How to know if this house is right for you

Buying a house can be a daunting task, and the fear of buyer's remorse can cause serious anxiety.

How do I know this house is right for me?  Here are some things you'll want to consider before making

that decision:

Can I afford it?

Nothing is more disappointing than finding your dream home just to be told by the mortgage company

that it's out of your price range. Before venturing into the real estate market, meet with a mortgage

broker or bank representative to obtain an accurate number for purchase. This will help you to avoid

heartache and allow you to consider real options versus something that's not feasible because of

your budget.

Does this house meet my must-haves?

Make a list of your must-haves. Features such as number of bedrooms and bathrooms should be high

on that list.

Things such as walk-in closets, an ensuite might be negotiable; however, if you're unwilling to

compromise on certain amenities, be sure to only look at properties that offer them.

Is this property in the right area?

Narrowing down where you want to live is crucial. Are there parks? Trails? Do I add time to my commute?

Am I near amenities important to me and my family? Questions like these will help determine if you're

looking in the area that will best suit your needs.

Is this house right for my future?

For young couples, single buyers and small families especially, it's vital to ask yourself if this is a home

you can grow into. What is your plan? Do you want to start a family here? If your answer is yes, then

the number of bedrooms and bathrooms, as well as separate living space, are all things to take note of.

  

 You can feel it.

Trust your gut when something feels off about a house. You'll know a house is right for you and your

future by the feelings you have while looking at it, walking through it and when it comes time to move in.

If you're trying to convince yourself a house will work or that you love it, chances are it won't and you

don't. At the end of the day, trusting your instincts will guide you to the perfect house while helping

you avoid the ones that aren't.

To search for homes go to https://homesalesneworleans.gardnerrealtors.com/

3 Reasons Americans Count on Their Homes After Retirement

Retirees who own their homes outright are often at an advantage over their renting—

and retired—counterparts. There are two reasons for this: their housing costs are generally

lower, and they have access to safety-net cash in the form of home equity.

However, all homeownership is not created equal. For example, if you move often, owning

a home outright by age 62 can be challenging.

 

Since the big goal for retirement is to eliminate as many expenses as possible, erasing

a monthly housing payment is optimal. Having a long-term financial plan, including what

homeownership looks like in retirement, is extremely important. Renters who plan on

staying in the same general area for years to come should consider buying.

1. Benefit of eliminating monthly payments:

The twin bridesmaids of finances are income and expenses. When people retire, the money

coming in usually shrinks, which means so should the money going out. A mortgage payment

is one expense soon-to-be retirees should try to get rid of. If you can be mortgage-free by the

time you reach retirement, you'll be in a good position.

Mortgage-free retirees can save hundreds or thousands of dollars each month. Even with

property insurance, and taxes, the cost of owning a home is often less than renting.

Not only can retirees save on their housing costs; they can also make money on their homes.

Retirees who travel can earn money while they're on vacation through sites like Airbnb.

Another option to get extra cash flow is to rent a room. Downsizing can also save you money.

Going from a large family home to a cozy condo or smaller house can reduce utility costs as

well as allow you to cash out some equity in your home to fatten your nest egg. For people

not ready to sell, there are other options that allow you to tap the equity while keeping the house.

2. Benefit of having access to home equity, if needed.

There are several ways homeowners can tap the equity in their home without putting up

a for-sale sign; two of the most common ways are a cash-out refinance and a home

equity line of credit, or HELOC.

Equity-rich homeowners who want to lower their mortgage interest rate might consider

a cash-out refinance.  

A cash-out refinance is almost like selling your house to yourself. The bank would cut you

a check for the equity, which is the difference between what you owe on the house and

the market value. If your home is worth $200,000 and you owe $100,000, then you have

$100,000 of equity in the home.

Banks usually limit the amount you get to 80 percent of the total equity. That means with

$100,000 in equity, the bank might give you $80,000. The amount you qualify for is usually

based on income, credit score and other determining factors.

Now comes the tricky part: When you do a cash-out refinance, you'll get a new mortgage.

If your interest rate is high because of poor credit or market conditions and you think you

have a chance of getting a lower interest rate with a new mortgage, then a cash-out refinance

might be an appealing way to access your equity; however, if your mortgage interest rate

increases with a new mortgage, then you should consider other options, such as a HELOC.

