Budgeting Basics for First-Time Home Buyers

 

You wouldn’t dream of going somewhere you’ve never been before without first getting directions. So, why would you go through life without a plan to help meet your financial goals?

“An ongoing household budget is essential, whether it’s helping you save for retirement or buy your first house,” says Eric Hamilton, president of Vanderbilt Mortgage and Finance. “A budget can help you avoid common mistakes along the way by helping you live within your means while planning for the future.”

If you’ve never had a budget before, you may be unsure how to begin. Building a budget can be easy as long as you follow a few simple steps:

* Establish your financial goals. Do you want to be debt free? Buy a new home? Build an emergency fund? Save for retirement? Setting financial goals can help guide the budgeting process.

* Determine your total monthly household income. This should include net income (the final amount of take-home pay after all taxes and deductions) for every working member of the household, including any government aid received, child support, alimony, pensions, etc. Knowing the total income gives you a starting point for your budget.

* Calculate your monthly expenses. It may be helpful to break expenses into categories, such as home, utilities, long term debt, medical, auto, groceries and personal. Personal can include items like clothing, entertainment, dining out, etc. It is helpful to review your cash spending, bank statements and receipts over the past few months to give you a better idea of your spending habits. Check with your bank for tools offered, such as online banking or a mobile app to track of spending on the go.

* Identify where you can reduce spending. After you’ve assessed your spending habits, you might be surprised to find areas where you can cut back. Small changes in your lifestyle can make a big difference to your budget. For example, instead of buying lunch every day, you could take your lunch to work or school.

* Less spending means saving more money. Be sure to set aside these new freed-up funds and allocate them toward your goals. If you’re trying to save for a new home or down payment, view your personal savings as a must-pay fund that’s as important as your rent or car payment.

* Periodically reassess your budget. Life is full of changes, such as fluctuations in income and shifting priorities. It’s important to go back over your budget from time to time to help ensure you are on track to achieve your financial goals. (BPT)

 

How Much Time Should You Spend Viewing Homes?

Figuring out how much time you should spend viewing properties for sale is a little like asking, “How long should I spend trying on shoes?” The answer seems obvious: As long as it takes to make a decision! Buying a home is significantly more complex than purchasing shoes – and the stakes are higher too! You need to make sure you have all the information necessary to confidently make the best decision. There are basically three stages to viewing a property:

1. Macro

2. Micro

3. Professional

When you view a home on a macro basis, you’re looking at it from an overall perspective. For example, you may do a general walk-through to get a first impression and determine if the property has the basic features you need, such as the number of bedrooms and the size of the backyard. Macro viewing is often the fastest stage in the viewing process and can sometimes take just a few minutes.

If you like what you see, then it’s onto the micro stage. At this stage you take a closer look at the details of the property. You might, for example, spend extra time in the master bedroom imagining how your furniture would look and fit. The micro stage takes longer simply because the home is now on your shortlist. You’re interested and are considering making an offer.

Finally, the professional stage involves getting a qualified home inspector to go over the property with a fine tooth comb. That typically occurs after you’ve made an offer. As your REALTOR®, I will guide you through a viewing so you’ll know what to look for and can make a smart, informed decision. Call today.

New home improvement trends to strengthen your property investments

New home improvement trends that strengthen your property investment

6 home improvement trends to update your stale space

(BPT) – When you’re in the process of buying or building a home, you’re constantly researching trends and technology that will set your home apart. Fast forward a few years and you probably don’t have your finger on the pulse of home advancements like before.

It’s good you’ve settled in to your home, but a lot can change in just a handful of years. If you’re finally thinking about finishing the basement, updating the kitchen or investing in landscaping, there’s probably a lot of new processes and products available since you’ve last been in the market.

Get up to speed by learning about the top home improvement trends that are getting lots of attention in 2016:

Air quality
Homeowners are taking action to improve indoor air quality by choosing smart products like AirRenew drywall boards that clean the air. Ideal when remodeling or finishing basements and bathrooms, these boards feature the industry’s first formaldehyde-absorbing technology. That means they actively remove volatile organic compounds (VOCs) from the air, converting them into a safe compound that improves indoor air quality. VOCs are prevalent in bathroom spaces due to personal hygiene products like hair spray and the use of cleaning chemicals. Plus, the M2Tech technology in AirRenew is moisture and mold resistant, which is excellent for bathroom and basement spaces where these conditions often thrive.

Acid stained concrete
Homeowners are looking beyond concrete’s core strength and durability to discover its beauty when treated with acid staining techniques. Specialty stains are used to add stunning depth and color that closely mimics stone, including marble. Perfect for basements and patio spaces, concrete experts pour the slab and then after it has cured, return to apply the stain treatment. The result is completely customizable and often closely resembles upscale applications at a fraction of the cost.

