When comparing home prices in an active market you need to remember that the true cost of ownership is more than the purchase price. You cannot really make an informed decision until you are able to understand and estimate the total cost of owning your chosen home.
The true cost of ownership is not just the mortgage payment but the sum of many expenses that impact what you will actually pay while you live in the home. Without a way to estimate and quantify theses additional costs of ownership, you could be making a mistake when selecting a home for purchase. A systematic approach is needed to help you see the big picture. In addition to mortgage payments, the following are some of the cost elements that should be considered in order to estimate the full cost of a home:
Home Value Appreciation – this can be affected by location (neighborhoods), amenities, curb appeal, features, age, contemporary nature of the home, etc. A lower estimated appreciation rate based on these factors as compared to other home options represents an actual cost to the owner when it comes time to sell the home.
Maintenance and Repairs – these costs can vary significantly and are affected by the age of the home, roofing, mechanical equipment, appliances, exterior materials, flooring, etc.
Utility Costs – these costs are affected not only by local utility rates and costs of city services, but of equal or greater importance are home’s insulation values, heating and air conditioning system efficiencies, the quality of the windows, weatherproofing, solar panels, etc.
Upgrades – costs for desired or necessary upgrades to bring the home in compliance with your expectations should be well understood and possibly added to the mortgage in order to avoid large out-of-pocket expenses just after buying a home.
Taxes – rates can vary somewhat by area and should be estimated.
Insurance – rates may vary based on the home’s location, age, roof condition, extent of remodeling done, proximity to water, availability of emergency services, etc.
Landscaping and yard care – the need for new or improved landscaping and fencing should be factored into your home cost analysis. The availability of secondary water can have a big impact on landscaping maintenance costs.
Storage – a lack of storage space in your home of choice can result in additional ongoing costs for offside storage facilities and should be factored into the home’s total cost.
If you just add together the home ownership costs that have been listed, they can begin to approach the value of mortgage payments. So, one must consider that the impact a selected home has on these expenses is almost as important as the price of the home itself. This means that the true cost of ownership could be higher for a home that is actually selected on the basis of a lower price, with fewer of the features that the buyer wanted! Until the buyer can see the whole picture an informed decision cannot really be made, and an informed decision is the best way to avoid buyer’s remorse. Wasatch Associates – Integra Realty will help you estimate the total cost of ownership and see more clearly which house is truly the right house for you.
HOW TO GET PRE-QUALIFIED TO BUY A HOME (GET THE FREE TUTORIAL)
House hunting can be little more than wishful thinking until you really know that you have been qualified to buy. If you are seriously considering a home purchase and you haven’t taken this important step to determine your buying power, you should do it now. It’s easy to do and we’ll tell you how. Once you’ve determined how much you are approved to spend, you can search the market to fulfill your dream of home ownership with a greater sense of direction and higher level of confidence in reaching you goal.
There are other benefits to pre-qualification you should consider. When you’re pre-qualified, you’ll find that your real estate agent can provide you with a higher level of focused support. You’ll have more negotiating power with house sellers. And when the right opportunity comes along, you’ll be ready to act.
With the free How to Get Pre-Qualified to Buy a Home tutorial, you’ll see how quick and easy it is to start your house hunting in earnest. In the tutorial you will learn:
Just click the Email Me or Contact Me button above and you’ll be sent the free “How to Get Pre-Qualified to Buy a Home” tutorial. Happy house hunting!
How Can I Know How Much My Home Is Worth?
If you are planning to move to another area and need to sell your home, or if you’re just thinking about buying a new house, knowing the market value of your current home is probably on your mind. You need a dependable home value assessment in order to focus your search on a price range you can afford and to avoid wasted time and last minute surprises.
There's no need to delay your focussed search. You can quickly determine your home’s value with a Comparative Market Analysis (CMA) performed by a trained realtor, at not cost. Using an up-to-date database of comparable sales in your area along with educated allowances for those features that make your home unique, your realtor can provide you with an accurate home value assessment and give you suggestions for maximizing your home’s market value. Not only will an accurate home value assessment help direct your new home search, it will also help you to avoid leaving money on the table or missing the right buyer when the time comes to sell your house.
This time of year is an excellent time to start the process. Make contact with a realtor now and get ready to start your new home search in earnest.
