Buying your first house is exciting! And wild. Homes today cost a median of $391,200 and fly off the market in just 17 days.1 Plus, interest rates are rising fast.2
These trends may tempt you to rush into a purchase before things get any crazier. But slow down! Trust me, you guys, it's worth buying your first home the right way. That means finding one that works with your money goals—not against them.
You may be thinking, Yeah, that's great, Rachel. But I don't know how to buy a house for the first time. Where do I start?
I'm glad you asked! I put together 13 steps to buying a house for the first time. Now, I know that sounds like a lot. But this is a big deal, and you want to do it right! Put these tips into practice so your first home is a blessing, not a burden.
Okay, when you asked for first-time home-buyer tips, you probably didn't expect this one. But it is hands down the most important.
Owning a home is much more expensive than renting, even if your monthly house payment will be less than your current rent. When you're a homeowner, you're responsible for everything. All the maintenance and mishaps add up fast!
Before you even think about buying your first home, get debt-free and save an emergency fund of three to six months of expenses. Then, your money won't be tied up in monthly payments, and you'll have cash to cover unexpected costs.
Once you're debt-free, I want you to stay that way. (Minus the mortgage. More on that in a minute.) So even though you're excited about decorating, it can wait.
I'm a spender, so I know that's easier said than done. But it's okay to let a room sit empty until you can afford to furnish it. Stick with the good money habits you learned while getting out of debt. Your future self will thank you.
Before house hunting, determine how much house you can afford. Your monthly housing costs—including principal, interest, property taxes, home insurance, private mortgage insurance (PMI) and homeowners association (HOA) fees—should be 25% or less of your monthly take-home pay.
For example, if you bring home $6,600 a month, your maximum house payment is $1,650. Now imagine you get a 15-year fixed-rate mortgage at 4% interest. If your property tax is 1.14%, home insurance is $1,200 per year, and PMI is 0.5% (for down payments below 20%), here are some home prices you could afford:
P.S. I got these estimates from Ramsey Solutions' free mortgage calculator. Try plugging in your own numbers to see other home prices that work with your budget.
The best down payment is an all-cash offer. Nearly 1 in 4 buyers pay cash for their houses.3 But if that isn't reasonable for your first house, then aim for a 20% down payment. That way, your lender won't make you pay for PMI. PMI is insurance that protects your lender (not you) if you fail to make payments—so try to avoid this nonsense.
If 20% is still out of reach for you as a first-time home buyer, a smaller down payment of 5–10% is okay too. But no matter what your down payment is, make sure your housing payments are no more than 25% of your monthly take-home pay on a 15-year fixed-rate mortgage. (I'll share more on mortgage types later.)
Closing costs are typically around 2–7% of your home's purchase price.4 Here's an example:
$300,000 home x 3% = $9,000 closing costs
That's a big chunk of change—on top of your down payment—but I promise you can do it! Tackle these savings with intensity. You can even put retirement savings on hold for a short time to save for a home.
You might be thinking, Wait, Rachel. I haven't even found a home yet!
But remember the old expression, "You snooze, you lose." If you try to get a last-minute loan, you could miss out on your dream house. So it's smart to line your mortgage up before house shopping.
A huge benefit to being a first-time home buyer is that you've never fallen for an awful mortgage—and you don't have to!
Many first-time home-buyer loans only make you put a little money down, but they cost tens of thousands of dollars more in the long run. Don't fall for it! Remember—if it seems like a good deal for you right now, then it's an even better deal for your lender in the end.
Avoid these low-to-no down payment mortgage options:
I only recommend 15-year fixed-rate conventional mortgages. Here's why:
How a 30-Year Mortgage Compares
I'll just say it: 30-year mortgages may have a lower monthly payment, but they cost more in the long run. Like tens of thousands of dollars more.
Imagine you want a $300,000 house with 20% down. You need a mortgage for $240,000. Even if the 30-year loan and the 15-year loan offered the same interest rate (unlikely, since 30-year rates are almost always higher), the 30-year mortgage still costs more.
15-Year at 4.5% |
30-Year at 4.5% |
|
Number of Payments |
180 |
360 |
Monthly Payment |
$2,181 |
$1,562 |
Total Interest Paid |
$90,447 |
$197,778 |
Total Amount Paid |
$330,447 |
$437,778 |
You'll save $107,331 with a 15-year fixed-rate mortgage—and you'll be payment-free 15 years sooner. I mean, hello!
Some lenders only care about profits, while others actually care about helping you become a homeowner. Talk to at least three lenders. Compare their interest rates, fees and customer service to find the best one for your finances and peace of mind.
If you're debt-free like me, you need a lender who doesn't require a credit score. (Because you don't have one anymore—yay!) So look for one who does manual underwriting, like Churchill Mortgage.
It pays to get preapproved for a loan (not just prequalified). Preapproval is when your lender verifies your financial information and gives you a letter saying how much money you can borrow.
Preapproval shows sellers you're serious, and you can use your letter to get ahead in a competitive market.
Just know some lenders may preapprove you for a bigger loan than you can afford. But you don't have to borrow that much—or look at houses that are too expensive!
Finally, we're to the fun part! Follow these first-time home-buyer tips to start looking for your new house.
One of the most important things you need to buy a house for the first time is actually a person. A good real estate agent will help you find the right home and navigate the buying process.
I always recommend working with a real estate agent. If you're not sure where to start, connect with a RamseyTrusted agent through our Endorsed Local Providers (ELP) program.
Let's be honest: Most of us aren't very good at telling the difference between what we need and what we want. So, what can you do to change that?
Know what motivates you.
It's easy to think you need a super nice house because your parents had one . . . but they worked for 30 years to get it. Or maybe you grew up in a less-than-perfect home, and you want a better one so you'll feel like you've finally "made it."
When we take time to learn why we spend money the way we do, we can better understand what we need in a house—and what we can do without.
Be content.
When we compare ourselves and our stuff to others, we're struggling with contentment. Contentment can make us rich—and it can keep us from making bad money decisions. When you're grateful for what you already have, it'll put your house hunt into perspective.
Talk to people.
Your real estate agent has helped dozens of first-time home buyers. They can help you discern your needs and wants, set realistic expectations, and show you houses that meet your criteria.
If you're single, talk to a trusted friend who will call you out if you're being unreasonable. And if you're married, now's the time to get to know your spouse better! Be honest about what you both need and want in a home so you can find a place where you'll both be happy.
Be realistic.
As a first-time home buyer, you don't have equity in an existing house, and you may not have a ton of savings either. So you may have to make some sacrifices to stay within your budget. For instance, you may have to buy a house that needs fixing up or a smaller place where your kids share a room.
That's okay. It's tempting to think your first home is your forever home, but for most people, it isn't. You need a house to fit this season of life—and you can always sell it and upgrade later. Keep your perspective and your cool.
Make a list.
