A 5 – Step Plan To Prepare To Buy A House

Although, owning a home of one’s own, is often considered, a major component of the so – called, American Dream, wouldn’t it make sense, to effectively, plan, to ensure this doesn’t become a nightmare, instead? After, over fifteen years, as a Real Estate Licensed Salesperson, in the State of New York, I have created, what I, often, refer to, as the RICH IDEAS, for proceeding, wisely, in terms of buying a house. With that in mind, this article will attempt to, briefly, consider, examine, review, and discuss, a 5 – step plan, for properly, effectively, wisely, being prepared for this process, and proceeding accordingly.

1. Put together/ accumulate sufficient funds, for a variety of requirements and necessities: It’s smart to proceed, as well – prepared, as possible, from the beginning. Well – before, you start searching for a house, begin saving money, in a systematic way. Remember, you will not only need funds, for the down – payment (often, but not always, 20%), but, also, funds for other Closing Costs, including, but not limited to, pre – paid real estate taxes, utilities, and other, so – called, escrow items. In addition, most lending institutions require a demonstration, and proof of funds, equal to several months, of mortgage payments.

2. Obtain a copy of your Credit Report (if husband and wife, get both): You are entitled, once per year, to request a free copy of your Credit Report, from one of the major credit organizations/ companies. Review this document carefully, and correct any errors. If your rating is not, as high, as a lending institution may seek, begin to take steps, to enhance and improve it, sooner, rather than later!

3. Pay – down other debt: Lending institutions use formulas, to determine one’s qualification, to receive funds. These are generally, focused on, one’s percentage of debt to income. Therefore, pay – down your other debt, prior to beginning the process!

4. Don’t add any other debt: Avoid acquiring any more debt, regardless of how convenient, and/ or, appealing, it may seem, at the moment. Don’t fall into the trap, of, accepting new store charge accounts, because doing so, may compromise your credit worthiness, when you seek a mortgage!

5. Shop for homes, within your means: Avoid the trap, of becoming, house – rich, and seeking to purchase a home, beyond your comfortable means! Know, how much, you can afford, comfortably, and securely, so you choose, wisely, and remain, comforted!

Since, for most of us, the value of our house, is our single – biggest, asset, doesn’t it make sense, to proceed, carefully, and wisely? Will you be up to this task?

Micro Joint Ventures – The Best Way To Buy A Brand New Home

Micro Joint Ventures (or “Micro JVs”) are when a small group of like-minded buyers pool their resources to benefit from the “grouped” buying power. In the context of buying a brand new property, the group would partake in a small property development project. The aim would be for each micro joint venture partner to come out ahead. The project feasibility can be calculated from the start even before agreeing to proceed with the deal, and under the guidance of a property buyers advocate, the group’s risk could be reduced significantly.

Ideally, if you have family or friends willing to form a micro joint venture with you, then you could venture down this path of buying property wholesale with them. However, if you don’t have family or friends in a position to join you in this journey, there are now buyer-matching resources that could match you with other qualified buyers who are looking for something similar to what you want.

The key with micro joint ventures is that each member of the group needs to bring an equal amount of resources to the table and can complete the deal. That’s why before micro joint ventures start their property search, they should get finance qualified by a mortgage broker as a micro joint venture group to buy the land, and as individuals to construct after subdividing.

Being part of Micro Joint Ventures is similar to buying any other new property, except:

  • you get to be in an “infill” location that’s closer to amenities that you love without settling for an apartment
  • you get to customize your building design to suit your needs
  • you’d have access to potentially lucrative profits from property development by building from the ground up.

You’ll still have to qualify for finance as if you’re buying a new home. So, you will need a deposit and earn an income (or you could pay with cash). A mortgage broker needs to assess your situation and highlight your options before you can join any micro joint ventures.

  • There may be some excellent home loan rates if you can come up with 20% deposit (plus purchase costs).
  • However, there are also options needing only 10% deposit (plus purchase costs).
  • Furthermore, if you’re buying your own home, there may be specialist lenders such as “Keystart” in Australia, who offer deposit requirements of as low as 2%!

Speaking to an expert and accredited finance and mortgage broker will quickly reveal all your lending options very quickly.

Financial benefits of buying brand new:

  • First home buyers would still qualify for any government grants and/or duties concession for buying new;
  • Duties are only payable on the land, not on the building. This works out much less than duties on an established house;
  • Rents for brand new dwellings are generally higher than older houses;
  • Full depreciation benefits are available for investors, compared to reduced/removed benefits with established investment properties.

Coupling these financial benefits of buying a brand new home with the additional equity that’s manufactured from developing the right property – you’ll find yourself ahead of the pack by getting involved in a properly qualified, and well-orchestrated micro joint venture.

How to Buy a House With Cash

Owning a home is something almost everybody wants do at some point in their life. Nothing can compare to knowing that the home you live in is yours, and you can do what you want with it. No paying rent, no answering to a landlord, none of that…

While it is pretty great to own a home, many people take a hasty decision by taking out a massive mortgage on their home rather than pay for it up front. This is understandable because not many of us have $100,000 laying around that we can buy a house with.

