Posts tagged: home improvement

Can You Afford To Buy Your First House?

buying homeBuying your first house can seem like an unattainable dream at times, but every once in a while you hear a story of a couple who were able to save enough money for a down payment. It gives makes you think that, someday, that could be you. However, there is more to buying a house than saving up for a down payment. Read the guidelines below to determine whether you really can afford to buy a house at this time.

Do you earn enough?

If you’re struggling to set aside some money while paying the bills and the rent, chances are you will have a difficult time keeping up with mortgage repayments. You also have to consider the property tax in the area, home insurance, and the fact that you will be responsible for home repairs. This is the step that traps most prospective home buyers.

But don’t give up because you can’t afford a house just yet. Use the time you have to get on top of your financial situation; pay off as much debt as you can and boost your credit wherever possible. This will help your chances of getting a good mortgage.

What kind of financial help can you get?

Once you’ve managed to save some money, you need to find out how much a lender will be willing to give you to buy your first home. A mortgage lender will look at your income, how much debt you have, and how long you’ve been at your current job. All your debt payments plus your new housing expenses – mortgage, homeowners association fees, property tax, homeowner’s insurance, etc. – shouldn’t equal more than 43% of your monthly gross income, according to the federal housing administration (FHA). Based on your calculations, you may have to adjust your expectations on what kind of house you can afford.

Fortunately, there are a lot of other options available for first-time buyers who don’t have a 20% down payment. Your state may have its own programs for first-time home buyers. Your mortgage interest rate will also have a major impact on the total price you pay for your home, so shopping around will pay off.

The buying process

Buying a house isn’t limited to looking for homes for sale on real estate websites. Put out some feelers with friends and family, or look at rental ads and see if the owners are open to selling. This may not be an accepted method, but it will save you from going up against experienced buyers.

Squeeze them for information

Don’t be taken in by what may appear to be a dream house. One of the best kept secrets about buying a home is that your real estate agent has to be honest with you, but only if you ask questions directly. No question is too silly; how many viewings have they had? Why do the homeowners want to sell? Who lives upstairs/next door? You’re hoping to live here, so avoid any unpleasant surprises by finding out everything you can.

Why Your House Is Worth Next To Nothing, And What To Do About It

home improvement businessHomes are a tricky business. They’re all unique in one way or another. And there are hundreds of factors that come into play when determining their price.

The problem is that for a lot of these, there isn’t much the average homeowner can do. If your house is a long way from the best schools, this is going to affect its price, unfortunately. The same goes for if you happen to live in an area that has already seen a lot of foreclosures. Sorry, that too is going to cause the value of your house to tank.

Then there are neighborhood problems that can wreak havoc. A bad area with a high crime rate can also reduce the value of your home. And there isn’t anything you can do to stop it (unless you are the criminal).

Finally, there are just bad neighbors. Perhaps your next door neighbour has erected some sort of ostentatious extension that ruins the look of your property. If it’s legal, then there’s not much either you or any future owner can do about it.

It all means that when you find out how much is your house worth today, you might be in for a shock.

That said, many sellers could do a lot better. In fact, some are making outright mistakes when trying to sell their home. Take most bathrooms for example. They’re grimy, dingy places, that don’t have much curb appeal.

Sprucing up the bathroom can help persuade potential buyers that your house is the one for them. Don’t go mad though. You want to decorate the bathroom in neutral colours so that it will appeal to the widest range of people possible.

It’s all about updating the look. Old vinyl flooring is a definite no-no. And these days, so is wallpaper in the bathroom. Leave the wallpaper in the 1970s where it belongs.

The reason that it is so important to focus on the bathroom before you sell is that it is one of the hardest rooms to change. Buyers usually don’t want to have to rip out a bathroom when they move in. They’re rather it served their purposes to begin with.

The same applies to kitchens. Kitchens are a famously hard room to redecorate, especially if that means pulling out kitchen units. But tired old kitchen units are a turn-off for potential buyers. Refacing them, rather than removing them entirely is a cheaper option. So consider this if you are having people to look around.

But if you want to create a truly stunning impression, fitting out a new kitchen may be the only route to go. Just make sure that the increase in the value of your home that results is more than the cost of the new kitchen.

You also want to make sure that there aren’t unsightly stains around the kitchen area, like on the stove splash panel. When buyers look around, they don’t want to see that the house has been lived in by somebody else. They want it to be truly theirs. Clearing up mess helps to improve the appeal of your home markedly.