- How Much Income Do You Need to Buy a $500,000 House?
Buying a $500,000 house typically requires a steady income, but the exact amount depends on your down payment, credit score, debts and mortgage terms. Many lenders follow the 28% rule, where your monthly housing costs (including mortgage payments, taxes and insurance) should stay under 28% of your gross income. With good credit and a 20%… read more…
- How Much of Your Monthly Income Should Go to a Mortgage?
How much of your monthly income should go to a mortgage? It depends on factors like debt, income stability, and local housing costs. A common guideline analysts recommend is the 28% rule. This strategy suggests spending no more than 28% of your gross monthly income on housing expenses. However, this benchmark can vary based on… read more…
- Are Your HOA Fees Tax-Deductible?
Homeowners association (HOA) fees are a common expense for those living in condominiums, townhouses and planned communities that need to maintain shared amenities. However, when tax season arrives, many homeowners wonder if their homeowner’s association fees are tax deductible. The short answer, for most homeowners, is that HOA fees are not tax-deductible. However, homeowners who… read more…
- Offset Mortgage: Definition, Pros and Cons, Examples
Homeowners use offset mortgages to reduce the amount of interest they pay by applying their savings balance against their mortgage debt. While this strategy can be beneficial for some, this type of mortgage setup may not be a good fit for you. Working with a financial advisor can help you determine how it aligns with… read more…
- How to Do a Property Title Search in 5 Steps
A property title search verifies the legal ownership of the property and identifies any claims, liens or encumbrances that could affect the transfer of ownership. While buyers can conduct a title search themselves, the process can be complex, requiring access to public records, historical ownership documents and legal filings. If you’re unsure about navigating a… read more…
- What Is an Alienation Clause and How Is It Used?
When engaging in a real estate transaction, it’s important to understand the details of your mortgage agreement — especially clauses that dictate how ownership can be transferred. One such provision is the alienation clause, which prevents a borrower from transferring ownership of a property without first paying off the mortgage. For homebuyers, real estate investors… read more…
- What Is a Habendum Clause and How Is It Used in Real Estate?
In real estate transactions, a property deed contains key provisions that define ownership rights. One such provision, the habendum clause, specifies the extent of ownership being transferred, including whether it is in fee simple – the most complete form of ownership – or subject to limitations. This clause helps clarify the duration and conditions of… read more…
- How an Encumbrance Can Impact Your Real Estate Portfolio
An encumbrance in real estate refers to any claim, restriction or liability attached to a property that may affect its value or usage. Examples of encumbrances include mortgages, liens, easements or zoning restrictions. Each of these can have an impact on how a property is bought, sold or developed. That’s why understanding the impact of… read more…
- 5 Ways to Increase Your Home’s Value Before an Appraisal
Homeowners often seek appraisals to refinance, sell or access equity. Ensuring the property’s best features are highlighted can make a difference in the final valuation. From enhancing curb appeal to updating key areas like the kitchen or bathroom, there are several ways to make your home more attractive to appraisers. Whether your goal is to… read more…
- A Complete Overview of First-Time Homebuyer Grants
Buying a home for the first time is an exciting milestone, but it can also be financially challenging. Fortunately, several grant programs are available to assist first-time homebuyers in making their dreams of homeownership a reality. These grants are typically offered by government agencies, nonprofit organizations and some private entities. Unlike loans, grant money for… read more…
- How to Qualify for a Second Mortgage to Invest in Real Estate
Taking out a second mortgage on your primary residence can provide you with cash that you could use to buy an investment property. Qualifying for a second mortgage is not a given, however. It requires careful preparation and a strong financial profile. Lenders typically look for a solid credit score, a low debt-to-income ratio and… read more…
- Cashier’s Check vs. Wire Transfer for Closing on a House
When you’re closing on the purchase of a home, you normally have to pay a large sum of money in the form of either a cashier’s check or a wire transfer. These are two ways of transferring cash without having to carry and hand over any bills. Both are also more secure than personal checks,… read more…
- 2024 Eligibility Requirements for VA Loans
Veterans Affairs (VA) loans provide a pathway for veterans, active-duty service members and reservists to achieve homeownership with favorable terms. VA loans are known for their no down payment requirement and no private mortgage insurance, making them an attractive option for those who have served or continue to serve in the military. However, prospective applicants… read more…
- How a Divorce House Buyout Works
Navigating the financial and emotional complexities of a divorce can be daunting, especially when it comes to deciding the fate of a shared home. A divorce house buyout is an arrangement where one spouse pays the other for their share of the home’s equity. For divorcing spouses, it’s important to understand how this process works,… read more…
- Tips for Negotiating Your House Price
When buying a home, the success of a negotiation will depend on your understanding of the market value, your current financial circumstances and any influence that a property inspection or other supporting documentation could have, among other factors. A successful negotiation could mean saving tens of thousands of dollars in the long term. Here’s a… read more…
- How to Complete a Gift Letter for a Mortgage Down Payment
A gift letter for a mortgage is a document that confirms that a financial gift has been given to a homebuyer by a donor, and it is typically required by mortgage lenders to ensure transparency and compliance with lending regulations. The gift letter serves as a written statement from the donor, verifying that the funds… read more…
- 4 Ways Parents Can Help a Child Buy a Home
The path to homeownership can be daunting, particularly for first-time buyers. If you’re able, you may consider helping your children buy their first homes. From gifting money for a down payment to buying a home and acting as a lender to your child, there are many strategies that parents can consider. Each method carries its… read more…
- What’s the Best Time to Buy a House?
House hunting is serious business. You need to secure a good mortgage and find the right property. Not only is buying a house a huge financial decision, but it can be made more complex by the ups and downs of… read more…
- Is It Cheaper to Build or Buy a House?
Buying a home is a major investment. You want to put your money into a house that’s going to meet the needs of you and your family. However, if that house isn’t available, you may consider building a home. Is… read more…
- How to Buy Land and Build Your Dream House
Many people dream of owning a chunk of land and putting their dream house on it. Maybe you fantasize about pulling out all the stops and designing a home with every feature you’ve ever wanted. Well, to make that dream,… read more…
- Pros and Cons of Buying a House After Age 60
While you might not immediately associate retirement with homeownership, buying a home after age 60 can be thrilling and financially savvy. Instead of looking for highly rated school districts, you can find the ideal combination of comfort, affordability and proximity… read more…
- Despite High Rates, Advisors Say Now May Be a Great Time to Buy a Home
The conventional wisdom suggests that now is a terrible time to buy a home. In September, the average rate for new 30-year mortgages hit 6.29% according to the St. Louis Federal Reserve, almost triple their 2021 low of 2.65%. At… read more…
- How to Choose a Realtor: 7 Things to Consider
Homebuyers face a dizzying array of hoops to jump through, with mortgage pre-approval and hiring a home inspector as just a few examples. However, throughout your search for the home of your dreams, one party will consistently be at your… read more…
- Final Walkthrough Before Closing Checklist
With preapproval, attending showings, committing to a down payment and engaging in bidding wars, buying a home can be arduous. If you have made it to the final walkthrough, congratulations! The final walkthrough is a crucial step where you check the… read more…
- Tips for Winning a House Bidding War
Being a responsible, well-prepared prospective homebuyer is no longer enough to qualify and purchase a home, especially in competitive markets. In the current seller’s market, the buyers need to be swift and savvy to purchase a house. The current low… read more…