Buying a Home in Kingston: Tips and Tricks of the Trade

A person who decides to leave behind renting for home ownership will find there are many tips to follow that can be of the utmost use. Not only will following these tips help determine the design and location of a home that is best suited for the buyer, but it can also lead to a significant amount of money being saved. Here's a look at the top four tips all buyers should follow when home buying Kingston.

1) Stick to a budget

To ensure a home is purchased that is affordable, a home buyer must first create a budget and then stick to it. After all, no matter how well developed the budget is, if it is not stuck to, it will prove entirely useless. Ideally, the home mortgage payment and any other expenses, including homeowners insurance, lawn maintenance, etc., should not exceed 35 percent of the buyer's budget. 

2) Plan for the future

Right now it might seem ideal to buy a house with only two bedrooms, but if the buyers are wanting to build a family sometime in the next five to 20 years, this can be a good sign to invest in a home that will accommodate this type of family growth. If the home is going to be sold before the family is started, then it may be okay to skip this tip and instead focus on finding a smaller house that doesn't exceed the current needs of the buyers. 

3) Think about the weather

When the weather is bad, this can lead to fluctuations in heating and cooling expenses. Also, it depends on the weather as to whether or not the home buyers will enjoy their new home. If a buyer doesn't want to live in a location that endures lots of rain, then it's of course highly recommended that the weather of the location in which the potential home resides is carefully evaluated for trends. In doing this, a buyer can determine if the home's location is a good fit or not. 

4) Plan for a resale

No matter the original intentions of a person and the home they are buying, it's imperative to take into account any resale issues that could become present. No one knows how life will be 10 years from now, so it's important to be able to resale the home if needed. 

Buying a House with No Intention of Living in It

Those who are interested in home buying Kingston are often assumed to be planning on moving into a newly-purchased house. While this is the biggest reason people buy houses, it isn't the only one. People who have some money to invest will find other opportunities in the housing market. Here are two of the most common ways to turn buying a house into a money-making proposition:

Rent it Out

Imagine buying a house without having to pay a single penny on the mortgage. That's the promise of buying homes and then renting them out. Does the reality stand up to the promise? If the cost of the home is properly balanced against the amount of rent it can bring in and the area is one in which people want to rent, then the answer is yes – most of the time. Some months will be exceptions, so investors should keep a slush fund ready.

Exceptions to the rule of rent money paying for a mortgage are fairly rare overall, but they can be counted on to come up a few times per year. Reasons include unexpected breakdowns of household infrastructure such as furnaces and times when the house has no tenants. These things need not deter investors from becoming landlords. Investors simply need to be ready for them.

Fix and Flip

The housing bust scared many people off from the idea of flipping, but there's still plenty of money to be made from the practice. One key to success is in the "fixing" aspect of fixing and flipping. The perceived value of a house rises tremendously when it looks new and move-in ready. Therefore, the profit comes from finding homes that look a bit run down, fixing them up, and then reselling them at the much-higher prices that good-condition houses can get.

Investors looking to fix and flip should seek homes that will be mostly or completely fixed with a new coat of paint, new carpet, and perhaps new appliances. Avoid houses that need major repairs. It's also important to stick to prices that the neighborhood will bear and plan upgrades accordingly.

Whether an investor decides to become a landlord or get into fixing and flipping, he or she will start to see real estate in a new and exciting light. Soon, the idea of buying a house just to live in it will be a vague concern compared to all of the opportunities that will spring to mind!

Important Considerations When Purchasing a Flipped Home

Many modern entrepreneurs make their livings flipping houses. This means that they buy homes that are in need of a little work, fix them up, and place them back on the market at a profit. In theory, this practice benefits everyone. The neighborhood in general benefits from the improvement in the appearance and desirability of the property, the buyer benefits because the home is in good repair, and the flipper benefits because he or she has made a profit by performing honest work. However, flipped properties are not always as desirable as they seem, and those interested in home buying Kingston should exercise a reasonable amount of caution when considering the purchase of one.

