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.

Before Buying A House, FIND, What You Want, And Need!

Since, for most people, the value of their house, represents their single – biggest, financial asset, wouldn’t it make sense, for potential buyers, to take the time, and make a concerted effort, to fully consider, what they need, and want, including their finances, etc? Before you should, buy a home, fully consider, and FIND, what you want and need, and, whether, you are making the wisest move, for you! With that in mind, this article will attempt to, briefly, consider, examine, review, and discuss, using the mnemonic approach, why this is the smartest, sanest, and most necessary, approach, to proceeding, in your own, best interests.

1. Future; funds; features: It’s your future, so doesn’t it make sense, to proceed, in a wise way, which balances, both, the finest aspects of your logical, and emotional components? Many become emotionally committed to their perceptions of home ownership, and what, they perceive, it means and represents, but, do not pay, enough attention, to the funds, needed, both, initially, as a down – payment, as well as on a regular, monthly basis! In addition, they fail to consider, whether the features of a particular house, are the ones, they need, and can afford!

2. Imagination: The reason, so many houses, which are listed, on the real estate market, are staged, is to create an attractive, inspiring image, to potential buyers. Rather, one must proceed, with the imagination, to look beyond the obvious, and consider, whether, it makes sense for them, and, if they are getting, the most, bang – for – the – buck!

3. Neighborhood; needs; nuances: Ignore what others want, and focus on your personal needs, both, at present, and into the future! Consider, why you are opting, for this particular neighborhood, and if it serves your priorities, etc! How convenient is it, to, things, such as shopping, entertainment, transportation/ commuting, Houses of Worship, etc? Are the specific nuances, of your selection, those, which might, suit your best interests?

4. Deliver; discover; desire: Will the house, you choose, deliver, what you seek, desire, and prioritize? How much time, and effort, might you, expend, so you fully discover, the best personal course of action, both, in the nearer – term, and in the longer – run? Why do you desire, home ownership, at this time, and are you ready, for the responsibilities, etc?

Before you begin your quest, for a home, of your own, take the time, and make the effort, to FIND, what best meets your personal needs, and priorities, etc! Will you be a smart home buyer?

Interest Rates And Buying/Selling A House: 4 Issues

After the past several years, of record low, interest rates, and therefore, historically low, mortgage rates, many individuals, have begun to believe, that is the norm, when it has been anything, but! For many years, mortgage rates were approximately 8.5%, but, of course, we also, witnessed extended periods, where banks, also, paid between 4% and 5%, on deposits. In the past few years, we experienced, both, an extremely low rate, in both areas! In the past few months, the Federal Reserve has begun, raising these numbers, and guidelines. and, the numbers, for these, has begun, creeping, up! With that in mind, this article will attempt to identify, consider, discuss, and briefly review, 4 issues, to consider, in terms of how this, might affect, buying and selling a home.

1. Relationship between rising interest rates, and mortgage rates: The higher the interest rates, the more, people pay, for their mortgages. How might this affect the housing market, when it becomes more expensive to pay, the monthly costs, associated with owning a home? Depending on how much it rises, and how quickly, we will have to watch, observe, and hope, it does not, unsettle, the market!

2. Higher mortgage rate = higher payments: Since the vast majority of home buyers, depend upon a mortgage, to afford to purchase their home, when these, increase, fewer people might qualify, for loans, and those, who do, might only be able to afford lower – priced ones, and/ or the selling prices of houses, might decrease, over time!

3. Higher payments = Less home, for the buck: When rates rise, the monthly payments increase! The net effect of this, may be, buying, far less home, for – the – buck! Americans must pay keen attention, to what’s going on, so they might be beware, and prepare, accordingly!

4. Qualifying: The formula used by lending institutions, includes many variables, including income, overall debt, housing debts, and a ratio, between, debts and the monthly amount of one’s mortgage, including principal, interest, escrow, and real estate taxes, versus one’s income. When rates rise, it makes these monthly costs increase, and thus, many will end up, qualifying, for far less, than before. In addition, if one owned an adjustable loan, they will witness significant increases, in their monthly expenses.