Some things really may be nonnegotiable for you—whether they're needs or wants. Maybe you need to live close enough to commute to work every day. Maybe your pets need a fence. Or maybe you want to live in a good school district for your kids.
List 3–5 things your house absolutely must have. (And yes, it's okay to put a want or two on this list.) Then, write down the nice-to-haves that could be the cherry on top of your first home.
Okay, you've got your shopping list in hand, and you're ready to roll. Here's how it's done.
Get ideas online.
Find homes you like online and send them to your real estate agent. Then, they can use the Multiple Listing Service (MLS) to find more homes that check off the boxes for you.
Home buyers don't have access to the MLS, but your real estate agent can use it to help you view the most properties for sale in your market. They can even help you find great deals on homes before they're listed.
Research neighborhoods for the best fit.
Most home buyers would rather compromise on a home's condition and size than on the quality of the neighborhood.5 Now, your real estate agent can't talk about crime rates, schools or demographics. (That's real estate steering, and it's illegal.) But they can tell you where to find that information for yourself.
You can also look up local schools and calculate your new commute times to see what they're like. If you can, visit the neighborhood at different times to check traffic and noise levels and see if people are comfortable being outdoors.
Once you choose the neighborhoods you like, attend some open houses. Looking at homes for sale—even if they're not perfect for you—helps you learn about the area.
Think long term.
Like I said, you probably won't live in your first home forever, so don't buy the most expensive house on the block. Future buyers who are shopping in a $200,000 neighborhood won't want a $300,000 home. But if you buy in the neighborhood's low price range, you'll have more room to build home value.
Pay attention to what's happening in the community too. Are home prices rising or falling? Are businesses booming or closing? You want a home that will be a good investment in the long run.
Be patient.
Finding the right house takes time. More than likely, you'll look at several houses. You may even make several offers before one gets accepted. And that's okay. It's part of the process.
So keep dreaming about all the exciting possibilities that are open to you right now. Be patient and proud of the fact that you're willing to wait for the right house—not settle for the wrong one.
You finally found a home you love, and you're ready to buy. Congratulations! But there are still a few more steps you have to take before you can call it home sweet home.
It can be hard to know how much you should offer for your first house. That's when you rely on your real estate agent's expertise.
Ask them to help you make a competitive offer that's within your budget and close to the home's value. Don't make an impulsive offer you can't afford just to knock out the competition.
Once the seller accepts your offer, you can close on the house. The average closing process takes 48 days.6 During that time, your real estate agent will help you handle the remaining steps to buying the house, and they'll inform you about any roadblocks.
Get a home inspection and appraisal.
Home inspectors can help you spot potential problems so you can fix them—or walk away from a bad deal! If you still want the house, the appraiser will assess its value. You can use the appraisal to try to negotiate a better price.
Buy homeowners and title insurance.
Lenders require you to buy homeowners insurance, which pays to repair or rebuild your house after a disaster.
Title insurance protects your home from claims against the property or questions of ownership—like the last owner's unpaid tax bill or long-lost grandson who claims he inherited your house. It sounds crazy, but it happens. And it's why title insurance is worth every penny!
Take out a mortgage.
Once you and the seller agree to move ahead with the deal, it's time to return to the lender and get a mortgage. They'll walk you through this process. But I can't say it enough: Don't let them talk you into borrowing more than you can afford! Stick to the 25% rule. Period.
Do the final walkthrough.
Right before you finally buy your first home, you'll get to walk through it and make sure everything's as it should be. This is also your last chance to back out of the deal if something's wrong, so be thorough.
Sign all the papers (but read them first).
You're legally responsible for any papers you sign. Read every document carefully and ask your real estate agent to explain anything you don't understand so you don't end up in hot water.
Whew, you made it! We covered a lot of ground, so be sure to get our free Home Buyers Guide so you don't miss a thing.
Your first home is a big purchase, maybe the biggest one you've ever made! So you want to get this right. A good real estate agent will make the first-time home-buying process much easier.
Want to meet an agent you can trust? Connect with the RamseyTrusted agents in our Endorsed Local Providers (ELP) program. RamseyTrusted ELPs are top-performing agents who will help you find a home that fits your needs and budget.
Homeownership comes with a lot of financial responsibility and a never-ending list of home improvement projects.
But for anyone who pays a mortgage, the good news is that you can deduct several home expenses come tax time — especially if you itemize your taxes — or enjoy other tax breaks as a homeowner.
Here are the top tax tips for homeowners.
While you can no longer deduct the cost of homeowners insurance premiums, you can write off what you paid toward mortgage interest — if you're eligible and you itemize your deductions.
Start by looking at the date you took out the mortgage and how much you borrowed. If you closed before Dec. 16, 2017, then interest is deductible on up to $1 million in mortgage debt (or up to $500,000 if you're single or married filing separately). The limit falls to $750,000 ($375,000 for single and separate filers) if you bought the home after this date.
If you took out a home equity loan or line of credit in 2022, you might be able to deduct the interest paid during the year. But you can only claim this tax break if you 1) itemize your deductions and 2) used the money to buy, build or substantially improve the home.
"Good examples are HVAC (improvements or replacements), remodels, and new roofs," said Dan Herron, a CPA/PFS CFP with Elemental Wealth Advisors. If you're looking to claim the tax break, "do not pay off personal expenditures, like credit card debt," he adds.
If you're eligible, the interest is deductible on up to $750,000 of qualified residence loans ($375,000 for a married taxpayer filing separately), which include your original mortgage plus second mortgages such as home equity loans and home equity lines of credit.
The state and local tax (SALT) deduction allows you to deduct up to $10,000 paid toward your state and local governments ($5,000 for married couples filing separately). Taxpayers can deduct property taxes and either 1) state and local income taxes or 2) sales taxes each year. To claim the tax break, you'll need to itemize your deductions.
"Even though you don't think you will benefit from the SALT deduction, still report the related expenditures," Herron said. "You may still have some deductibility on the state return."
Home prices grew year over year in nearly all metro areas in the third quarter of 2022, making it a good year for home sellers. Even better, those who made a profit on a sale might not have to pay taxes on the earnings. If you lived in your home for at least two out of the five years before selling, then you can exclude up to $500,000 in profits on your income tax return (up to $250,000 if you're single or filing separately).
If you're close to the limit, you can adjust your cost basis by calculating the costs of home improvements. "Keep records of them," Herron advised. "These improvements — think remodels — increase the basis of your home."
If you do have to pay taxes on some of your home sale profits, expenses used for selling your home — such as legal fees, advertising expenses, and real estate agent commissions — can reduce how much is taxable. These costs are subtracted from your home's sale price, which reduces your capital gains tax.
Whether you're a renter or homeowner, your home office may be tax-deductible — as long as you're self-employed. You don't even have to itemize to deduct expenses like mortgage interest, insurance, utilities, repairs, maintenance, depreciation and rent.
If you work for someone else as an employee, you can't claim your home office as a deduction. But the home office "could be deductible for state purposes," Herron said. Also, "you could approach your employer and see if they will reimburse you for some of your home-related expenditures."
