...HOME BUYING It is not hard to do By Owning a home is one of the most rewarding purchases in life to go through. People are often intimidated of purchasing a home, and instead often-waste money by renting property, that have no equity to give in return. Home buying can be a clear-cut experience, by using precise financial planning, helpful real estate agents, and knowledge of what to look for in a home. Creating a realistic budget is a great first step towards buying a home. Many homebuyers and even homeowners make the oversight of not living on a budget. There are many financial obligations that come with home ownership such as mortgage payment, taxes, homeowner’s insurance, electric, gas, sewage and water. These are all bills on top of personal finances that are necessary and must be created into the budget. When setting out to buy a home there will come into question about what is affordable and where should the price range be. There is an old school rule of thumb to give an idea of what is in the buyer’s price range, and that is to multiply the yearly gross salary of the buyer by two and a half times. That will provide a general guideline in terms of what can be afforded. The method used today by real estate agents is complied from credit scores and debt-to- income ratios. A debt-to-income ratio is a comparison between the amounts of money earned each month, and the amount spent on various debts. These ratios use gross monthly income, which is the amount earned...
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...Buying a home in order to build credit and stability is one of the main financial reasons prospective buyers jump into the market. At least that was a major factor prior to the financial crisis of 2008, when the U.S. housing market suffered widespread losses. I being a homeowner along with prospective homeowners may now look more closely at the costs and benefits of such a large transaction. The effects of the housing crisis may have prompted a more cautious approach by buyers who are more realistic about the level of credit and stability they can build in their homes, the drive to be a homeowner remains strong. It's mostly about freedom: The ability to paint the walls whatever color you want, or know that a landlord is not going to raise your rent or ask you to leave. Here are a few points to consider when deciding whether homeownership or renting makes better sense for you. Home Ownership: * Ownership, Stability and the future of owning a home, along with financial gains; * Family, Children and belonging to a community; * Control over decisions you make with the property; * Job concerns; stability, commute Renting: * Cheaper than owning; * The freedom of movement if opportunities arise; * Utilities are included at times; * Bad credit; While a home is a good investment, let's face it, you have to live somewhere. Many financial experts caution against purchasing a home simply as an investment. Historically, real estate market increases have...
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...The decision to purchase a home is one of the most important decisions a person can make. A person should think about the decision and analyze every aspect that comes along with it, prior to the medium of exchange. The economy should be a major thought in the decision making process. The economy is not in the best shape, so to know if the decision to purchase a home is the right one a person must analyze his or her situation and a weigh his or her options. In addition, a home comes with some serious consequences if the owner cannot meet the terms of the agreement. Every person looking to purchase a home will be different; however, they face the same challenges in this economy and the same reasoning. I believe a person should be educated on purchasing a home and know his or her options. Knowing all options that are available is important because it can possible reduce, the output a person has to pay. For example, there are first time buyer programs. HUD options, and loan types (fixed or an adjustable rate mortgage). Being educated about purchasing a home can make a difference between a good loan and a bad one, receiving the best rate and being happy with the purchase. Once the person analyzes his or her situation a decision to purchase a home can be made. The reward to owning a home is accomplishment; however there are consequences that a person must face if he or she does not make their mortgage payment. When a person makes a decision to purchase and have done the...
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...Involved During The Purchase Of Our Home 1/25/2015 Class: Proj-595 Professor: Dr Madireddy [Type the author name] • INTRODUCTION In the spring of 2013 my family embarked on a new adventure. We moved 2800 miles from San Diego CA. to Franklinton NC. because of a promotion I accepted with my company. This was a very exciting and frightening time of transition for my family. There were many changes we had to make as well as some very important decisions to make. The biggest decision and question we had to make and answerer was are we going to buy a home or are we going to rent? Once the decision was made we were going to buy a home many questions and decisions had to be made and many risks had to be addressed. The risks we had to address when looking at purchasing a home include financial risks and environmental risks. • RISKS INVOVLED DURRING THE PURCHASE OF OUR HOME Home buying is a very exciting experience. Whether you are a first-time buyer or an experienced owner, buying a house requires a "preflight check," in the words of Barry Zigas, director of housing policy for the Consumer Federation of America. (Dratch) Before doing any risks assessments we first had to put down the home purchase into a pros and cons diagram to see if this was something we were willing to take on. With that decided we then proceeded to look at the risks involved. As my family experienced and statistics have shown that owning a home is not without risks and there...
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...I’ve gotten used to the idea of renting, having lived in three other homes for the last five years. I wanted to buy a house for several years, but only if it is an ideal situation that will benefit me and my future family. I wanted to be more than ready when I decide to explore the idea of home buying as I don’t want to buy a nightmare at the expense of home ownership. This is how I imagine myself when that time comes. I’M DEBT-FREE and have SAVINGS This is a big decision so I imagine that when the times comes that I decide to buy a home for myself, I am financially stable and debt-free. Being debt-free means I tasted how good it felt to not owe money to anybody. So, if I will apply for a mortgage, it would have to be one that will not kill...
