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Whether you’re trying to buy or sell the house there are a lot of things you should be aware of. Most people are not even familiar with the whole process of buying or selling and even more of them probably don’t know how to deal with everything. In order to get...Read More
Buying a home is very exciting. The question frequently asked is whether or not young professionals should buy homes. This is a tough question, because it is true that younger people don’t necessarily know where they’ll be in a few years. But then again, even someone in their 50’s might need to sell their house unexpectedly. So it really is a coin-toss. However, here are some reasons you can read more about that there is a debate about whether or not millennials should be purchasing homes.
Family. Most young newlyweds these days want to buy a house; after all, its the next milestone after marriage. The problem is that the next milestone after buying a house is having children. While they may not plan to any time soon, things come up. And then another thing comes up. Before you know it, you have two children and only one nursery. It’s not just about the space, though. Yes, you can afford to pay the mortgage, but you may not have expected the costs of two new toddlers.
The general rule, is that if you don’t plan to stay in a new home for at least 5 years, you shouldn’t purchase it. The reasoning behind this is that it is cheaper to lease a place rather than purchase if you won’t be in a house for very long. The reasoning behind this is that it will take you at least that long to return the money that you poured into the home.
You’ve also got to continue working to pay off your auto and student loans as well as any other debt. Banks will be less likely to approve you for another home, when you still have one, as well as other outstanding debt, plus you’re in your 20’s. It doesn’t look too appealing to a bank lender.
Another debatable point is career which you can learn more about from this blog.. When a homeowner is just starting out, they aren’t that stable in their job yet. They may not have enough of a stable job history for a bank to justify a loan. Anybody’s job situation can change overnight due to more reasons than are able to count. Should you have to take a job that has a lower salary, you might not be able to meet your mortgage payments and live comfortably.
Just because you can afford the mortgage, does not mean you can afford the house. Owning a house requires a stable income, money to maintain the home, taxes, utilities, and so on. You do not want to end up in a large, fancy house with no way to furnish it or pay the light bill.Read More
These homes offer a way for people who can’t qualify for a mortgage (for whatever reason) still be able to purchase a home. There are many reasons a person can’t get approved for a mortgage that go beyond a credit score. A person can have excellent history, but no previous debts showing that they can make payments, or a short credit history in general which makes bank lenders apprehensive to approve a loan. Rent-to-Own homes allow these people to rent a home, in which the money goes toward purchasing it. This method of purchasing homes has been around for a while, and isn’t going anywhere. Find out more here However, this method usually works better in the sellers favor than the renter. However, it can be a great idea; here’s why.
Sometimes, you are very close to being able to get a mortgage. Perhaps you had a short credit history, and now its grown. Perhaps you did get that auto loan, and have a long history of on-time payments to show. If this sounds like you, renting-to-own may be a good idea, as this describes the ideal rent-to-own candidate. This will give you time to continue improving your credit report, and by that time, you’ll be in a position to afford a mortgage for the rest of the home.
When you decide to take on this endeavor, you will be paying a fee to the landlord to show that you a re going to purchase the house at some point; don’t expect to get this fee back. The reason a deposit is given is that in many of these cases, the tenant/to-be-owner, moves out before they purchase it.
This is unfortunate, because all of the payments you’ve made literally went toward nothing, and your deposit is forfeited. You’ll have lost even more money than if you had rented, because with rent-to-own, the rent is higher than it is with a standard leasing situation.
Rent-to-own is not yet as strictly regulated as the regular buying industry. It does benefit the seller and buyer, as they are each able to designate their own terms and come to their own agreements. However, it makes it easier for owners to take advantage of the buyers who don’t really know what they’re doing. You should always advise a real estate attorney if you are considering this method of purchasing a home. There also is not a lot of information online or in books that describes in detail the rent-to-own process as there is with traditional home buying.
The Bottom Line
This method of buying a home is not everyone’s favorite, which is why most people like to wait until they are able to have a bank approve them for a mortgage, and buy a home the traditional way. There are some great benefits, but there are some terrible pitfalls. However, there are many things to weigh. Only you can decide, but do spend time researching whats out there, and thinking seriously about it.
