First-Time Homebuyer Guide: How To Buy a Home

First-Time Homebuyer Guide: How To Buy a Home
What You Should Know Before Buying a Home Security System
Ukraine Office Offers Creative Spaces for Creating

Posted: 05 Dec 2015 06:00 AM PST

Use this post as a resource to guide you through the home buying process. Image Via: Candlelight Homes

Use this post as a resource to guide you through the homebuying process. Image source: Candlelight Homes

Many consider the decision to buy a home one of life’s biggest milestones. Becoming a first-time homeowner requires a significant investment of both time and money, so it’s only natural to want to do your research before jumping in.

If you have questions about the homebuying process, look no further. We’ve compiled a comprehensive guide detailing what first-time homebuyers can expect as they negotiate the real estate market. Use this as a resource, and before you know it you’ll be sending out change of address cards.

Before You Start Looking for your First Home

Take a Look at Your Finances

You’ll need to examine your finances and get them in the best shape possible before applying for a loan. Remember, the better you look financially, the better position you’ll be in when it comes to having your offer accepted. Here’s what you can do:

Develop a budget. Make a list of your monthly expenses, even the little ones. Create a budget that allows you to live below your means, and stick to it.
Reduce your debt. Banks understand that everyone carries debt, but in order to be seen as readily financeable, they prefer that cost take up no more than 10 percent of your monthly income.
Build your savings. When you buy a house, you’ll be expected to make a down payment on the property (typically 20 percent of the purchase price). There are also initial deposits, inspection fees and closing costs to consider.
Pay your bills on time. You should also pay as far above the minimum payment as possible. It’s a red flag to banks if they feel you are inconsistent when paying smaller bills.

Getting your finances in good shape may take some time and effort, but it’ll be worth it when you and your family are able to finance your dream home.

Research Mortgages

The idea of applying for a mortgage, especially if you’re a first-time homebuyer, can be overwhelming. There are so many types to consider. Chase Mortgage outlines the most common ones:

Fixed-rate mortgage. The interest rate will stay the same for the entire length of the loan, meaning that your payments will be consistent no matter how the market fluctuates.
Adjustable-rate mortgage. This type of loan has a lower initial interest rate than a fixed-rate mortgage, meaning that buyers may get approved for a larger sale price. After a few years, however, your loan will be subject to periodic adjustments based on the current market.
Government loan. These loans are offered by private lenders but insured by the federal government.
- FHA loan: The Federal Housing Administration aims to help low- to moderate-income buyers by offering low down-payment requirements and flexible qualifying guidelines.
- VA loan: This has many of the benefits of an FHA loan but is backed by the Department of Veterans Affairs. It is available only to veterans or active-duty military personnel and their spouses.

In addition to the type of loan you prefer, you’ll want to have an idea of the length of loan that will work for you. Typically, mortgage terms are 30 years, but there are options available ranging from 10 to 40 years. Longer-term loans often come with lower monthly payments, whereas shorter-term ones will likely offer better interest rates.

Don’t worry too much about deciding upon the exact type of loan that you’d prefer. A qualified loan officer should be able to make recommendations for you after reviewing your financial information. Just focus on familiarizing yourself with the options available so that you can make educated decisions when the time comes.

Get Preapproved For a Loan

The next step is to bring your financial information to a mortgage company and ask for a preapproval. Keep in mind that a preapproval is not the same thing as a prequalification, which generally only estimates what you can borrow. In contrast, a preapproval involves a thorough credit check and in-depth look into your finances.

In the end, you’ll get a written commitment letter with the amount that the mortgage company is willing to lend you. It will give you a much more accurate picture of what you can afford.

It’s also important to remember that your preapproval will show the maximum amount that you can borrow based on your finances. You do not have to buy a house at that price point. Instead, we recommend that you look at your budget and decide upon a monthly mortgage payment range that will allow you to comfortably afford your other monthly expenses.

Hire a Real Estate Agent

At the end of the day, buying a home is a legally binding transaction. While hiring an agent is not required, it only makes sense that you would want someone on your side of the settlement table who is invested in representing your interests. A qualified agent will also take care of coordinating any logistics during the showing process and guiding you through paperwork so that you’re able to focus on identifying your new home.

By no means should you choose just any agent. Do your research and interview a few with good reputations in your area. Before signing a contract, you should feel confident that you’ve found a real estate agent who will be able to listen to your needs and translate them into results.

Take the time to get your finances in order before entering the housing market.