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...Proj 595 - Risk Paper 1 Pm595 Risk Paper: Buying a new house Project Risk Management Professor: James Reckon Authored: Michael Arcoli December 18, 2015 TITLE: Purchasing A HOUSE TABLE OF CONTENTS INTRODUCTION RISKS IDENTIFICATION RISKS RANKING MATRIX RISKS MONITORING CONCLUSION REFERENCES * INTRODUCTION Whenever considering a major purchase in life one must carefully consider the risks associated with making these purchase decisions. These decisions should be treated as projects in such a way that proper planning, analysis, risk assessment and contingency should all be aspects of the purchase process whether formal or informal. In this paper, I will discuss about a project that many people are familiar to: buying a new house. Few years ago, I moved to a new area and was trying to decide whether or not to purchase a new house, and if so, where should I buy it. I also considered if I should buy a preexisting new house or hire a builder for a new house. Every option had its own set of potential risks. If I continued to rent, was this really just throwing away money. If I purchased a house, could I afford it and was I buying the best house for me and my family? I approached it like any other project, with interviewing people, note collecting, collating, and interpreting the data. After reviewing my expenses and income and examining the tax advantages, I decided to buy a house but knowing that several risks may accompany my decisions, these...
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...A New House- Decision XECO212 June 8, 2013 Don MacLean A New House- Decision “Home ownership matters.” Does it? I mean, there is nothing written in stone that says we ALL have to own a home. Growing up I always felt a sense of security knowing that I would always have the same bedroom, the same backyard, and the same house. Many of us probably think of that when we consider buying a home. Some of us want that sense of security. We want to lay down roots, so to speak. Others are perfectly content with renting. I had a friend say to me that he would much rather rent and not have to worry about repairs and everything else that goes with owning a home. He did not want the added responsibility of owning a home. Whatever your reasoning might be, I am sure most of us have at least thought about home ownership once or twice. I am at a point in my life where I have been seriously considering buying a home. I have been saving over the past few years and I have also been clearing any past debts that I had so that I do not have extra bills to pay. I want to be financially secure before considering taking that next big step. Most people think like I do. They consider the financial aspect of buying that new home and like to prepare themselves financially before entering into that commitment. While preparing myself financially, I have taken into consideration some of the principles of economics that will help me prepare financially for this next...
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...There are many specialists behind the scenes that make it possible for you to purchase your home including – realtors, inspectors, title insurer, insurance agent, appraiser, and the attorney. On your mortgage team, you will meet your processing specialist, while the underwriter, closer, and any other investors or government agencies that might be involved in your loan process are working on your file. The normal mortgage loan process takes between 30 and 45 days from application to closing. When you begin planning for a home purchase, you will need to meet with a banker and get pre-qualified, then find just the right home, obtain your mortgage financing and complete all of the home inspections, and close on your new home. You will start the complete purchasing process with a trip to the bank to speak with a loan officer to get pre-qualified, which consists of going through an interview and documentation process. The banker will ask questions such as whether this will be your first home, primary residence, or whether you have a house to sell before you plan to close on a new one. The bank will require you to fill out a mortgage loan application. You will need to supply the bank with pay stubs and other income documentation, bank statements and retirement statements, picture identification, and your social security number among other things. Then the lender will review all the information that you have provided and help you to determine how much money you can borrow and what your...
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...Apartment versus Buying a Home Composition II / 156 March.20, 2011 Outline for my Essay Why should we buy a home vs. rent an apartment? There are a lot of factors to consider for both. There are a lot of steps to finding out what you would want if you buy a home and if you rent an apartment. The factors can be overwhelming and yet very important. So the first thing you need to do is get all of the information that you are looking for and put it down on paper. Then you need to weigh the pros and cons of them. Just to make sure you understand what it is you have gain and give up for each type of dwelling and how you want to own it. You also want to look at the financial part of it as well. Make sure you can afford what you are looking for or look for what you can afford. In the end you will be able to logically decide on what to do with your dilemma. So there are many factors however there are also the benefits and what you want to be responsible for and not be responsible for. So the choice is up to you and only you can make it happen. I am just giving you the information to make an educated decision. I rented for years before my husband and I decided to buy a home. It came years after and when our daughters were elementary age. I enjoy being a homeowner however I also enjoyed renting cause of not having to worry about doing all the stuff the apartment complex had to do because I paid rent. This is just a scratch on the surface of the renting vs. buying dilemma...
