Questions to Ask Before Buying a Home

 Even if this is not your first time purchasing a home, you still need to stop and think before you buy. Make sure to think about your future financial and housing needs. Data from the National Association of Realtors reports that a homeowner stays in their home an average of eight years before moving on. Here are questions to think about before purchasing your first or next home.

1. What can I comfortably afford?

If you are working with a lender, they will pre-approve you for a specific loan amount. The amount will be determined by your credit score, income, assets, and debts. Remember to try and keep your total housing payment (including tax and insurance) under 28% of your gross monthly income.

2. Which loans do I qualify for?

There are many options out there when it comes to home loans and your lender will be able to sort out which loan is right for you. A conventional fixed-rate mortgage will have the same payment amount over the life of the loan, whereas an adjustable-rate mortgage (ARM) will have a variable rate that may go up or down after the initial fixed-rate period has ended. So with a 5/5 ARM , you will have a fixed rate for the first five years, then after that, your monthly payment will change.

3. How much will you need for your down payment?

Lenders love to see at least 20% of the purchase price as a downpayment so you do not have to pay PMI. Some loans such as a VA loan will allow low or no-down-payment but you will need to check with a lender to see if you qualify for a VA loan. Remember that the higher your down payment, the lower your monthly payments will be.

4. What’s PMI? Do I have to pay it?

PMI stands for private mortgage insurance and is required when your down payment is less than 20% of the home’s sale price. As stated earlier, VA loans and some other specialty options may not require a down payment.

5. What interest rate do I qualify for? How can I lower it?

Your interest rate impacts how much your monthly payments will be. The higher the interest rate, the higher your payment. Your credit score will also play a factor in determining your interest rate. A better credit score, the lower the interest rate.

6. What will my monthly payment be?

A lender can run numbers and let you give you a ballpark of what your monthly payment will be. Your payment depends on the purchase price, down payment amount and interest rate. There are also monthly mortgage payment calculators online that you can use to help you figure out your monthly payment.

7. What are closing costs?

Upfront closing costs consist of origination fees and discount points, appraisal, document preparation, title insurance and home inspection. As mentioned before, your lender can give you an estimate of your closing costs and an itemized list. There are also closing cost calculators out there which can help you with determining an estimated closing cost.

8. Is my interest rate guaranteed? When does that happen?

Interest rates are always going up or down and this can happen from the time you submit a loan application to the time you close. So if you do not want your rate to change, you can lock a rate in for a specific time period (usually 30 days).

9. Will the monthly payment include taxes and homeowners insurance?

As mentioned earlier, the majority of loans do include taxes and homeowners insurance in the monthly payment, but you can opt to pay these annually and leave them out of your loan. If you do have them added to your monthly payment, the money collected is held in escrow and your lender will pay the taxes and homeowners insurance at the end of the year.

10. How long will the closing process take?

When making an offer on a home, make sure to leave yourself enough time to get all your financing in order. This can take from 30 to 60 days to obtain a mortgage. A lender can usually help you determine how long it will take, especially when you get a pre approval letter from them.

Click Here For the Source of the Information.

What’s Best New Construction or Existing Homes?

 Both new construction and existing homes have their advantages and disadvantages. In the current market, buyers have a select inventory to choose from these days. If you are in the market for a new home, here are some things to consider when choosing either an existing home or new construction.

There are many benefits to a new construction home. A new construction home will allow for modern and customizable floor plans. Builders stay in tune with what current homebuyers want, so a new construction home more than likely will follow this trend. In today’s market, new construction homes tend to have an open floor plan with larger bedrooms and bathrooms that allow in tons of natural light. If a home is still under construction, or if a builder is selling it, then you will be able to personalize some of the finishes. There will be a cost involved when you are upgrading from builder grade but adding your own touches might be worth it to you. Another benefit is living in a new home community where most new construction homes are located. Master-planned communities offer tons of amenities such as pools, community spaces and parks.

A new home will also be energy-efficient. Many builders are building smart homes as well as adding more insulation and energy-efficient windows. Smart technology options allow you to control home systems even when you are away from home. New homes are now being painted with low and zero-VOC paints and building materials which is better for a homeowner’s health. Builder warranties are also offered which protect components of a new home for a certain number of years. New homes also require less maintenance since everything will be brand new.

There are some negative aspects of purchasing a new construction home. A new construction home is usually more expensive than a resale. The median sales price of an existing home in April 2022 was $391,200 but the median price of a new construction home was $450,600. Land needs to be available in order for a builder to build new construction. This means that you will more than likely have a longer commute because it will be located farther away from urban areas.

