Uncategorized

If you want to buy a home, youll probably need to make a substantial down payment. Putting down 20 percent can help you avoid paying hundreds of dollars each month for private mortgage insurance. You may be thinking about using all the money in your savings account for a down payment, but that could be a big mistake.

Emergencies and Repairs
You could lose your job or become unable to work because of an illness or injury at any time, or a family member could be unable to work or have unexpected medical bills. Thats why you should always have an emergency fund with enough money to cover at least three months worth of living expenses.

When you rent an apartment, you can call the landlord or maintenance department to fix any problem. When you own a house, the responsibility for repairs and maintenance falls squarely on you. Many people are unprepared for the total cost of homeownership. Having money set aside in a savings account for repairs and maintenance is much better than paying bills with a high-interest credit card.

The house you bought might need renovations to make it a comfortable or safe place to live. Upgrades could easily cost tens of thousands of dollars. You wouldnt be able to fund these projects with savings if you emptied your account to pay for a down payment. Using a high-interest credit card could leave you overwhelmed with debt and unable to afford your mortgage.

Liquidity
A savings account can be accessed at any time. When money is tied up in a house, it can be harder to utilize. If you suddenly encountered a financial problem, it would be much easier to withdraw money from your savings account than to get a home equity loan or line of credit, especially if you just recently bought your house and didnt have much equity.

Other Priorities
You probably have other financial goals that are as important, if not more important, than buying a house. High-interest credit card debt could take up a huge chunk of your monthly earnings, and high balances could make it difficult or impossible to buy a house or car with a favorable interest rate. The sooner you pay off your credit cards, the better off youll be in the long run. Retirement savings grow over time through compounded interest. If you havent started investing for retirement, you should before you buy a house.

Take a Balanced Approach
Buying a house is a major investment. It can be tempting to put all your savings toward a down payment, but you should also focus on other priorities and be prepared for the unexpected. Make sure you are building an emergency fund, paying down debt, and saving for retirement, and consider delaying a home purchase, if necessary, to keep your priorities in balance.

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

Published with permission from RISMedia.

If youre looking to buy a new home and hope to stay there for the rest of your life, look ahead to what you might want in it as you age. Thinking of and paying for features that make a house more accessible now can be a lot easier than having to make modifications later.

Here are five home features to look for in a forever home that can make age-related disabilities easier to deal with:

1. Few steps. A no-step entry that can accommodate a wheelchair is preferable – and is the first thing to look for in a home that you may want to spend retirement in. The entryway should be wide and deep enough for a wheelchair to easily turn around, ideally 36 inches wide or more. It’s also a good idea to look for a home without stairs. A one-story home can help with knee or other health issues that make walking difficult. If your home has a second floor, you may one day need to install an elevator or chairlift.
2. Accessible bedroom and bathroom. Most homes have one-floor living spaces, meaning that even if your home has a second story, you can convert a first-floor living or dining room into a bedroom. Look for a home that has a first-floor bedroom with an attached bathroom, preferably both of which are wheelchair accessible.
3. Slip-proof bathroom. Falls in the bathroom are a major cause of injuries for the elderly. Make sure the bathroom, bath and shower have grab bars to help avoid accidents. These dont have to be the huge grab bars you see in nursing homes, but rather, towel racks or other functional bars that are properly anchored.
4. Kitchen you can still cook in. If you still plan on cooking later in life, look for a kitchen that’s easy to get around in, with areas that are easily reachable. Counters, storage areas, drawers and dishwashers should be at heights that you can get to comfortably without bending over.
5. High tech. A home equipped with the latest technology can allow homeowners to do things from their couches that used to require getting up. With a smartphone or tablet, you can adjust the thermostat, close the blinds, turn off the lights and lock the doors if theyre all set up with the right technology.

Published with permission from RISMedia.

Wellness is a hot topic these days, specifically when it comes to home design. Luxury homeowners have come to expect their living environment to promote both physical and mental well-being, and theyre willing to pay top dollar for it. If youre looking to transform your abode into your own personal sanctuary, here are a few ways to create a healthy and relaxing environment.

Circadian Lighting
All of our screens”phones, tablets, laptops and televisions”emit blue light that tells our brains its time to be awake. To counteract this, there are now a variety of different smart lightbulbs available that dont give off any blue light, while also syncing with your circadian rhythm and helping to regulate melatonin production.

Spa-Like Bathrooms
Having your own private spa at home is a fool-proof way to experience instant relaxation. These days, features go far beyond having a walk-in rain shower, as homeowners are installing infrared saunas, massage rooms, and more, to help keep in touch with their bodies and ensure they feel their best.

