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Builders Expect Home Sizes to Keep Shrinking

by Steve Brown, Dallas Morning News

Homebuilders are thinking smaller. They’ve cut the average size of new houses and expect it to shrink more over the next few years. “Most builders will build smaller and lower-priced homes in 2011,” said Rose Quint, a researcher with the National Association of Home Builders. “Our experts expect the average home size in 2015 to be around 2,150 square feet.”

That’s down from the 2,377-square-foot average size of single-family homes completed across the country in 2010. And it’s way below the more than 2,500-square-foot average size at the top of the market in 2007.

Nationwide, home sizes are still almost 50% ahead of where they were in the 1970s.

Almost 60% of builders surveyed said they are planning to cut the size of the houses they build during the next few years.

Housing researchers say the downsizing is due to the dour economy and changing consumer tastes.

“Part of it may be temporary (because of the recession), but there are factors behind the decline that are longer-term and will stay with us,” Quint said. Costs savings and demographics are also shrinking houses, she said. “There is an overwhelming desire in the population to keep energy costs down,” Quint said. “Twenty percent of our population will be over 65 in a few decades. They don’t want a big home.”

The recession and drop in home values have also tempered home buyers’ desires. “People don’t have a lot of equity in their homes to roll into a bigger home. Those times are over,” Quint said. “People have come to realize, ‘Let’s buy what we need, not what we don’t need.’”

To get the heft of houses down, builders are ditching living rooms and dining rooms in favor of multipurpose areas. More than 80% of builders say they expect to do away with formal living rooms, and the number of houses with three or more bathrooms and four or more bedrooms is dwindling.

But buyers say they won’t compromise when it comes to storage space. And green features are still growing in popularity with both builders and consumers. More than 80% of potential buyers list energy-efficient heating, air-conditioning and appliances as “must-haves” in their new home.

FHA Mortgages are an Affordable Alternative for Home Buyers

by Greg Eckert, Ulster Savings

 

The Federal Housing Administration‘s (FHA) mission is to insure affordable mortgage loans to home buyers looking to purchase a 1-4 family home as a primary residence. They have been invaluable in helping plug the hole created when private insurance companies and conventional mortgages guidelines tightened after the housing crisis. While attractive to the first time buyer, being a first time buyer is not a requirement to obtain an FHA insured mortgage. The home must be the borrower’s primary residence, and there are maximum loan limits, which are set depending on the County in which the home is located. For example, the maximum mortgage limit for a single family home in Ulster County is currently $406,250.

An FHA loan is a popular mortgage option due to flexible guidelines that allow for down payments as low as 3.5%. The down payment can be a gift from a family member or a grant from a not-for-profit housing agency. FHA also allows borrowers to negotiate up to a 6% seller concession toward a purchaser’s closing costs and prepaid items. The net result is that FHA loans allow a borrower to buy a home with less money “out of pocket” – very important to today’s buyers!

The FHA has had a reputation for having very stringent appraisal guidelines. While the FHA certainly wants the house to be in good condition, they have relaxed some of the appraisal requirements to fall more in line with conventional loan standards. The FHA still does have some hot-button items. For example, wells and septic fields

should be at least 100 feet apart, although some exceptions apply. They also require certain safety issues to be corrected prior to closing. For example, hand rails near steps that are missing may need to be installed, and any peeling paint that might contain lead will need to be scraped and repainted.

Low down payments, generous loan limits, and flexible credit underwriting has made FHA mortgages an affordable alternative for many of today’s home buyers.

The key to a smooth FHA mortgage process is to work with a loan officer who is experienced in all aspects of the program. A knowledgeable loan officer will walk prospective home buyers through the FHA mortgage process and help determine if they qualify for this popular mortgage program.

Improve Your Credit Score Before Searching for a Home

by Paige Tepping

Many prospective homeowners find out the hard way the importance of a good credit score when they apply for a home mortgage, especially after the subprime loan crisis. If you are considering buying a home in the near future, it is a good idea to give your credit score a check-up and then take positive steps to improve your credit score if you find problems. Ideally, it is best to begin working on improving your credit score at least six months before you plan to start shopping for a home.

According to the experts at Buy-and-Sell-House-Fast.com, the following tips will help you improve your credit and should be taken before you begin your home search.

