How Much is a Homemaker Worth?
The life of a homemaker is one that includes an endless amount of demands and to-dos. Depending on the size of the home and family, the position of homemaker can go well beyond the usual nine to five.We examined some of the tasks that a homemaker might do to find out how much his or her services would net as individual professional careers. We only took into consideration tasks which have monetary values and used the lowest value for each calculation.
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The Stress of Buying a New Home
February 13th, 2012Buying a home can be one of the more stressful experiences in life. It is often a long and sometimes intimidating process, lasting up to six months on average. The Real Estate market is huge and changes often with swings up and down. It’s easy to become overwhelmed by how much is ahead of you and how little you know about the process. But with the right attitude, it can also be an enjoyable, even exhilarating experience.
Here are some tips to make your home-buying experience positive and less stressful.
Preparing to Move
Organize
Be prepared by becoming knowledgeable. Educate yourself on each step of the process so you know what to expect. Get organized ahead of time. Keep a notebook and calendar dedicated exclusively to the home-buying process. An Excel spreadsheet is a great way to organize and compare all the information you gather, such as the homes you are interested in, potential lenders, and different mortgage rates.
Finances
Assess your financial situation before you begin looking for a home. Come up with a solid number for the maximum amount you can afford, as well as a target amount you would like to spend, ahead of time. Overestimate the closing costs (interest rates can change). This is also a good time to begin gathering the financial documents that you’ll need when applying for a loan.
Keep your finances in order until you close on your new home, which could be as long as six months away. Do whatever you can to help improve your credit score; don’t acquire new debt (no major purchases, new loans or new credit cards), reduce or eliminate any current debt, and pay your bills on time. It is never too early to begin improving your credit and is best started as early as two years prior to purchasing a home.
Find an Agent
Find a real estate agent who you trust and connect with on a personal level. Communication in this relationship is fundamental. Some questions to ask yourself: Are they good at translating industry jargon into terms you can easily understand? Do they communicate well using media that works for you, such as email, cell phone, or video conferencing? Credentials are a big factor too. Choose an agent with proven expertise in both the type of property and property location that interests you.
Finding a Home
“Think from the end,” is a common phrase heard in human potential circles. See yourself in your new home. How does it make you feel? What does it look like? Keep a journal to record these thoughts. Be as descriptive as possible. This can help to not only narrow down precisely what you are looking for in a home, but it can also help anchor you emotionally during a potentially unstable time by keeping the big picture in mind.
While dreaming of your new home is an important first step, keeping your expectations in check is equally important. Keep in mind that the criteria of what you are looking for in a home will change along the way. No house is perfect. Be willing to compromise on some of your requirements. Make a list of your top priorities (must-have’s) and lower priorities (nice-to-have’s). This will help identify areas where you can be more flexible.
Once you’ve found a home you like and know what you can work with financially, don’t let the latest market news influence your decision to move forward. If you start second-guessing the housing market or interest rates, you risk losing the home to another buyer. Choose a home because you love it. Listen to your heart.
Waiting for Acceptance
Once you’ve made an offer on a new home, try to relax and engage in your routine activities while you wait to hear whether the seller accepts your offer. During this waiting period, there are many potential stressors that could send your mind reeling. What if the seller rejects your offer, or comes back with an unreasonable counter-offer? Was your offer too little, or too much? Be prepared to make many offers before one is accepted. Keep in mind, even if your offer is accepted, there’s no guarantee it will close. Try to remain detached from the outcome until after the property has been inspected and you’ve been approved for a mortgage.
Inspection Period
Hire experienced and certified inspectors to conduct a thorough inspection of the property including possible insect damage. Be present during inspection, so you can ask questions regarding the home and become knowledgeable about any issues that are discovered.
Getting approved for a Loan
Taking out a loan can be the most stressful part of the home-buying process. Transactions typically take at least a month to complete. Having your financial situation scrutinized can be an uncomfortable process. Worrying about whether you will be approved is an added stressor. It helps to gather your financial records (credit card balances/statements, bank statements, investment statements) prior to meeting with a loan officer. Obtain a copy of your credit report; you’re entitled by law to one free credit report per year. A copy of your 4506 T form (IRS Tax Return Transcript), which includes a summary of your tax information, is also available online for download.
Don’t lose sight of the fact that you have options when choosing a lender and a mortgage. This can help restore a sense of control when so much of the home-buying process is out of your hands. Talk to several lenders; don’t just go for the first lender you talk to. Consult with your Real Estate agent to help you through the process of securing a mortgage. Don’t hesitate to ask questions until you understand the answer.
After Close, Moving In
Congratulations! You’ve successfully negotiated yourself through the complex maze that is home-buying and now find yourself at last kicking back on your couch with your favorite drink in the home of your dreams.
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6 Tax Breaks Every Homeowner Should Know
Regardless of the current state of our economy and the housing market, buying a home is still a great investment. However, the resulting taxes that accompany owning a home can lead to confusion and uncertainty. In most cases, you need to itemize your taxes in order to take advantage of all the tax breaks that accompany home ownership. This might seem overwhelming, but the benefits of completing this process make up for the inconvenience.
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The Rise of the Homeowner Association
Homeowners associations first emerged in the United States in the mid-19th century. Their growth was limited, however, until the 1960s, when several factors led to a period of rapid national growth, including, a push towards large scale residential development by the Federal Housing Authority and the Urban Land Institute; an increasing cultural preference for architectural uniformity; a decline of readily available land; rising construction costs; and a modification of federal mortgage insurance rules to include cooperatives and condominiums.
