3 Ways to Build Home Equity Faster

Buying a home is one of the most important decisions you’ll ever make. A good home is an investment and a great place to raise a family. It’s also a relaxing and safe place to spend time in at the end of the day. As a result, it’s vitally important to do everything you can to increase the value of your property.

The best way to utilize your time in your home is to increase home equity. Home equity is essentially the current value of your house with any amount owed on it subtracted. Obviously, you want this to be as big as possible.

There’s a number of ways and strategies to build home equity faster. These usually revolve around increasing the value of a house and paying off a mortgage quicker.

One of the easiest ways to build home equity faster is to just pay off your mortgage sooner. Each month you’re paying the mortgage, you’re just paying more interest to the lender. Getting off mortgage payments means money is now going towards your net worth.

Some ways to pay off a mortgage faster include rounding up. Pay a little extra each month so this money will go straight to principal and boost your equity. Send any gifts and work bonuses into your mortgage and budget for extra payments to pay things off quicker. Otherwise, opt for a shorter mortgage length to pay things off quicker and boost home equity.

Another way to build home equity is to just buy a cheaper house. It’s going to take longer to build equity on a pricey home. Cheaper houses will come with smaller mortgages that can be paid off quicker, and you might even be able to place a bigger down payment on a cheaper house as well. When buying a home, consider these factors during the buying process to help you build equity faster.

Click here to learn how long you should wait to buy a second home!

A third way to build home equity faster to simply make a larger down payment. Putting down more money will help you immensely down the road and get you more home equity. Most people put down about 20% of a home’s value, but you can look at your finances and see if it’s possible to do more. Remember, every dollar counts when it comes to building equity.

Keep these three strategies in mind if you’re trying to build equity in your house. It might seem hard to put down more money now, but it will pay off in a big way down the road, especially when it comes to your financial health. Home equity can also be built through a variety of improvement projects that are targeted towards improving value, while also keeping everything in good condition.

Even if you feel like it might be too late to start building equity, rest assured that it’s not. In fact, starting later is always better than not starting at all. Sit down to figure out what’s financially feasible and keep the above three tips in mind while doing so.

Do you have a question about building home equity? Click here to contact Stacy and Nicole today!

Courtesy of Cuselleration

How Long Should You Wait to Buy Another Home?

Homes are always a good thing to have, no matter if you have a family of your own or are single. But it can be very tempting to go out and purchase another one for a number of reasons.

Maybe you are looking to move to a new area, or would just like some more space for a growing family. Overall, there is no set timeline about how long you should stay in one spot before moving to another. It will all depend on your individual circumstances.

Still, it is important to mull over a number of aspects before making the switch to a new home.

What Should I Be Thinking About Before Moving?

The biggest aspect on your mind should be finances. It is important to consider how much you could sell your current house for, and how much money you could set aside to purchase another one, or at least be able to pay a mortgage.

It can be tempting to ‘live above your means’ and buy a home that stretches your finances, but bigger houses will come with additional expenses relating to heating, cooling, and general upkeep than smaller ones will.

Some people will have the financial resources to quickly buy another house, while others will be on a much longer timeline if they are trying to work out finances.

The amount of time before buying another home will also be heavily influenced by the market in your area. If you are looking to buy in a seller’s market, you might want to wait a little bit until things change so you could get a better deal. You will have to think about how important these types of factors are and if they are going to influence when you will buy another home.

Click here to learn tips for preparing your home before moving in!

This is where a good real estate agent comes in, since they will have access to a wealth of experience and market data to give counsel about the optimal times to sell and buy.

Another important aspect when trying to decide when to buy another house is based upon the actual moving process. It can be very expensive to move a family far away, especially since you will have to find new jobs and schools for the kids. There is no set timeline on these types of decisions, as they all hinge on the individual circumstances related to you (or your family).

What Are Some Things to Watch Out For?

Even if you are looking to sell quickly and move somewhere else, there are a number of situations where you should probably wait to sell. For example, if you just moved to your current house, having to move again will probably stretch your budget. It would then be best to wait a little bit to save up some money for a move.

Additionally, do not be prompted to sell due to unfamiliarity with the area, especially if you just moved in. These types of feelings are usually temporary, and will go away once you get used to the surrounding area.

A situation where you are taking a loss or ‘breaking even’ on the sale of your current home is another factor that should encourage you to buy at a later date. These types of scenarios often make it harder to get financing on your next home, which can drastically affect your next buying experience.

Are you thinking of buying or selling a home in the Orange County area? Click here to contact the Stacy and Nicole team today!

Courtesy of Cuselleration

How to Buy a Home Faster and Smarter

Are you looking to buy your home in Orange County? The home-buying process can take up to six months, a year, or even longer. Wouldn’t it be nice to finally own your home as soon as possible?  Here are some tips to how you can buy your dream home faster and smarter.

But first, ask yourself these questions:

1. What type of home am I looking for?

2. Do I have a good enough credit score to buy a home?

3. Do I have any debt that can potentially affect my home-buying process?

4. Do I qualify for a mortgage?

5. What type of mortgage would best suit me?

Answering these questions will allow you to assess whether you are ready to begin and go through the home-buying process as well as understand what bumps might come into the road. Once you have the answers for these questions, you are ready to begin the home-buying process.

Be on Top of Tracking New Listings

Once you know what you are looking for in your home search, being tracking down new listings that meet the needs and wants you have for your dream home. You can even sign up for automated emails with your local agent to stay on top of all the listings that pop up and fit your needs. Being on top of new listings is a good strategy for having an edge over other buyers because it shows sellers that you are able to potentially make an offer before another buyer sees the listing.

