buying

4 Great Reasons to Buy This Spring!

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Here are four great reasons to consider buying a home today instead of waiting.

1. Prices Will Continue to Rise

CoreLogic’s latest Home Price Index reports that home prices have appreciated by 6.9% over the last 12 months. The same report predicts that prices will continue to increase at a rate of 4.8% over the next year.

The bottom in home prices has come and gone. Home values will continue to appreciate for years. Waiting no longer makes sense.

2. Mortgage Interest Rates Are Projected to Increase

Freddie Mac’s Primary Mortgage Market Survey shows that interest rates for a 30-year mortgage have remained around 4% over the last couple months. The Mortgage Bankers Association, Fannie Mae, Freddie Mac & the National Association of Realtorsare in unison, projecting that rates will increase by at least a half a percentage point this time next year.

An increase in rates will impact YOUR monthly mortgage payment. A year from now, your housing expense will increase if a mortgage is necessary to buy your next home.

3. Either Way, You are Paying a Mortgage 

There are some renters who have not yet purchased a home because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize that, unless you are living with your parents rent-free, you are paying a mortgage – either yours or your landlord’s.

As an owner, your mortgage payment is a form of ‘forced savings’ that allows you to build equity in your home that you can tap into later in life. As a renter, you guarantee your landlord is the person with that equity.

Are you ready to put your housing cost to work for you?

4. It’s Time to Move on with Your Life

The ‘cost’ of a home is determined by two major components: the price of the home and the current mortgage rate. It appears that both are on the rise.

But what if they weren’t? Would you wait?

Look at the actual reason you are buying and decide if it is worth waiting. Whether you want to have a great place for your children to grow up, you want your family to be safer or you just want to have control over renovations, maybe now is the time to buy.

 

Posted by The KCM Crew

9 Necessary Things To Do Before You Move Into Your New Home

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Yes, you could paint the walls before you move in. But should you?

Plan a party right away, plus more expert tips that might surprise you.

You’ve signed and initialed on all the dotted lines. The house is yours — no more landlords or leases. Enjoy it. Revel in it. Even spend a night in your new, empty home on an air mattress with a box of pizza before things start to get real (it’s a memory you might appreciate down the road). But when the house honeymoon’s over, there’s work to be done, and certain things belong on a “the sooner the better” list. These nine expert tips offering guidance on what to do before you move into your new home just might surprise you.

1. “Borrow” your real estate agent’s contacts

Who needs friend recommendations when you can use your trusted real estate agent’s list? Most agents have plumbers, electricians, and more that they recommend regularly. “Ask your Realtor for a list of preferred providers so you have it handy in the future when you need something,” suggests Megan Shook, a real estate agent with Mosaic Community Lifestyle Realty in Asheville, NC. “It’s comforting to know you have those contacts if you need them in a hurry.”

2. Wait to paint the walls

Living in your home unpacked for a little while lets you see where the light hits every room at all times of the day. So don’t rush to paint the walls before your things are in place, even if that seems easiest. You may end up choosing colors you don’t love — and then you’ll have to paint again.

The type of light bulbs you use also impacts the paint color, says interior designer Barbara Anderson of Preferred Designs in Rehoboth Beach, DE. “The popular Edison bulbs will change the color hue,” she says. When Anderson meets with a client, she places the paint sample in all four corners of the room. She looks at it in natural light, then blocks the light. But while the walls can wait, your ceilings are another, messier matter. Anderson suggests painting the ceilings before bringing in the boxes and furniture.

3. Add a UV film on your windows

Before you drill any holes or plan where you’ll hang your art, find out where the sun is strongest in your new home. “Sunlight can damage works on canvas and paper over time and fade colors,” advises artist Steven Seinberg. He recommends adding a UV film on your windows. You won’t notice it’s there, but it will offer some protection for your precious artwork and furniture.

4. Plan a party

Scheduling a housewarming party two to four weeks after you move in gives you an incentive — and a deadline — to get all those boxes unpacked. Once the invites are out there, you’re committed. It’s the homeowner’s equivalent of telling a friend you’ll meet her for a Pilates class. In many aspects of life, accountability is key. And if the result is a party in your newly organized house? All the better.

5. Do a doggie meet-and-greet

Before you move in, walk Fido around the neighborhood. It’s a good chance to meet your new neighbors and introduce Fido to his new surroundings. Since your neighbors will then know your doggie by name — and where he lives — they’ll know whom to call if he ever gets out of your yard. (Moving-day pet escapes are all too common!) Consider also handing them a business card with your contact info on one side and your pet’s name on the back. They also might be more forgiving of any early morning yapping if they’ve seen how sweet he is up close.

6. Keep every receipt

Make a folder, get a notebook, and keep receipts for everything. You might be surprised at what’s tax-deductible. Claiming the space for your home office isn’t big news, but don’t forget all the pieces that go with the home office. “Whether that’s an alarm, maid service, cost of electricity … all of those things can be prorated to account for the home-office deduction,” says Kelly Phillips Erb, founder of Taxgirl.com. Erb also suggests looking into deductible home mortgage interest as well as the property taxes paid at closing. “I think that gets missed a lot,” she says. And definitely keep track of all those home improvements. You could get tax breaks for these down the road.

7. Get an energy audit

According to the U.S. Department of Energy, you can save up to 30% on your energy bill by making upgrades identified in an energy audit. “Energy-efficient homes are a win-win for the owner and the environment,” says Shook. During a professional energy assessment, an auditor will identify shortcomings in your home that can be fixed to save energy and lower your bills. To find an auditor near you, ask your local electric or gas companies or search the Residential Energy Services Network directory.