Neutral Colors
While a splashy palette is fun and exciting, theres a reason why you dont see too many wellness retreats designed with a vibrant color scheme. Neutral colors tend to be more soothing and help put us at ease.

Biophilic Design
It may sound very scientific, but biophilic design is simply about creating living spaces that connect to the outdoors. Focused on a balance between sustainability and well-being, its being embraced by those who feel at peace in nature and want to preserve it.

Healthy Materials
Unfortunately, some products commonly used in home building can be pretty nasty. Be sure to use materials that are free of formaldehyde, phthalates and volatile organic compounds (known as VOCs) when doing work on your home. The good news is that there are plenty of nontoxic materials that are safe to use.

Purification and Filtration
Having a water filtration system throughout the house ensures that every fixture is running clean, potable water that will leave your skin and hair feeling healthier. Whether you have allergies, respiratory issues, or simply want to breathe air thats free of contaminants and pollutants, an air purifier is another sound investment to promote well-being in your home.

Published with permission from RISMedia.

Coming up with enough money for a down payment is a struggle for many people, particularly first-time homebuyers. Family members and others often want to help. If youd like to provide money for a down payment as a gift, be sure that you understand the guidelines, required documentation and potential tax implications.

Why Do Lenders Care About Sources of Down Payment Funds?
A mortgage lender will want to know where a borrower got money for a down payment. If someone received a large sum of money from another person, the lender will want to know that the money was a gift, not a personal loan thatll need to be repaid and that could cause the borrower to be unable to afford the mortgage.

Underwriters will want to know the source of any large deposit in a borrowers account. Some lenders define a large deposit as a single deposit thats more than 50 percent of the total monthly qualifying income for the loan, while others verify deposits that are more than 1 percent of a homes adjusted purchase price or appraised value. In some cases, an underwriter will verify the source of any larger-than-usual deposits, no matter how much money the borrower earns or how much the house costs.

Who Can Provide Money for a Down Payment?
All lenders allow gifts from family members, but various lenders have somewhat different definitions of who is considered a family member. Some lenders allow gifts from employers, labor unions, charitable organizations, sellers, builders, developers and real estate agents.

Although the amount that can be given as a gift is not limited, a lender may require a buyer to provide a percentage of the down payment from personal funds. The rules depend on whether the home will be a primary or secondary residence, whether its a single- or multi-family house, and the type of mortgage to be obtained.

Documentation and Taxes
If you give someone money as a gift for a down payment, the lender will require a letter including your name, address, phone number, and relationship to the borrower, as well as the amount and date of the gift, the source of the funds, and a statement that the money is a gift and that you dont expect to be repaid. The letter should also include the address of the property to be purchased and your signature. You should keep detailed records showing exactly where the money originated and how you transferred it to the recipient.

If you give someone a gift for a down payment, you may need to pay taxes on the money. Check with an accountant to find out if youll owe taxes and how much.

Be Informed Before Giving a Gift
Giving money for a down payment can help make a loved ones dream of owning a home a reality. If you want to provide funds as a gift, make sure you understand the lenders rules and the applicable tax laws.

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

Published with permission from RISMedia.

Smart home technology continues to grow in popularity among luxury buyers, and millennials in particular. Its a feature that can help your property to stand out from the rest, yet many homeowners are still on the fence about installing an automation system in their home.

Truth be told, there are plenty of benefits of having smart home technology. Here are just a few of the ways it can improve your life!

Energy Efficiency
Smart thermostats are proven to reduce the energy required to heat and cool your home. This means that in addition to lowering your impact on the environment, youre also saving on utility bills each month. Some systems can even monitor water usage to ensure there isnt a leak thats going to run up your bill.

Security
Once youre able to control and monitor your home security through your smartphone, theres no going back to the old days. You can see whos ringing the doorbell via live video stream when youre at work or unlock the backdoor for the dog walker when you go away for the weekend.

Convenience
The convenience that smart home technology affords is virtually endless, whether that means preheating the oven on your way home from the grocery store or turning on the coffee maker before youre out of bed. Youll soon start to wonder how you ever got anything done before.

Entertaining
When friends come over, you can use voice commands to turn on some tunes, get the mood lighting just right, and fire up the grill, all while mixing cocktails. Dinner parties just got that much easier.

Peace of Mind
Perhaps smart home technologys greatest quality is the peace of mind that comes with having control over your house. You can check on the baby with a camera-equipped monitor or make sure you closed the garage door while youre on vacation and rest assured that everything is okay.

Published with permission from RISMedia.