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Personal Finance Hacks for Homebuyers

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Personal Finance Hacks for Homebuyers

If you’re in the market to buy a house but don’t like doing things like everyone else, try hacking your way to your goals. Conventional methods exist for a reason — they have been proven to work time and time again. They’re not the only way to operate, though, so we’re turning conventional wisdom on its head and giving you a few hacks you may not be familiar with that just might make a difference. Here’s a look at a few options.

Down Payment Options

First, do your research. The average down payment on a home mortgage loan in the US is about 11 percent — much lower than the traditional 20 percent we have known for so long. Find out what the average down payment is in your area of the country so you know if the percentage you have in mind is in the ballpark.

If you don’t think you have enough money saved for a down payment but you still want to buy a home, you do have options. Loans from the USDA (U.S. Department of Agriculture) and the VA (Veterans Administration) offer no-down-payment mortgages, while the FHA (Federal Housing Administration) provides low-down-payment options if you have a credit score of at least 500.

Save on Taxes

If you do end up buying your home for less than it appraised for, you might be in for a tax break. Take your information to your county tax assessor, and they can lower your taxes to match the purchase price. This just might save you some money every year.

Buy Less Than You Can Afford

If you are a prepared home-shopper, you will already know how much house you can afford. Don’t forget, though, that houses always cost more than you think in terms of maintenance and repairs, so you don’t want to max out your mortgage payment budget. Stay a little below what you think you can afford to give yourself some breathing room for when the hot water heater dies or your washer leaks all over the floor.

Buy a Home Below Its Listing Price

You should also look up the percentage of homes that sell under their listing price in your area. This number likely won’t be high — it’s 4.2 percent of homes in Bonita Springs, Florida, for instance — but it will give you some idea if buying below value is even possible.

Here’s one strategy for buying a home below its listed price: look for a home in a neighborhood where you want to live that has been on the market for some time. There may be a reason it hasn’t sold that is not a deal-breaker for you. For instance, maybe it’s too cluttered, has too much furniture in the house, or looks too dark. If you have vision, you can see opportunity. Because the house has been on the market for so long, you will likely be able to get it below the listed price. A few minor renovations later and you will have instant equity.

Equity Sharing

If you’re having trouble coming up with a down payment and the options listed above don’t work, consider the concept of sharing equity in a home with an investor. You and the investor would pool your money for a down payment and then you would live in the home for an agreed number of years. At the end of that time, you would either buy out the investor or sell the house and divide the profits with the investor. It may take some time to find just the right person to invest, but if you choose the right house, it could lead to a good return on their investment.

Finances don’t have to be a barrier to buying a home. With the right strategy and a willingness to think differently, you can still find some great deals. Don’t be boxed in by conventional thinking — try a few of these personal finance hacks to end up in the house of your dreams.

Picture from Unsplash 

This guest article is provided by Brittany Fisher. Brittany is a professional CPA and loves to share her knowledge about taxes, personal finance, and general financial literacy with others. You can find even more resources on her website at FinanciallyWell.info

 

 

5 Factors to Consider for Newlyweds

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Newlyweds: Here Are 5 Factors to Consider when Buying Your New Home

 

Now that the wedding is over, you and your spouse are ready for the next exciting milestone: homeownership. There are so many factors you need to keep in mind and you want it to be a pleasant house-hunting experience. The following are just a few things you should take into account when you’re in the market for a new home.
 
Neighborhood
Marriage is a big transition and it may come with some adjustments to your lifestyle. Have a talk with your spouse and discuss your long-term goals, such as whether you want to start a family or move to a different location for job possibilities. You also should take into account the safety of the neighborhood, the school district in which you live and the amount of families that reside in the area. If you’re thinking about having kids in the near future, having great public schools nearby is important.
 
Required Space
Discuss what your expectations are for square footage and the general space you want within your home. Keep in mind the space you need for day-to-day activities, family gatherings and your future children. Create a list that helps you prioritize what kind of space is important to you as individuals and as a couple. For example, if you host a lot of parties, you may want to prioritize a large kitchen and living room. If one of you works from home or needs office space, put that on the top of your list.
 
Keep in mind that compromise is often necessary. Identify which spatial features are and aren’t deal-breakers. House Simple compares some of the things you may want to compromise on, such as the amount of space versus the location, and the fixable faults, like ugly hardware or kitchen countertops.
 