The first critical step in taking care of your credit is to check your credit report. Unfortunately, many people fail to take this all important first step. Instead, they wait until they have applied for a mortgage loan to find out from the lender that there are problems with their credit scores.

By checking your credit score before you apply for a mortgage loan, you gain the opportunity to find out if there are problems which you can correct and discrepancies that need to be removed. When you check your credit report, make sure you check all three of the national credit reporting agencies: Experian, Trans-Union and EquiFax.

Review your credit report carefully for items that may be erroneous. If you believe that an item on your credit report is reported in error, you have the right to contest it. To do so, you will need to contact the credit reporting agency and explain why you believe the item is inaccurate. Supporting documentation such as receipts and cancelled checks can help your claim. Alternatively, you can engage a credit report repair services firm to fix your credit report.

If there are derogatory items on your credit report that are accurate but which could cause problems in your loan application, you cannot have them removed; however, you can take positive steps to counteract them. In the event that you have missed payments in the past, take steps now to get your bills current. Even if it means tapping into money that you might be planning to use for a down payment, it is essential that you get your accounts current and keep them that way. Begin by immediately making your payments on time. There is nothing which can lower your credit score more quickly than late payments. Ideally, make an attempt to begin sending in your payments a few days ahead of time to make sure they arrive on time and you do not have any more late payments on your record. If necessary, begin taking advantage of electronic payments in order to make sure your payments are made on time. Over time, this can make significant difference.

Keep in mind that eradicating all of your credit balances is really not the solution. In fact, credit can be your friend when you are looking to make a big purchase such as a home. The key is to make sure your credit is positive, not negative. Toward that end, avoid actually closing out your accounts. Instead, make an effort to pay down your balances and keep them paid down well below the minimum or completely paid off, but do not close the account. When your lender runs your credit to make a decision on your mortgage application, he or she will want to see that you have had a long credit management history.

After reviewing your credit history, if you see that most, if not all of your credit cards are maxed out or nearly maxed out, it is time to sit down and plan an aggressive strategy for paying some of them down. One of the critical factors that often determine your ability to be approved for a mortgage loan is your debt to income ratio. In addition, high credit card balances can drag down your credit score. Therefore, it is important to look at paying off some of your balances.

It is generally better to begin with your highest-rate balances first. Many consumers are tempted to move around balances when they receive an offer from another bank that is good; however, before you do this, remember that the worst thing you can do when you are trying to make a major purchase is to open new accounts.

By following these guidelines, you can improve your credit score and improve your chances of being approved for your home mortgage loan.

Fixer-Upper Financing: 203k Program Provides Buyers with Renovation Funds

by Eve Mitchell, Contra Costa Times

The word “as-is” can indeed be one scary phrase. Especially when buying a home in today’s market where foreclosures and short sales that need fix-up work are plentiful.

But a little-known Federal Housing Administration (FHA) loan program that’s been around since 1978 can help take the sting out of “as-is.” Only 219 borrowers took advantage of the FHA’s 203k program in 2009. Not that many lending and real estate professionals are aware of the program, say observers.

Last year, Tom Meyer found a classic Oakland, Calif., home built in 1925 near Mills College he liked a lot. As a short sale it was priced right and about half the original asking price. Trouble was, the place needed some fix-up work—foundation improvements, dry rot work, a new roof over the garage and other improvements.

With the help of the FHA’s 203k renovation financing loan program, Meyer folded about $100,000 worth of repairs and improvements into his $422,000 mortgage. He had bought the home for $320,000. “I would not be able to pay a contractor $100,000 and buy a house at the same time,” said Meyer, who works in corporate media at Shaklee’s Pleasanton headquarters. “It had been essentially allowed to start falling apart over the last 20 years.”

He had rented in San Francisco for 25 years before moving into his new digs last September with his girlfriend, Cathy Keating. “We like old houses, and a great benefit of this program is that it helped us keep a beautiful but deteriorating house from deteriorating further. With the work we did, we expect it to still be standing and beautiful 80 years from now,” he said.

Renovation financing through the 203k program allows the costs of needed repairs and improvements to be included in the FHA federally-insured loan amount instead of having the buyer come up with cash or a separate loan to do the work.

