Mortgage News, Homebuying Tips and Advice

2012 Residential Predictions

Residential real estate predictions for 2012 are positive, in spite of the slow pace of the economic recovery and the financial challenges and financing hurdles that many homeowners face. In fact, analysts believe that the housing market recovery has already begun and is under way. Obviously the specifics vary depending on what part of the country you’re in, but one realtor’s report makes the following predictions for the housing market in 2012, some of which make it an excellent time to buy:

Tax Implications

Buying an investment property can be a great way to create extra income, boost your net worth and plan for retirement. But investment properties also carry different tax implications than regular residential real estate properties. If you’re thinking about buying a rental property for investment purposes, make sure you understand the tax consequences.

Energy Savings Tips

In many parts of the country, January and February are the two coldest months of the year. If you haven’t already examined your home for energy efficiency, now is the time to take steps to improve your heat retention and save money on your heating costs! Things like drafty windows and holes around doors are obvious, but there are some less obvious tricks to keep you warm this winter!

You're Fired

In a perfect world, you’d find the right people to help you buy a home from the beginning. You’d get the right real estate agent, the right lender and the right lawyer without skipping a beat. In the real world, though, sometimes things don’t happen so smoothly. Occasionally you might find the wrong person to help you navigate the home-buying process. Don’t just live with your mistake; these people are helping you make one of the biggest decisions of your life. Don’t be afraid to fire your team members to give you the best chance of finding the perfect home and getting the best deal you can.

Ask Questions

As a homebuyer, you can do a lot of things to prepare yourself for the home-buying process. You can read books and research information online. You can talk to friends and family about the buying process. But don’t forget to tap into the most important resources you have – your team of home-buying professionals. Don’t hesitate to ask questions if there’s anything you don’t understand during the home-buying process. Your team of professionals is there to help you make the right decision, and you can’t make the right choice without understanding every step in the process.

Decisions

Buying a home is a difficult balance in so many ways. On the one hand, you don’t want to miss out on a great home deal, and may feel pressured to make a quick decision or snap offer to get the home you think you want. On the other hand, though, you may not want to bid on the first home you see for fear you’re missing out on a great home down the road. The pressure can be exacerbated by overzealous realtors or brokers. Take a stand for your rights, and don’t be forced into making a home-buying decision before you’re ready.

Bad Credit Myths

This is one of the most pervasive real estate myths, and it’s one of the single biggest hurdles that prevent many potential home owners from taking the step of buying a home. While it’s true that having bad credit can make it more difficult to obtain a mortgage, it’s absolutely not true that you can’t buy a home with bad credit. If this is the only thing holding you back from buying a home, consider these facts and re-evaluate your stance:

Myths Debunked

When buyers are shopping for a home, many of them enlist the aid of a real estate agent to help find appropriate homes to view, and help with the purchase process. If you’re thinking about working with an agent, don’t make the mistake of thinking that all real estate agents are equal. This simply isn’t true. Real estate laws vary by state, and some professional organizations hold real estate agents to a higher level of ethics and standards. Know what you’re getting when you hire a real estate agent – not all agents are equal.

If your budget for a new home is tight and you worry that you can’t afford a home in your price range, consider buying a multi-family home. With a multi-family home, you have all of the benefits of home ownership, including things like a yard, driveway, basement and house, but you can also have tenants helping you pay for that home. If you want the lifestyle of a home without the sole financial burden of home ownership, a multi-family home might be the right choice for you.

According to a report by the National Association of Realtors, the top reason that people sold homes in 2011 was due to job relocation. However, sellers also sold because the home was too small, or because they wanted to be closer to friends and family. Some sellers were also selling because of changes in family situation. Why sellers are moving can give you important insight into the sellers, and may also help you find a great deal.