Bed and Bath Layout
The number of bedrooms and bathrooms in your home is another important factor you should discuss. Talk about whether or not you want your home to be able to lodge many bodies or if you would prefer to not have visitors. Just make sure you don’t go over your budget, because the number of rooms and bathrooms has a major influence on the asking price of the house. Decide if you really need that extra guest bedroom if it means sacrificing a large kitchen or the perfect location.
 
If you intend to add on an extra bedroom or bathroom in the future, check the county’s code and permit requirements and the potential cost of the addition. HomeAdvisor puts the cost of a total bathroom remodel at an average of $9,348. If this is less than what it would cost to buy a house with an extra bathroom, then it may be worth it to wait and build a bathroom that is to your exact specifications.
 
Hidden Expenses
When you determine your budget for your home, make sure you include any ongoing expenses the home has. Utilities are a major cost that vary based on the sustainability and efficiency of your house. Consider the cost it may take to upgrade your heating and cooling system, major appliances, and windows and doors. It may cost more upfront but save you a lot of money in the future, so it’s important to figure out what you can afford in the short and long term. You also should be aware of costs like homeowners association dues, structural update costs, property taxes, insurance and any other regional fees.
 
Home Security
Look for a home that you can keep safe and sound with solid security features. Search for houses that have trees and tall shrubbery around the lot’s perimeter so they can block the street view of your home. This natural barrier is pleasant to look at and helps prevent burglars from scoping out or monitoring your home.
 
You also should protect your new valuable asset with a security camera system. Take note of houses you are looking at that have existing CAT5e or BNC security camera cabling. This can save you time and money on security camera installation. Even if your dream house doesn’t have these wires already doesn’t mean that you can’t have this safety feature, though. Installing a full security camera system is not as complex as it once was and doesn’t necessarily require professional installation. Once you know what you’re looking for, you should choose a security camera system that has the security features you need to feel safe and protected night and day, such as HD resolution, long-range night vision, audio capabilities, or ultra-wide angle lenses.
 
Shopping for your first home as a newlywed couple should be a fun and memorable experience. Be sure to discuss your needs ahead of time, stick to your budget and enjoy the process.

Article written By Kyla Stelling Courtesy of RISMEDIA

10 Home Improvement Tips

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Sharing from the AmeriSpecSWFL Team:

Congratulations homeowner! You’ve found a home, signed the papers and are either getting ready to move in or have already started to enjoy your new home. But what about home improvements? Here are some easy tips to help you stay on top of those new tasks.

Top 10 Home Improvement Tips every homeowners need to know:

     10. Make Improvements That Add Value

When you’re starting out, you’ll want to focus on projects that add equity to your home. Unless you have an unlimited budget for home improvements, consider whether your next project has a good return on your investment.

      9. Start With Quick, Timely Projects

As weather shifts with the seasons, you’ll need to focus on projects that will prepare your home for that upcoming season. Take an hour or two every week, even if it’s only ten minutes a day, to see to the most pressing tasks for your home.

  1. To DIY or Not to DIY

Even weekend DIYers (do it yourself) need to know their limits. Start with smaller projects that build on your existing skills and don’t be afraid to call in the professionals instead of getting in over your head.

  1. Improve Your Home Improvement Skills

Many tasks are easy to learn and provide you options to add to your existing skills. Volunteer at construction organizations, watch a YouTube video or pick up a book to expand your knowledge.

  1. Browse for Project Inspiration

In your spare time, browse the internet for inspiration for your new home. Pinterest, Houzz, Wayfair and many other sites not only give you inspiration, but also allows you to organize your ideas in the process.

  1. Create a Tool Kit

Don’t think that you need to buy a huge number of tools. Start with the basics, then add to your kit as you undertake other projects. If a tool is too expensive to justify the expense, see about renting it.

  1. Money Matters

Learn whether you can use utility rebates, tax credits or other benefits for particular projects. If you can’t pay cash, look for long-term interest-free financing offers or find a loan that doesn’t put your home at risk.

  1. Hiring A Good Contractor

Much like hiring other professionals, you’ll want to hire a contractor based on good reviews, checking references and looking at their previous work. Take time to check out your contractor before you hire.

  1. Save Money On Projects

Reuse stores, surplus stores and online ads allow you to save cash on DIY projects. Take the time to explore the steps of your project, figuring out where to invest and where you can make do with what’s available.

  1. Create A Plan

If you start projects without a plan, it can really cost you in the long run. Plan the entire project and create a budget. Nothing makes a project more expensive than having to change it in the middle.

Homeownership creates great opportunities to learn and grow your home, your equity and your skills, but it will take some work. By following these easy tips, you can become a home improvement pro in no time!