Header Image - Chip Dykeman

Category Archives

4 Articles

Is Renting Really More Affordable Than Buying?

It’s the age old question: is renting or buying a house better? While general consensus has usually been that renting is better than buying, recent data proves otherwise.

Recent Data

In a series of recent studies, data has shown that it is actually cheaper to buy a home in majority of the United States than it is to rent, especially in some areas surrounding major cities. For example, ATTOM Data Solutions’ research proves that it is better to buy a home rather than rent in Philadelphia, Chicago, and Las Vegas. So, what does all of this mean?

What This Means

Basically, this data indicates that renting rates are expected to continue to increase in recent years to come. Although mortgage interest rates are also expected to increase within the next few years, they are still extremely low. So low in fact, that the current rates are among historic low rates.

When you think about it, why would you rent a home if you could afford to purchase it? After all, owning a home is a fantastic investment that could pay off in the long run.

What You Should Do

Whether you’re in the market to rent or buy, you should consult with your professional. Although it might be appealing to purchase a home in one of the popular areas with lower mortgage interest rates, you should consider other factors other than your financial budget. For example, are you confident that you can be responsible enough to maintain and fix your property? Also, do you see yourself living in that house and area for more than a few years? If you are unsure about those questions, then that is an indicator you might not be ready to purchase a home.

Overall, purchasing a home is an enormous personal decision that should take a lot of thought. But if you disregard any other elements of purchasing a home, today’s current mortgage interest rates prove that it’s the perfect time to purchase a home!

4 reasons to have a home inspection before buying home

4 reasons to have a home inspection before buying home

Buying a home is exciting, but you shouldn’t forget some important things before you finalize your deal. Home inspection is one such thing. Before signing your contract, you should have a home inspection. Here are the reasons why.

To have a good look at the home

You should thoroughly inspect the home you are willing to buy. There might be major problems in the house that might be visible after you do the inspection. You should get an expert’s opinion regarding the problem.

Save money

It costs about $300 to $500 to do a home inspection. It is cheaper than fixing major problems in your house. For example, if you skip home inspection and later find out that your central heating system is not working then you will end up spending thousands of dollars buying a new heating system.

Negotiate

A home inspection gives you room for negotiation. You might get a lower price if you find any problem in the house, or the seller might fix the problem for you before you move into the houses.

Know what you are buying

By doing a home inspection, you know exactly what you are buying. You will have fewer surprises when you inspect the house thoroughly.

A home inspection is an important part of home buying process. You shouldn’t skip this step. You will be able to save a lot of money in the long run if you hire a professional to inspect your home.

5 ways to get a good mortgage deal

5 ways to get a good mortgage deal

When you decide to buy a house, you should look for the best mortgage deal available. You need to research well so that you get a low-interest rate on your mortgage. Here are five ways to achieve that.

 

Don’t miss out anything on your loan application

You should keep your loan application transparent. You should not hide any flaws like credit problems, income or assets. You should fill out the loan application form as accurately as possible. If you hide anything, it will delay your application process.

 

Work out on a higher down payment

If you give a higher down payment, it will turn out to be a better deal. Low initial down payment means higher risk applications. You may end up paying more in the long run.

 

Try for a hybrid mortgage

The normal mortgages are for 30 years. But if you are someone who will probably sell your property then you can try the hybrid mortgage. If you are willing to sell the house within the next four years, for example, you will be paying the interest rate of 1% only.

 

Check your credit report

You should be mindful of your debts and other monetary obligations. The credit you have shouldn’t account for more than 20% of your income. You should always pay your bills on time. This way you can maintain a healthy credit.

 

Look at your options

You should shop around before choosing a lender. You shouldn’t settle down on the first lender you meet. You should compare the rates and terms of other lenders before finalizing your decision.

It is advisable that you pay off all your debts before applying for a house loan. Getting a house loan is a long-term commitment, and you must have the capacity to pay back the money.

5 tips for buying your first house

5 tips for buying your first house

Buying the first house is a major milestone in life. If you are looking forward to buying your first house, then you should consider the following tips.

Set up a budget

You should first find out how much you can afford to buy a house. You should consider both the down payment and the monthly installments. As a general rule of thumb, you should spend about 28% of your gross income on the mortgage. You should also consider the recurring bills, tax, and insurance when setting up a budget.

Get a good credit score

If you have a low credit score, you might not get a mortgage for your house. Even if you get a mortgage, the interest rate will be very high. You should go through your credit report and see where you are lacking points. You should improve your credit score first before applying for a mortgage.

Find a good realtor

There are many realtors available now, and it can be hard to pick one. You should do some detailed research on these realtors and find the one that you feel comfortable with. You can get recommendations from your friends and colleagues regarding this matter.

Identify what you want

You should do your homework first. You need to know what kind of house you are looking for. You need to consider the location, number of bedrooms, amenities, etc. before searching for a house.

Organize your documents

If you can get preapproved for a mortgage then buying a home is a lot easier. To get preapproved you must give details of your financial history, credit reports, proof of income, assets, liabilities, bank statements, etc. You should organize all your papers so that you can get preapproved for a loan.

These are very useful tips, and you should always remember them before buying your first home. You should consider your budget and your needs before making your final decision regarding the purchase of a home.