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Why to Buy Instead of Rent
November 7th, 2011When you’re thinking about buying a home, it’s essential for you to be confident in your decision to buy instead of rent. However, you may not know about the many great reasons to buy a home.
Here are just a few of them:
Smart Investment
When you invest in a home, it offers the possibility for appreciation in value. The equity becomes yours when you’re still paying off your mortgage. You even get to live in it while your investment matures.
Tax Advantages
Since both mortgage interest and property taxes are tax deductible, home ownership can save you significant amounts of money every year.
Planned Housing Cost
You decide how much you spend on your home, including repairs and improvements. Unlike renters, homeowners with a fixed-rate loan can lock in their monthly housing costs.
Improvements to Your Taste
You can choose which improvements to make to your own property, such as a deck, kitchen remodel, or new paint, instead of needing permission from your landlord.
If you have more questions about making a decision to buy a home, please get in touch.
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What Mortgage is Best for You?
There are certainly plenty of options to choose from and your risk appetite, coupled with your unique financial/life position, should determine which is best. But don’t rush your decision. Crunch the numbers using a mortgage calculator, make a long-term plan, and comparison shop before making your choice!
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The Importance of Pre-Approval
October 5th, 2011Pre-approval can be a very valuable step towards purchasing a home. Many home buyers get pre-qualified for a home loan early on, and then become pre-approved before beginning a serious home search. By completing your mortgage application prior to choosing a home, you can get a pre-approval letter stating how much home you can afford.
Your pre-approval letter lets you know exactly how much you can spend, and it shows home sellers and listing agents that you’re serious about buying a home. This may give you leverage in the negotiation process as many sellers prefer to work with pre-approved buyers.
To find a mortgage professional and get started with your pre-approval for a loan, please get in touch.
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DFW Home Sales for Second Quarter 2011
In summary, a good time for buyers.
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10 Handy iPhone Apps for Home Improvement
“The following 10 mobile apps won’t select your ideal paint color or tell you where to put the chaise lounge, but they can help you plan your home improvement projects more efficiently.”
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Tips for First Time Buyers
September 22nd, 2011When the time comes, and you are in the market for your first home, you will probably have lots of questions. You will be on your way to making an important decision for your future and a great investment. I want to help you make sound, informed decisions. Here are some tips that can help make your home buying process successful:
Tip #1: Do Your Homework
The perfect home won’t find you by itself. The key step in buying a home is doing the proper research. Educate yourself on local schools, neighborhoods, and the kinds of homes available. By reading available materials and talking with experts, you can start to put together your idea of the perfect home.
Tip #2: Start Planning
Most decisions benefit greatly from proper planning, and home buying is certainly no exception. Start a filing system with sections such as home buying, home financing, and service providers. By forming a home buying plan you can more easily focus on the most important factors and help give structure to the entire process.
Tip #3: Get Pre-Qualified
Getting pre-qualified1 for a loan normally only requires a short phone conversation with a lender, and can greatly help your home search. Pre-qualification does not guarantee you a loan, but it does provide you with an estimated monthly payment and a price range to use as a guide when shopping for homes. Being pre-qualified can also often indicate to sellers that you are a serious, prepared buyer.
Tip #4: Look for Value
When shopping for homes, it’s important to consider potential value. Even if you’re not planning to sell the home some time down the line, it’s a good idea to consider the future value of the home. Protect yourself against things like falling prices and gradual shifts in the nature of the neighborhood. You may not think of a new home as a means to make money, but it’s an important investment that requires caution.
Tip #5: Decide What You’re Looking For
Settle on the home features that are important to you (covered parking, hardwood floors, architectural style, etc.) and make an ordered list. Having well established guidelines will help narrow down your search and will prevent you from being shown properties that lack your key amenities. It can help you make the decision not to buy an attractive property that doesn’t really fit your needs.
Tip #6: Relax
You don’t have to make an offer on the first home you see. Make sure to look at other listings in the area to get a feel for the marketplace.
Tip #7: Shop Around for Your Mortgage
Deciding on the financing for your home can be as important as choosing a home itself. The first step is deciding what kind of loan best fits you: a fixed-rate mortgage2, or an Adjustable-Rate Mortgage (ARM)3. There are benefits to each form of loan, and I can provide you with more information. Next you’ll want to begin to shop around for different lenders.
Tip #8: Protect Yourself
Be careful when signing a contract on a home that allows you to find financing, have the home inspected, and work through any problem areas that may arise. Paying for a quality home inspection is absolutely crucial. You can save yourself thousands in repair costs by being sure of what you’re getting into.
If you would like more information for first time home buyer, please get in touch.
- The process of getting pre-approved is actually quite simple. All you have to do is provide your lender the documentation that they require. Be prepared to supply your loan representative with pay stubs, bank account statements, tax returns and W-2 forms from the previous 2 years, and documents to show other sources of income (which could include a second job, overtime, commissions and bonuses, interest and dividend income, Social Security payments, VA and retirement benefits, alimony, and child support). – Get Pre-approved [↩]
- In a fixed-rate mortgage, the interest rate on the note remains the same through the term of the loan, as opposed to loans where the interest rate may adjust or “float.” – Fixed Rate Mortgage [↩]
- In an ARM, the interest rate on the note periodically adjusted based on an index which reflects the cost to the lender of borrowing on the credit markets. – Adjustable Rate Mortgage (ARM) [↩]