But, for those who choose to save up the money and buy their home with cash, the rewards are plentiful. Not only is it cheaper, but it will save you from being chained to the bank on a lengthy mortgage plan that you might end up wanting to opt out of before its even paid off.

Let’s take a look at how you can avoid a mortgage and buy your next home upfront, with cold hard cash.

Frugality is the Name of the Game

While it’s very likely that everybody would buy their home with cash if they could, hardly anybody does. This is because most people just lack the discipline to save up.

Now, if you make 20-30 thousand dollars a year, you’re going to be waiting a long time to buy your own house, even living on the bare minimum.

But, if you are someone who makes 50 thousand or more per year, or you also have a spouse who makes just as much as you, it is very possible for you to buy your own home with cash, in a couple years.

If you can manage to save just a couple thousand a month for a period of 5 or more years, you’ll be right in range to buy a nice house all by yourself.

Benefits to Buying With Cash

The benefits to buying your home with cash are usually not afforded to those with a hefty mortgage to worry about. For instance, without a mortgage payment, you can plug more money into your retirement plan, thus bringing about your retirement earlier, or having more money to blow when it is time to call it quits.

You can also invest your extra cash into some kind of money making scheme, like the stock market, startup companies, or bonds. As long as you know what you’re doing, this can turn out to be a very useful stockpile of money should you need to pay for an emergency, send your kids to college, or provide for your family in case something happens to you.

Wrapping Up

Buying a house with cash is undoubtedly the smartest way to buy a home, it just takes a certain amount of discipline when it comes to saving the money.

Don’t waste your time and resources doing it alone or working with an amateur agent, contact a reliable real estate agent today and put yourself in good hands.

Why Will You BUY A Home?

Although, we consider, owning a home, of one’s own, to be a major component of the so – called, American Dream, few consider, why it is, and whether, it is relevant, to their personal dreams, needs, and best – interests! Before anyone should begin the process, the first thing, to do, should be, to realistically, consider, their personal reasons, and why, they want to BUY a house. This should be a realistic, thorough, process, which includes, many relevant factors, including, but not limited to, their personal needs, goals, priorities, and perceptions, financial capabilities, family issues, employment factors, transportation considerations, safety, schools, and how, one house, might benefit them, to a greater degree than others. With that in mind, this article will attempt to briefly, consider, review, and discuss, using the mnemonic approach, what this means and represents, and why it matters.

1. Best; better; benefits; beliefs; bringing: Where we live, often, depends, on what, it seems to be, bringing, to us! Our personal beliefs, are a significant factor, and, thus, we must consider, if living somewhere, might make our existence, better, and happier/ more satisfying! Isn’t the goal, of most of us, to do, whatever, we can, to become, the best, we can possibly become? The essential combination of thoroughly considering our true needs, and the best way, to address them, must be one of the keys, to whether, we should buy, a home, of our own! Never forget to realistically, consider, factors, such as affordability, self – image, schools. safety, and whatever, your personal priorities and perceptions, might be!

2. Useful; unique; uses; urge; usual/ unusual: Buying a home, must serve, both, your usual, as well as unusual, needs, goals, and priorities! What urges, might, doing so, address, and meet? When considering, one potential house, versus another, what unique characteristics, and/ or attributes, are most important to you, and why? How will you use/ utilize your home, and why will doing so, be helpful, meaningful, and useful?

3. You; your: How will a home, of your dreams, meet, and/ or, exceed, your personal needs, and expectations? How will you make, your residence, your own? Why will doing so, benefit you, in a realistic, viable, relevant manner? Before making any decision, it’s important to seriously consider, how. your dream house, might make your life, more self – satisfying, and happier?

Before making the decision, and commitment, to BUY, a home, of your own, will you consider, your personal reasons, and why, you believe, it’s a good decision, for you! Are you up to the task, of doing so?

Should I Buy a Home In 2008?

Dreadful information about the slumping American housing market is all over TV news and in almost every paper. During this housing slump many potential first time home buyers often wonder, should i buy a house in 2008? While every persons situation is different the next few paragraphs will hopefully help you decide whether or not to buy a house in 2008

It is a fact that property values across north America have dropped, in some areas they have dropped drastically and others its just a slight dip. Buying a home when prices are at the lowest is the best way for buyers to get the most for their money, and many people are now taking advantage of the lower home prices.

The major factor for most people when buying a home is securing a affordable mortgage to purchase the home with. In today’s current market mortgage rates have also fallen to very low levels making financing a new home more affordable then one year ago. When low mortgage rates are combined with reduced asking prices your money suddenly is able to buy you much more home then you previously thought possible!

The only real roadblock to buying a home in 2008 is going to be actually qualifying for a mortgage. Even though mortgage rates are low the lenders have tightened up their lending guidelines since the housing slump began. Since many borrowers need 100% financing it makes things that much more difficult. To deal with stricter lending guidelines borrowers are going to need excellent credit or have down payments in the range of five to twenty percent to secure home financing.

With property values falling and mortgage rates at very low levels 2008 is a great time to buy a new home. Not only is there more selection on the market but you will also be buying when prices are low so when the next real estate boom starts you will make substantial money on your investment.