One of the most important questions that a buyer is going to use to their advantage, is how long your home has been on the market; this is their first key into knowing if, and how much they can negotiate with you. They are trying to figure out how desperate you are to sell the house, and how far they’ll be able to get you to lower the price. If the home has been on the market for only a short time, they’ll know to not mess with you, until the price drops. However, by then, they may have found something else which is why it is important not to overprice your home.
Related article: Buy My House Tips
The ‘days on market’ is a real estate term that refers to, obviously, how long a home has been on the market. The reason that you want to keep your home listed for as short amount of time as possible is that the longer it stays, the more lowball offers you can expect to pour in, and the solid, reasonable offers to fade. Not only that, but depending on how long your home has been on the market, buyers may not want to even look t it. There’s no way around it. This works to the buyers advantage, as there is no ‘estimate’ for how long its been listed, only facts.
Too many sellers try to use their home as a ‘test’ to see how much they can get for it, so they list it at the highest price they can. This is a really bad idea. The data on this is not positive; homes that sit longer, and grow ‘stale,’ have a lower chance of selling, and more often than not, they sell at a lower price. You need an honest real estate agent who will tell you the truth about how much your home is worth, but more importantly, you’ve got to listen to them.
Additional reading: We Buy HousesRead More
Can I Trust My Potential Realtor?
Realtors have had a bad rap for a long time. Every profession has dishonest people. The problem with trying to find an honest person, is that they usually don’t reveal their true colors until later. However, there are some signs that may give an indication that you should go with a different realtor. People still use agents today because they trust them, and trust that they know more than they do, but most importantly, because they want the best for them. Unfortunately, realtors don’t necessarily want the best for you. It’s not personal. Everyone in life tends to look out for themselves. However, if you are to sell your home, it is essential that you have a relationship based on trust with your realtor. We Buy Houses has more education on trusting your realtor.
Real estate agents frequently exaggerate their experience on their websites, and sometimes, to clients. You should spend a fair amount of time reading their reviews online and asking around, to get an idea of what they are like.
Whether you’re trying to buy or sell the house there are a lot of things you should be aware of. Most people are not even familiar with the whole process of buying or selling and even more of them probably don’t know how to deal with everything. In order to get everything done properly and without anyone trying to scam you, it’s best to hire an attorney who has done something like this many times before.
So how do you choose the right attorney?
First of all, it would be best if you already had a connection with an attorney who you worked with before and you’re familiar with his efficiency. Besides the familiarity, the lawyer might be interesting in cutting down the fee since you’ve already worked together.
If not, a smart thing to do is consulting with friends and family. Maybe someone in your surroundings had dealings with a good real estate closing attorney, which they will gladly recommend, if this too is not the case then you should do the following.
Call the bar association for your state. If you’re not certain who to hire, they will give you the list of names of people who are residing near you and are properly licensed to practice law. If you’re not willing to call them personally, you can always visit their website.
Once you’ve got the names you should probably go on the internet and check them out. In most cases there are feedbacks from customers who will leave either positive or negative comment towards their experience with this specific attorney.
According to these reviews you can decided whether the lawyer is right for you or not, but have in mind that some people will take out their rage over losing a case against their lawyers so these reviews might not be entirely reliable.
Once you’ve found a few individuals set a meeting and judge them for yourself. Make sure to ask the right questions while you’re interacting with them, such as how much will you have to pay the fee and whether or not the lawyer you’re consulting is actually be your lawyer or somebody else from the firm. Another thing you will want to do is making sure that the lawyer you’re hiring is in fact able to practice law in your state and what kind of reputation he or she has. It’s very important to make it clear in the beginning exactly how much you will have to pay for the attorney’s services whether it be the flat fee or the charging by the hour.
There may be a lot of complications and unexpected costs but an experienced lawyer should be able to tell you with high accuracy how much it will all cost.
An important thing to know is that in some states your attorney can do everything for you, from setting a deal and negotiating to closing it. and it’s your first time, it’s maybe best to let others do it for you as you want it and watch and learn so you can maybe do it for yourself next time.Read More