A new community means new landscaping which will take time to grow and mature. A home that has been constructed on a cleared lot, can feel exposed and look stark. If you found your dream home and it is under construction, this will bring a risk of waiting and of delays. It could take several months or longer for a home to be completed in order for you to move in.

This brings us to a move-in ready home. Most resales are move-in ready unless you are renovating. An existing home is also in an established neighborhood that has mature trees and landscaping. As mentioned earlier, a resale is less expensive than a new construction. The material and labor shortages and inflation have caused new construction homes to skyrocket in price.

There will be fewer decisions to make and more location choices when it comes to purchasing an existing home. If you want to live closer to the action, then you will more than likely have to purchase a resale. Most new construction homes are built outside urban areas. When you move into a move-in ready resale, you do not have to make a bunch of decisions such as choosing building materials and exterior and interior finishes. A resale especially if it is an older home will have history and tons of architectural detail. Many of the architectural details found in older homes would be extremely expensive to replace today.

The downside to purchasing an existing home is that it will probably have an outdated floor plan. You might also have to add the expense of updated outdated finishes and if you want a smart home, you might have to rewire the house. Older homes are usually not very insulated and have older HVAC systems that are not energy efficient. There will also be more maintenance on an existing home as well as unexpected repairs.

If you are in the market for a new home, contact a real estate agent who can help you decide which is best for you. A local agent can help you from start to finish with the home buying process.

Click Here For the Source of the Information.

Pending Home Sales at the End of 2022

 December 2022 ended the year with an increase in pending home sales. This was the first increase seen in the housing market since May. Those in the industry believe that the mortgage rates were what enticed the buyers.

The pending sales index also went up 2.5% from November to December. The pending sales index is determined by signed contracts to buy a home which is different from existing home sales. The pending sales index is released by the National Association of Realtors (NAR). This is good news, but it is still down 33.8% from the same time in 2021.

“This recent low point in home sales activity is likely over,” said Lawrence Yun, NAR chief economist. “Mortgage rates are the dominant factor driving home sales, and recent declines in rates are clearly helping to stabilize the market.”

The Northeast was down 6.5% from November and the Midwest was down 0.3%. All other regions saw an increase with the West being the highest at 6.4%.

“The new normal for mortgage rates will likely be in the 5.5% to 6.5% range,” Yun predicted. “Job gains will steadily become important in driving local home-sales markets. The South, in particular, is set to outperform the rest of the country, thanks primarily to better job market conditions in this part of the country.”

Buyers are out there and are actively searching for a home. “Mortgage applications have been trending higher alongside lower rates, pending home sales are up, and builder confidence increased in January,” Kushi said. “Interested buyers are out there. From a financial perspective, the decision to buy a home comes down to a payment-to-paycheck calculation, and lower rates may help to reduce the mortgage payment while higher incomes can increase one’s monthly paycheck.”

There is still the challenge of affordability. “Though mortgage rates fell as low as 6.27% in December, down 0.8 percentage points from November’s high, home prices remained elevated, up 8.4% compared to the previous year,” she said.

Click Here For the Source of the Information.

Audubon Will Combine the Insectarium and the Aquarium on Canal Street

 The Audubon Aquarium is currently closed for at least six months but the good news is that it is getting a facelift along with Woldenberg Park. The $41 million renovation will be a great perk once it is finished. The Audubon project will link the insectarium and the aquarium on Canal Street.

The Aquarium has been renovated before, but this is the biggest renovation since 1990. The new attraction called the Audubon Aquarium and Insectarium links the aquarium to the Audubon Butterfly Garden and Insectarium. The Entergy Giant Screen Theater will be removed and replaced with the insectarium exhibits. The plan is to have the new renovation opened by summer 2023.

The renovation will add over 17,000 feet of exhibit space. The new entrance and lobby will be an enclosed 60-foot tall glass lobby. The glass pyramid will shoot out from the building facing the Mississippi River.

The Insectarium space will have a special event space on the first floor and the second floor will include the insectarium galleries and butterfly pavilion. The new butterfly exhibit will have lower ceilings so visitors can get a better look at the butterflies.

The aquarium will get upgrades including the Mississippi River Gallery, the Amazon Rainforest Gallery and the Top of the Gulf Experience. Woldenberg Park will also get $7 million in upgrades on the entrances, landscaping and electrical system.

Click Here For the Source of the Information.

Is Selling Your Home Still a Smart Idea in the Current Market?