HOW TO GET PRE-AUTHORIZED FOR A HOME
Contributing Author – Brent Porter, Loan Officer – Utah Mortgage; BPorter@UtahMtg.com
Now that you are serious about entering the market to buy a new home, the first important step in the journey is to complete the pre-qualification and loan pre-authorization process. Knowing how much you are qualified to spend will save you and others valuable time and resources as you focus your search on homes that are within your financial reach. This will also help to increase your house hunting confidence and effectiveness. If you are not sure how to get pre-qualified, this tutorial is for you.
Pre-Qualification and Pre-Authorization:
Pre-qualification is fast and easy, and it should be free. Simply choose a lending institution that specialized in home loans and ask to speak with a loan officer. Check with family, friends and work associates for lending company recommendations. Real estate agents may have the best ability to direct you to the best lending firms based on past experience. They will be eager to help.
By making a phone call to the right loan officer, you can get an initial assessment of your home purchasing power in as little as an hour, but certainly within a day.
Pre-authorization will allow you to go into the housing market knowing that you are actually pre-approved to buy a house up to a specified amount. Unlike the pre-qualification step, the pre-authorization approval will require formal documentation to support the pre-qualification assumptions. Once the documents are submitted, the pre-authorization process should only take a few days to a week if you are working with the right lending institution.
How Long Is My Pre-Authorization Valid?
Your pre-authorization is good indefinitely unless something changes in your personal financial situation! If something significant does change, you will need to notify the loan officer and go through a re-evaluation process. For this reason, pre-authorized house hunters are strongly advised against the following actions during the house hunting process:
Choosing the Right Lending Institution:
Having the right lending institution can make a big difference in your home buying experience and your ability to complete the loan approval process in a timely way. Here are some questions you can ask before you start the pre-authorization phase:
When Should I Get Pre-Qualified?
Can I Buy a House?
The chances that you can qualify to buy a home are probably better than you think. If you are not sure, don’t just wonder about it or assume the worst. Let your lending institution answer this question as part of the quick, easy and free pre-qualification process.
Getting Additional Help
If you need help choosing a home Mortgage Company and with knowing who to call, a real estate agent may be the best one qualified to provide you with recommendations that will get the pre-qualification efforts started off in the right direction. A good agent should be happy to make recommendations with no obligation. Once the process is complete, they will also be able to help, at your request, with a targeted search for the home that is just right for you.
For questions or help with the pre-qualification process just click on "Contact Me" above, or you can phone or text us at (801) 791-9671.
Possible Pre-Authorization Document Requirements
The exhaustive list below covers a wide range of borrowers and many of the points noted may not apply to your own case. Your loan officer will help determine the document requirements that are specific to you, answer your questions and guide you through the process.
If you own or have a significant amount of equity in your home and you are at least 62 years of age, you can now use that equity creatively to buy a second home as part of your investment strategy. Under the terms of a reverse mortgage, you can take a large part as a lump sum amount that can be used to buy a second winter or summer home. Now you can realize the benefits of a second home with very little or no out of pocket costs. In addition, your net worth could benefit from the combined of appreciating values of the second property and of your existing home (since the future appreciation of your home accrues to you as a part of a typical reverse mortgage agreement). Consider the following example:
Your existing home is valued at $300K. As part of a reverse mortgage let’s say that you take $175K as a lump sum to buy a condominium in St. George. The balance of the reverse mortgage ($125K) provides you with a monthly income that can be used for expenses, bills, investments, etc. As we noted, you are still the beneficiary of any appreciation that accrues to the value of your first home. In addition, your new $175K property is also appreciating! So effectively, the total property value appreciation you realize is being compounded while you enjoy the benefits of a second home for you and for your family.
It is no wonder that the popularity of reverse mortgages is increasing as a sound strategy for purchasing a second home and increasing the quality of life for home owners and their families.
CLICK ON THE EMAIL ME or CONTACT ME BUTTON TO RECEIVE A COMPLETE, EASY TO UNDERSTAND REVIEW OF REVERSE MORTGAGE GUIDELINESS TO SEE IF YOU QUALIFY.
If you are ready to start your buying or selling process
give me a call at 801-791-9671 - I´m happy to answer all your questions.