Durable drywall
As technology continues to advance at a rapid pace, homeowners need the option of mounting and remounting the newest televisions, speaker systems and other home electronics. By thoughtfully selecting drywall, you can say goodbye to anchors and stud finders for good. Habito drywall allows builders and homeowners to create spaces that provide easy mounting of fixtures up to 30 pounds. Visit HanginWithHabito.com to learn how you can hang a TV or piece of art without anchors and feel confident it’s secured to the wall.

MDF cabinets
Medium density fiberboard (MDF) is a high-grade, composite material that is used to create cabinetry for kitchens, bars and bathrooms. Made from wood fibers and resin, MDF is dried and pressed to create an incredibly durable material. Homeowners are choosing MDF cabinets because they do not expand and contract like solid wood, which means it better withstands seasonal changes in temperature and humidity.

Acoustics
Today’s approach to home design goes beyond appearances to look at how the spaces affect every one of the senses. Homeowners in particular are paying close attention to the acoustics of a home. Knowing how sounds can be manipulated and controlled within a house is important for functionality and livability. A professional can assist in the details of acoustics design, but basic features that best control sound are insulation, ceiling material and flooring design.

Smart spaces
High tech knows no bounds because more homes are incorporating smart spaces into each room. These are special areas where you can store and charge devices so that they are always operable. For example, a drawer in the kitchen will have built-in USB chargers. The cabinet in your master bath will hold and charge your tablet. The living room built-in will feature a smartphone dock. Personal technology continues to grow and today’s home is growing with it.

To learn more about today’s most innovative drywall options, visit CertainTeed.com/CleanTheAir and HanginWithHabito.com.

From “Can’t” to “Can” for first-time home buyers

Helping first-time home buyers get from ‘I can’t’ to ‘I can’

(BPT) – Finally! The economy is improving, interest rates are low and many consumers now find themselves in a great position financially to become a first-time homeowner. There’s a small problem though for some locations around the country – the booming real estate market is resulting in rising home prices and increased competition for the most desirable properties.

The S&P/Case-Shiller national home-price index recently estimated that 2016 prices are within four percent of the peak in 2006. In some areas, low inventories around the country are making the situation even more challenging.

These conditions are introducing first-time buyers to common challenges and frustrations while searching for their dream home. “Don’t get discouraged,” says Travis Peace, executive director of mortgage at USAA Bank. “Buying a home requires some fortitude and the process intimidates many -not just those doing it for the first time.” As a result, Peace says it’s easy to concentrate too much on home buying “can’ts” rather than “can-dos,” and he offers this advice on how to overcome some common barriers.

“I Can’t” No. 1: I can’t figure out the home-buying process.

Peace notes that it’s essential to do research and to be equipped with basic information, but also be willing to ask for help when needed. For example, an experienced real estate agent can keep a buyer apprised of everything from area sales trends to the latest changes in state and federal laws that could impact a mortgage application.

“This is where experienced, licensed professionals can help,” Peace says. “Real estate agents can be an advocate for the buyer throughout the entire process.”

In addition, free tools like USAA’s Real Estate Rewards Network can connect buyers with an agent and even provide rewards based on the sale price of the home.

“I Can’t” No. 2: I can’t find the perfect home for my family.

Finding the perfect home may not be realistic, but shoppers can find the right home. Personal situations will dictate buyers’ ability to wait for a home in a particular neighborhood or design style to come on the market, but not everything has to be left to chance.

Peace says the key is to set realistic expectations and not fixate on negatives that can be changed. “Whether it’s the number of bedrooms or distance to work or school, it’s alright to have some non-negotiables. However, buyers should be willing to be flexible on things that can be relatively easy to change, like paint colors or landscaping.”

“I Can’t” No. 3: I can’t afford a 20 percent down payment.

Putting 20 percent down on a home has become more of a guideline than a rule. Today, not being able to put 20 percent down does not mean buying a home is out of reach. Peace notes that depending on a buyer’s financial situation, there may be a responsible way to get into your new home without putting 20 percent down.

Government-sponsored loan programs from the Federal Housing Authority, Fannie Mae and Freddie Mac provide loan options that require down payments as low as three percent. Veterans Affairs (VA) loans don’t require any down payment. While those programs are often great options for consumers who qualify, Peace notes that buyers should keep an eye on their potential total monthly payment.

“Some of these loans include fees and private mortgage insurance (PMI) that could significantly impact your overall cost,” Peace says.

Even private lenders are offering more competitive loan options. For example, USAA Bank’s Conventional 97 loan allows borrowers to acquire a mortgage with only three percent down and the bank pays the PMI costs.

Scott McEniry, a USAA member, recently moved into his new home with the help of the Conventional 97 loan. “It felt like a lifeline had been thrown to me as suddenly a house purchase was within reach again,” McEniry says.