“This is a perfect loan for an as-is situation,” said Kristine Marr, a loan officer with Prospect Mortgage in Lafayette, Calif. “It’s not a new loan program, although I think it’s going to have a lot more use today because we have so many foreclosures and bank-owned properties. You go into lots of homes and see people have yanked out stoves and ovens and fixtures and sinks.”

The work has to be done within six months after escrow closes. Borrowers have the option of putting up to six months of mortgage payments on the end of the loan if they don’t want to live in the house while the work is being done.

“Renovation financing is a program that allows you to not only finance the purchase of a home but finance any repairs and/or improvements. It provides buyers with a responsible way to purchase a fixer-upper property,” said Luis C. Munoz, who helped Meyer with the loan and is a renovation loan specialist with the Oakland branch of Mason-McDuffie Mortgage Corp. Munoz also gives presentations about the program at monthly home ownership workshops sponsored by the Unity Council, an Oakland-based nonprofit.

At a time when equity loans are hard to get, the program can also be used as a refinancing vehicle for borrowers who want to do repairs and improvements, provided the value of the home is greater than the value of the loan. “At the same time as you refinance, you pop in the extra dollars you need for whatever you want to do,” Marr said.

FHA home loans require certain health and safety standards be met and that needed repairs identified during the inspection process be completed before escrow closes. However, minor repairs and improvements costing between $5,000 and $15,000 can be done after escrow closes for borrowers who opt for a streamlined repair program.

A 203k loan can help buyers finance both minor and major repairs and improvements. It can also help buyers compete with investors when bidding for short sales and foreclosures, said Sheri Powers, director of the Homeownership Center at Unity Council.

The loans can also be used to pay for improvements such as new appliances, second-story additions, remodeled kitchens and bathrooms, and skylights, just to name a few examples. “Property repairs cost money and they want to make sure people using their loan program are going to be in the home in long run and not just the short run,” Powers said.

The loans have become more popular since home prices started falling and FHA lending limits were raised a couple years ago but are still a tiny sliver of overall FHA loan volume. Last year, 203k loans accounted for 219 mortgages in the Bay Area, compared to 35 in 2008, one in 2007 and none in 2005 and 2006, according to Department of Housing and Urban Development statistics. “It’s making a comeback,” said Powers.

Marr said that 203k financing is not for everyone. A buyer will have to work with contractors and may have to wait several months before moving in, she said. And there is no guarantee they won’t be outbid by an investor for the property. “A lot of listing agents are preferring the investors, because the investors tend to be all cash or 50% cash. That’s always hard to compete with,” she said.

Ulster County Real Estate Statistics Third Quarter 2010

by Team Ulster

The statistics shown below were taken from the Ulster County Multiple Listing Service.  

Comparing sales from January 1, 2010 thru September 30, 2010 with sales from the same time period in 2009, there has been an increase of 114 homes sold, a 15% increase.  The average sale price stayed about the same, decreasing by about $650 from $239,120 to $238,486.  The median sale price increased from $200,700 to $238,486, a 19% increase. Sales increased in most price categories, except for sales of homes over $500,000, which stayed about the same.

When you compare sales for the January 1, 2010 thru September 30, 2010 with sales from 2008, there have been appreciable drops in average and median sale prices.  The average sale price dropped from $292,437 to $238,486, a 22.7% decrease.  The median sale price dropped from $240,000 to $210,000, a 14.3% decrease.

The average and median sale price for 2010 is slightly lower than what it was in 2004!  But with prices remaining fairly stable for the past year and nine months, perhaps we have hit the bottom of the market. 

Year

Number of

Average sale

Median sale

 

units sold

price

price

2001

660

$170,241

$137,000

2002

1544

$185,400

$150,000

2003

1526

$216,119

$180,000

2004

1786

$250,572

$215,000

2005

1883

$279,239

$245,000

2006

1657

$283,288

$247,000

2007

1563

$300,742

$250,000

2008

1200

$288,758

$239,200

2009

1184

$241,065

$209,000

2010 YTD

776

$238,075

$210,000

_______________________________________________________________

Year

Number of

Average sale

Median sale

1/1/10 - 9/30/10

units sold

price

price

 

890

$238,486

$210,000

Low sold

23,500

 

 

High Sold

2,150,000

 

 

0-$100,000

89

 

 