One of the first things that a potential buyer should do concerning a flipped property is to research the prior condition of the house and yard. Many flipped houses have been vacant for a long period of time because they have gone into foreclosure and are therefore owned by banks. Houses that sit empty often have serious problems, such as rodent infestations, mold, and burst pipes. They may also have been subject to vandalism or have even been lived in by transients. Homes that have sat empty for a period of time may also have foundation issues. Flippers who want to move the property as quickly and cheaply as possible may take shortcuts such as simply painting over mold to conceal it rather than completely removing it.

Buyers should also research the flippers to ascertain whether or not they have a good reputation. If they have worked locally for any length of time, area real estate agents will be able to offer some insight into the quality of work that they produce. It may even be possible to speak with people who have bought houses from the same flippers.

Another serious consideration is that certain lenders may balk at loaning money for the purchase of flipped homes. Other lenders may have stricter requirements for flipped homes, such as having two independent home inspections rather than one. Anyone who is considering buying a flipped home should discuss the situation thoroughly with both their real estate agent and lending officer at their financial institution before coming to a definitive decision. It is possible to get good deals on flipped houses, but buyers should still approach these transactions carefully.

Surprising Aspects of Buying a New House

Buying a house is often surprisingly complicated. That's partly because of the amount of money involved, but there are other factors that are just as important. Here are some of the aspects involved in home buying kingston that new buyers should be ready for: Finding a House For some people, finding a house to buy takes only a day or two. Others, however, need weeks or months before they settle on one to go after. The amount of time needed depends mainly on how specific the buyer's requirements are. Someone who is happy with any house that has a good roof only needs to look at the financial aspect, where a person who wants a very specific arrangement in a very specific area will usually have to wait a while for it to appear.

Surveying In some cases, the land a house is on will already have been surveyed. If this isn't the case, it's a good idea for the buyer to find out exactly where the lot lines are – especially if the house is close to one of the edges of the land. House Inspections It's a good idea for prospective buyers to hire a house inspection firm to check out the house that they're serious about buying. This is especially true for old houses. Inspections find problems that the current owner or real estate agent might not have even known about and then tell the would-be buyers about their findings. The best-case scenario is a finding of no major problems.

Some think that inspections aren't necessary because owners and agents are legally required to disclose known problems. The issue here is that they may not know something even is a problem. This is especially true if the current owner did a lot of "do it yourself" work. Waiting for Financing Many new home buyers are amazed at how long it takes a mortgage company to actually come up with a check. Private mortgage companies and banks can take weeks to get everything through underwriting.

Federal programs, like the USDA Rural Development Program, can sometimes take months before they get a new batch of funding and then disburse it to approved applicants! Because of this, it's important for buyers to make sure that their contracts allow for a sufficient hold time before the deal gets canceled. These are the main things that new home buyers often find out by surprise. Talk to a real estate agent to find out even more about the process.

4 Mistakes to Avoid Before Closing on a New Home

Home buying Kingston area can be an exciting yet slightly intimidating experience, especially for those who are buying for the first time. Even once one has found their "dream home" and agreed on a sale price with the seller, there's still a lot that needs to be done before the sale can be finalized. And during this time period, there's a lot that could potentially go wrong. Specifically, there are a few mistakes first-time home buyers will want to avoid before closing.

Being Late on Bill Payments

Accidentally making a late bill payment might not seem like a huge deal, but even one late payment could impact one's credit score. Not to mention, a late payment could leave one with additional fees and interest payments. If one's credit score is significantly impacted by a late payment, this could actually result in one being denied approval for a mortgage, even if they were previously pre-approved.

Skipping the Home Inspection

Another common mistake made by first-time buyers especially is that of deciding to skip the home inspection prior to closing. This may seem like a good idea in terms of saving some money, as a home inspection can easily cost a few hundred dollars (and is usually the financial responsibility of the buyer). However, the fact remains that a home inspection is a good investment because it can alert buyers to potentially serious and expensive problems with the house.

Making Large Purchases

Upon getting an offer approved for a home, it can be tempting to go out and buy all new furniture and decor for the house. However, it's generally best to hold off on making any large purchases until after the closing has been finalized. After all, opening up a new charge account or even charging a large expense to a credit card can affect one's debt-to-income ratio, which can hurt one's credit score and prevent them from getting approved for a mortgage.

