Buying A Home: Getting Prepared

Before you step foot into the first home you look at, it's a good idea to thoughtfully determine your wants and needs, and the difference between the two! By analyzing your needs you will be able to get a clear picture of exactly what you want your new home to look like and how it should function for you. Once you're in the thick of viewing homes, it's all too easy to fall in love with someone’s decorating or a home’s outstanding architecture – and to completely overlook that there aren't enough bedrooms or bathrooms to fit your needs.
First, you should write down why you're looking for a home. For example, are you currently renting and would like to have a home where you can begin building equity? Maybe you have outgrown your existing home or changed jobs which required you to move to a new city. These factors will all have an impact on how you approach your home search.

It is important to identify what you envision your home to look like and what features it should have. Writing this down helps to avoid ambiguity later in the home search process. You should make at least two lists: one should describe everything you would ideally like and the other should list the features of the home that are an absolute must. It is most likely that you will blend the two lists into one as you progress through the homebuying process. This is a natural and evolutionary process that becomes clearer as you determine what you want and what is available.

Buying A Home: Tips And Thoughts

It is time to make one of the biggest decisions in your life! BUY A HOME. This comes with different excitement to many people. To some, it is a new employment that is paying well and they feel it is the time to own their own home. To others, it is the current house that is no longer meeting required needs and they want to change. But whatever the reason, you should not be carried away by the excitement and left with a huge bill you can't afford.

That is why this advice is necessary to help any buyer make the best choice. First, there are thoughts that prospective buyers hold. Some are true, others are just myths. One of the assumptions which is a big mistake that buyers make is believing that they know the best. This makes them not to do enough research and professional consultation thus ending in disarray.

The other thought that buyers have is that if it is cheap it is the best. As the saying goes, 'if the deal is too good think twice', many of these cheap houses either come with a hidden cost or there are hidden issues about the home. To some, there is a poor drainage or there is a security problem. To others, there is a noisy company behind or any other issue. So, if the deal is too good think twice.

Some tips to consider when buying a house:

1. The first thing to consider is the need. Do you want to buy a home because you can afford or because you need one? The answer to this question depends on the buyer but it is a good idea to do all calculations before you make your next biggest purchase.

2. The second tip is to do enough research. Ask for as many photos of the home as possible including photos of its environment. Then take a trip to the place to confirm the details before you enter into a life-changing contract.

3. Involve a real estate professional. Get a professional real estate sales agent to advise you concerning physical value of a home and calculations involving mortgage deposit and interests. This will help you to avoid premature decisions.

4. Avoid speculation. Don't buy a home because your boss has promised you a promotion or you believe market will grow in the near future to provide you with enough resources to serve your mortgage. Buy if you can afford it now. The future is unpredictable and entering to such great deals speculating on future prosperity is the biggest mistake you can make.

5. Big does not necessarily mean the best. Buying a home because of its size is a mistake you don't have to make. Many times a small house looks neat and presentable than a big unsustainable house. Buy a home that you can be proud to bring your best friend.

You might now be wondering whether you should buy a home or not. But when all measures are taken into consideration, buying a house is one of the best decisions you can make. This is because of the pride associated with owning a home, plus the stress relieved concerning rent. You should thus not be scared by the lengthy processes involved but again you should not undermine it.



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Improve Your Credit Before Getting A Mortgage

One of the best ways to improve your chances of getting a home loan is to improve your credit score. It is because better credit scores may give you access to better interest rates and more beneficial home loan products.

Here is a list of some quick tips to help you get the best possible credit score. While there is no guarantee that all of these options will immediately boost your credit score, they may help you establish habits that will strengthen your credit score.

Show you can pay your bills on time, every time

Lenders/credit providers will want to see that you can repay a home loan on time. So, here is a list of bills that you should pay on time, every time:

>> Your credit cards;

>> Your rent;

>> Your medical and utility bills; and

>> Any other service that may use a collection agency for the recovery of delinquent accounts.

If you miss a payment date by a few days, call the service provider immediately to make the payment, and don't be afraid to ask the provider for a one-time forgiveness.

Check your Credit Rating

You should regularly check your credit report with a credit reporting agency (such as Veda Advantage and Dunn and Bradstreet), as it will:

>> Give you an idea if you have any defaults or negative repayments history recorded in your report;

>> Give you time to get the credit report corrected before a lender/credit adviser accesses your report; and

>> Enable you to verify your credit score with a credit reporting agency.

Note: You should be aware that due to the changes in the Privacy Act in March 2014, lenders/credit providers have the ability to access your credit reports and can see the past 24 months of your repayment history.

Maintain your Available Credit

Before applying for a home loan don't open any other credit cards or lines of credit. It is because lenders/credit providers will see you as being a risk if you suddenly take out loans for cars, electronics, furniture, etc.

Also, refrain from closing your credit cards or other lines of credit. Instead, consider paying off your balances as a lower debt will improve your debt-to-credit ratio.

This is best illustrated by the following example:

Having a total debt of $4,000 with a $20,000 available credit will look better than having just $500 in debt with $800 available credit.

