Uncategorized

Saving up for a down payment is perhaps the biggest hurdle to buying a home for many Americans, but how much money do you really need to put down in order to secure a deal?

By definition, a down payment is the amount of money a buyer spends up front to purchase a house. A buyer typically takes out a mortgage to pay the rest of the sale price before closing, and the size of a down payment can have a significant impact on which type of loan a lender is willing to offer.

A down payment is calculated as a percentage of a homes total purchase price. For example, if youre buying a $300,000 house, $15,000 would be a 5 percent down payment, whereas $60,000 would be 20 percent.

Conventional wisdom says homebuyers need to put down at least 20 percent to qualify for a mortgage, but putting that much down is no longer the norm. While 20 percent is a great goal with several benefits, many prospective buyers cant afford to pay such a large lump sum. If youre in the market for a home, consider the following to determine how much you should put down:

The Upsides of 20 Percent
Maybe youve saved up a lot over the years to buy your first home, or maybe youre a homeowner who can dedicate a major chunk of proceeds from a home sale toward your new down payment. Either way, youre in a great position.

Although you dont have to put 20 percent down to get a mortgage, a lender would consider you more financially stable and less risky if you did. Therefore, a lender wouldnt require you to pay private mortgage insurance and would likely offer you a lower interest rate”two big perks that could mean smaller monthly payments and save you thousands of dollars over your loan period.

Mortgage lenders arent the only ones who feel more confident in a buyer who can put down at least 20 percent. If a seller gets multiple offers on what might be your dream home, youre more likely to stand out among the competition if you bring a larger down payment to the negotiating table.

Going Below 20
If you cant make a 20 percent down payment, dont worry. Youre not alone. In fact, studies suggest the majority of buyers put less than 20 percent down on a new house, with some even paying below five percent. First-timers and buyers 35 and younger usually put down the least, as they tend to have lower incomes than older buyers.

Nonetheless, youll seem like a riskier borrower to lenders by putting down less than 20 percent. That means a lender will likely require you to buy mortgage insurance to protect the companys investment, and your loans interest rate is bound to be higher.

Although most private lenders welcome buyers who have small down payments, some government agencies also offer programs aimed at helping low- to moderate-income families buy homes. For example, a Federal Housing Administration-backed loan could accept a down payment of 3.5 percent, and the U.S. Department of Veterans Affairs offers loans with no money down. However, because such federal programs have strict eligibility requirements and may be subject to policy changes, consult a professional for further details.

Do Whats Best
The words down payment neednt scare you away from buying a home. When deciding how much to put down, consider your financial situation, loan options and goals. Like choosing a home you love, its important to choose a down payment thats right for you.

This article is intended for informational purposes only and should not be construed as professional or legal advice.

Published with permission from RISMedia.

Even though a burglary occursevery 20 secondsin the U.S., you can still protect yourself without installing top-dollar security features.

Home burglary generally has a pattern; criminals are looking for an easy target they can rob fast. Learn from the pros. Here are five tips from career burglars you can use to defend your home and prevent break-ins:

1. Nighttime Burglaries Arent the Best Time. Burglars like to break into homes during daytime hours”the last thing criminals want is to encounter someone at home. Weekdays are ideal for thieves, since weekend schedules are too unpredictable. Between 12:30 p.m. and 2:30 p.m. are themost popular timesbecause theres a high chance people will be away at work or school.

2. They Know When Youre Not Home”Thanks to Social Media. While its tempting to post about your vacation to your social media feed, wait to share those trip photos and exotic location check-ins until youre back home. Criminals scout public social media accounts on Twitter, Instagram and Facebook to find victims. Even if all your accounts are private, that old friend from high school could be a potential criminal. Never post what times youre not home or how long youll be out.

3. They Dont Like Your Security Practices. Burglars want nothing to do with alarm systems (whether theyre from thebest home security companiesor not). Homes without a security system are almost 300 percent more likely to be targeted for a break-in. If you do install an alarm system, make sure you guard it with a strong code. Dont use your house number or birthday, and clean any dirt or grease off your keypad so a burglar wont guess your code based off the numbers youve hit the most.Also, tricks that make it look like youre home really work. Motion sensor lights, TVs left on and cars parked in the driveway make burglars nervous and run from properties.

4. Shrubs and Architecture Make Great Hiding Spots. Tall bushes are favorites of burglars since they offer an obstructed view from the street and neighbors. Think twice about large architecture features, too, like fences, half walls and big fountains. Such dcor elements give a burglar more time to hide and plot their method of entry. The best defense is a clear view of your front porch.

5. Valuables in the Open Help Them Decide on a Target. Keep your expensive items out of sight. Youre making it too easy for a burglar by advertising the types of valuables they can steal. Dont leave a new laptop in front of your first-floor kitchen window, expensive jewelry on your living room coffee table, or even a nice car in a garage window with a clear sight line to the street. Key hooks”especially with labels for each key”need to be concealed out of view from windows, as well.

Source: Krystal Rogers-Nelson/RISMedias Housecall

Published with permission from RISMedia.

Often, those looking to purchase an additional home get confused between a second home and an investment property. However, the two are not interchangeable ” especially when it comes to their financing.

Second Home, Defined
A second home is real property that the homeownerintends to occupy in addition to their primary residence for part of the year. Usually, second homes are used as vacation homes. Second homes may also be properties that the homeowner visits on a regular basis.

Examples of second homes may include:

• A condo in a city where you frequently conduct business
• A beach house that you and your family occupy during the summer months
• A house in a different state where you have seasonal work

Getting a Mortgage
If you can’t purchase a second home out-right, you’re going to go the traditional route and look into obtaining a mortgage. In order to qualify for a second-home loan, the property is usually required to be located in a resort or vacation area (like the beach or mountains), or be a certain distance from the borrowers primary residence.

