Homeownership has been decreasing in the United States since 2006. While some people might speculate that the American Dream no longer includes a house of one’s own, this doesn’t seem to be the case. According to CNN Money, it’s not that people don’t want to buy but that they are worried about money. If you want a house of your own, you don’t need to let finances stand in the way. Read on to learn how you can succeed in finding and affording your dream home.

Assess your financial capabilities

Don’t enter the real estate market blindly. Before you start searching, get a handle on money matters. Look at your savings, investments, and income, and consider how much you can realistically afford in terms of a down payment and mortgage. To get a great mortgage rate, you’ll need a solid credit score, and have to prove employment and income stability. Your debt-to-income ratio is another factor lenders will consider.

Once you have some idea of what you can afford — which should take into account the amount you’ll pay to cover the closing costs — you can take a look at listings to see if your financial capabilities match the market. Use an online tool like Redfin to get started. You can search different geographic locations. Keep in mind prices vary depending on factors like neighborhood and size.

Find a reputable real estate agent

Although online tools are a great way to get a feel for the market, when it comes to actually finding a property, put your trust in a reputable real estate agent. Realtors have professional experience and knowledge that will simplify the process. They can guide you through everything from finding the property to closing the deal. 

To find a compatible agent, look locally. You want a professional who is well acquainted with your area’s market. The internet is a good place to start your search. Reatlors should be members of the National Association of Realtors, which means they have pledged to follow the NAR Code of Ethics. 

Take the time to view properties in person

It’s easy to fall in love with glossy professional photos of perfectly staged real estate online. If you want to get an accurate impression of what your future home is really like, however, it’s imperative that you visit it in person. An open house is an opportunity for potential buyers to get an inside look at a property. 

When you visit an open house, don’t just look—ask questions. This is a chance to get valuable information via the current owners. If you have kids, you can ask what the area is like, whether it’s child-friendly, and if there are schools nearby. You can also request details about the property itself, like whether recent renovations have been made and how much the utilities tend to cost. These details allow you to make a more informed decision when buying.

Prepare for your move well in advance

It may take some time but, eventually, you will find a place that you love. Once your future home is secured, don’t delay planning your move. Tackle one room at a time so that your entire house isn’t in disarray. Start with rooms you use less often, like the family room, and save those you use the most—like the kitchen—for last. Pack boxes on a room-by-room basis and note how many boxes there are for each room to avoid losing track of any. If you need moving assistance, hire a moving company well in advance (it costs an average of $80 to $100 per hour to get professional assistance with a short distance move, for example).

Buying a home is exciting but it’s also nerve-wracking. This is understandable, as it’s a large financial investment and personal commitment. With these tips, you can be confident in the process and be sure it will run smoothly.

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The post A Step-By-Step Guide to Purchasing a Home appeared first on The COLLINS TEAM.

Graduation is fast approaching for many Northern Arizona University students here in Flagstaff. The natural next step after graduation (or hopefully a bit before) is to start planning for your future. That future may include a bit of travel, perhaps “popping the question” to that special someone, pursuing a new career path, or planning the purchase of your first piece of Flagstaff real estate. Especially those who are graduating with their Masters Degrees or other Graduate Degrees may have fallen in love with Flagstaff and may be looking to buy now. If that’s you, or you’re just curious about homeownership down the road a bit, here are a few advantages to buying your first home.

Take Advantage of First-Time Homebuyer Loans

Don’t have a huge amount saved for a large down payment? Haven’t established the best credit yet? An FHA (Federal Housing Administration) mortgage is insured by the FHA and therefore is less restrictive when it comes to loan qualifications. Often these loans also allow smaller down payments around 3.5%, non-occupying co-borrowers, and sometimes grants from the government, charities or nonprofits. You may qualify for and FHA loan if you are a first time homebuyer or haven’t owned a home for 3 years. Contact a qualified mortgage professional like the team at Academy Mortgage for up-to-date information and guidance.

Taxes: Deduct the interest you pay on your mortgage & more

Tax season just ended, and for many of us, that wasn’t a pleasant experience. For a lot of people owning a home can make the tax season a little less painful! The home mortgage interest deduction is one of the most well-known tax advantages for real estate owners. There are a few stipulations, but most first time home buyers will qualify for this tax deduction. At the end of the year the amount of interest you paid towards your mortgage will be reported on a 1098 form from your lender. This can be especially helpful for first time buyers who often will be paying more interest than principal in the first few years.

Low-income first time buyers may qualify for subsidized interest programs

Some people who qualify as low-income can qualify for subsidized interest programs. These programs allow you to pay only on the principle of your mortgage. This makes your payment more affordable and able to be paid of quicker. These programs are usually subsidized by the US government, but for those of you who prefer to avoid the help of “Big Brother”, other charities, organizations and individuals can also subsidize interest.

Ready to begin your search for homes for sale in Flagstaff? Contact The COLLINS TEAM today to help you understand the process! 928-774-3392

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The post Graduation Season: Advantages to being a First-Time Home Buyer appeared first on The COLLINS TEAM.