March 2019
How to Find the Perfect Neighborhood
By David Hakimi
Location, location, location. Half of buying a home is finding where you want to live. You may have found your dream house, but it might not be in your dream location.
Here’s how you can find the perfect neighborhood:
Check It Out Online
Look up what people are saying about the neighborhood you’re interested in. Do people actually enjoy living there? What do they like and dislike about it?
Google the crime statistics for the area; safety should be top of mind. If you have kids, look up schools in the area. How are they rated? Social media platforms like Facebook and Nextdoor also offer a great window into the ins and outs of your potential neighborhood.
Scout It Out
Literally. Do drive-bys, and do them at different times of the day to get a feel for the neighborhood. Is there a soccer field or baseball diamond close by? You’ll want to know before it’s too late whether cars will be lined up on your street every weekend. What’s that nearby intersection like during rush hour? Is there a grocery store close by? The more questions you can answer before moving in, the more confident you’ll feel when it’s time to put down an offer.
How Far Is Your Potential Home From Your Job?
A long commute has the potential to become an everyday stressor. If you take the bus, look up the route and times. If you drive, check out the route during your normal commute times on Google Maps.
Do Your Research on Property Taxes
Property taxes greatly differ from one region to the next and could majorly impact your cost of living. Do your due diligence and make sure you can afford the area you want to live in. Check out other costs of living while your at it—think utilities and food prices.
April 2019
Down Payment Dilemma: How Do You Know How Much to Put Down On A Home?
Down Payment For many prospective home buyers, the down payment is the most daunting hurdle in the race to buy a home. Even for people with decent credit and a healthy paycheck, the down payment can be the great homeownership killer.
The big question for all prospective buyers is: how much should my down payment be? Most lenders will tell you that 20 percent is the standard, but is that really necessary?
The short answer is no, but of course there are some caveats.
“It’s a myth that all homebuyers must have a 20 percent down payment to buy a home,” says Nancy Herrera-Siples, a Riverside, CA, branch manager at Primary Residential Mortgage. So why all the fuss over having 20 percent to put down? “Because if you don’t, it usually means you’ll have to shell out money for either private mortgage insurance (PMI) or government insurance, which is usually financed by the Federal Housing Administration,” according to Herrera-Siples.
Still, when a low down-payment is your only option to buy a home, PMI might literally be a small price to pay. Remember that PMI goes away eventually when your loan balance is 80 percent or less of the home’s value. If you’re in an area where homes are rising in value, this could happen sooner than you think.
Still confused about the ins and outs of down payments? Here are a few reasons to go high… or low.
When to make a substantial down payment:
When you’re looking to keep your monthly payment as low as possible and have cash to spare.
When you’re approaching retirement age and can envision a reverse mortgage sometime down the line.
When the interest rate is lower with a higher down payment. “The more you put down, the better position you are in for negotiating a lower interest rate,” says Credit.com.
If you’re worried about being underwater. If the market should drop in your area, you run the risk of owing more than your home is worth.
When to go low:
When you don’t have the funds for a higher down payment and can’t earn or borrow them quickly enough.
When the rate on your FHA or Fannie or Freddie loan is comparable to that you’d get with a higher down payment.
When you need to escape a high-rent situation and the monthly payment on a house is lower than what you’re currently paying, even with the PMI factored in.
When you’re confident your home will appreciate quickly, allowing you to refinance and get rid of PMI quickly.
Items provided by Julia Cordos, Keller Williams Realty Realtor