8. Vet the vents

If your home is new construction, be sure to vacuum out the vents (with a hose attachment) before turning on the HVAC. Otherwise, the dust that settled in the vents could be blown out — and into your home. Owners of new-construction homes often report needing to change their air filters more frequently, and this is why. Your builder should have done this too, but it can’t hurt to make sure.

9. Start fresh in the safety department

Replace the batteries in the smoke and carbon monoxide detectors immediately. Shook suggests buying a new fire extinguisher as well. At the very least, you’re postponing the inevitable annoyance of dying batteries chirping all at once all over the house. At best, you’re saving lives. “One colleague just had a fish tank pump catch on fire last week at 5:45 a.m.,” Shook says. “Their home had minimal damage due to the detector and the extinguisher!”

 

Posted by Lindsey Grossman on Trulia

 

Don’t Let Your Luck Run Out [INFOGRAPHIC]

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Some Highlights:

  • The “Cost of Waiting to Buy” is defined as the additional funds it would take to buy a home if prices and interest rates were to increase over a period of time.
  • Freddie Mac predicts that interest rates will increase to 4.8% by this time next year, while home prices are predicted to appreciate by 4.8% according to CoreLogic.
  • Waiting until next year to buy could cost you thousands of dollars a year for the life of your mortgage!

 

Posted by The KCM Crew

Over Half of All Buyers Are Surprised by Closing Costs

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According to a recent survey conducted by ClosingCorp, over half of all homebuyers are surprised by the closing costs required to obtain their mortgage.

After surveying 1,000 first-time and repeat homebuyers, the results revealed that 17% of homebuyers were surprised that closing costs were required at all, while another 35% were stunned by how much higher the fees were than expected.

“Homebuyers reported being most surprised by mortgage insurance, followed by bank fees and points, taxes, title insurance and appraisal fees.”

Bankrate.com recently gathered closing cost data from lenders in every state and Washington, D.C. to be able to share the average costs in each state. The map below was created using the closing costs on a $200,000 mortgage with a 20% down payment.

Keep in mind that if you are in the market for a home above this price range. your costs could be significantly more. According to Freddie Mac,

“Closing costs are typically between 2 and 5% of your purchase price.”

Bottom Line

Speak with your lender and agent early and often to determine how much you’ll be responsible for at closing. Finding out that you’ll need to come up with thousands of dollars right before closing is not a surprise anyone is ever looking forward to.

 

Posted by The KCM Crew

The Impact of Homeownership on Family Health

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The National Association of Realtors recently released a study titled ‘Social Benefits of Homeownership and Stable Housing.’ The study confirmed a long-standing belief of most Americans:

“Owning a home embodies the promise of individual autonomy and is the aspiration of most American households. Homeownership allows households to accumulate wealth and social status, and is the basis for a number of positive social, economic, family and civic outcomes.”

Today, we want to cover the section of the report that quoted several studies concentrating on the impact homeownership has on the health of family members. Here are some of the major findings on this issue revealed in the report:

  • There is a strong positive relationship between living in poor housing and a range of health problems, including respiratory conditions such as asthma, exposure to toxic substances, injuries and mental health. Homes of owners are generally in better condition than those of renters.
  • Findings reveal that increases in housing wealth were associated with better health outcomes for homeowners.
  • Low-income people who recently became homeowners reported higher life satisfaction, higher self-esteem, and higher perceived control over their lives.
  • Homeowners report higher self-esteem and happiness than renters. For example, homeowners are more likely to believe that they can do things as well as anyone else, and they report higher self-ratings on their physical health even after controlling for age and socioeconomic factors.
  • Renters who become homeowners not only experience a significant increase in housing satisfaction but also obtain a higher satisfaction even in the same home in which they resided as renters.
  • Social mobility variables, such as the family financial situation and housing tenure during childhood and adulthood, impacted one’s self-rated health.
  • Homeowners have a significant health advantage over renters, on average. Homeowners are 2.5 percent more likely to have good health. When adjusting for an array of demographic, socioeconomic, and housing–related characteristics, the homeowner advantage is even larger at 3.1 percent.

Bottom Line

People often talk about the financial benefits of homeownership. As we can see, there are also social benefits of owning your own home.

 

Posted by The KCM Crew

Do You Know the Real Cost of Renting vs. Buying? [INFOGRAPHIC]

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Some Highlights:

  • Historically, the choice between renting or buying a home has been a close decision.
  • Looking at the percentage of income needed to rent a median-priced home today (30%), vs. the percentage needed to buy a median-priced home (15%), the choice becomes obvious.
  • Every market is different. Before you renew your lease again, find out if you could use your housing costs to own a home of your own!

 

Posted by The KCM Crew

First Comes Love… Then Comes Mortgage?

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According to the National Association of REALTORS most recent Profile of Home Buyers & Sellers, married couples once again dominated the first-time homebuyer statistics in 2016 at 58% of all buyers. It is no surprise that having two incomes to save for down payments and contribute to monthly housing costs makes buying a home more attainable.

But, many couples are also deciding to buy a home before spending what would be a down payment on a wedding, as unmarried couples made up 14% of all first-time buyers last year.

If you’re single, don’t fret! Single women made up 18% of first-time buyers in 2016, while single men accounted for 8% of buyers. One recent article pointed to a sense of responsibility and commitment that drives many single women to want to own their home, rather than rent.

Here is the breakdown of all first-time homebuyers in 2016 by percentage of all buyers, income, and age:

Bottom Line

You may not be that much different than those who have already purchased their first homes. Meet with a local real estate professional today who can help determine if your dream home is already within your grasp.

 

Posted by The KCM Crew