Look For Down Payment Assistance

Did you know that homebuyers could qualify for over 2,200 different down payment assistance programs that are offered nationwide? These assistance programs were created to help homebuyers by providing low-interest loans, grants, and tax credits. Homebuyers who sought out down payment assistance in the past have saved an average of $17,766 between upfront savings and lower mortgage payments throughout the life of their loan. Homebuyers can become eligible for down payment assistance by meeting requirements such as income, occupation, or credit.

Make Sure Your Finances Are in Order

Closing times for the home-buying process nowadays are getting longer and longer. A recent report by Ellie Mae, a software company that processes almost a quarter of U.S. mortgage applications, revealed that it now takes 50 days on average for a buyer to reach closing while it took 40 days in 2015.

In order to close faster in the home-buying process, make sure your finances are in order by getting pre-approved for a home loan before submitting an offer on a property. This is why it is important to assess your finances and financial capabilities before starting the home-buying process. A mortgage pre-approval involves a lender running a credit check and verifying a buyer’s income and assets.

The home-buying process may seem difficult, but it is possible to get through it quickly and smoothly. If you have any questions or if you need any help, contact us today!

 


 

Courtesy of Cuselleration

Photo Credit: Shutterstock/Andrey_Popov

How to Make Money Flipping Homes

There is a lot of money waiting to be made in flipping homes. You can go from 0 to 100 in a matter of days. All you need to have is the power of persuasion. But it comes with a lot of other different factors that you need to consider and capitalize on in a very short time. So, your main goal is to first look for a distressed seller, then to find a desperate cash buyer who will ensure that the deal comes to a quick close and you make your profit out of it all. You only need to be persuasive and convincing enough to catch the buyer’s attention and interest in the seller’s home. So, all this starts with finding the right buyer.

1. Identify the right markets
You need to ensure that you know the right markets. Finding the hottest markets in the real estate business at all times will be your first step towards finding out where the relevant buyers are putting their cash. But at the end of the day, knowing the right market for the buyers could be what separates you from heading home with a big check to the bank or empty-handed.

2. Identify the right location
You also need to identify the right location. A home at the right place means where you are not only going to buy the home at the best possible price, but where the relevant buyer is going to be willing to buy the house from you at your stipulated price.

3. Identify the right property
Scour the internet, the MLS and everything you can, through the real estate channels and find the right property. Look for the vacant and distressed homes that are about to fall into repossession or on short sales and make your move. All you need to do is start from somewhere and keep searching until you get the right property. Ask around from your neighbors, and even the real estate agents and keep an eye out for anything that may interest you. You may catch a lucky break.

4. Identify the right buyers
This is the point where you need to line up your buyers and here is where you can even categorize them from the relevant buyers to regular buyers. The relevant buyers are the buyers who have a higher chance of making any purchase. Do your magic and see which one of your buyers pan out. Here is where you start making some crazy money.

5. Identify the right sellers
This point might be a bit tricky since finding a vacant house may sometimes not be as simple as you might think. You may end up doing a lot of searching, digging through the web, and asking a lot of questions here and there and still end up short of finding any vacant home. But even if you do, you still need to come to some sweet deal with the home seller and agree on an amount that beneficial to both parties; especially you.

Do you have a question about flipping homes? Click here to talk to the experts at Stacy and Nicole today!

Pros and Cons of All-Cash Offers

It is without a doubt that you will have no trouble finding the perfect home if you have an all-cash offer up your sleeves. Even home sellers will be planning sweet deals to offer you if you pass by their homes as this usually means that you have the cash to seal the deal and purchase their homes.

Typically, all-cash home buyers have close to all the advantages over the home buyers with mortgages simply because the there is usually no guarantee that the home buyers with mortgages will get you the balance. A lot of obstacles can end up getting in the way and even interfere with regular monthly mortgage payments. The best thing about an all-cash home buyer is that all these doubts and inconveniences are squashed; it is similar to a no-strings-attached deal.

All-cash deals are usually quite common; it’s not only seen among the super-rich within the community nowadays. When you dig a little deeper, you will notice that a good portion of this 29% is not among the wealthy.

But you need to keep in mind that an all-cash move is not always the best move for every occasion. This article will help you determine whether you should go for an all-cash deal or opt for a mortgage route instead.

Should you go for an all-cash sale?
Here is one simple fact to everyone reading this. Just because you have the cash and know you can afford to purchase the property doesn’t mean that it is always the best way to go. Making an all-cash deal comes with its merits as well as demerits that you need to peek into before you stash a significant amount of your cash into that brand new expensive home.

The pros of going for an all-cash offer

  • Tough sales markets – You may want to make an all-cash offer when you realize that a bidding war is going on for that new home or condo that you want to buy. An all-cash offer will help you cut through the competition like a knife through butter.
  • Strong negotiation stance – An all-cash offer will also give you an added advantage over the negotiation stance for the home that you plan to purchase. You will be able to force the home sellers to drop from their initial asking price to an amount that can suit you.

Faster processes
All-cash offers will also make the whole process of purchasing and acquiring a new home faster compared to applying for a mortgage. This deal comes with less paperwork and almost no delays at all.
The cons of going for an all-cash offer

  • You will put a lot of money into one asset when you can diversify and use it in other things.
  • Your liquidity can also be drastically limited if you go for an all-cash deal.
  • You will also miss out on significant tax deductions like a tax break, which homeowners with mortgages get.
  • You may even stand a chance of investing your money better elsewhere, maybe a business.

Do you have a question about all-cash offers? Click here to contact the experts at Stacy and Nicole today!