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...Reserve is one government body that has an effect on the housing market. The Federal Reserve is in charge of monitoring the economy and has the ability to rise and lower interest rates on loans and mortgages to keep the economy balanced. When interest rates are high, the total purchase of a home is higher because more interest is being paid on the mortgage. Interest rates have to be considered because they are included in the mortgage payments which makes payments higher and raises the total investment in a home. Federal banks can affect mortgage rates and housing prices because they have the opportunity to also determine interest rates that will affect mortgage rates. Congress also has the authority to make policies such as the $8,000 tax break for buyers purchasing a home to help assist in the financial burden of a new home purchase. There are also other discounts for first time home buyers and assistance when you buy a home through HUD (Housing and Urban Development) or FHA (Federal Housing Administration.) With the economy the way it stands today, there is a good supply of homes at low prices to be purchased and interest rates are lower and it would be a good time to consider purchasing a home if your employment is stable enough to withstand the time frame for the economy to pull back into shape. A mortgage is a long term commitment and one has to take careful consideration of housing cost and interest rates and making sure the purchase is affordable, not in just the next year...
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...Annotated Bibliography Tesa S. Malone EN 116: Speech Herzing University The article in Renting Versus Buying a Home, states that when considering buying a home, determining the annual rent to the purchase price ratio is very important. As far as taxes go when becoming a homeowner mortgage interest and property tax can be deducted from your taxes. Although the author is anonymous, this source is credible because it is recent and scholarly. (Renting versus buying a home. (2015)....
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...The Advantages of Buying a House over Renting an Apartment Com/172 The Advantages of Buying a House over Renting an Apartment Buying a house for most is the American dream, but with today’s economy many people are unsure if the dream can be obtained. The main concern for most people would be the financial responsibility. Many people believe that the financial responsibility is overwhelming and they are just not ready. Although some people believe they are not financially ready to purchase a home, buying a house is a better option than renting an apartment for three main reasons. First, becoming a first time home buyer can be a very exciting experience that can have a positive long-term effect on some one’s life. Second, a home buyer can make any modifications or changes to a home. Third, and most important, you will eventually own your home. With those three examples, I will show the advantages of buying a house over renting an apartment. The first advantage to buying a home verses renting an apartment is that first time home buyers usually receive incentives or rewards for being first time home buyers. If the home buyer is purchasing a newly built home, usually the builder will give little incentives such as appliances in the home, a gift card to purchase new items for the home or even interior upgrades to the home. In recent years, there was a huge increase in the home buying market. This was the first time home buyers tax credit approved by the federal government...
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...New House Sean Monahan XECO/212 07/31/2011 Phillip Post New House When buying a house I will have to consider many things about the pros and cons of either buying a house or renting a bigger apartment and which would better suit my financial situation at the time. Do I have the saving and financial stability to afford a home right now in today’s market? If I can afford a house what are my limits for payments and the new house price that I can afford? These are few of the questions I needs to think that would suit my situation. I will go over each of these in my paper explaining how to look at each of these things when buying a house. There are few principles that would come into play when thinking about buying a new house such People face tradeoffs. When buying a house I may have to give something’s in order to buy a house that I want. It may have to not go on that family vacation or even not go out every week to a dinner with my wife. I must look at the things that are things that I like or want to do and give them up for things that I need or need to do to get what I want. The second principles ties right into the same things as principle one, the cost of something is what you give up to get it. I need to look at what I am giving up and is it worth what I am going to get in return. In the third and fourth principles bring together another whole aspect of buying house also. Will it be beneficial to my family if I buy a house now or will it be better to wait for...
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...The Process of Buying a House Whitley Alexander Central High School Most people want to be the owner of their own house one day, but buying a house is not that simple. There are many processes and steps to buying a house before you can call it your own. The government and taxes play a very important role in this process. Before buying a house, you have to make comparisons about the homes that you think are best for you. The first step to buying a house is starting your research early. As soon as you can, start reading newspapers, magazines, and search on websites that have real estate listings. The next best idea is to take notes of specific homes you find interesting, and keep track of how long they stay on the market....
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...approaches to address both the core values and norms of the American culture and unique market behaviors, values, and norms that may be specific to other subcultures. In the case study, “Tapping the Ethnic Housing Market,” Fannie Mae evaluated ethnic groups to determine the different perceptions associated with the home-buying process (e.g. reason to purchase a home, knowledge about the overall purchasing process, and confidence in the process). The case study will discuss the opportunities and challenges facing housing lenders and real estate agents today based in the perceptions of each ethnic group. Analysis “Ethnic subcultures are those whose members’ unique shared behaviors are based on a common racial, language, or national background,” (Hawkins & Mothersbaugh, 2010, page 158). The Fannie Mae case study analyzes the different perceptions of the home-buying process among the general American population, African Americans, English Hispanics, and Spanish Hispanics. When considering the first factor, home-buying reasons, a small amount of every population saw ‘Safe Investment with Potential’ as the key reason to purchase a home. The top reasons to purchase a home were identified as ‘Renting is Bad’ (general population) and ‘Feeling of Ownership’...
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