Whether a house-hunting novice or seasoned expert, Peace underscores that being informed, getting the right help and having a healthy dose of determination are the best ways to turn a dream home into a reality.

Simple tips to save money and conserve energy as the heat rises

(BPT) – With temperatures – and therefore, electric bills – on the rise, American homeowners are looking for the most effective ways to make the biggest dent in their energy bills; however, many may be overlooking some of the most important energy-saving strategies.

Homeowners are more likely to do simple things around the house to conserve energy, according to the Lennox Home Energy Report Card Survey. Those simple things may include changing air filters in a heating and cooling system on a regular basis, unplugging electronics when not in use and turning down the temperature setting on a hot water heater.

While these activities can certainly help save energy and money, Jennifer Franz, an energy efficiency expert at Lennox, a home heating and cooling manufacturer, says homeowners need to take a close look at how they heat and cool their homes if they truly want to make a substantial dent in their energy bills.

“More than half of a home’s energy costs comes from heating and cooling the house,” says Franz. “If you can heat or cool your home more efficiently, then you’ll be well on your way to seeing lower energy bills.”

The first step is to have a professional evaluate the age, performance and efficiency of your heating and cooling system. The Lennox survey found that only slightly more than half of homeowners (51 percent) had taken the proactive step of replacing an old, inefficient heating and cooling system with a new, energy-efficient model, yet doing so can dramatically help conserve energy and reduce utility bills.

Franz says if the air conditioning system is more than 10 years old or the furnace is more than 15 years old – the average life spans of cooling and heating equipment – then it’s time to consider replacing the aging unit with a new high efficiency system.

Energy-saving technologies

Significant advances in energy-efficient technologies have enabled homeowners to save hundreds of dollars a year on their energy bills. One example is the Lennox SunSource Home Energy System – a solar-powered central heating and cooling system – that uses energy from the sun, collected from roof-mounted solar modules, to reduce the electricity consumed by a high-efficiency heat pump or air conditioner.

When the SunSource heating and cooling system is not in use, the solar energy can operate other appliances and electronics. Any excess energy that’s not needed is sent back to the utility company, possibly entitling the homeowner to a credit on their utility bill.

Other energy-efficient ways to cool and heat a home

In addition to replacing an old heating and cooling system, Franz says there are a number of other ways to make heating and cooling your home more efficient. She offers the following energy-saving tips:

* Seal cracks around windows and doors with caulk or weather stripping to prevent indoor air from escaping.

* Keep blinds, shades and curtains closed during the day in the summer to block sunlight from entering the home, but open them up in the winter to naturally warm the house.

* Install a smart thermostat, which can be controlled via an app from anywhere at any time, to adjust the temperature based on when residents are at home or away.

* Add extra insulation to the attic, which will help prevent your home’s heating and cooling system from having to work harder to regulate the indoor temperature.

Just Listed!

 

New listing at 3599 Twin Oaks Drive provides a great Browns Valley opportunity! This home is situated on a large corner lot and is ready for your personal stamp! The single level home with four bedrooms and two fulls baths offers 1,568 sq. ft of living space with living room, fireplace, and formal dining area. The spacious backyard is an open canvas for you to channel your inner creative spirit! Plenty of room for your garden projects and ample space for a pool or outdoor entertaining area. Listed at $599,000.

 

Not-So-Obvious Reasons to Meet with a REALTOR®

When is the best time to meet with a REALTOR®? Chances are, you would say, “When I’m thinking of buying or selling a home.” You’d be right, of course!

However, there are many other good reasons to meet with us. Here are just a few:

• You want a professional opinion as to the current value of your property, so you know what it would likely sell for in today’s market.

• You notice a home listed for sale in a desirable neighborhood, and you’re interested in learning more — even if you’re unsure you want to make a move.

• You’re thinking of moving within the next couple of years, and you want to find a REALTOR® like us, that you can get to know and trust.

• You want some recommendations for preparing your home for sale and especially determining what repairs and other work needs to be done.

• You want an honest assessment as to the state of the local market, and the best time for you to buy or sell.

• You have real estate-related questions and you want to talk to an expert who knows the local market well and can provide you with answers.

As you can see, there’s a lot of value you can get from talking to us as your REALTOR®. Call today.

Just Listed!

We are pleased to introduce this newly listed home at 3126 Stallings Drive in Napa!

This welcoming 4 bedroom, 2.5 bath home is complete with brand new flooring and interior paint. Gas fireplace with custom surround trim and adjacent kitchen offering the open concept and high ceilings you may be looking for. Custom mirror wall in the formal living room, central heating and air, three car garage, plus large backyard ready for your landscaping touches, room for pool and garden.