First-time home buyers (or buyers who haven't been in the market for quite some time) may be shocked to learn just how much it costs to buy a home. For a conventional loan, the magic down payment is 20 percent of the total purchase price. In an economy with ever-dwindling savings accounts, many people can't come up with this type of cash for the home of their dreams. It's why Private Mortgage Insurance (PMI) is available to buyers who don't want to delay their homeownership dreams.
Who It Protects
Even though a homeowner is paying for PMI, it's technically the lender's insurance policy and not the buyers. A lender wants to see as much equity in a home as possible. In the case of a 20 percent down payment, the buyer has already secured a fifth
When purchasing a new home, the agents may negotiate special conditions that must be met into the contract. These are called contingencies, and their purpose is to protect both buyers and sellers. Here is what buyers and sellers need to know about contingencies before agreeing to a contract.
Contingencies are Not Bad
Decades ago, contingencies used to have a stigma because they can lead to contracts being cancelled under certain circumstances. However, contingencies exist to protect both buyers and sellers. They can help prevent purchasing a home that isn’t safe or protect a seller from selling to a buyer who can’t find some a loan. Contingencies are just another checkbox that needs to be ticked before the sale of the home becomes official.
It can be frustrating to see a dream home come to the market and not be able to jump on the opportunity. With some preparation, it is possible to be quickly approved. However, most mortgage lenders do want potential homebuyers to make a 20 percent down payment on a home. This offers them a modicum of security that borrowers are invested in paying off a home loan.
PMI allows lenders to approve borrowers who need to make smaller down payments. When it comes to conventional home mortgages, eventually borrowers can eliminate private mortgage insurance payments. This process can be sped up.
Learn more about PMI when it comes to conventional loans and how to eliminate PMI payments quickly today.
The paperwork for a home sale isn't just for the benefit of the buyer. It serves as the official documentation for title companies, financial institutions, and local registries. In other words, the more information a seller can provide, the smoother the process will be. Learn more about what sellers need to close the deal and why skipping a step can have disastrous consequences when selling a home.
Home sale paperwork is as much about the history of the home as it is about the final negotiations of the sale. Sellers will need to have the original sales contract for the home, and it must include the original price paid for the property. Paperwork should include homeowners' insurance information and mortgage and financing
If someone has recently purchased a new home, there’s a good chance they’ve received mail saying they should also purchase a home warranty to help protect it. This can seem like a good investment—after all, people buy warranties for things like cellphones and computers all the time, so why not homes? Here are some reasons all homeowners should take into consideration when thinking about a home warranty.
Home Warranties Don’t Cover the Expensive Fixes
Many people want to get home warranties to help pay for expensive fixes. A new roof, for example, can cost anywhere from $275-750 per square foot, including the cost of installation. However, most home warranties refuse to cover fixes like new roofs, windows, and chimneys because they’re too
Downsizing and moving to a smaller, less-expensive property may offer several financial advantages that make the decision quite appealing. These financial tips show sellers the benefits of downsizing, with advice to make it more effective.
1. Balance Buying and Selling Costs
One of the most important financial tricks for downsizing is to avoid spending too much profit between the sale of the old property and the purchase of a new home. Selling and buying have specific costs involved that will typically take up a few percentage points of potential profits from the home sale. For example, sellers should pay for:
Professional photography of the home
Marketing for the home sale
Any improvements necessary to ensure a good sale price
We live in the age of technology. Technology is literally at our fingertips with our cell phones and it is almost always in our pockets. However, smart technology for the home is something that has not yet caught on as quickly. Smart technology is becoming more and more popular and there will be a point in time when smart technology within the home is as common as having a smart phone. However, since this time has not yet come, the question remains for many homeowners about when they should start getting some in their home.
Consider the Benefits
The first thing that any homeowner should do before they get any smart technology is consider the benefits. There are a lot of benefits of having smart technology within the home that range from the
When making home improvement with the possibility of selling in mind, homeowners want to get the most bang for their buck. In real estate terminology, this is often called a return on investment, or ROI. Essentially, this factors the average cost of home improvements while taking into account the average increase in resell price during the selling transaction. Here are five of the best home projects that typically offer homeowners a solid return on their investment.
1. Attic Insulation Additions
Fiberglass insulation tends to dissipate over the years, and many homeowners never notice until utility bills surge or they gain access the attic to reclaim goods. Adding fresh fiberglass insulation is one of the most affordable updates and typically
Whether the time has come to change up the flooring in an existing house or a home is being built from scratch, one of the most important decisions that can be made is the type of flooring. There are many different types of flooring available for owners that are both aesthetically pleasing but also can be cost effective. Each flooring type has its own list of pros and cons to consider as well. It is important to review every option before making a decision so owners can ensure that they get exactly what they want.
One of the most popular types of flooring is hardwood. This is because hardwood floors offer both beauty as well as durability that can last for decades, if not longer, if they are well taken care of. One thing to
Saving money is not just something people can do with coupons in the grocery store or by finding a great deal while shopping for something online. Homeowners can also start to save money on a daily basis with some energy efficient upgrades around their own home. There are some things they can do that are fairly inexpensive while others may cost them a bit more in the present but will save them a lot of money over time. Either way, making any home more energy efficient is something anyone can do to ensure that they start saving money and winning the energy game every day, whether it's to reduce the energy usage in their own home or to make it more appealing when selling.
Seal Any Leaks
One of the first things homeowners should do around their
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