Determine the features that are most important to you before you start your home search. Image source: Bergeron Custom Homes, LLC

Finding Your First Home

Set Search Parameters

One of the first things you’ll do with your agent is sit down together and talk about the type of home you’d like to buy. This will help both you and your agent focus on what’s most important to you in a property. We recommend coming to this meeting with two lists in hand: a must-have list and a wish list.

As the name suggests, your must-have list should be comprised of the non-negotiable features that need to be present in order for you to buy a property. These are typically things like location, price point or the number of bedrooms and bathrooms. Meanwhile, your wish list should include the features that you’d like to see in your home, such as a pool, an updated kitchen or a finished basement.

Sift Through Listings

Using your parameters, your agent will likely set you up on an automated listing search, which will regularly send you information regarding the available houses in your area that meet your criteria. Each listing should contain photographs of the property as well as information on its price, location and features. Look through them carefully before deciding which ones you’d like to see in person.

Keep in mind that not every listing is going to match your wish list perfectly. You never know where you’ll find your new home, so be willing to look at those that fall outside of your desired aesthetic but still fit your needs. At the same time, it’s perfectly fine to pass on any property that you know won’t work for you.

Go On Showings

After you’ve found a few homes you’re excited about, your agent will set up showings. As you walk through the homes, keep in mind that it’s easy to get caught up in small details like paint color, but most cosmetic changes can easily be made. Do your best to focus on big-picture items such as the size, layout and condition of the home.

You may receive a Seller’s Property Disclosure for each listing; this document details the condition of the home, including any known problems and repairs. If you’re interested in a particular home, read this over carefully to understand the scope of the work that may be required if you were to purchase it.

Remember to keep an open mind during showings. Image Via: GardenWise

Aim to make an offer that’s close to the list price to help ensure that it’s accepted. Image source: GardenWise

Negotiating an Offer

Submit an Agreement of Sale

Once you’ve finally found your dream home, it’s time to submit an offer. You’ll sit down with your real estate agent and draw up an Agreement of Sale, or your formal offer to purchase the home. In this document, you’ll propose a potential transaction to the seller.

The agreement includes information such as sale price, settlement date, your financial information, time frames for performing an inspection and clearing the title, as well as the allotment of closing costs. If the seller is open to your offer, the two of you will negotiate details until you reach mutual acceptance.

It can be tempting to submit a low offer in an attempt to score a deal, but we recommend this only if you’re OK with the possibility that the seller could reject the offer without a chance for negotiation. If, however, you’ve fallen in love with a property, aim for an offer that’s within a realistic range of the list price. Especially if multiple offers are on the table, always go in with your best foot forward.

Get a Home Inspection

As the buyer, inspections are optional, but they are for your benefit. They’re essentially to make sure that you go into the transaction knowing what to expect from your new home. Consult your real estate agent on which inspections are appropriate for your particular property; agents typically have a list of certified professions who they would recommend to do the work.

After the inspection is complete, you’ll have an opportunity to review a thorough report that details any problems with the property, as well as recommendations for repair. If you’re unhappy with the results, as long as you’ve completed your inspections within the time frame outlined in the Agreement of Sale, you’re entitled to walk away from the transaction. Otherwise, you and the seller will move forward by negotiating who will shoulder the cost of repairs.

Apply For a Mortgage

If you’re planning on receiving any financing to buy your new home, you’ll need to submit a mortgage application and have it approved before you can move forward to settlement. To do so, financial institution Freddie Mac says, you’ll need to work with these people:

Loan officer. Reviews your financials, helps you decide which type of loan is appropriate for you and helps you complete the application.
Loan processor. Collects the documents necessary to verify the information given in your loan application (bills, income statements, etc.) and packages them for easy review by the underwriter.
Mortgage underwriter. Approves or rejects your mortgage loan application based on information such as credit history, employment history, assets and debts.
Appraiser. Reviews the property to make sure it’s priced fairly at its current market value.

Overall, mortgage approval involves a lot of waiting; it can be one of the longest components of the home-buying process. But there are a few things that you can do to help it along. Respond to requests for information or clarification as quickly and thoroughly as possible, and avoid making any major changes in your finances during the review. For example, it’s best to wait to buy new furniture or appliances until after your loan has been approved.

Close the Sale

Once your loan has been approved, you can look forward to closing day. On the day of settlement, you and your agent will complete a pre-settlement walk-through, wherein you’ll walk through the property and make sure it is in acceptable condition.

This is also your opportunity to ask the seller any last questions you have about the property. From there, it’s just a matter of signing paperwork and settling finances before you get the keys to your new home.

