about a property that might not be visible to you. Make sure you hire an expert with a good referral and sound experience in the field. Insist on a written report which includes photos. Photographs will help you see the condition of areas you might miss out in the normal course.

Not considering hidden costs

There’s more cost involved in buying a home than what you pay upfront. There’s a lot of spending beyond that. Find out the details regarding property taxes, water bills, and electricity bills.  You also need to consider investing in required furnishings before you move in.

Incorrect bidding at an auction

Though a starting bid for a property on auction might sound like a great deal; you can’t be sure that the same will hold true for the final price. Plan a strict budget in advance and make sure you don’t exceed this in the excitement resulting from a bidding war.

Also keep in mind that with an auctioned property, you will not get any warrantees and guarantees. You’ll not be able to get the home inspected too. Find out all associated liabilities like liens and taxes payable which might convert a good looking deal to a really bad one.

Not marketing your home correctly

When it comes to selling your home, you need to market it in different ways. Simply putting up a "for sale" board isn’t enough- you need to deploy other marketing tools too. Discuss marketing options with a real estate agent and what he can contribute.

Putting up photographs and having virtual tours online is a good idea. Include floor plans as well. These enable buyers to see the complete layout of a home and decide if it’s suitable for them.

Not getting an agent

It's important to have an expert at your side who understands all complexities. You cannot get included in the multiple listing service (MLS) without hiring an agent. Because of this, other agents will not know that you’ve put your property up for sale. Also, when prospective buyers come, you’ll have to show them around yourself.

The Pros and Cons of Being a Homeowner

We’ve seen that most people regard a home as the most important investment of a lifetime. In contrast, there are others who feel that buying a property is not really an investment, but something that’s required for a stress free existence.

Whatever the case, home purchase does involve spending a substantial amount of money that could be used elsewhere for possible better purposes. But yes, there are certainly some intangible benefits associated with buying a home. And you cannot easily set a price for these. We’ve listed some advantages for you:

There most likely won’t be a reason for you to get kicked out of your home

Even if you’re comfortably settled in a rented house and are utterly blissful, who knows how long it’ll last. All said and done, you’re not the owner of the house. Your landlord has the liberty to unceremoniously give you a notice of 30 days and there your blissful world comes crashing down.

You have to frantically search for another suitable rental and a moving company. Maybe you’ll never get the same lovely neighborhood again, the same conveniences and goodbye to many other things!

If you have your own home which has been properly selected to include everything you ever wanted, you’re in an eternal blissful state. No one tells you to move out and you can live there as long as you wish.

You can customize your home

When you’re staying in a rental, there’s almost zero desire to improve it. Why bother? You’ll spend money and maybe your landlord will have objections. You might even lose your deposit if you try.

In a place you own, you can make little customizations to make life cozier. For example, you could make your home more energy efficient, which would save money and benefit planet earth too. You could do things like splitting a room into a couple of smaller ones, plan a garden and do other interesting things.

Though it’s hard to measure, some improvements really improve happiness levels. On the flip side, homeownership has its own disadvantages.

What if the new neighbors are a nuisance?

Your lovely neighbors moved away and now you’re stuck with noisy, troublesome ones. They hate your dogs. Worse, they’re considering getting a vicious pitbull. Annoying neighbors can make life truly difficult.

Resolving the issue by selling your house is an expensive affair- definitely more expensive than changing a rental, even if it involves breaking a lease.

What if there’s a rotten homeowners association at your condo?

We’ve heard horror stories related to egoistical HOA presidents who have their own highly priced pet projects. Also expensive assessments that you’re forced to accept. Suffer in silence – it’s a way of life, no choice.

Homeownership costs money

While some people regard mortgage payments as a type of forced savings, isn’t living on rent forced frugality? Almost all renters are free of hassles related to weekly trips to the Home Depot. They don’t have to worry about what type of kitchen tiles to get when some break. Simply calling the landlord resolves most issues.

Successful Staging for Fast Home Selling

The key to selling your home fast and at a good price is correct staging. We’ve compiled some staging tips for upgrading and styling your home to help you get the best results.

Enhance curb appeal. Often people considering having a look at your home will first do a quick drive-by. To ensure onlookers are not turned away, washing walkways and planting blooming flowers is a great idea. Cleaning front windows and repainting the porch floor can also add to curb appeal.

Make the porch appear inviting. Even if your porch is small, try to make it appear welcoming with blooming potted plants and a clean doormat. If there’s space, keep a couple of pieces of porch furniture. For the benefit of potential buyers driving by, keep the porch lights on after sunset.

Clean to a sparkle. Shining floors and gleaming windows can create a great impression. This is an easy way to help your home look its best. It’s a good idea to get pros in to do the job. The results will be well worth the expense.

Clear all clutter. It’s imperative for all clutter to go. This might involve temporarily utilizing offsite storage space but it’s worth the trouble. Potential buyers view clear surfaces, cupboards, and floors as more space, so get rid of anything unsightly or unnecessary.