$101K - $200K

323

 

 

$201K - $300K

275

 

 

$301K - $400K

117

 

 

$401K - $500K

50

 

 

$501 - 1mill

32

 

 

1mill +

4

 

 

% over $1M

0.4%

 % under $300K

77.1%

_______________________________________________________________

 

Year

Number of

Average sale

Median sale

1/1/09 - 9/30/09

units sold

price

price

 

776

$239,120

$200,700

Low sold

23,500

 

 

High Sold

1,700,000

 

 

0-$100,000

91

 

 

$101K - $200K

290

 

 

$201K - $300K

226

 

 

$301K - $400K

92

 

 

$401K - $500K

38

 

 

$501 - 1mill

34

 

 

1mill +

5

 

 

% over $1M

0.6%

 % under $300K

78.2% 

A Dream House After All

by Karl Case

If you read the coverage of the latest figures on the sales of existing homes from the National Association of Realtors, you may well have come to the conclusion that the American dream is dead. It is indeed worrisome that sales in July were down 25 percent from a year ago.

But a little perspective is in order.

First, the bad news. What has happened in the housing markets since 2005 is a catastrophe that may take years for our economy to recover from.

Anyone who believed that home prices never fall has learned a tough lesson. The Case-Shiller price indexes released on Tuesday suggest that since their national peak in 2006, home prices have fallen by 29 percent. Some areas of course look better than others. Las Vegas is down 57 percent from its peak and Phoenix is down 51 percent. On the other hand, Boston is down just 13.5 percent and Dallas only 4.2 percent.

The effect on household wealth has been huge. Data maintained by the Federal Reserve show that the value of residential real estate directly held by households fell to $16.5 trillion in the first quarter of 2010, down from $22.9 trillion in 2006. It has yet to be determined who will end up bearing those losses. The decline in wealth has substantially reduced consumption, stifling the economy.

Depressing, yes — but the end of a dream? Not exactly. I have never quite understood what the American dream really means when it comes to housing. For some people, it means having a solid and fairly safe long-term investment that is coupled with the satisfaction of owning the house they live in. That dream is still alive.

Others, however, think the American dream is owning property that appreciates by 30 percent a year, making a house into a vehicle for paying bills. But those kinds of dreams have become nightmares for the millions of foreclosed property owners who have found themselves sliding toward bankruptcy.

But for people with a more realistic version of the American dream, buying a house now can make a lot of sense. Think of it as an investment. The return or yield on that investment comes in two forms. First, it provides what is called “net imputed rent from owner-occupied housing.” You live in the house and so it provides you with a real flow of valuable services. This part of the yield is counted as part of national income by the Commerce Department. It is the equivalent of about a 6 percent return on your investment after maintenance and repair, and it is constant over time in real terms. Consider it this way: when Enron went belly up, shareholders ended up with nothing, but when the housing market drops, homeowners still have a house. And this benefit is tax-free.

The second part of the yield on investment in a house is the capital gain you receive if it appreciates and you sell the house. Gains are excluded from taxation if the property is a primary residence and the gain is less than $250,000 for a single filer or $500,000 for a married couple filing jointly.

Consider a few other bonuses of buying a home today. You can deduct the interest you pay on the mortgage. Interest rates are about as low as they can get. And, don’t forget, home prices are down by 30 percent on average from the peak. The mortgage-interest deduction and the tax-free income from housing cost the government at least $200 billion a year.

During this recession the government has been doing even more on behalf of the American dream. It offered a tax credit of $8,000 to first-time buyers, and eventually $6,500 to other qualified buyers. Not only did the Federal Reserve continue to keep the short-term interest rates it sets at essentially zero, it purchased $1.4 trillion in mortgage-backed securities so that lenders could keep mortgage rates low.

Do the math. Four years ago, the monthly payment on a $300,000 house with 20 percent down and a mortgage rate of about 6.6 percent was $1,533. Today that $300,000 house would sell for $213,000 and a 30-year fixed-rate mortgage with 20 percent down would carry a rate of about 4.2 percent and a monthly payment of $833. In addition, the down payment would be $42,600 instead of $60,000.