Understanding Interest Rates
Most lenders consider second homes to be more of a risk than primary residences, but not as big a risk as investment properties. Typically, interest rates will show this; second-home mortgages may have lower interest rates than investment property loans, but not necessarily. It can all depend on the borrowers entire financial picture.

Understanding Rules
Second-home loans often include a second-home rider along with the mortgage. This rider states certain rules the borrower must abide by in order to qualify for the loan.

These rules often include the following:

• The borrower will occupy and use the property as his/her second home
• The property will be kept available for the borrowers exclusive use and enjoyment at all times
• The property cannot be used as a timeshare or be subject to any rental pool arrangement
• The property cannot be subject to any agreements that require the borrower to rent the property or give a management firm (or anyone else) control over the use and/or occupancy of the property.

Published with permission from RISMedia.

Selling your home will involve a lot of paperwork. The requirements may vary somewhat depending on where you live, but the following are some of the most important documents youll likely need:

Documents From Your Purchase of the House
Youll need the original sales contract from the time when you bought the house. Thatll let the buyer know who the previous owner was, the sale price at the time, and any disclosures that were made then. Youll also need to provide the appraisal that was conducted before you bought the house.

Documents Related to Maintenance, Repairs and Current Problems
You shouldve kept records of maintenance and repairs during the time you owned the house. Those can give the buyer an accurate idea of the condition of the house now and any repairs that might be needed in the future. If you had any new appliances installed, you should give the buyers the warranties.

Youll also need to provide a potential buyer with homeowners insurance records. These should include any claims you submitted so the buyer will be aware of any significant past damage and repairs that were made.

Once a buyer has made an offer and youve accepted it, youll need to follow mandatory disclosure laws and provide information on any known damage or hazards. That could include everything from lead paint and water damage to broken appliances and disputes over the property line. Failing to provide this information could lead to a lawsuit later.

Documents Needed to Complete the Transaction
A purchase offer spells out the agreement between the buyer and seller. The real estate agents or attorneys representing the buyer and seller will later draft a final purchase and sale agreement that includes specifics on the sale price as well as other terms, such as the closing date and contingencies.

The buyer will most likely have the house inspected to find out about any problems. If anything serious is discovered, you and the buyer will need to decide whether youll make repairs before closing or lower the asking price.

If the buyer will need to get a mortgage to buy the house, the lender will require an appraisal to determine its value. The appraiser will provide the buyer with a report, and a copy will be made available to you.

The deed is a document that officially transfers ownership from the seller(s) to the buyer(s). It will include the names of all parties involved in the transaction and a description of the property itself.

Working With the Right Real Estate Agent Is Key
Selling a house is complicated. Your real estate agent should be able to guide you through the process. When interviewing agents, look for someone who has the knowledge and patience to walk you through all the steps and the documents thatll be required and to answer all your questions.

Published with permission from RISMedia.

Home offices can be hubs of productivity for business owners and telecommuters alike. However, an office space that isnt designed and equipped for optimal results can lead to distraction, inefficiency and frustration. So, how can you create the ideal home office?

Choose Your Spot
First, youll have to determine the best place to set up shop. If space is limited, you might not have a choice about where to create a home office. Optimally, youll want a separate, spacious room that provides privacy, especially if you share the home with family members or roommates. Try to be away from high-traffic zones, such as the kitchen and living room, which are bound to be noisy and distracting. Separating your work space from your living space will also help you stay focused and avoid overworking after office hours.

Stay Dedicated
Even if you cant create an office in a separate room, establish a dedicated works pace and set some ground rules for other household members in order to protect your area and materials. To avoid losing work on your office laptop, for example, let children know your computer is for business only. If youll be using a land line for your office phone, consider getting a business line separate from your home one.

Get Comfortable
Because youll spend hours each day in your home office, staying comfortable is critical. Not only will you avoid minor aches and pains, but you can also reduce your risk of long-term health effects, such as back issues and carpel tunnel syndrome. Investing in a pricier, ergonomic chair is worth every penny, and consider installing a pull-out keyboard tray. To avoid sitting for extended periods, you could also buy a stand-up desk.

Be Prepared
Make sure you have all the office equipment youll need, which might include a copy machine, printer, scanner and, of course, a reliable computer with proper software. Youll also likely need a fast internet connection, and dont overlook smaller office supplies, such as Post-it Notes, scissors, paper clips and pens.

Decorate
Like with a work space at a company building, youll want to personalize your home office. Incorporate photos, paintings, plants or other personal touches. If you plan to have clients or co-workers visit, though, make sure your office looks professional by not going overboard with decorations.

A rooms color can impact a persons mood, so consider which color you should paint your office walls. Some designers suggest soothing hues like seafoam green to keep you relaxed and decrease stress, while others suggest bold colors like red to keep you alert and boost productivity. Test out a few colors to see which works best for you. You can also mix it up by painting or designing one focal wall differently.

Light the Way
Improper lighting can lead to eye strain, headaches and fatigue. Make sure you have plenty of overhead light and task lighting”i.e., desk lamps”and try to avoid fluorescent bulbs. If possible, set up your work space where you can take advantage of a windows natural light.

Avoid Clutter
Keep your office clean and organized to maintain peak performance, avoid losing papers and limit work frustration. By using helpful products, such as filing cabinets, pencil cups and desk trays, youll know where everything is. Remember, less time searching for an item means more time focusing on work.

Published with permission from RISMedia.