Take a look at the floors. Clean the floors thoroughly and get the carpets steam cleaned. If wood floors are in poor shape, consider getting them refinished. If refinishing is beyond your budget, placing rugs strategically can save the day.

Rearrange furniture. Symmetrical arrangements usually look nice in living rooms. Move furniture away from the walls and make use of pairs of chairs, sofas, and lamps to build inviting conversation areas.

Select neutral colors. Avoid experimenting with "fun"-looking colors like lime green when you’re planning to sell. This doesn't mean an all-white appearance. Rich neutral colors like mocha create sophisticated backdrops which make everything look more integrated.

Keep the master bedroom gender-neutral. Try to create a general appeal with a neat master bedroom that’s free of clutter and personal items. With tasteful artwork, crisp, clean linens, and a neatly folded blanket on the bed, you’ll never go wrong.

Make closets appear spacious. Buyers are quite likely to peek into your closets. Often, closet space proves to be a make-or-break point for buyers, so make sure yours appear spacious by getting rid of excess stuff. Aim to have 20-30% open space within each closet.

Keep toys neatly. Even though people looking at your home might have their own kids, having toys strewn all over is not likely to sell them on the house. People who are house hunting are generally looking forward to a fresh start. Try showing them that in your house, having a well-organized kids' room is possible, and they’ll possibly be swayed.

Use "extra" rooms judiciously. It’s time to change things if you’ve been using a spare room as a dumping space. Each room must have its own clearly defined purpose. Consider what potential buyers might like to have – a study or a guest room? Converting a junk room into a real room is sure to result in a big payoff.

Remember, you can always rely on a free home valuation report from Neighborhood IQ to help you in the selling process. Also, the Home Loan Advisor can analyze your property, current market conditions, local market comps, and other variables in our proprietary algorithm, and match you with potential lenders.

Similarities between Buying a First Home and the First Day at College

Do you remember your first day of college? The excitement, setbacks, and anxieties you experienced? Remarkably similar emotions are experienced by first time homebuyers. 

Buyers are always looking out for a perfect home. The sky is the limit as far as expectations are concerned. They hope to find an affordable home with the best schools nearby, a huge yard, and many more things.  

New college students have great expectations. They’re motivated to use money judiciously, tackle the challenges of higher education, attain high scores, and work hard to subsist. 

There are some additional similarities in the experiences of first-time homebuyers and first-time college goers:

Milestones

Students beginning college move out of home into new environments away from friends and family.  They take on additional responsibilities and get set to enjoy their freedom.  It’s a huge transition phase.

New buyers consider purchasing a home as a transition into adulthood.  Homeownership involves a major commitment with regards to money and time.  With a home purchase, buyers get set to plant roots in a new community.  They can now finally unpack all boxes and settle into a place called home.  They get ready to accept responsibilities related to home payments and maintenance.

Buying a home and going to college are both major accomplishments which represent maturity.

Lengthiness

The process of getting admission into a suitable college sometimes takes months.  Teenagers are required to prepare for qualifying tests, apply, and wait for acceptance.  Then there’s paperwork and orientation. On the day college begins, they’ve got to move around an unfamiliar campus in search for their classes. Getting into college and adjusting to it can be a really stressful process likely to test both confidence and patience.

Buying a home is a time-consuming process too which requires a lot of patience.  Buyers need to get their loan pre-approved before beginning their house hunt.  Focusing on the correct home requires great persistence in attending to open houses, searching online, and staying connected with realtors.

Bids can be turned down.  Even after the offer is accepted, a lot of work is required to complete the buying process.  There are inspections, loads of paperwork, and a lot of communications with the lender.  Buyers feel quite exhausted and long to hold the keys of the home in their hands.

There are hordes of stressful steps involved both in getting into a home and into a college. Both processes require tremendous persistence.

The Learning Curve

Students new to college struggle to remember acronyms which refer to classes, departments, buildings and books and keep referring to their orientation manuals. They face many other newbie challenges. Eventually they get familiar and then things aren’t quite as tough.

First-time homebuyers also often get tied up in knots when they meet their lender to discuss loan options and interest rates. All the numbers and real estate jargon can be truly mind-boggling. Making long-lasting decisions without being clear can be a real challenge. It takes a while for everything to get sorted out smoothly.

When you’re new to college or to the home buying arena, it’s of utmost importance to study the topics and processes as best as you can. And ask questions – lots of them. Speaking to experts is one of best ways to get the right direction pointed out.  This helps in getting the confidence to move forward.  

Be sure to consider the advantages of knowing the true value of your home. You can obtain a free home valuation report from Neighborhood IQ to find out how much a property is worth, especially after your fall and winter home improvements and maintenance projects are completed. Also, the Home Loan Advisor can analyze your property, current market conditions, local market comps, and other variables in our proprietary algorithm, and match you with potential lenders.