IN fact, until about two months ago, it looked as if potential buyers were beginning to understand all these advantages and that the market was turning around. By May 2009, housing prices had stopped falling in a majority of the metropolitan areas surveyed in the Case-Shiller index. Sales were also up. In 2008, 4.9 million existing homes were sold. In 2009, the figure rose to 5.2 million; last November, sales hit an annual rate of 6.5 million (a boom-time number). Even new construction showed a pulse.

So, what happened to kill the momentum? For one thing, the first-time buyer credit expired at the end of April. And some longer-term demographic changes may also be affecting the housing market.

In the next several years, the Census Bureau and other demographers project that the number of American households will increase by 1 to 1.5 million each year. With new construction sagging, we should be experiencing a tightening market with low vacancy, as has occurred in every housing cycle since World War II. But instead of falling, vacancy rates remain at near-record levels.

My guess is that the number of households has not been growing as much as projected and may even be falling. We won’t know for certain until the 2010 census is complete. This figure depends on many factors: immigration, emigration, the age distribution of the population and the number of young adults staying at home or doubling up. Unemployment is high, and we know that without jobs people tend to move in with Mom and Dad. And we don’t make immigration easy, even for those with advanced degrees who would be most likely to enter the housing market. None of this bodes well for a quick recovery.

While demographic trends are uncertain, one important reason for the recent downturn is clear: The steady drip of bad news about the economy has sapped the confidence of buyers, sellers and lenders. And there is no understating the importance of expectations and confidence in this industry.

Real estate sales are unlike other financial transactions. You can place a rough inherent value on a stock or bond by looking at fundamentals: a company’s profits, price-to-earnings ratios, quality of its products and management, and so forth. But a house is worth what someone is willing to pay for it. That’s a very personal, emotional decision.

And emotions can change on a dime. To try to track moods and expectations as part of our Case-Shiller data, the economist Robert Shiller and I send out 2,000 questionnaires each year to recent homebuyers in San Francisco, Los Angeles, Milwaukee and Boston, asking them what they think is likely to happen to the value of their houses over the next year.

In 2005, respondents felt on average that prices would rise 9.6 percent. In 2008, they anticipated a small drop. In 2009, the figure turned positive again in all four cities, with an average anticipated gain of 2.2 percent. We have just tabulated this spring’s survey, which found that homebuyers anticipate a gain of 5.2 percent in the next year.

In a given year, the number of completed sales is about 4 percent to 5 percent of the housing stock. Thus it doesn’t take a change in mood of a large number of buyers to change the overall direction of the market.

This financial crisis has made us all too aware that we live in a Catch-22 world: the performance of the housing market drives the economy, and the performance of the economy drives the housing market. But housing has perhaps never been a better bargain, and sooner or later buyers will regain faith, inventories will shrink to reasonable levels, prices will rise and we’ll even start building again. The American dream is not dead — it’s just taking a well-deserved rest.

90 Percent of Americans Do Not Regret Buying Their Current Home

by RIS Media

A new study released by Bankrate, Inc. shows that, even with home prices sliding and mortgage rates the lowest in decades, the vast majority of Americans do not regret buying their current home.

The poll, conducted by Princeton Survey Research Associates International, can be seen in its entirety here: http://www.bankrate.com/finance/mortgages/poll-few-homeowners-regret-purchase- 1.aspx.

Among the findings:

  • Ninety percent of homeowners say they don't regret buying their home versus a mere nine percent who said they do;
  • Among those who regret buying their homes, the most common reasons cited were because they cannot sell their home and move on along with those who say they regret their purchase since they can't afford their monthly mortgage payments;
  • Only eight percent of Americans don't know what type of mortgage loan they have, down from 26 percent who didn't in a Bankrate poll commissioned two years ago;
  • Fixed-rate mortgages are rising in popularity with 79 percent of those polled saying they have a fixed-rate mortgage on their home;
  • Wealthier Americans most overwhelmingly favored fixed-rate mortgages with almost 90 percent of those polled who make over $75,000 saying that their home was paid for with a fixed-rate mortgage.

"It's surprising - and reassuring - to hear 90 percent of homeowners say they don't regret the purchase of their current homes," said Greg McBride, CFA, senior financial analyst for Bankrate.com. "And all the nasty headlines in the past two years have really moved the needle in terms of mortgage awareness, with a significant drop in the percentage of borrowers who don't know what type of mortgage they have."