The 2022 Inflation Reduction Act "beefed up a lot of credits you could potentially get if you do energy-efficient improvements and/or add solar to the house," Herron said. You can check the federal government's Clean Energy for All website for information and updates. If you plan to make energy-efficient improvements to your home, save your receipts and any documents related to the work so you can claim the credits at tax time. You can claim some of the benefits for tax years 2022, 2023 and beyond:
For tax year 2022: Homeowners can claim a federal tax credit for 10% of the cost of insulation materials and other energy-efficient improvements, such as energy-saving windows and doors. There's also a $300 credit for purchasing efficient heating and cooling equipment.
For tax year 2023: Households can claim up to 30% of the costs for certain energy-efficiency improvements, up to $1,200 each year, plus a $150 credit for getting a home energy audit. You may also get a tax credit for 30% of the costs of buying and installing a heat pump, up to $2,000. States will also launch rebate programs for energy-efficient heat pumps, electric appliances and home retrofits.
Those living in Western Michigan know a thing or two about snow accumulation in the wintertime. Winter weather is a normal part of life, and so is shoveling snow. Although residents in the area have lots of experience, many people forget to take the right steps when it comes to snow removal. Putting off snow removal or doing it incorrectly can actually make it more difficult and can even be detrimental to your property.
To help you manage the next snowstorm, our real estate agents pulled together a list of some of the biggest mistakes people make when removing snow:
Proper snow removal is the key to keeping yourself and your property safe, so we recommend creating a good routine. Contact us today for more landscaping maintenance tips.
Earnest money is a deposit made to a seller that represents a buyer's good faith to make a purchase such as the acquisition of a new home. The money gives the buyer extra time to get financing and conduct the title search, property appraisal, and inspections before closing. In many ways, earnest money can be considered a deposit on a home, an escrow deposit, or good faith money.
In most cases, earnest money is delivered when the sales contract or purchase agreement is signed, but it can also be attached to the offer. Once deposited, the funds are typically held in an escrow account until closing, at which time the deposit is applied to the buyer's down payment and closing costs.
When a buyer decides to purchase a home from a seller, both parties enter into a contract. The contract doesn't obligate the buyer to purchase the home, because reports from the home appraisal and inspection may later reveal problems with the house. The contract does, however, ensure the seller takes the house off the market while it's inspected and appraised. To prove the buyer's offer to purchase the property is made in good faith, the buyer makes an earnest money deposit (EMD).
The buyer might be able to reclaim the earnest money deposit if something that was specified ahead of time in the contract goes wrong. For instance, the earnest money would be returned if the house doesn't appraise for the sales price or the inspection reveals a serious defect—provided these contingencies are listed in the contract.
In general, earnest money is returned to the buyer if the seller terminates the deal but is awarded to the seller if the buyer unreasonably terminates the deal.
While the buyer and seller can negotiate the earnest money deposit, it often ranges between 1% and 2% of the home's purchase price, depending on the market. In hot housing markets, the earnest money deposit might range between 5% and 10% of a property's sale price.
While the earnest money deposit is often a percentage of the sales price, some sellers prefer a fixed amount, such as $5,000 or $10,000. Of course, the higher the earnest money amount, the more serious the seller is likely to consider the buyer. Therefore, a buyer should offer a high enough earnest deposit to be accepted, but not one so high as to put extra money at risk.
A seller may also require ongoing, periodic earnest deposits to have a prospective buyer continue to show good faith during their due diligence process. For example, a seller may require a buyer to make monthly earnest deposits on a fixed schedule over a three month due diligence period. Should the buyer fail to meet any earnest money deposit requirements, the seller may be entitled to bring the property back to market and potentially recover losses via keeping portions of the earnest money.
Earnest money is usually paid by certified check, personal check, or a wire transfer into a trust or escrow account that is held by a real estate brokerage, legal firm, or title company. The funds are held in the account until closing, when they are applied toward the buyer's down payment and closing costs.
It's important to note that escrow accounts, like any other bank account, can earn interest. If the earnest funds in the escrow account earn interest of more than $600, the buyer must fill out tax form W-9 with the IRS to receive the interest.1
Earnest money isn't always refundable. The good news for buyers is in most situations, as long as a buyer acts in good faith, earnest money is refundable. As long as any contract agreements are not broken or decision deadlines are met, buyers usually get their earnest money back. Specific conditions where buyers often get their earnest money back include:
Every situation is different, but broadly speaking, the seller gets to keep the earnest money if the buyer decides not to go through with the home purchase for reasons not specified as part of the contract. For example, if a buyer simply has a change of heart decides not to buy the property, the seller is most likely entitled to retain earnest money proceeds.
Prospective buyers can do several things to protect their earnest money deposits.
Suppose Tom wants to buy a home worth $100,000 from Joy. To facilitate the transaction, the broker arranges to deposit $10,000 as a deposit in an escrow account. The terms of the subsequent agreement signed by both parties state that Joy, who is currently living in the home, will move out of it within the next six months.
However, Joy is unable to find another place of residence by moving day. As a result, Tom cancels the transaction and gets his deposit money back. The deposit money has earned interest of $500 from the escrow account during this time period. Since the amount is less than $600, Tom is not required to fill out an IRS form to retrieve the amount.1
In real estate, earnest money is effectively a deposit to buy a home. Usually, it ranges between 1-10% of the home's sale price. While earnest money doesn't obligate a buyer to purchase a home, it does require the seller to take the property off of the market during the appraisal process. Earnest money is deposited to represent good faith in purchasing the home.
Earnest money gets returned if something goes awry during the appraisal that was predetermined in the contract. This could include an appraisal price that is lower than the sale price, or if there is a significant flaw with the house. Importantly, though, earnest money may not be returned if the flaw was not predetermined in the contract or if the buyer decides not to purchase the house during an agreed-upon time period.
To protect an earnest money deposit, prospective buyers can follow a number of precautionary steps. First, buyers can ensure that contingencies apply to defects, financing, and inspections. This protects the deposit from being forfeited in the case that a major flaw is discovered, or that financing is not secured. Second, carefully read and follow the terms of the contract. In some cases, the contract will indicate a certain date by which the inspection must be made. To prevent forfeiture, the buyer should abide by these terms accordingly. Finally, ensure the deposit is handled adequately, which means that the buyer should work with a reputable broker, title firm, escrow company, or legal firm.
As long as a buyer follows the terms of the contract and adheres to all deadlines agreed to with the seller, a buyer will most often receive their full earnest money deposit(s) back. Should the buyer fail to comply with the agreement, the seller may be entitled to receive some or all earnest deposit funds.
In an agreement between a buyer and seller, there are often a number of contingencies outlined that spell out the terms where a buyer may back out of an agreement. These contingencies include failure of a home inspection, failure to secure financing, or failure to sell a separate existing property.
