If you're in the market for a new home, it's easy to only focus on two figures: 1) the asking price and 2) the down payment. But there's another number you should factor into your home buying budget – mortgage closing costs.
Category: Experienced Homebuyer
Searching for the perfect home can be exhausting, especially when none of the online virtual tours come close to your design preferences or budgetary needs. Many home shoppers realize that getting their dream home might mean building their dream home.
To say the current real estate market is a seller’s market, is an understatement. We can’t remember a time in recent history, when would-be homebuyers were rushing to make offers on newly listed homes, like they are today.
Selling your home for top dollar makes financial sense. You could use the funds to move into your next home, deposit the proceeds into your retirement savings account, or fulfill another financial goal. But determining what makes buyers go to battle over homes in today's market isn't always as simple as an internet search. Your local real estate market may be enough to start a bidding war, but your neighborhood and property type could also influence how far above your asking price buyers will pay.
Among the many new terms you'll learn when buying your first home, "escrow" is apt to be one of the most challenging to understand. This is often due to the fact that escrow functions differently depending on where you are in the home buying process. Here are three things you need to know about escrow accounts as you prepare for homeownership.
More than half of Americans (56%) plan to move in 2021. That's up 21% from last year. The spike might be due to the pandemic's influence on the surge in remote work and the desire for a lower cost of living. Many people now work from home, and using the kitchen table or a small closet as an office isn't preferred as a long-term solution. A new home with office space and more square footage solves the problem, while also giving family members more space to enjoy their favorite leisure activities.
When you need the equity in your existing home to buy a new one, selling your home ASAP is top priority. But, when the offers aren't coming as quickly as you like or for the exact amount you need, you might wonder if you can afford to make a move. A swing/bridge loan might be the solution. These loans offer a way for you to access your current home’s equity so you can close on your dream home before it's sold to someone else.
When funds are sparse, but creativity is abundant, tackling budget-friendly remodeling projects might be the answer. Simple, low-cost makeovers can add value to your home while showcasing your unique personality. There's no need to hire a team of experts. Focusing on small changes can keep costs down and result in the updated look you desire - no contractors, architects, or designers required.
Existing home inventory is low. This is excellent news for sellers. National Association of Realtor data found existing single-family home prices increased by 4.3% during the second quarter of 2019. In this environment, listing homes at the higher end of the market is unlikely to deter eager buyers. Increased housing demand and low inventory can lead to homes selling quickly, at or above the asking price.
Some people look forward to tax season as much as a visit to the dentist’s office. Others are excited about the possibility of a sizeable tax refund and view April 15 with great anticipation. In either case, this year’s tax filing won’t be a simple repeat of last year.