Not Monitoring One's Credit

Lastly, prospective home buyers must always keep a close eye on their credit throughout every step of the buying process. Unfortunately, all it takes is one error on one's credit report to turn dreams of home ownership to dust. By carefully monitoring one's credit and disputing any mistakes, it's possible to avoid serious problems with mortgage approval down the road.

Check a House for Structural Issues Before Buying

Buying a home is an exciting thing to do, but it's also something that makes many people nervous. This is especially true if the house that's being considered is more than a few years old. Two competing sets of visions often come to mind when thinking of home buying Kingston. 

One involves a happy move-in day with plenty of smiles and cheer. The other can best be summed up as scenes from The Money Pit – a movie about a fixer-upper that causes runaway costs. How can a buyer be sure to make the first vision come true instead of the second?

Hire a Home Inspector

This is the easiest way for buyers to find out what they're getting into before they actually get into it. A good home inspector will examine the house both inside and out. Then, he'll write up a report that lists everything that needs to be fixed. It's typical for a house to need a few repairs, but if there are too many, it's usually a good idea to seek a different one.

Inspect the House Without Professional Guidance

For home buyers who have experience with old houses, this can work out fine. Direct experience with an old house will have taught them exactly what is likely to go wrong and what the signs of the problems look like. Those who don't have such experience can do well too, but it will take plenty of self-education beforehand in order to know what to look for.

Common Signs of Problems

One of the most important things to look for is water damage and signs of quick cover-up repairs. Start by looking at the roof, where most leaks originate. If that's obviously damaged, move on.

If the roof looks fine, go inside. Check the ceilings, walls next to chimneys, the area right below windows, the space underneath the sinks, and the floor. These are all common areas for water damage.

The electrical system can also be touchy in old homes. Check all of the switches and be sure that the associated light turns on.

If the house has a good roof, is free of leaks of all sorts, and has a good electrical system, it will likely be free of the need for costly repairs. Almost all pre-owned homes need at least a little work thanks to normal wear and tear, but that shouldn't be a deterrent to buying. A house that only needs a coat of paint is an excellent investment.

The Process for Buying a Home in Kingston

Purchasing a home can be an exciting and terrifying process at the same time. While choosing the right home means years of enjoyment, selecting the wrong home means potentially paying a mortgage on a home the individual hates. In any case, it's best to make a wise decision and conduct a sufficient amount of research. The following information explains the home buying Kingston and what people should expect. 

Plan a Budget

The first thing any potential buyer should do is check their own credit by requesting a free credit report from Annualcreditreport.com. Afterwards, the individual should sit down and make a real budget to determine how much home they can afford. There are several mortgage calculators designed to help the buyer determine an affordable mortgage. It's important to factor in the money required for a down payment, closing costs, fees, any potential remodeling, and estimated utility bill. 

Get Preapproved

The next step is to find a lender and attain a level of preapproval. In the process of finding a lender, it's best to shop around. The individual can start by asking their family and friends about their experience with lenders. In any case, it's best to talk to three or four different lenders and ask a bunch of questions in the process of finding a knowledgeable and ethical lender. It's also a great idea to read social online reviews about the lender and to check with the Better Business Bureau. After a lender is selected, the individual should get a letter of pre-approval or an actual approval letter, which will provide a real scope of how much home the lender is willing to mortgage. 

Finding a Home

While there are several ways to find a home, it's best to work with a realtor. Realtors have their ears to the real estate market and will be able to help the buyer easily navigate through the housing market. In any case, the individual should make a list of all of the things needed in a home and prioritize those items. Some of the most common considerations are number of rooms, types of schools in the area, type of neighborhood, proximity to work and shopping, etc. 

Making an Offer

After the individual finds a home that suits their needs, the next step is to make an offer. It's important to understand that most sellers price their home higher because they expect a bit of haggling. An excellent place to start is five percent below the seller's asking price. The real estate agent can also provide a list of the selling prices of comparable homes, which should give the buyer a better idea of what is a fair price. The seller can either accept the offer or counter it. If the seller counters the offer, the negotiations continue until both parties agree on a price. When the seller accepts the offer, the final step is the closing.