Wise consumers realize how important it is, to pay, keen attention, to what occurs, at the Federal Reserve, and the changes in interest rates. Will you be an educated, informed, consumer/ homeowner?

5 Tips for Buying a House

Buying a home can be nerve wrecking and thrilling at the same time. This is especially for a first time home buyer. It is also difficult to know what exactly one should expect. The learning curve is obviously steep but the issues can be resolved by simply doing some homework on it. Some important tips have been explained as below.

1. Evaluate your credit

Your credit score is extremely important because it can be helpful for you to qualify for the loan. The standards are also higher in terms of what score you actually require and how exactly the cost of the loan is going to affect you.

2. Evaluate your liabilities and assets

This should be done so that you don’t owe a lot of money and all your payments are processed up to date. However the exact manner in which you spend your money must be taken into consideration. Any first time homebuyer should have a very good idea of what is owed and what is exactly coming in. Understanding a little bit about the monthly cash flows can also help you.

3. Organize all your documents

While you are applying for a mortgage, you must document all your taxes and incomes. Buying a home can take a long period of time but exactly knowing what you require and where you have to find it can help you to save time whenever you are ready.

4. Qualify yourself

As any first time homebuyer, you should know how much you can exactly afford to spend before any mortgage lender tells you how much you can qualify for. There is however no ratio of fixed debt to income that the lenders might require, but the old standard can dictate that not more than 28 per cent of the gross income will be devoted to housing costs.

5. Your down payment must be figured out

It takes a lot of effort to scrape together your down payment. There are also a variety of programs that can assist the buyers with qualifying situations and incomes. You can also speak with all the mortgage lenders when you are beginning the process. Check with all co-workers, friends and neighbors to find out the lenders they have enjoy being associated with. Take their advice to how to go about with it as it can help you to simplify the process. It is one of the important things to remember.

Financial Planning, For Buying A House

We, so often, become, so emotionally involved, with the concept of home ownership, that, we overlook, and forget about, the necessary details, involved, in properly planning, for, buying a house. When one seeks a house, based on, meeting many needs, goals, and priorities, and considering, present realities, and foreseeable contingencies, he, generally, remains happy, with his decision. Since, for most of us, our house represents our single – biggest, financial asset, doesn’t it make sense, to be well – prepared, and fully plan, for the process? With that in mind, while accepting there are many emotional considerations involved (Why would someone want to live somewhere, which doesn’t make him satisfied or happy?), this article will attempt to consider, examine, review, and discuss, some basic essentials of financial planning, for owning a house, of one’s own.

1. Before you begin your search: The better you plan, the easier this process becomes! At least six months, before, you begin your search, either, personally, review your Credit Report, for accuracy, etc, or, consult a recommended, mortgage professional, and ensure, you optimize your credit – worthiness. The better, your credit, the easier the process, of getting the needed loan, as well as, qualifying, for the lowest possible, available rate. Remember, the lower the rate, you pay, the more house – for – your – dollars!

2. Down – payment, and closing expenses/ costs: Since most people, depend on financing (generally via a mortgage loan), you will need, to save, for the down – payment. Most conventional loans ask for 20% down (although some require less), and you must have these funds, liquid, and available. In addition, you will have to pay, a significant amount in closing costs, including, pre – paid real estate taxes and utilities, filing fees, title (title and title insurance), legal costs, etc.

3. Reserves: Will owning a home, of your own, be your American dream, or some sort of nightmare? When prospective homeowners, realize, and commit to the need, to maintain reserves, especially for: a) Unanticipated needs for monthly payments (6 – 9 months reserve is recommended); b) repairs (regular); c) major repairs/ unanticipated; d) maintenance; and, e) renovations, they experience a far lower degree of stress, and tension, during the home ownership experience.

A smart, well – prepared, homeowner, is far more ready, and able, to enjoy, the positives of owning, a home, of one’s own! Will you be a prepared owner, or, cause yourself, lots of extra, unnecessary stress and tension?