If the buyer decides to not proceed with the sale for reasons outside of these agreed to contingencies, the buyer is at risk of losing earnest money.
When a buyer and seller enter into an initial agreement to transfer ownership right of property, the buyer is often required to make a deposit of earnest money into an escrow account. There's a number of reasons the buyer and seller can agree to where the buyer can back out of the agreement. However, should the buyer break contract or not meet required deadlines, the seller may be entitled to keep the earnest money as compensation for the break of good faith.
While a nice, clean carpet is often a key component of a comfortable living space, it doesn't take long for it to get nasty. Carpet is a harbor for germs, dust, debris, dirt, and so regular cleaning is important for keeping your family healthy and your home's interior looking good.
A good carpet cleaning routine involves more than just regular vacuuming; however, the process doesn't have to be difficult. Establishing a regular cleaning cadence is key. Our real estate agents pulled together this quick guide to carpet cleaning options so you can help preserve the floors and air quality in your home:
A clean carpet can make a huge difference when it comes to the comfort and air quality of your home. Regular cleanings can also extend the life of your carpet by several years. Contact us today for more home improvement tips.
Did you know hard water can negatively impact your home over time? While it's safe to drink, hard water can lead to many interior problems, which is why our real estate agents recommend addressing it as soon as possible. Hard water is common across much of the US, especially in the Midwest. As a result, it's an issue most homeowners have to contend with. Below, we'll tell you all about hard water and share some simple solutions for treating it in your home
What Is Hard Water?
While most water contains minerals, hard water contains high levels of calcium and magnesium. Water accumulates high levels of these two minerals when it streams through deposits of limestone or chalk. It's usually easy to tell if you have hard water as it often leaves a chalky film on your dishes, or it can even have a strong taste or odor. However, there are also inexpensive hard water test kits available that can tell you for sure.
How Can Hard Water Affect Your Home?
The effects of hard water range from short-term mild inconveniences to significant long-term damage. In any case, it's a good idea to address the issue right away. Here are some examples of the effects hard water can have in your home:
How Do I Treat Hard Water?
The easiest and most common way to treat hard water is with a water softener or filtration system. Some of these systems use negatively charged magnetic beads to collect calcium and magnesium particles while simultaneously allowing water to flow through. Other systems filter out calcium and magnesium from your water while pumping in sodium ions. The later types come with a separate salt tank, and the salt needs refilling periodically; however, the good news is water softener salt is usually inexpensive.
Once the process is complete, the water then flows out of the filtration system and into your home's plumbing. Water softeners range in price, but purchase and installation are usually around $1,500 on average. However, many of these gorgeous Holland homes for sale are already equipped with a water softener.
Eliminating hard water from your house can help you avoid unwanted water stains, unhealthy skin, and plumbing and appliance issues. It's definitely worth the investment. For more home maintenance tips, contact us today.
With so many of us spending summer weekends doing yard work, our real estate agents thought it'd be a great time to share some landscaping tips.
Great landscaping is both an art and a science. We know creating the perfect yard takes time and practice, and it's well worth it. Remember, beautiful landscaping can make or break your curb appeal. Therefore, learning best practices and avoiding mistakes can really help boost your property value and attract attention when it comes time to sell your home.
If you're busy working on your yard this summer, here are some common landscaping mistakes you should try to avoid:
Landscaping can be a fun summer hobby, but it's also essential for maintaining your curb appeal and home value. Contact us today for more landscaping ideas.
Planning to sell your property or refinance your mortgage this year? Our real estate agents usually recommend an appraisal as a good first step. Knowing your home's true value can ultimately help you land more money when you sell (though keep in mind, that the buyer's lender will likely require their own appraisal). An appraisal is also required if you're planning to refinance.
While the home appraisal process is actually fairly simple, it is in every homeowner's best interest to do everything possible to maximize the appraised value. Spending time on home improvement projects can help you realize a higher return. Here are some simple ways you can prepare for your appraisal.
When it comes to a home appraisal, a little extra work can go a long way towards boosting your property value. If you're planning to list your home on the market this year, contact us today.
Sports bars are the perfect place to unwind after a long week and watch the big game with friends. Michigan's best sports bars provide an atmosphere comparable to that of a live event. So if you're looking for a great spot to snack on some wings, drink with friends, and watch your team go for the win, check out our favorite sports bars in Michigan!
Featuring a wide array of food and drink—pretzel pizza with the beer cheese dip comes up frequently—and a 107-inch television backed up by 13 smaller screens to show all the gaming, Jamboozies delivers on the watching and eating. It will even round out the experience with trivia nights, karaoke, and theme events just to round it out.
It's not just the "million 60-inch plasmas" that get people coming in here-though there's no shortage of screens showing games. It's the frequent appearance of actual sports figures from broadcasters to coaches, and even former players, that pop in for a bite and a relaxing evening of sport.
The watchword of the day at Monelli's Italian Grill and Sports Bar is "versatility." Whether at the Portage or Wyoming location, Monelli's is not just a sports bar with plenty of screens—including a nice projector at the Portage location—but it's also a fully functional Italian restaurant. Pizza, pasta, burgers...all the best in sports bar and Italian food are right here to go with your sports viewing. Throw in a substantial array of live tap beers—including beer flights—and you'll have an evening on your hands.
Regarded as one of the best sports bars in Grand Rapids, the Steel Cat Bar focuses on its delivery. Featuring the first Frost Rail system Michigan has ever seen—and at last report, the only such item—a cold drink is top priority for the Steel Cat. It also boasts a Chillrite 32 tap system that serves up draft beer at exactly 32 degrees. That's amazing enough—any colder and it'd be solid—but throw in a wide array of draft options and plenty of live events and Steel Cat will deliver in a big way.
Head to Holland for the Big-E, billed as the "only true sports grill" in downtown Holland. Featuring a staggering array of televisions for game watching, a few playable games—including a claw game—for good measure, and a dizzying array of food choices, it's all about big at Big-E. Throw in such spectacles as over 80 taps of beer and a "video wall" measuring nine feet in height and Big-E will deliver big...in a big way.
Muskegon sports fans have a friend in Booyah's, a sports bar that focuses on the food first. Featuring an array of dishes from burgers and wings to ribs and perch, Booyah's is out to fill up its sports fans just as much as—potentially even more than—entertain them. Naturally, the array of flat screens showing the games off won't disappoint sports buffs, but the sheer variety of dishes on hand here will make Booyah's the match of most any restaurant around.
Michigan's capital, Lansing, plays host to Nuthouse Sports Grill, a sports bar that pushes value. Featuring regular daily specials—Tuesday, for example, features dollar-off drafts and half-off wings—alongside the normal lineup of exciting food and beverage options, the Nuthouse seeks to deliver a value that few can match. From pizza to grinders to even salads, there will almost certainly be something new at the Nuthouse every time you go in.