Be willing to compromise during negotiations to ensure a pleasant road to closing. Image Via: Colin Cadle Photography

Understanding the steps of buying a home makes the process seem more manageable. Image source: Colin Cadle Photography

The idea of finding your dream home amid a sea of properties can be overwhelming, let alone negotiating an offer afterward. However, when you understand the individual steps it takes to buy a house, the whole process will seem more manageable.

Use this first-time homebuyer guide as a resource. We hope to show you that anyone can achieve their dreams of finding a home that is a perfect match. Are you interested in buying a home? If so, feel free to post your questions in the comments below.

The post First-Time Homebuyer Guide: How To Buy a Home appeared first on Freshome.com.

What You Should Know Before Buying a Home Security System

Posted: 04 Dec 2015 10:26 AM PST

Security systems should be built around your needs and home design. Image Source: Luke Gibson Photography

We don’t want to alarm you (sorry), but, according to the FBI, more than 2 million homes are burglarized in the United States every year. This means that someone is breaking into a home somewhere across the country about every 13 seconds.

To avoid being the victim of a burglary, getting a home security system is your best option. We spent dozens of hours researching reviews and crime statistics, and speaking with customers and law-enforcement officials; be sure to read our findings on the best home security system to protect you and your home.

In addition to that extensive review, here’s a list of 10 things you should know before you buy a home security system. You’ll learn not only the basics, but also what to look for in a system to protect your valuables and your family.

Asset protection devices can alert you even if there is no physical evidence. Image Source: The Interior Place

1. Asset protection devices protect valuables.

You can install devices that will alert you if your valuables have been tampered with. Asset protection devices let you know when, for example, a jewelry box has been opened, a painting has been moved or a safe has been tampered with, even if there is no physical evidence.

Asset protection devices are not only beneficial when it comes to theft, but also they give you peace of mind. For example, if a repair person or house cleaner comes into your home while you are away, you will know whether they disturbed your valuable items. When thinking about asset protection devices, consider how many you will need.

A home security system can do much more than a burglar alarm. Image Source: Griffin Enright Architects

2. Burglar alarms are not home security systems.

There are major differences between a burglar alarm and a home security system; the latter provides additional benefits to help protect you and your family, and it may be the better investment. Before signing up with a company, it is important that you know what you are getting, what is protected and how the system works.

A burglar alarm is the traditional type of alarm system that has sensors on doors and windows. It will alert you or law enforcement (depending on your settings) that an intruder has entered into your home. This is extremely beneficial — but a home security system can also warn you about environmental dangers, such as fire, carbon monoxide and even flooding.

Is your home safe? Modern designs require modern security. Image Source: Hugh Jefferson Randolph Architects

3. Security systems operate even during power outages.

Many homeowners are concerned about how the home security system is powered. Suppose you are on vacation and get word that there was a storm in your neighborhood that knocked out the electricity. Is your home security system still on? Is your home protected? Should you return home?

Don’t be alarmed: No matter what type of system you have, it will continue to operate even when there is no power at your home. A traditional system that is powered by electricity is typically low voltage, which means it doesn’t actually take a lot of power to run the system. And these types of systems contain a large battery that will back up the system when the main power is out.

Another option is a solar-powered security system. You can set this up to be only one component, such as an outdoor security camera, or your entire system can be run on solar power. A solar-powered system is more costly, but if you are looking for a “green” solution that will provide security even when there is no electricity, this is the best option.

Systems come in a variety of sizes that can be customized to fit your needs. Image Source: IDA Architects

4. Size does matter.

Although some security companies may tell you there is only one kind of security system for everyone, this is not true. In fact, several types and sizes are available, each of which can be customized to fit your needs. Sure, doing so will cost more; but it also will provide you with a higher level of security, as it will be designed specifically to fit your home and your way of life.

A small system might be fine for an apartment or small home. If you have a larger home, you’ll need a system that can handle a larger amount of information and monitoring. A large home requires a system that covers all the doors and windows, as well as the grounds.

Even if you are on a limited budget, you can have a security system. Image Source: Natural Balance Homes

5. Home security systems are affordable.

Even if you are on a limited budget, you can have a home security system. You might want to consider a traditional burglar alarm system; this will give you sensors on your doors and windows, and alert you to any intruders. While not as advanced as a home security system, it will provide adequate protection for your valuables and your family.

If your budget allows, you can opt for a system that is larger, is more advanced and has extra features. This can include fire alarms, carbon monoxide alerts and intruder alerts, and can provide you with immediate access to emergency personnel. A more advanced system can also include the use of asset protection devices.

