Homeowners who purchase their homes before the age of 35 are better prepared for retirement at age 60, according to a new Urban Institute study. The organization surveyed adults who turned 60 or 61 between 2003 and 2015 for their data set.
This is still great news for homeowners!
Let’s look at the potential equity gained over the same period of time at some higher price points:
Blog Post: Keeping Current Matters
Many sellers believe that spring is the best time to place their homes on the market because buyer demand traditionally increases at that time of year, but what they don’t realize is that if every homeowner believes the same thing, then that is when they will have the most competition!
The #1 Reason to List Your Home in the Winter Months is Less Competition!
Added Bonus: Only Serious Buyers Are Out in the Winter
Often I hear all the talk about down payment cost but rarely do new buyers understand that there are more costs to buying a home than your down payment money. Closing costs are the most forgetful thing or rather unknown unless you are outside of the real estate business.
Many homebuyers think that saving for their down payment is enough to buy the house of their dreams, but what about the closing costs that are required to obtain a mortgage?
By law, a homebuyer will receive a loan estimate from their lender 3 days after submitting their loan application and they should receive a closing disclosure 3 days before the scheduled closing on their home. The closing disclosure includes final details about the loan and the closing costs.
But what are closing costs anyway?
According to Trulia:
“Closing costs are lender and third-party fees paid at the closing of a real estate transaction, and they can be financed as part of the deal or be paid upfront. They range from 2% to 5% of the purchase price of a home. (For those who buy a $150,000 home, for example, that would amount to between $3,000 and $7,500 in closing fees.)”
Keep in mind that if you are in the market for a home above this price range, your costs could be significantly greater. As mentioned before,
Closing costs are typically between 2% and 5% of your purchase price.
Trulia continues to give great advice, saying that:
“…understanding and educating yourself about these costs before settlement day arrives might help you avoid any headaches at the end of the deal.”
Schedule a buyer consultation with me determine how much you’ll be responsible for at closing. Finding out that you’ll need to come up with thousands of dollars right before closing is not a surprise anyone is ever looking forward to.
Source: Keeping Current Matters
It’s beginning to look a little like….wait….It is a week before Thanksgiving. I cannot get into the Christmas spirit until it that holiday passes over. Take a look at some of the events in DFW this holiday season.
Recently, multiple headlines have been written asserting that homeownership is less affordable today than at any other time in the last decade. Though the headlines are accurate, they lack context and lead too many Americans to believe that they can’t partake in a major part of the American Dream – owning a home.
The lack of existing inventory for sale has forced many homebuyers to begin looking at new construction. When you buy a newly constructed home instead of an existing home, there are many extra steps that must take place.
1. Hire an Inspector
2. Maintain good communication with your builder
3. Look for builder’s incentives
4. Schedule extra time into the process
5. Visit the site often
For years, I had been helping my friends work on their credit and feeding them into being more financially responsible.
So one day during a conversation, one of my friends suggested I put all my experiences in a book to help others. I side-eyed her because that is what I do when people suggest things that I would never think to do. However that evening, I thought long and hard about it. I would share my journey with my homeownership counseling clients to help them understand. We would talk about how they learned about money and so on.
I wrote this book in 2016 and 2017. I finally released it in 2018. Here’s your chance to learn more about credit with my stories from my college mistakes.
Purchase Here: store.bookbaby.com/book/credit-and-me
It’s October 30, 2018. That means that I’ve officially been a homeowner for a year.
What have I learned since moving in? Here are the things:
The one thing that took some getting adjusting to was the extra bills. In an apartment, I was used to water/sewer/trash being included in the rent. My first water/sewer/trash bill had me like 😶. I went through the breakdown and realized that the sewer amount was the highest cost. I called my mom and asked what makes a sewer bill high? How can I eliminate or lower that? Well, I can’t but I can do my best to conserve my water usage. So yes, if you visit me, please keep your shower usage to 10 minutes or less (that part is really for my mom who likes long shower however I have NEVER been able to run water like that at her house. I still can’t at 30.)
I knew I wasn’t purchasing a lawn mower nor did I want to relive my childhood of cutting grass. I hired services for that. That’s an extra cost.
My HOA assessment always seem to fall in a forgetful quarter. 😂 It comes every quarter but somehow I forget. All the other bills I was used to.
The one thing that has happened in a year was just how much my neighborhood has changed or my whole area for that fact. Last year, there was no house to the left of me.
Today, there is a 2 story home beside me. There is another one in front and one currently being built directly in front of me too. The wooded area behind me? Well it is still there but by next year, there will be houses behind me. I wanted a country feel for at least 2-3 years. Unfortunately, the growth of the area says differently. I’m happy about that. We have a Fuzzy’s Taco nearby so I’m content.
As a homeowner, I wanted to quickly finish out my home and have people visit. The one thing I learned was that your home is a work in progress. I still don’t think I’ve sat down and truly felt like “wow, I did this.” Not yet. I’m too busy at the moment. I will during this year’s holidays. I just knew when I moved in, I’d change so many things. However, after purchasing the fridge, new bed for the master bedroom, loveseat for the living room, I knew I didnt need to rush to complete my journey. I had that conversation with potential a first time homebuyer about pacing yourself for the adjustment. She quickly told me that she’d just finance everything.
As much as that can be possible, you want to take your time before doing that. Homeownership is a major focus and anything can happen. That’s one extra debt you don’t want to focus on when a repair is needed.
I quickly learned that my dreams outweighed my budget for my home. After one year, I still have builder grade items in my home (hello light fixtures I want gone…I digress.) With my style for my home, I realize I am not in a rush to find anything. I actually found light fixtures that I want but they don’t ship to the states. 🤦🏾♀️
I spend some Saturday mornings at Home Depot to learn new things to do around my house. Although, I can easily hire someone to do things, I’d rather find out how to do it and save the labor cost. I’ve learned how to install a toilet, install a backsplash, lay floors, and more. I’m my own handy woman. It’s actually quite therapeutic for myself.
Remember when I said my dreams outweighed my budget, let’s talk about my master closet. So in my home, I have 2 walk-in closets in my master suite. I badly wanted to have the bigger one designed. The first quote was $5000 for one section of the closet. I quickly went to Target and bought cube storage for $600 and arranged my closet. I’ll most likely get them professionally done within the next year but for the time being I needed something to get my life together.
I still love my backyard. It is my peaceful place. I haven’t designed it yet because it costs $17,000 for my dream design and I’m trying to figure out how to have cheaper dreams.
However, Ace and I have been absolutely loving our home and still creating it to be what we would love. Yes, Ace is my dog.
The space is perfect for me and perfect for a resale in the next 4 years. I plan to stay a minimum of 5 years and maximum of 10 years. Cheers to Year One!
1. Get Pre-Approved for a Mortgage Before You Start Your Search
2. Know the Difference Between Your ‘Must-Haves’ and ‘Would-Like-To-Haves’
3. Research and Choose a Neighborhood You Want to Live In
4. Pick a House Style You Love and Stick to It
5. Document Your Home Visits
Source: Keeping Current Matters