Leave it to Traverse City to offer up a top-notch sports bar in the State Street Grille. It's a local haven in many senses, offering an array of beers including plenty of Bells, New Holland and Petoskey as well as spirits from the Valentine Distillery and Traverse City Distillery. You'll also be able to get in on what amounts to the Monte Cristo pickle, a dill pickle wrapped in ham and Swiss cheese, then deep fried in a wonton shell. After that, the sports will almost be an afterthought.
One of the most recent additions to the sports bar space in Michigan, Carrolton Township's Merl's Tavern offers an array of choices in food and drink as well as special events. For Cinco de Mayo, Merl's brought out the Cinco de Merl combo dinner featuring beans and rice and a taco, along with $3 margaritas. Add in Team Trivia functions—always fun—and signature drink the Merlixer, which is a combination of wine and vodka along with a suite of fruit juices, and Merl's Tavern will be a great destination.
Not even the Upper Peninsula has escaped the sports bar fondness the rest of Michigan enjoys, and in Marquette lies one of Michigan's best. The 906 Sports Bar and Grill offers plenty of food and drink options, including a full bar. Throw in pool tables and keno for those who want to play rather than watch, and 13 separate televisions for those who prefer watching, and the whole waterfront is covered. Add in a special "country night" every Friday with live performances, and the 906 will deliver a top-notch value for area residents. Just to round it out, the 906 even boasts a view of the Ore Dock, one of the greatest sights in Marquette.
The 2022 housing market looks a lot like 2021: bidding wars abound, houses are getting snatched up in record time, and demand still outstrips supply.
How can home buyers succeed despite the obstacles?
Get creative, say the experts.
Following the status quo when home shopping and making an offer just won't cut it in today's market.
Read on for pro tips that can help you score a deal, outmaneuver your rivals, and achieve your homeownership dreams.
Verify your home buying eligibility. Start here (Mar 23rd, 2022)
Sure, the market is tough. That's no secret. But homes sold at a record pace in 2021 – which means millions of buyers were successful in their quest.
So how did they do it? What tactics can you use to score a home when competing against many other buyers?
"If you want to own a home, and believe that homeownership is a strong financial move for you, then you must be prepared to fight for the available inventory," says Glenn Pizzolorusso, a licensed associate real estate broker with Compass in Connecticut. "Winning a multiple offer situation takes creativity today."
Jay Zigmont, a certified financial planner with Live, Learn, Plan, based in Mississippi, echoes those thoughts.
"Rising house prices require buyers to be smarter about what, where, and when they buy a home. This may require, for example, looking at smaller homes and different locations or buying with a partner to keep the house affordable," says Zigmont.
But being inventive and resourceful doesn't mean you have to go it alone.
Work closely with a trusted real estate agent, or at least a real estate attorney, who can help you devise the right approaches that can help you find and claim the right home. Once you have strong representation lined up, explore each of the following strategies.
Verify your home buying eligibility. Start here (Mar 23rd, 2022)
You don't need 20% down to buy a home. In fact, many buyers can get into a home with as little as 3% or even zero down.
But saving up for a bigger down payment can help your chances of scoring a home in today's competitive market. Remember that the more money you put down, the stronger your offer appears to a seller and the more motivated they will be to accept.
If you're having trouble coming up with funds for your down payment and closing costs – or want to boost the savings your already have – try these tips:
The ability to reduce your spending depends on your current income and financial situation, of course.
But, where possible, experts recommend that you stop eating out, cancel unnecessary subscriptions, shop around for cheaper insurance, choose a less expensive grocery store, and cut out unnecessary spending as much as you can.
These might feel like sacrifices in the short term, but even small changes can make a big difference in your long–term homeownership goals.
There are thousands of down payment assistance (DPA) programs available nationwide and locally that offer grants, loans, and credits to qualified home buyers. To help find DPA programs, check out these links:
Most mortgage loan programs allow you to cover part or all of your down payment using gifted money from a loved one. Note that the donor will need to write a gift letter to the lender verifying that the funds are a gift, not a loan that needs to be repaid.
If your primary goal is to buy a home sooner rather than later, your best bet might be a low–down–payment mortgage. By lowering the down payment bar you can often buy much earlier than if you waited to save 20% down.
Conforming mortgages – the most common type of home loan – have flexible down payment requirements: You could put 3%, 5%, 10%, or 15% down if you don't have the full twenty.
FHA loans are another great option with just 3.5% down. And qualified buyers should look into the government–backed VA and USDA loan programs, which allow 0% down.
Compare home loan options. Start here (Mar 23rd, 2022)
"Locating an affordable property in an area you prefer is the single most important box on the list to check," says Pizzolorusso. "My advice? Find the worst house on the best street and take your time improving it into your own oasis."
Evan Rosenblum, a Realtor with JMG Realty in Los Angeles, has simple advice.
"Look for homes that you can make perfect, not homes that are perfect right now that everyone else is fighting for," he says.
Keep in mind that the prices of homes tend to decrease the further you get from a city center or other similar location. So it doesn't hurt to broaden your horizons and widen your map.
"Look for homes that are technically further away but are a short commute or near public transportation," Zigmont suggests. "You might find considerable savings by adding a bit more to your commute."
If you work from home, you can get more creative about the location.
"Living out in a country area further from a city may save you considerably, while you can still visit the city for fun occasions. Just make sure the rural location you choose has sufficient infrastructure, resources, and amenities, including broadband access," notes Zigmont.
Here's where you'll need to be extra clever and have the right timing.
"Choose a real estate agent or broker who understands game theory and valuation comparables," says Nik Shah, CEO of San Francisco–based Home.LLC. "A quality real estate agent can be the difference between closing the deal or losing it."
"Speed and simplicity will help you with your offer. In this market, you can't wait weeks or even days to put in an offer on something you love," Zigmont cautions. "Know your math going in, and then you can make informed decisions when you find the right house."
For best results, consider these suggestions:
Still no luck finding the right house or cinching a deal? Drastic times call for even more creative measures.
"Find a fixer–upper. You will be able to purchase at below–market prices and improve to above–market prices," says Pizzolorusso. "If you can take an outdated home and bring it into the modern day, you will come out far ahead when it's time to sell."
To make this strategy easier, there are special loan programs that let you finance the home purchase and repairs with a single mortgage. If you're considering the fixer–upper route, look into:
Alternatively, explore hunting for a parcel of land or infill site and constructing a new home on it.
The benefit here is that no one else will be bidding against you on your new home. And you can have it built to your exact specifications.
However, "the problem with this tactic is that building prices are still way too high to make this a wise choice in most markets. You don't want to find yourself upside down on your mortgage upon completion," Pizzolorusso continues.
Or, get a partner to come in on the deal with you as a co-borrower or co-signer on the loan, which can come in handy if you're having trouble qualifying for a mortgage loan or you're worried about affording the costs of homeownership.
"Buying a house with a friend or other person you are not married to is an option, but you need to make sure you have a good lawyer to help on the paperwork," says Zigmont.
Are you ready to get serious about buying a home in 2022?