Something else to keep in mind is the fact that a new mortgage usually means going back

to square one if you choose a longer term. If your house is a few years away from being

paid off, restarting the clock is probably not a good financial move.

3. Even with a mortgage, there are  liquidity options.

For people who want to keep their homes and existing mortgages while tapping their

home equity, one alternative is a HELOC.

The benefits of HELOCs are that you only pay on what you use and the interest is tax-deductible

if you use it to repair or upgrade your home. For retirees who want to retrofit their homes to

make life easier, such as installing stair lifts, grab bars and handrails, a HELOC could be a good

way to fund those upgrades and get a tax break. It is important to remember that once you use

that equity, it will likely take years and even decades to rebuild it.

The dual benefits of lowering your living expenses and having access to cash in emergencies

are great reasons to sail into retirement without a home loan springing a leak in your budget.

For more information go to https://homesalesneworleans.gardnerrealtors.com/

Buying a Vacation Home

Pretty often people returning from vacation trip start thinking about buying a vacation home rather
than paying for a hotel or a rental place. Unless you're fairly wealthy, you'll need to make sure
you can commit to buying a seasonal home before you start shopping around. Ask yourself the
following questions:

1. Can you afford to own a vacation home? If the answer to that question is yes, it is probably
wise to buy. Remember, the purchase price is only part of the cost of owning a vacation home.
You'll have to pay utility bills, maintenance fees and insurance premiums. And depending on
where your home is located, you could also be responsible for paying homeowners association
fees.

To decide whether you have enough money in the bank for a vacation home, ask yourself the
following questions:

• Do you have emergency savings (at least three to six months' worth of take-home pay)?
• Can you make a 20 percent down payment?
• If you have kids, have you already put aside enough money for a college fund?
• Can you still put away enough money for retirement?
• Does it fit in with your long-term investment strategy and financial goals? If you answered
• "Yes" to most of these questions vacation home is right for you!

2. While visiting an area that might become the location of your future home, do your research
and take the time to understand what the surrounding area has to offer. You'll also want to make
sure you visit during different parts of the year. So that you can get a feel for what it's like to live
there during different seasons. For example, when you retire, the amenities included in a vacation
home may take a backseat. Having access to a hospital and activities that improve your overall
health and well-being may be critical.

3.  Buying a seasonal home could be worth considering if you know how you're going to use it.
Maybe you view the home as an investment property that can serve as an additional source of income.
Maybe you've decided that you're going to find guests online through a website like Airbnb or Vacation
Rental by Owner (VRBO). If that is the plan, you'll probably need to hire someone to clean your home
and check for signs of damage and theft before new guests arrive. Keep in mind that rental income
will be taxed, and that you should be prepared to pay taxes.

For many people, the decision to purchase a vacation home is serious. If you decide to take that leap
of faith and you already have homeowners insurance, make sure you find out whether your current
policy will cover a second home. Also, if you intend to rent out the property, consider purchasing rent
loss insurance. It covers the loss of rental income following natural disasters and catastrophic incidents.

To search for homes visit https://homesalesneworleans.gardnerrealtors.com/

Finding Your Starter Home

Tips to Help You Find a Starter Home

A starter home isn't necessarily your forever home. Be prepared to make some compromises to get
your foot in the homeownership door. Be open-minded about the location, size and condition.  

Look for an older home in a well-established neighborhood. Resales typically cost less than
brand-new homes. Older homes typically need more maintenance and repairs, which offset some
of the savings; however, buyers who choose a used home might be able to do repairs and renovations
over time, pacing themselves to make the cost manageable.

Buyers who sacrifice location for affordability can find themselves in a neighborhood far from major
job centers with a long daily commute and expensive transportation costs. Sometimes that
trade-off makes sense, but not always

When you're up against stiff competition, working with an experienced real estate agent is key.
A good agent shines when it comes to negotiating the deal and writing a strong offer. Your agent
may suggest certain strategies to win in a competitive market, such as limiting contingencies or
writing a personal letter.