A wireless security system is much easier to install, as no drilling is required. Image Source: DDB Design

6. The installation process varies.

The installation process of your home security system depends on what type you purchase. A traditional wired system will need to be installed by a professional, and often requires some drilling (and holes in your walls) to connect the sensors to the main alarm system.

On the other hand, a wireless system is much easier to install, as no drilling is required. In most cases, wireless systems are powered by battery, although some are powered by solar panels.

Installation will also depend on the company you purchase it through; special equipment may be needed to connect you directly to the security company or emergency personnel. Ask what is required for the installation so that you are prepared for the process (and the potential mess).

Many systems can help in an emergency, such as falling down stairs. Image Source: David Brandsen Construction

7. Many systems offer personal security.

Suppose you slipped while walking down the stairs and couldn’t get to a phone. How long would it take before someone came looking for you? Many home security systems are equipped with technology that can be beneficial in a medical emergency.

In most instances, you can get a pendant or bracelet that allows you to push a button to immediately be put in contact with emergency personnel. When you purchase this type of service, help will be available to you 24 hours a day. This option is great for the elderly, as well as those who live alone or don’t have neighbors close by.

Your home is your castle, so choose a reputable company. Image Source: Michael F. Gallagher

8. Choose your provider carefully.

Now that you have determined the importance of a home security system, and know what services are available, you will need to choose a service provider. First, consider how long the company has been in business. We recommend you choose a company that has at least 10 years of service, but that has updated, modern equipment. This track record will give you not only customer feedback, but also peace of mind.

Second, consider the distance between you and the monitoring location. We recommend that you be no more than 250 miles away. The farther away you are from a monitoring location, the longer it can take for the alarm to relay, which could delay the amount of time it takes for someone to get to your home.

Asset protection devices are worth it only if you have valuable items. Image Source: Residential Design Studio

9. Additional services may not be worth it.

As you begin calling home security companies, you will be offered additional devices and services that can be added to increase your security. However, not all of the devices are worth the price you will have to pay.

For instance, if you have no valuable paintings or jewelry, or other items that you want specifically protected, then you would not want to pay for asset protection devices. On the other hand, if you do have high-priced items in your home, then asset protection devices are definitely worth investing in.

Other high-tech devices you might find worth the cost are personal alarm systems, which provide you with immediate access to emergency personnel, as well as security cameras that can be linked to your smartphone. This allows you to monitor your home even while you are away; it is the way of the future.

A security system can give you peace of mind and maybe even a discount. Image Source: Furman + Kiel Architects

10. There are other less-obvious benefits.

Aside from the security of knowing that your personal possessions are protected, there are other benefits to having a home security system that just might help you make the decision to purchase one.

For instance, many homeowners insurance policies offer a reduction on premiums for those who have a home security system installed. Speak with your insurance carrier to see whether it offers this discount, and what is required of the system to receive the discount.

In addition, more advanced home security systems can provide you with an alert if one of your appliances is not working properly and could cause damage to your home. Furthermore, home security systems give guests, babysitters and nannies peace of mind, knowing that they are safe and secure in your home.

When it comes to finding the right system, the decision can be difficult. Image Source: DiGiacomo Homes

Before you purchase a home security system, do a little research. Look at the differences in the types of systems, as well as what some of the additional features, to determine what you need. Don’t spend money on unnecessary extras. Find a provider that is within 250 miles for the best possible protection.

Finally, remember that everyone deserves to have their home, personal property and family protected. Now all you need to do is get a home security system!

The post What You Should Know Before Buying a Home Security System appeared first on Freshome.com.

Ukraine Office Offers Creative Spaces for Creating

Posted: 04 Dec 2015 09:30 AM PST

architecture modern office The creative team at Circle Line Interiors designed their own warm, welcoming office in Dnepropetrovsk, Ukraine. A challenging factor of the project was the building’s high ceilings (more than 14 feet) and windows.

“We had to think outside the box when we planned the space,” the designers said. “The solution was to create a stage-like construction, with one communal table along the line of windows. This way, all of our architects and designers could face natural light.”
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The building challenges also brought design opportunities. “Thanks to the height of the ceiling, we were able to play with the idea of integrating rooms within rooms,” they said. “For example, our kitchen is situated in a glass house, and the lounge area is placed under the pergola-like construction.”

The lounge is surrounded by big planters with leafy plants, which create the feeling of being in a garden. The Ukraine office is a large open space, with multiple zones where employees can move when they need a change of scenery for inspiration. A separate area is used primarily for meetings with clients and suppliers.

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