If so, then it's time to connect with a mortgage lender and get preapproved.
Every prospective home buyer needs a preapproval to learn how much they can afford, which types of mortgage they qualify for, and how expensive their payments will be. Not to mention, your preapproval letter gives you the clout to make a serious offer on a home you love.
Your house isn't just a place to live, it's also a major investment and vehicle for accumulating wealth. While homes generally appreciate over time if you keep them in good shape, there are also things you can do to help generate an extra return when it comes time to sell. At the end of the day, investing in a more livable home is the best way to boost your sale price.
Here are some top recommendations from our real estate agents to maximize your home value:
When thinking of what repairs and upgrades can drive value, put yourself in the shoes of a buyer. Try to imagine what would make your home more comfortable, liveable, and convenient. Contact us today for more home improvement tips.
Holland State Park is well known for its enormous sandy beach on Lake Michigan and Lake Macatawa. Popular among locals and tourists alike, the beach is perfect for any beach activity you like, from sunbathing and volleyball to building sandcastles, surfing, or just relaxing. Holland State Park has two large campgrounds, a number of picnic tables, grills, and fire pits.
It also has beach volleyball courts and a small beach house. If you like to fish, the walkway and pier along the harbor channel are the best spots for it. You can also enjoy watching the passing sailboats, waiting for the sunset, or taking photos of the Big Red lighthouse. There is a concession stand if the kids get hungry from all the activities. Holland State Park Beach is one of the best things to do in Holland, Michigan.
2215 Ottawa Beach Rd, Holland, MI 49424, 616-399-9390
Fun day trip ideas close to me, things to do this weekend, small towns, best weekend getaways: Getaways in California, East Coast beaches, NC quick trip, Romantic weekend getaways
If you love cooking at home, the best way to eat fresh all year long is by cooking seasonally. Seasonal cooking means creating meals and menus around ingredients as they come into season. Seasonal ingredients taste delicious and are less expensive, and the best part is that you're supporting local farmers, businesses, and the community when you add them to your meal plans.
Our real estate agents are big believers in the benefits of seasonal cooking. After seeing some of the amazing kitchens in these Grand Haven homes for sale, we were inspired to create a list of seasonal cooking tips to help you improve the freshness and quality of the food you eat. Here is what we recommend:
Build Your Menu Around What's In Season
The key is to plan your meals based on what is currently in season, not necessarily what's on sale. Take the time to learn what fruits and vegetables are at their peak around Michigan. Here is a quick guide:
Don't Forget To Use Local Ingredients
Purchasing ingredients from local farmers or small businesses is the best way to know exactly what you're eating. Some local supermarkets may sell local products, or you can make a stop by some of our wonderful local farmer's markets. Don't be afraid to ask local vendors and farmers how they grow their crops.
Trust Your Eye And Try Something New
You can often recognize seasonal ingredients at the grocery store or farmer's market. Not only will they be prominently displayed, but they'll look good too. Fruit and vegetables appear bigger and brighter when they're in season. Take a stroll through the produce aisle and see what looks good.
Seasonal cooking is great for both your health and the overall community. For more tips on how to make the most out of your kitchen this year, contact us today.
Yes and no. Mortgage rates reached record lows in early 2021 and have stayed low by historical standards throughout the year even as they fluctuated. However, strong demand for homes pushed prices up and frustrated many potential homebuyers. According to the CoreLogic Case-Shiller Home Price Index, property prices rose by 18 percent between September 2020 and September 2021. Time may be running out to lock in an affordable mortgage because experts predict interest rates will continue to trend upward this year. In many areas of the country, Realtors reported intense competition for homes last year, with some properties getting dozens of offers and going into contract within days of being listed.
That reality has created inevitable concerns about buying at the peak. Home values go up over time, but there is a possibility that prices in some places have hit a plateau.
"I would be careful about buying near the top of the market, especially if I want to be in the home for only a few years," says Ken H. Johnson, a real estate economist at Florida Atlantic University and co-author of the Beracha, Hardin & Johnson Buy vs. Rent Index. "If you look to buy, bargain aggressively and be willing to walk away. Real estate most definitely is a good investment, but don't just buy now because that's what everybody else is doing."
Taking the leap to homeownership can provide a feeling of pride while boosting your long-term financial outlook, if you go in well-prepared and with your eyes open.
When thinking about buying a home, consider whether you want to put down roots or maintain flexibility with your living situation. How secure is your job, and can you comfortably budget for home repairs and maintenance on top of monthly housing payments? Are you ready to stay in one place, and do you have kids or family members to consider?
In normal times, spring is the traditional start of the home-buying season, with many listings typically hitting the market. The market still hasn't quite returned to normal since the coronavirus upended that schedule, however.. This winter should be relatively slow for buying, but with low housing inventory, it will still feel competitive compared to pre-pandemic off-seasons.
At any rate your own financial readiness is more important than the time of year. This means having your finances organized and your credit in order so that you'll be able to smoothly secure a reasonable mortgage.
In addition to a down payment, potential homebuyers should have enough money set aside to cover closing costs, which can range from 2 percent to 4 percent of the purchase price.
When budgeting for your monthly mortgage payment, factor in not only the principal amount and interest, but also property taxes, homeowners insurance, homeowners association fees (if applicable), plus private mortgage insurance if you're putting down less than 20 percent. Don't forget to set aside money for ongoing maintenance and those unexpected repairs that are bound to pop up, too.
Purchasing a home is a major decision that shouldn't be taken lightly. If you're not clear on why you want to buy a house, you could end up regretting your decision.
How to get started: Define your personal and financial goals. "Buyers should think about things like when they intend on moving, what they want in a home (such as) amenities, ideal location and how long it could take them to save for a down payment," says Edwence Georges, a sales associate with RE/MAX in Westfield, New Jersey. "These are all important to help define the goals they would like to meet."
Key takeaways:
Checking your credit score will help you determine your financing options; lenders use it (among other factors) to set your loan pricing and see if you're able to repay your mortgage. The better your credit history, the better the chances you'll have of securing financing with the best terms and rates.
How to get started: You can get your credit report and score from each of the three major credit reporting agencies, Equifax, Experian and TransUnion, for free once a year. Your bank or credit card company might offer free access to your score or credit report, too.
Key takeaways:
Setting a realistic budget for your new home will help inform what you can afford and how much your all-in costs will be.
How to get started: The purchase price isn't the whole picture. Carefully factor in other expenses to determine what you can afford.
"Buyers tend to forget to factor in other costs like (homeowners association) fees and setting money aside for maintenance costs. Just because you can afford a mortgage and a down payment doesn't mean you can afford those long-term costs after you move."
– Paige Kruger, Realtor, Founder, Signal Real Estate, Jacksonville Beach, Florida
Key takeaways:
To avoid private mortgage insurance, or PMI, you'll need to save at least 20 percent of the home's purchase price for a down payment. Some lenders offer mortgages without PMI with lower down payments, but expect to pay a higher interest rate.