When a well-priced starter house comes on the market, the quest to buy it can be extremely competitive.
To entice sellers offer above asking price (if you can afford to), keep repair requests to a minimum, or allow
the sellers more time to move.

To search for homes anywhere go to https://homesalesneworleans.gardnerrealtors.com/

What Is a Perfect Home?

When searching for a home it is important to identify what "perfect" means to you. The easiest way to start is by making a list of priorities. What is a "must-have," what would be nice to have, and what isn't important?  

We have all lived in places that at first glance we thought were suitable, only to find out later that the kitchen we initially thought was cozy was actually far too small for our needs, or that the seemingly bright living room only gets direct sunlight for a two hours a day.

Before scouting the market you need to know what you can afford.  Getting pre-approved for a mortgage first will make the whole process much easier. A trap that many buyers fall into is assuming that the maximum amount they can borrow is what they should spend on their new house. Look at what your monthly payments would be, and ensure that your budget factors in all ongoing maintenance costs,  as well as room to put funds aside each month for emergency maintenance.

Experienced Realtor is your key to success. Having the right professional working for you can be the difference between a smooth buying process and a costly disaster. Hiring a real estate agent provides numerous advantages. An experienced REALTOR® can find properties that you may otherwise miss, negotiate prices and recommend lenders.  Experienced Realtor is also able to answer any questions you may have about a property, as well as any you may not have even thought to ask.

For more information or to search for homes visit https://homesalesneworleans.gardnerrealtors.com/

Choosing a Moving Company is Important

Personal belongings are important to you, and, as such, it is important to hire a moving team that will do what you expect. Here are questions to ask any company you're seeking to employ:

Do you have any references?

References or a link to online references are very informative, and will help you to form an opinion of how reliable the service will be.

What specific services do you offer?

Moving companies vary in terms of what they're willing to do for you. There are some companies that might refuse to move large items, such as grand pianos, and only provide the lifting and packing of smaller items. Or you might only want a company to do one or two things for you, such as load up a truck you've rented yourself.

Do you offer in-home estimates?

Knowing what needs to be moved is one thing, but understanding the cost of labor to get the job done is another.

Be sure to get everything in writing and secure the departure and arrival dates to avoid any potential hiccups.

What happens if something is damaged?

You've chosen a company you can trust and afford, but what will the company do if they accidentally break something of yours? Be sure to ask what the company's policy is on this subject.

Ready to shop for a home? Know loan types!

Before you go mortgage shopping, know loan types.Conventional Loans:

Conventional mortgages are ideal for borrowers with good or excellent credit. Conventional mortgages follow fairly conservative guidelines for:

—Borrower credit scores.
—Minimum down payments.
—Debt-to-income ratios.

What is “Debt-to-Income Ratio”?

Percentage of monthly income that is spent on debt payments, including mortgages, student loans, auto loans, minimum credit card payments and child support.

Closing costs, down payments, mortgage insurance and points can mean that the conventional borrower has to show up at closing with a sizable sum of money out of pocket.

What’s good: Conventional mortgages generally pose fewer hurdles than Federal Housing Administration or Veterans Affairs mortgages, which may take longer to process.

What’s not as good: You’ll need excellent credit to qualify for the best interest rates.FHA Loans:
 

Federal Housing Administration mortgages have flexible lending standards to benefit:

—People whose house payments will be a big chunk of take-home pay.
—Borrowers with low credit scores.
—Homebuyers with small down payments.

The Federal Housing Administration does not lend money. It insures mortgages.

The FHA allows borrowers to spend up to 56 percent or 57 percent of their income on monthly debt obligations, such as mortgage, credit cards, student loans and car loans. In contrast, conventional mortgage guidelines tend to cap debt-to-income ratios at around 45 percent and sometimes less.

For many FHA borrowers, the minimum down payment is 3.5 percent. Borrowers can qualify for FHA loans with credit scores of 580 and even lower.

Cost: Each FHA loan has 2 mortgage insurance premiums:

—An annual premium that varies from a low of 0.45 percent to a high of 0.85 percent. This premium is rolled into the monthly mortgage payment for the life of the loan. See how the premiums vary by loan term and amount of equity.