Establish a Savings History

If you are borrowing more than 80 percent of the purchase price of the property, you will be required to meet the "genuine savings" requirements of lenders/credit providers. Your savings will need to add up to around 5 percent of the purchase price of the property.

For example, on a purchase price of $700,000, you will need to have savings that add up to $35,000.

Note: Saving a larger deposit should help to reduce or avoid paying "Lenders Mortgage Insurance" (LMI) and you may even be offered a more competitive interest rate by the lender/credit provider.

Avoid applying with too many Lenders/Credit Providers

Avoid submitting your home loan applications to several different lenders/credit providers at once. It is because these loan applications will appear on your credit report. You should only submit your home loan application:

>> After you have compared lenders/credit providers; and

>> After you have decided to go with a particular lender/credit provider.

Your Employment Stability

If you have had the same job for several years, then this is a big tick. So, prior to applying for a home loan, Try to establish a stable employment history as it will enable you to make regular loan repayments.

If you have changed your job recently, do not worry. You may satisfy the requirements of lenders/credit providers, if:

>> You have been in a similar role; and

>> You have been in the same industry.

Disclose all Information

Lenders/ credit providers may think that you have other debts that have not been disclosed. So, always be upfront and disclose all information as non-disclosure of relevant information may result in your home loan application being declined.

Seek Expert and Professional Advice

All these tips should help you to improve your credit score. However, you should speak to a professionally qualified and expert finance broker who can help you to create a personalised credit improvement plan. Establishing this relationship with a finance broker will help you to determine which potential lender/credit provider best meets your needs.



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Benefits Of Staging Your Home

More people are driven to stage their homes these days. It may be seen as a trend in the real estate market. However, a closer look reveals that homeowners are getting into it when the market is bearish toward real estate. The hard times are, not only discouraging people from buying new homes, but also making prospective buyers more conscious of their purchases. They want best value out of their money, and are adept at doing everything to bring down the cost in their favor. Home staging, in effect, is a way to satisfy such customers. If you are still double-minded about staging your home, perhaps the following benefits will persuade you.

Staging increases the market value of the house. It gives the owner a degree of leverage, a justification for pricing the property higher. The principle works, whether the house is being sold directly to a new owner or to a reseller. It is also a way to tell customers that they are getting more value for their money, because unit they are buying is ready for occupancy once the deal is closed. Staging a home lessens opportunities for prospective buyers to bargain.

Besides increasing the market value, staging your home also speeds up the selling process. Making a strong first impression is the whole idea behind home staging, and if it's a positive one, the buyer is likely to write out a check right then and there. It is like making a proposal to a group of investors with a knock out power point presentation; it has to be well prepared, with the presenter going to the extend of practicing the lines.

The third benefit derived from home staging is that it conserves time and effort on the day of moving out. De-cluttering, cleaning, repairing, refurbishing, and accessorizing happen during home staging. In the process, a lot of the personal belongings are stashed and packed, nice and neat. It is quite unfavorable to leave such stuff behind for potential new owners to see, because home staging is suppose to convince buyers that it the home, where they belong.

This may sound trivial, but home staging is also personally gratifying. Although it entails hard work, patience, and even some expense here and there, there is joy to be found in creating beauty. That is why most owners are personally involving themselves in the process, because it is simply fun and relaxing. To others, this activity even relieves them of stress. It is not surprising to find those with initial experience with home staging to pursue short courses to develop the skills.

Nonetheless, if you are staging your home for the first time, you must anticipate that there will be so many details to pay attention to. As such, it is highly recommended that you hire a professional first, and then, observe how he or she does the job. Occasionally, it is good to also volunteer your time and energy for the project, so as to be familiar with the concept of home staging and what it takes to do it.



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Should I Refinance My Mortgage? 3 Tips To Help You Decide

If you are like many Americans today you have acquired a fair amount of unsecured debt that is now weighing heavily on you. As you are sitting there staring at a pile of bills you are probably wondering "should I refinance my mortgage'? Although the answer may not be clear at the time there are a few questions you can answer to help determine if refinancing your mortgage is a good financial move.

Reasons To Refinance

Adjustable Mortgage: If you have an adjustable rate mortgage then by all means you need to refinance quickly to avoid the potential problems these loans can cause financially. As property values across the nation plummet people in adjustable mortgages face the possibility of not being able to refinance a mortgage that gets more expensive every month.

Reduce Monthly Debt Load: If your credit card and other unsecured bills are hard to pay every month and causing you financial difficulties it may be in you best interest to refinance. Keep in mind though that you will be rolling unsecured debt into your mortgage. Because of this you should only refinance if you are lowering your monthly bills. Do not refinance just for the convenience of having all your bills wrapped into one payment.

Shorten Length of Mortgage: If interest rates allow it you maybe able to refinance a mortgage for a lower term. This will allow you to pay down you loan faster and also build equity faster. Depending on your current interest rate you maybe able to do this without raising your payment to much.If you plan on moving or retiring soon switching to a lower term mortgage maybe a good option for you

Refinancing your mortgage is a serious financial decision that should not be done harshly or without planning. And never use a mortgage broker who tries to talk you into refinancing with strong arm tactics. Instead seek the advice of a professional that can listen to your plans and guide you in the right direction.

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