How to get started: Research the down payment requirements for the loan you want so you know exactly how much you'll need. If a friend, relative or employer has offered to provide a down payment gift, initiate a conversation early on to learn how much they plan to contribute and if there's any shortfall you'll need to cover — and secure a gift letter from them well in advance, too.
Key takeaways:
Getting preapproved for a mortgage is helpful when you make an offer on a house, and it gives you a firmer handle on how much you can afford.
How to get started: Shop around with at least three lenders or a mortgage broker to increase your chances of getting a low interest rate.
Key takeaways:
Sign up for a Bankrate account to determine the right time to strike on your mortgage with our daily rate trends.
An experienced real estate agent can save you time and money by helping you find your dream home and by negotiating with the seller on your behalf.
How to get started: Contact several real estate agents and ask to meet with them for a conversation about your needs before choosing one. "Someone with knowledge of an area can also tell if your budget is realistic or not, depending on the features you desire in a home," Kruger says. "They can also point you to adjacent areas in your desired neighborhood or other types of considerations to help you find a house."
Key takeaways:
Simply viewing listing photos isn't a substitute for visiting homes in person — with appropriate precautions in the pandemic — and getting to know the neighborhood and its amenities.
How to get started: Let your real estate agent know what specific kinds of homes you want to see, or search for homes online yourself. Your agent can create your profile in the local multiple listing service (MLS), a database of homes for sale, and set up automatic searches for those that meet your criteria. You may not be able to check off everything on your home amenity wish list, so you'll want to prioritize what's most important to you aside from location.
Key takeaways:
Understanding how to make an attractive offer on a home can help increase your chances the seller will accept it, putting you one step closer to getting those coveted house keys.
How to get started: Once you find "the one," your real estate agent will help you prepare a complete offer package, including your offer price, your preapproval letter, proof of funds for a down payment (this helps in competitive markets) and terms or contingencies.
Key takeaways:
A home inspection helps you get an overall picture of the property's mechanical and structural issues. The home inspection will help you determine how to proceed with the closing process. You might need to ask the seller for repairs, or you might decide to back out of the deal if you have a contingency in the contract.
How to get started: You can get recommendations for home inspectors from your real estate agent, but also be sure to do your own homework before choosing one. Depending on your contract and state of residence, you'll generally need to complete a home inspection 10 to 14 days after you sign a purchase agreement. As a buyer, you're usually responsible for paying the home inspector, and while the fees can vary, you'll pay an average of $270 to $400, according to HomeAdvisor by Angi.
Key takeaways:
Your home inspection report may reveal major or minor issues. Major problems will likely need to be dealt with before your mortgage lender will finalize your loan, while minor issues can often wait till you take possession of the home.
How to get started: Enlist your agent's help to negotiate with the seller. Ask for the seller to either do the repairs or give you a credit at closing.
Key takeaways:
Getting final loan approval means you need to keep your finances and credit in line during underwriting. Once you're ready to close, you won't want to open new credit lines or make other major purchases until the paperwork is signed.
How to get started: Respond promptly to requests for more documentation and double-check your loan estimate to ensure all the details are correct so there are no hiccups later. You may need to submit additional paperwork as your lender completes the underwriting process, such as:
Key takeaways:
Also, avoid running up credit cards, taking out new loans or closing credit accounts. Doing any of these things can hurt your credit score or impact your debt-to-income ratio, and that can imperil your final loan approval.
A final walk-through is an opportunity to view the property before it becomes yours. This is your last chance to view the home, ask questions and address any outstanding issues before the house becomes your responsibility.
How to get started: Come with your home inspection checklist and other documents, like repair invoices and receipts for any work the owner conducted, to ensure everything was done as agreed upon and that the home is in move-in ready condition.
Key takeaways:
Once all contingencies have been met, you're happy with the final walk-through and the closing agent has given the green light to close, it's time to make it official and close on your home. In this final step, your lender will issue you a "clear to close" status on your loan.
How to get started: Three business days before your closing date, the lender will provide you with a closing disclosure that outlines all of your loan details, such as the monthly payment, loan type and term, interest rate, annual percentage rate (APR), loan fees and how much money you must bring to closing. At the closing, you (the buyer) will attend, along with your real estate agent, possibly the seller's agent, the seller, in some cases, and the closing agent, who may be a representative from the escrow or title company or a real estate attorney. This is also the time where you'll wire your closing costs and down payment, depending on the escrow company's procedures.
Key takeaways:
Once all of the paperwork has been signed, the home is officially yours and you'll get those house keys. Congratulations! Now comes the fun part: moving in and making the house your home.
4 Tips for Buying a Home in 2022
There are plenty of good reasons to buy a home -- financial stability, building equity in a place of your own, and not having to follow a landlord's rules. If you're eager to buy a home in 2022, here are four important tips to help make that happen.
Home prices have soared this year due to high buyer demand and limited housing inventory. Come 2022, those circumstances could remain unchanged. It makes sense to research different neighborhoods in advance and see which ones have home prices within your financial reach.
Some buyers embark on a home search before looking at numbers. But it's better to take the opposite approach -- first figure out where you can afford to look, and then start driving out to see different homes in person. If you go the opposite route, you might fall in love with a home or town you can't afford.
Chances are, you don't have the money to buy a home outright next year. Rather, you'll probably need a mortgage. The higher your credit score is, the more likely you'll be to get approved not only for a home loan, but for an affordable interest rate as well.
You can boost your credit score in a number of ways. First, make sure to pay all of your bills on time. Next, if possible, pay off a chunk of existing credit card debt, especially if you're carrying a high balance relative to your total credit limit across all of your cards. Finally, check your credit report for errors and correct those that could be dragging your score down.
Because home values are so inflated, you should expect to pay up in 2022. And if you want to avoid private mortgage insurance (PMI), you'll need to bring a 20% down payment to the table for a conventional loan. If you don't have that much saved yet, work on boosting your cash reserves. A good way to do so is to get a side gig on top of your main job.
Though housing inventory may pick up in 2022, there's no guarantee that will happen. It could also take months for enough inventory to hit the market to satisfy buyer demand. That's why if you're aiming to buy a home next year, you'll need to prepare to duke it out with other buyers. Now is a good time to read up on different strategies for winning a bidding war.
One step worth taking in this regard is getting a mortgage pre-approval letter. That sends the message you're a serious home buyer whose finances have already been vetted. And it may prompt a seller to accept your offer over a comparable one.
Though 2022 may end up being a challenging year to buy a home, there are steps you can take to increase your chances of success. Be sure to check off these boxes if your goal is to become a homeowner over the next 12 months.
Chances are, interest rates won't stay put at multi-decade lows for much longer. That's why taking action today is crucial, whether you're wanting to refinance and cut your mortgage payment or you're ready to pull the trigger on a new home purchase.
Our expert recommends this company to find a low rate - and in fact he used them himself to refi (twice!).