—An upfront premium of 1.75 percent of the loan amount, paid at closing.

What’s good: FHA loans are often the only option for borrowers with high debt-to-income ratios and low credit scores.

What’s not as good: FHA mortgage insurance premiums usually are higher than premiums for private mortgage insurance. To get rid of FHA premiums, you must refinance the loan.
 VA Loans:

Who they’re for: Most active-duty military and veterans qualify for Veterans Affairs mortgages. Many reservists and National Guard members are eligible. Spouses of military members who died while on active duty or as a result of a service-connected disability may also apply.

How they work: No down payment is required from qualified borrowers buying primary residences. The VA does not lend money but guarantees loans made by private lenders.

Cost: The VA charges an upfront VA funding fee, which can be rolled into the loan or paid by the seller. The funding fee varies from 1.25 percent to 3.3 percent of the loan amount.

The VA allows sellers to pay closing costs but doesn’t require them to. So the buyer might need money for closing costs. Borrowers may also need money for the earnest-money deposit.

What’s good: VA borrowers can qualify for 100 percent financing. Veterans do not have to be first-time buyers and may reuse their benefit.

What’s not as good: There are limits on loan amounts. The limits vary by county.
 
For more useful information or To Search for Homes go to http://www.homesalesneworleans.com/ 

Are you planning to sell your home?

Are you one of the home owners that are planning to sell in 2016?

Whether it's a pending relocation or a thoughtfully planned downsizing that can occur at your own pace, it's a seller's market out there right now. Regardless of that, it never hurts to take proactive measures to ensure your home sells as quickly as possible and for the best price!

Here are some suggestions:

Exceed buyers' expectations. Get your property into tip-top shape before you put it on the market and you’ll eliminate most buyers’ potential objections. If there is no immediate turnaround pressure, sellers should spend some time figuring out what they can afford to do to make their property appealing and what repairs are necessary. Work with a REALTOR® to gain additional insight, suggestions and advice on what would bring sellers the most “bang for the buck”.
Don’t price your home without a comparative market analysis. Ask an experienced Realtor for a CMA to help you understand what it will take to sell in your neighborhood.

Don’t wait for values to go higher before you put your home on the market. According to the National Association of REALTORS®, new home construction is still lagging behind job growth. Additionally, there are more buyers considering the housing market today, as a result of continued improvements in the job sector.

For more useful information got to http://www.homesalesneworleans.com/

What Drives Home Buyers Nuts

It's not a secret that some sellers do things that drive buyers nuts. Here are just some:

1. Many sellers don’t want to accept the fact that their home is worth substantially less than they paid, or what they thought it was worth. Some sellers base the asking price on what they “need” (like the balance left on their mortgage). Or they calculate the price they paid, plus the cost of renovations or sweat equity. The problem is that none of those factors has the slightest relation to what a house is worth. As a result the sellers set an unrealistic price, and that drives buyers nuts.

2. Occasionally you see ads that read “cash or conventional preferred.” Or the more flagrant version: “No FHA or VA “. Some sellers may mistakenly believe closing on a government-secured loan will take longer, when in truth, some conventional loans can be harder to close. A few sellers may suspect their homes won’t pass the more stringent inspection conducted by an independent, government-certified professional. Those restrictions drive buyers nuts.

3. “Silent treatment” is another one! You look at the asking price (which is a little high), study the comparables and make a solid offer. And you’re met with … silence. Instead of seeing your well-researched bid as a place to start negotiations, the sellers act offended. Whether the seller’s “offense” is strategic or genuine, it’s not smart to ignore an offer.

4. Covering up flaws is the next pet peeve. From employing strategically placed carpets to concealing unpleasant facts about the home, attempts at deception drive buyers batty. Advice to sellers: disclose everything, no matter how minor.

5. What drives a buyer crazy? Falling in love with a house that’s not really for sale. That's called “Playing Mind Games”. Or falling in love with one that has problems that a seller refuses to fix. Sellers who refuse to make needed repairs believe the buyers are hooked. And for buyers who decide to go ahead with the purchase the big question becomes: “Where’s that money for repairs going to come from down the road?”

To search MLS go to http://findneworleansproperties.gardnerrealtors.com/