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This is the time of year for sharing what you’re thankful for. And our clients are at the top of our list!
We are so happy to have worked with so many wonderful clients this year to find their dream homes!

Happy thanksgiving folks!

The House-Hunting Nightmare
Owning a home is nice, but finding one isn’t exactly a walk in the park. Anyone would want to just skip to the part where they already have the keys to their residence, but unfortunately, this is real life, and there’s no fast-forward button. If you want to purchase a house, you must be prepared to go through every nitty-gritty part of the procedure!

Besides hoping for the best, you shouldn’t forget to expect the worst. Knowing what to expect and being aware of all the things that can prevent you from buying your home is essential if you want to own a place you truly want.

For now, set your excitement aside and prepare yourself for potential problems with:

Affordability;
Bidding wars;
Mortgage approval;
House features; and
The neighborhood.
What to Remember Before Buying
You probably have an ideal house in mind before you’ve even begun searching for options. However, keep in mind that things may not go as you planned. There are various factors involved with buying a home, so what you want may not be what you get.

This doesn’t mean that you’ll have to put up with something you don’t want, though! As long as you read through our list below, you’re sure to find a house that you’ll be happy about despite the limitations and few shortcomings.

Budget
Your budget is crucial, as it will determine what kind of properties you can purchase. What you want may be different from what you can afford—it’s essential to create a budget for this purchase so that you won’t end up buried in mountains of debt after everything.

To figure out a budget you can work with, use a home loan calculator, consult sources such as PaloRATE, and compare the best mortgage rates for your financial circumstances. Once you’ve weighed up the pros and cons of each option, you can then apply for a home loan.

Size
Are you planning on living alone forever, or do you want to start a family a few years down the road? It’s essential to ensure that you have enough space for your lifestyle and room to grow if you plan to do so.

Besides room for a future family, the size of your house will also impact different aspects of the home’s uses and potential, so you mustn’t forget to consider this. Moreover, you should also take note of the lot’s shape, as it will affect your privacy and the form of your lawn.

Age
The age of the house is one of the most important things you should remember to consider because it could have a significant impact on your budget. An older home may have the charm and appeal you’re looking for, but you will most probably need to do a few repairs and renovations to make it more livable.

If you don’t have enough budget to do any renovations, then a house built more recently is recommended. However, if you want to purchase an older property, you should first consult your realtor so that you can learn more about the house you’re eyeing to determine if its repairs and upgrades could be manageable.

Conclusion
Buying a residential property will perhaps be one of the most significant milestones and financial investments you will ever have in your life. Once you have a place you can truly call your own, you can enjoy security, comfort, and most of all, control.

However, before you get to own a house, you have to first go through the long, arduous house hunting process. So, if you want to end up with a home you’re grateful to live in, make sure to follow our guide and reach out to our agents at Homisave, for professional real estate services.

What Are Signs of Having the Financial Stability to Buy a Home?

Your Credit Is Good.

One of the cornerstones of a major purchase like an automobile or home is having full awareness of your credit score or FICO. Thankfully, technology has afforded people access to multiple resources online, which can help in running a credit check. Many of them are able to do the work of pulling reports from all three of the big credit bureaus.

If your credit score is 740 or higher, then you’re in the best possible place. Needless to say, having a high credit score makes a direct impact on getting a loan. It also helps with PMI (private mortgage insurance). If the down payment is below 20% of the final sale price, PMI is required. In short, a lower PMI payment is possible the higher a credit score goes.
In cases when the credit score doesn’t meet the conventional loan standard, don’t fret. The Federal Housing Administration (FHA) has loans for people buying homes for the first time whose scores are rather low. Down payments through those loans can drop to 3.5%.

Your Debt-to-Income Ratio

The calculation of this is fairly simple: recurring monthly payments (car, credit card, student loans, etc.) divided by gross monthly income.

Your Source of Income Is Stable

While the way of earning a living has shifted from the traditional ways, needing a consistent and steady income stream for home loan qualification has not. Stable incomes are generally classified as a paycheck from an employer for at least two years. In terms of final earnings, there should be no fluctuation of over 25% within a year.
If you’re self-employed or have had several employers, hope is not lost. Just prove that your career is still moving forward within the field you’ve chosen. More importantly, steadiness in yearly income (or better yet, growth) should be clear. The amount of the earnings is also part of the equation. Total monthly housing costs (insurance, mortgage, taxes) must not surpass 28% of the gross monthly income

As people have been relying on their homes to provide activities and entertainment since the pandemic started, Houzz is seeing emerging search trends for art studios (up nearly 10x), home bars and wine cellars (up nearly 4x) and home theaters, home gyms, and home offices (up 3x, 2.5x and 2x, respectively). Post-COVID, have you re-designed your home to include any of the above? Let us know in the comments below!