This national random-digit-dialed phone study of 1,001 adults 18 or older was conducted for Bankrate by Princeton Survey Research Associates International. The sample was weighted by demographic factors including age, gender, race, education and census region to ensure reliable and accurate representation of adults in U.S. households. The overall margin of error for the survey is +/- 3.5 percentage points based on the total sample.

Actions to Take Before Buying a Home Today

by Fannie Mae

As the housing downturn has shown, homeownership is about more than buying a home – you have to make sure you can keep the home over the long term. If you’re thinking about buying a home, these five steps can help ensure you get the right house for you, and the affordable financing that helps make homeownership a long-term success:

Get Educated. A little mortgage know-how goes a long way toward ensuring you get an affordable mortgage

Before you hire an agent or find a lender, get educated on the loan process and key factors that make a loan affordable. You’ll want to know about loan types – fixed-rate mortgages, adjustable-rate mortgages, FHA and VA loans – and the full range of line items that contribute to the total cost of securing the loan, including discount points, appraisals, and real estate agent commissions.

If you would like more in-depth information, the Department of Housing and Urban Development (HUD) can put you in touch with the nearest housing counseling professional in your area. Visit the HUD Website for more information. You can also check with local government, neighborhood associations and neighborhood bank branch offices for information sessions on home buying as well as homebuyer- education programs.

Get Your Finances in Order. Given today’s stronger lending guidelines, it’s more important than ever to get your finances in order<

First, get a copy of your credit report, which usually includes your credit score. If your credit score is low (anything below 620), take the time to improve it. If you find errors on the report, take the time to correct them. This may put your home buying plans on hold (creditors typically look for a two-year history of consistent, on-time bill payment to establish good credit), but it could result in a better loan and more affordable rates.


Establish a Budget. Before you start searching for your home, make sure you know how much home you can afford

Lenders will evaluate all your debts and take into account your full financial situation in qualifying you for a mortgage. A key factor is how much income you bring in vs. how much you will pay out each month. Here’s a good guideline to check where you are: Your housing expense (the mortgage payments on the house you are buying) should generally not exceed 28 to 33 percent of your total monthly gross income – and all revolving debt (including car payments, credit cards payments, and your mortgage payment) should not exceed 36 to 40 percent of your total monthly gross income.

It’s always helpful to create a monthly budget, itemizing all your recurring expenses, including estimated maintenance costs, taxes, utility bills, and condo or homeowners’ association dues. Then, test your budget. If you can pay all these debts and continue to add to savings, you may be ready to buy a home. If not, you may have to revise your plans.

Start Saving. Having savings in reserve helps ensure you can afford the upfront costs of homeownership

These include:

• Down Payment – Five to twenty percent of the purchase price. (Keep in mind, a lower down payment means you’ll have to qualify for a higher loan amount and pay for mortgage insurance – adding to your monthly mortgage payment).

• Deposit – Two percent of the purchase price, typically. Sometimes called earnest money, a deposit shows the seller you’re serious about buying the home. If your offer is accepted, the deposit or earnest money will be applied towards the down payment. If your offer is rejected, the down payment will be returned to you.

• Closing Costs – Three to five percent of the purchase price, on average. These costs include all fees required to execute the sale, including attorney fees, title insurance, appraisals, and points.

Get Pre-Approved. In today’s competitive market, home buyers should get pre-approved for a mortgage before they begin their house hunt.

To be pre-approved for a loan, your lender will gather information about your job, assets, income, and debts and then determine how much financing you’re qualified to receive, backed by a pre-approval letter. When you’re ready to make an offer, this letter will tell the seller you’re a serious and qualified buyer. It will also give you an edge over competing buyers who are not pre-approved.

Keep in mind, pre-qualification doesn’t mean you have an approved loan. You’ll still need to apply for a loan if your offer is accepted.

Is There Any Need to Buy a Bigger House?

by Flynna Sarah Molina

How many are you living in your home? Do feel your place is too small for your family? Or are you complaining about the expensive monthly amortization of your large house? You feel like it is just too big for a 3-person family. Well, these are questions that you might encounter if you think of buying a larger abode. There can be several things to consider before you can finally find the answer to your problem. It is not as easy as renovating your home. If you are on the verge of looking for the right solution, then try to read the rest of this article. This will enlighten your thoughts on everything you should know about investing in a bigger house.