 A seller’s market means it is a great time for sellers but then once you sell you turn into a buyer. Buyers are having a hard time buying in the current market. If you are a seller and worry about becoming a buyer you shouldn’t. According to NerdWallet’s 2022 Home Buyer Report, 89% of current homeowners say that finding a new house and paying too much in the current market is prohibiting them from listing on the spot.

Current homeowners do still have an edge if they do decide to sell right now. If they make the most on the selling side, then they will have more money for purchasing a home. Remember inventory is low and there will more than likely be multiple offers on one home. According to the report close to 26 million Americans are planning on buying a home this year. Typically only 5 to 6 million homes are sold a year!

Today homes are not only being listed at much higher prices but also selling at or above the higher asking price. The report reveals that buyers paid 100% of the list price in 2021. The typical listing price went from an average of $270,000 in 2019 to $344,000 in 2021 according to the National Association of Realtors.

As a seller, you are also giving up less than before. In 2021 a typical seller did not offer any incentives for a buyer. You should list if you are willing to move to an area that is more affordable, will go back to renting for a time being, or you have what it takes to be a competitive buyer.

Click Here For the Source of the Information.

Smart and Stylish Appliances for Yor Kitchen

 Finding appliances for your kitchen is as much a personal choice as a practical one. Professionals in the industry say that your appliances can define your entire at-home experience. So how do you choose which one is right for you? Here are some great things to consider.

1. Elevate Your Aesthetic

Remember that your kitchen appliances should enhance your home's style but still be functional. A nice new look is a handless appliance. These are sleek and uniformly smooth and do not have ugly handles that stand out. If you want a modern yet timeless look, choose an appliance that has uses bold lines and contrasting materials that catch your eye.

2. Add Flexibility to Your Home’s Layout (and Your Life)

You always think of the microwave placed above the kitchen stove, but it doesn't always have to be this way. There are some appliances out there that are in the same size family but different appliances that can stack or go in a small space. Many companies have different appliances that can be formed in a t-shaped, stacked or cubed.

3. Reach New Culinary Heights

You want your appliances to look good, but also they need to help you cook, prepare and store food. There are so many options now, such as a combination steam ovens. This kind of oven convection cook, steam or use a combination of both to cook food. You can reheat food from the day before with steam and it will have the same quality as if it just was prepared.

4. Work Smarter Than Ever

Nowadays we can purchase an appliance that can be used with a smartphone. Appliances can now be equipped with Wi-Fi and motion sensors. This means that you can start and stop your appliance from your phone. A coffee maker can have motion sensors so that it will start your coffee when it senses you coming into the kitchen.

5. Be a Multitasking Marvel

This is especially true during the holidays. Less hands-on is the key. Convection oven with a FoodView features can send you updates on your smart device. This means you can be straightening the house while adjusting the temp and monitoring the oven remotely. Another great option is a speed oven which can reduce your total cook time using both conventional heat and microwave energy.

If you want to update your kitchen, make sure that you design it as a truly efficient kitchen. Study how you move through your kitchen and make sure you do not put too much space between appliances and storage. Follow these suggestions for a kitchen renovation that is right for you.

Click Here For the Source of the Information.

Transforming A Small Space with Tile

 Professionals in the industry reveal a secret; when updating a small space use tile to create texture and dimension. Tile can add color either bold or a hint. Tile comes in tons of color options and patterns. Using tile can refresh a small area without having a full renovation.

1. Bring attention to a wall niche

Adding tile to a decorative wall is a perfect focal point. Tiling the area will highlight the architectural feature while adding definition and drama. A great idea is to add a ribbed glass tile that will reflect light back.

2. Add flair to a fireplace

The fireplace is already a focal point in a room, and adding tile to the surround really makes it pop. A tile can add interest and depth to the fireplace and can also mask an outdated surround.

3. Define a space within a space

Designers say tile can accent a space just like a rug can. M.S. Vicas Interiors used a geometric patterned tile on the floor of a nice wine vault. The tiled floor of this glass-framed wine “cellar” provides a structural footprint for the walls. A striking geometric pattern from the Gem collection by Kelly Wearstler is an arresting counterpoint to the warm wood floors of the rest of the room, letting the wine walk-in shine.

4. Think outside the shower

When you think of tile in the bathroom, you think of the floor or the shower surround. Tile helps keep water from damaging the space. Many designers are currently doing floor-to-ceiling tile accent walls in bathrooms. It gives the space impact and personality. This can also be done in the kitchen. If you have a wall in the kitchen that does not have any cabinets, tile the wall from floor to ceiling giving it a roomier look to the kitchen.

There are many colors, shapes, and patterns of tile. Remember to think outside the box, and think of using tiles in places that you might not think about when it comes to tile.

Click Here For the Source of the Information.