Here are the main costs to consider when saving for a home:
Down payment: Your down payment requirement will depend on the type of mortgage you choose and the lender. Some conventional loans aimed at first-time home buyers with excellent credit allow as little as 3% down. But even a small down payment can be challenging to save. For example, a 3% down payment on a $300,000 home is $9,000. Use a down payment calculator to decide a goal, and then set up automatic transfers from checking to savings to get started.
Closing costs: These are the fees and expenses you pay to finalize your mortgage, and they typically range from 2% to 5% of the loan amount. You can ask the seller to pay a portion of your closing costs, and you can save on some expenses, such as home inspections, by shopping around.
Move-in expenses: You'll need some cash after the home purchase. Set some money aside for immediate home repairs, upgrades and furnishings.
" MORE: How to save money for a house
Figure out how much you can safely spend on a house before starting to shop. NerdWallet's home affordability calculator can help with setting a price range based on your income, debt, down payment, credit score and where you plan to live.
Your credit score will determine whether you qualify for a mortgage and affect the interest rate lenders will offer. Take these steps to strengthen your credit score to buy a house:
Get free copies of your credit reports from each of the three credit bureaus — Experian, Equifax and TransUnion — and dispute any errors that could hurt your score.
Pay all your bills on time, and keep credit card balances as low as possible.
Keep current credit cards open. Closing a card will increase the portion of available credit you use, which can lower your score.
Mortgage selection tips
A variety of mortgages are available with varying down payment and eligibility requirements. Here are the main categories:
Conventional mortgages are not guaranteed by the government. Some conventional loans targeted at first-time buyers require as little as 3% down.
FHA loans are insured by the Federal Housing Administration and allow down payments as low as 3.5%.
USDA loans are guaranteed by the U.S. Department of Agriculture. They are for rural home buyers and usually require no down payment.
VA loans are guaranteed by the Department of Veterans Affairs. They are for current and veteran military service members and usually require no down payment.
You also have options when it comes to the mortgage term. Most home buyers opt for a 30-year fixed-rate mortgage, which is paid off in 30 years and has an interest rate that stays the same. A 15-year loan typically has a lower interest rate than a 30-year mortgage, but the monthly payments are larger.
Many states and some cities and counties offer first-time home buyer programs, which often combine low-interest-rate mortgages with down payment assistance and closing cost assistance. Tax credits are also available through some first-time home buyer programs.
The Consumer Financial Protection Bureau recommends requesting loan estimates for the same type of mortgage from multiple lenders to compare the costs, including interest rates and possible origination fees.
Lenders may offer the opportunity to buy discount points, which are fees the borrower pays upfront to lower the interest rate. Buying points can make sense if you have the money on hand and plan to stay in the home for a long time. Use a discount points calculator to decide.
A mortgage preapproval is a lender's offer to loan you a certain amount under specific terms. Having a preapproval letter shows home sellers and real estate agents that you're a serious buyer, and can give you an edge over home shoppers who haven't taken this step yet.
Apply for preapproval when you're ready to start home shopping. A lender will pull your credit and review documents to verify your income, assets and debt. Applying for preapproval from more than one lender to shop rates shouldn't hurt your credit score as long as you apply for them within a limited time frame, such as 30 days.
" MORE: Get preapproved for a mortgage
A good real estate agent will scour the market for homes that meet your needs and guide you through the negotiation and closing process. Get agent referrals from other recent home buyers. Interview at least a few agents, and request references. When speaking with potential agents, ask about their experience helping first-time home buyers in your market and how they plan to help you find a home.
Weigh the pros and cons of different types of homes, given your lifestyle and budget. A condominium or townhome may be more affordable than a single-family home, but shared walls with neighbors will mean less privacy. Don't forget to budget for homeowners association fees when shopping for condos and townhomes, or houses in planned or gated communities.
Another option to consider is buying a fixer-upper — a single-family home in need of updates or repairs. Fixer-uppers usually sell for less per square foot than move-in ready homes. However, you may need to budget extra for repairs and remodeling. Renovation mortgages finance both the home price and the cost of improvements in one loan.
Think about your long-term needs and whether a starter home or forever home will meet them best. If you plan to start or expand your family, it may make sense to buy a home with extra room to grow.
Check out potential neighborhoods thoroughly. Choose one with amenities that are important to you, and test out the commute to work during rush hour.
A lender may offer to loan you more than what is comfortably affordable, or you may feel pressure to spend outside your comfort zone to beat another buyer's offer. To avoid financial stress down the road, set a price range based on your budget, and then stick to it.
Look at properties below your price limit to give some wiggle room for bidding in a competitive market.
" MORE: How to make an offer on a house
Online 3D home tours have become more popular amid the COVID-19 pandemic. These tours let shoppers virtually walk through a home at any hour and observe details that regular photos don't catch. They don't supply all the information in-person visits do — like how the carpets smell — but they can help you narrow the list of properties to visit.
Open your senses when touring homes in person. Listen for noise, pay attention to any odors and look at the overall condition of the home inside and out. Ask about the type and age of the electrical and plumbing systems and the roof.
" MORE: How 3D home tours work
A home inspection is a thorough assessment of the structure and mechanical systems. Professional inspectors look for potential problems, so you can make an informed decision about buying the property. Here are some things to keep in mind:
Standard inspections don't test for things like radon, mold or pests. Understand what's included in the inspection and what other inspections you might need.
Make sure the inspector can get to every part of the house, such as the roof and any crawl spaces.
Traditionally the buyer attends the inspection. By following the inspector around you can get a better understanding of the home and ask questions on the spot. If you can't attend the inspection, review the inspector's report carefully and ask about anything that's unclear.
You may be able to save money by asking the seller to pay for repairs in advance or lower the price to cover the cost of repairs you'll have to make later. You may also ask the seller to pay some of the closing costs. But keep in mind that lenders may limit the portion of closing costs the seller can pay.
Your negotiating power will depend on the local market. It's tougher to drive a hard bargain when there are more buyers than homes for sale. Work with your real estate agent to understand the local market and strategize accordingly.
Your lender will require you to buy homeowners insurance before closing the deal. Home insurance covers the cost to repair or replace your home and belongings if they're damaged by an incident covered in the policy. It also provides liability insurance if you're held responsible for an injury or accident. Buy enough home insurance to cover the cost of rebuilding the home if it's destroyed.
Nothing gets our real estate agents in the holiday spirit quite like DIY holiday crafts. Holiday crafting is not only a great opportunity to spend time with friends and family, but it also is a chance to create some beautiful holiday decor that you can use to liven up your home for the holiday season. If you're looking for some creative ideas before heading out to the craft store, here are our four most popular DIY holiday craft ideas:
Before you start crafting, don't forget to set the holiday scene. Turn on some nice Christmas music, turn on all the lights, and light a fire in the fireplace. It's the perfect way to spend a chilly December afternoon.
For more tips on holiday decor, contact us today.