New World Realty



Posted by New World Realty on 7/5/2020

The more you know about the process of buying a house, the better prepared you'll be for doing it successfully.

How might you define "success" when it comes to purchasing a home?

There are a lot of standards that could be applied to successfully navigating the home buying process, but here are a few that immediately come to mind:

  • Finding the house of your dreams: While very few people find a home that is absolutely perfect in every way, it is possible to come close to achieving that ideal. Although a certain amount of flexibility goes a long way, knowing what you want and prioritizing important features are among the main prerequisites to getting what you want. As baseball legend Yogi Berra once said, "If you don't know where you are going, you'll end up someplace else." Thanks to the variety of websites devoted to home ownership, home decorating, remodeling, and landscaping, it's easy to find pictures online that can help inspire your imagination and clarify exactly what the house of your dreams might look like.
  • Minimizing setbacks and frustrations: The process of house hunting is a journey that often involves bumpy roads, detours, and dead ends. One secret to getting through it successfully is to work with an experienced real estate agent who knows the ropes and can keep you on track. It also helps to approach house hunting with a sense of optimism, resourcefulness, and commitment. Although you probably have a lot of competing priorities in your life, finding a house that you and your family will be happy in for the next few years deserves a top spot on your list!
  • Avoiding unpleasant surprises: Knowing your credit score and understanding the impact it will have on getting loan approval and a favorable interest rate will help prepare you for the financial side of buying a house. The ability to get prequalified for a mortgage and come up with sufficient down payment will also set the stage for a successful home buying experience. On the plus side, a higher down payment can potentially result in a lower interest rate and not having to pay private mortgage insurance (A 20% down payment is necessary to avoid PMI.) Since many loan programs and lenders require at least a 3-5% down payment, that can be a stumbling block for first-time home buyers. To purchase a $200,000 home, for example, you'd need to come up with a cash outlay of between $6,000 to $10,000 -- not an easy feat for everyone!
If coming up with a sufficient down payment is an issue for you, your real estate agent or loan officer can work with you to brainstorm possible solutions and alternative strategies. For some first-time home buyers, the best plan is to postpone your house buying plans for a couple years until you can improve your credit score and set aside several thousand dollars for a down payment.





Posted by New World Realty on 11/13/2016

Are you ready to buy your first home? Although you may conduct plenty of research, know your budget and understand what you want to find in your first residence. Problems may arise along the way that could force you to rethink your homebuying plans. So what does it take to ensure your first home purchase will be a successful one? Here are three lessons that every first-time homebuyer needs to know: 1. Purchase a home only when you're comfortable with your decision. Let's face it buying a home can be stressful, regardless of whether you're a first-time homebuyer or have purchased multiple residences in the past. As a result, stress can be problematic, and it ultimately may lead you to buy a home before you're ready to do so. In a stressful homebuying situation, be sure to take a step back and explore all of the options at your disposal. By doing so, you can minimize the risk of committing to buy a home in the heat of the moment. When in doubt, don't be afraid to consult with family members, friends and, of course, your real estate agent. A strong support system can make a world of difference for a first-time homebuyer, and it might even help you eliminate stress throughout the homebuying process. 2. Put aside money for home improvements. Budgeting for a home can be tricky. Ideally, you'll want to be able to put at least a few thousand dollars down on your purchase. You'll also want to ensure that you're in great shape financially to handle your mortgage payments. At the same time, you should try to put money aside for potential home improvements. Although you've conducted an extensive home inspection, there are no guarantees that your home will maintain its quality for an extended period of time. As such, having a "rainy day fund" will ensure you're ready to handle numerous home improvement projects down the line. Adding money to your rainy day fund each month can deliver long-lasting benefits. This will allow you to be ready for any home improvement issues that may arise, along with avoiding the anxiety commonly associated with finding the finances to afford home repairs. 3. Understand the ups and downs of the real estate market. What you pay for your home today may not be what it's worth tomorrow. In fact, the real estate market fluctuates frequently, so you'll want to understand that your house's value will change in the years following your purchase. In many cases, the value of your home will rise over the years. But in some situations, it may fall. Remember, buying a home is a major decision and is not without risk. Even though you might expect your home's value to skyrocket, you'll still need to take care of your house. Maintaining your residence will boost your chances of increasing its value, regardless of the real estate market. However, you need to be aware that a buyer's market can change into a seller's one at a moment's notice, so there is always a chance that your house's value will go up and down periodically. Be a prepared homebuyer, and you can minimize problems as you explore the real estate market for your first residence. Thus, you'll be better equipped to find a house that fulfills your needs and will serve you well for years to come.