Usually, there very first thing you have to take into consideration is your finances. Are you ready to engage in bigger financial obligation? Can you still manage to live a comfortable life even if you will pay a higher monthly amortization? These are some of the questions that you will have to deal with before you decide. It is very important that you assess your financial capability prior to entering into another endeavor. Bear in mind that this requires a huge amount of money. You do not want to end up being a candidate of foreclosure later on.

Knowing the exact reason why you want to move into a larger abode can also help you evaluate if it is really a valid one. If you simply want to be away from your current location, then you might want to try transferring to another house that has almost of the same size and value. This can be a lot better than pursuing your plan on getting a bigger one. It can be a shallow reason try to give up something that you have already established for a long time.

If you think that your place is too small because there will be an upcoming baby, then it can be acceptable enough. Of course kids need to have spacious area so they could move and play around. You do not want to have a messy and crowded place as soon as your baby comes out. It is best to give your kids a separate room so they can have their own privacy as well as learn to be more responsible in taking care of their own area.

Alternatively, when your reason for moving to a larger house is you simply want to reward yourself and family with a better living condition, then go for it. This is perfectly fine. Just keep in mind to make the necessary preparations before you begin the process of home buying. A good start is to contact your real estate broker and inform him about your plans of moving out. Tell him how big you want for a new house and what other features you are looking for. In this way, he can have enough ideas about what to consider as your prospects.

There is nothing wrong with planning to transfer into a bigger and better abode. If you think you are stable and capable enough to do it then go ahead. The big issue here is, if you only have limited budget and you are aiming for a larger place. This will be a bad undertaking for you. The best way you can do for now is save up so you can eventually pursue your dreams in due time.

Article Source: http://EzineArticles.com/?expert=Flynna_Sarah_Molina

 

Quick Tips on How to Find a New Home

by Flynna Sarah Molina

Have you been sick and tired paying for your monthly rent and yet you still can not own the house? Do you already have plans to buy a new home? Looking for a new home can definitely be a tough thing to do. There are so many houses for sale out there but you need to find the right one for you. Usually, it is always your budget that will help you decide on which house to buy. But if money is not an issue for you, then you can freely look at all the available options for you. Keep in mind that this is still not as easy as you think. Here are some few and easy tips on how to look for the right new home.

As soon as you have decided to purchase a house, you start to look for the real estate broker. Or if you know someone already, you can ask for assistance. Contact him so you can discuss about the further details of your new home quest. If you happen to be living in a community where most of your relatives live there too, perhaps you can find somewhere within the boundary. This will maintain the closeness of your family.

Usually, when children begin to marry and move out from their house, they wanted to be near with their parents. This is because of the fact that you want somebody who you can run to immediately when problems arise. So this factor will help to narrow down your wide array of choices for houses for sale.

As it was said earlier, it will always be the price that can influence the decision of the homeowner. If you only are starting out or just have limited budget, then inform your broker about this issue. Though, he knows about it but it still pays if you are able to discuss matters like these to him. It will also aid him in screening the probable houses.

When you find the house that you have been wanting for, do not immediately give in to the deal. Conduct house inspection before entering into any agreement. You need to be aware of everything so you will not have regrets later on.

Aside from the location, price is something you also have to consider when you look for anew house. Depending on where you exactly want to stay, the property can either have a lower or higher value. Location can greatly affect the price of a particular house. Regardless of how simple a house can look like, if it is situated in a highly-developed city then expect it to be more expensive. That also goes the same with a very elegant home but is located in rural area, it can have a lower value.

Finding for a new house can really be a tough job. But if you know the key factors that affect your decision it will be a lot easier. You only have to discern what exactly you are looking for in your dream house. Once you have identified all of them, you can use them as your basis for assessing every possible property you can find. Do not forget to load yourself with enough patience when you do this process. Keep in mind that all your efforts and hard work will surely lead you to your dreams.

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Contact Information

Photo of Laurel Sweeney Real Estate
Laurel Sweeney
Berkshire Hathaway HomeServices Nutshell Realty
1209 State Route 213, PO Box 452
High Falls NY 12440
Office: 845-687-2200
Toll Free 877-468-5783
Fax: 845-687-4162

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