Making the Homebuying Process as Smooth as Possible
Buying a home is one of the biggest expenses of our lives, up there with a car, a college slush fund, and your retirement portfolio. Becoming a homeowner has also traditionally been thought of as a threshold into adulthood. Granted, starter homes are getting more costly, and plenty of hardworking people are simply priced out of affording a house. But for many, signing a mortgage represents putting down roots and joining a community. Presented by The Dwight Price Group, here are tips and resources on the home-buying and moving process to make it go as smoothly as possible.
Owning a home has long been considered a part of the American Dream. If you are in a position to make a down payment, take the steps to set your finances in order, including boosting your credit score, determining what you can afford, and saving for the closing costs. Then, work with a mortgage lender to get pre-approved for a loan. However, there are some loans that don’t require a down payment; for example, a VA 30-year fixed mortgage requires no down payment, but it does have some requirements that you’ll need to meet in order to be approved.
Another calculation to factor in is that you’ll likely be spending 1 percent of your house’s value each year on its upkeep. (So, if you have a home worth $300,000, your bill for its annual repairs could be $3,000.) This means that if you’re living paycheck to paycheck, opting to rent for a while longer may be a wise choice for the time being.
Market indicators point to a middle class struggling to make a foothold in a housing market with prices that have far outpaced stagnating incomes. But the realm of luxury homes plays by different rules. Home sales sagged in 2014, except for the priciest 1 percent. So what is a luxury home? The terms vary, often depending on where you live. According to one real estate list, the minimum price to purchase a luxury home in San Francisco is $5.3 million, while in Raleigh, North Carolina, it’s $815,000. As a “combined markets” average, that figure comes out to $1.6 million (requiring you to earn $284,000 a year and keep up with a $6,619 monthly payment). With those prices, making an entrée into luxury real estate can be well-nigh impossible. But if you are able to work with a high-end real estate company, an agent specializing in the luxury market has the expertise to show you around premier properties in your area.
No matter what your pricing range, having a home means you’ve gone through one of life’s most hectic events: moving. Anybody who’s raised a family can be shocked at how much stuff they acquire through the years. Their homes somehow transform into warehouses of family belongings, and shipping all of your inventory out at the same time can be overwhelming. That’s why, especially if you’ve taken root in one home for years, people tend to use movers. The downside of movers is that the cost of hiring them averages $2,300 for a local move and $4,300 for a long-distance move. The plus, though, is that these guys should get you from point A to point B with minimal hassle. And, no joke, they may save you a small fortune on hospital costs if you strain your back or tear your rotator cuff while hauling 1,000-plus boxes up and down the stairs.
The money, the months spent packing, the unforeseen problems with your new house – buying a home can get chaotic, quickly. However, people often find a certain joy in looking at the streaks of light on the front yard in the morning and thinking, at last, here I am.
If you’re looking for the Right Home at the Right Price, let The Dwight Price Group put their expertise to use for you.
Call us today at (865) 888-SOLD.
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