Indianapolis Real Estate Updates For Home Buyers And Sellers

I have a lot of single friends, and many of them prefer to rent. I can’t fathom why.  To me, renting is akin to throwing your money to the wind. In my opinion, it is always preferable to buy a home as opposed to renting one.  Buying puts you in control of the way that you live.

Should You Buy or Continue to Rent? 

You don’t have a landlord breathing down your neck, and you can certainly decorate your home any way that you want without worrying about lease restrictions. And you have something to show for your money.  If you rent, you are just paying for a place to store your stuff and a roof over your head. Your hard-earned money paid for rent becomes some landlord’s income stream.

I rented for many years, and for those who have had the pleasure of living life on someone else’s terms because you are living in their home, you know far too well how restrictive that it can be.  The property manager for one home that I rented required me to sign a lease that was, literally, as long as my arm and that spelled out virtually any possible scenario that might result in my eviction. Had I not had an urgent need to find a home to rent at the time, I would have probably kept looking.  Needless to say, when the lease was up on that home, I moved out.

When I bought my first home, it was like a great weight was lifted off my shoulders.  Even though it was a modest home, and by no means my (or anyone’s) dream home, it was mine, and I knew that as long as I made my payments each month, no one could tell me what to do within its walls.  There is so much freedom in owning a home, and home ownership gives you a sense of accomplishment.  When you plunk down hundreds of dollars each month or more, your money is going towards something that you will eventually own outright.  Now that’s something to be proud of!

That’s not to say that renting can’t be great for some folks.  Some people like to move frequently, or their work requires that they move from town to town, or even state to state.  I can see how renting makes a lot of sense for those folks.  I’m not that adventurous.

Other people aren’t completely ready for the financial commitment of buying a home.  To those people, I like to say that buying is often a cheaper route than renting.  Or should that be that a rent payment is sometimes higher than a mortgage payment.  Do the math.

Nonetheless, those looking to make home ownership a reality also need to factor in other costs that will be associated with their new status as a homeowner.  For example, right now you are paying rent and utilities.  If you buy a home, you will be paying a mortgage payment.  But you will also be paying for homeowner’s insurance, taxes, repairs, maintenance, and in some instances, homeowner’s association fees.  Still, your money will be going towards something that you can, at some point in the future, label as yours and yours alone.  If you can afford to become a homeowner, do it!

This guest blog was provided by Allison Klein who specializes in helping home buyers find great homes for sale in Fort Collins and other areas including Loveland CO homes for sale and Windsor CO homes for sale.

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Although home prices have never been more affordable, and mortgage interest rates have never been lower (and expected to stay the same throughout 2012), getting a mortgage is not easy for every buyer.  Most real estate agents are so busy nowadays that they will only deal with those homebuyers who have been pre-approved.

Speeding up the Pre-Approval Process for a Home Loan

After all, they can show you homes all day long but if ultimately you are unable to get approved for a mortgage and you aren’t paying cash, then they aren’t going to make any money. That’s not to say that all realtors expect a letter of pre-approval.  But the busiest and the best do, usually, at least.

Many would-be homebuyers start their search for financing online, mainly due to convenience.  And online calculators and so forth are great for helping those who are looking to buy a home to determine some different scenarios, such as how much would your monthly payment be if you paid X amount of dollars down and got a loan at X percentage rate for a term of forty years.  But these online calculators are just that – calculators.

They go by basic information and assume that you have been with your same employer for several years, have a checking account and a savings account.  If you don’t fit the cookie-cutter formulas that they have programmed into them, then you are probably not getting good information.

Find A Great Mortgage Broker First!

Finding a mortgage broker to work with is a better option for getting pre-approved.  They will work with you and ask the questions that need to be asked, and will understand how much you can truly afford than a calculator on a website.  Determining affordability is the first step in the process of getting a pre-approval letter.

After finding someone to work with, you need to get ready for the paperwork!  There’s a lot of it involved, but then when you think about it, there should be.  Buying a home is a big commitment, and possibly the largest purchase you will ever make in your lifetime.

Start getting all of your paperwork in order beforehand, including at least two months of paystubs or proof of income if you are self-employed, two years of your W-2s, 1099s, or other tax forms that show your income, and bank statements for the past six months or so.  If you have been renting, you need to bring in the past twelve months of rent payment receipts.  These are the documents that any loan professional can use to get a clear picture of your financial health.

Know Your Budget And Stick To It

The mortgage broker or loan officer will also help you to create a budget.  They will look not just at income that is coming in, but how much is going out. This lets them arrive at how much you can afford for a home purchase.

It is crucial to get pre-approved at the desktop underwriting level. Perhaps you don’t want to take the time or effort, but please know that in this competitive market anything you can do to show the seller that it’s your offer that should be accepted should be done. Most lenders can complete the Desktop Underwriting (DU) preapproval process within 48 hours.

The speed at which everything falls in place really has a lot to do with the borrower, and whether or not they bring in the right paperwork and work hand-in-hand to get the pre-approval going. Working with a broker who is knowledgeable and who has been around the block a few times is one way to guarantee a tighter pre-approval. that will prove to the sellers that you are a worthy buyer.

In fact, most sellers (including forelcosures and short sales) require full Desktop Underwriting approval and show FICO scores.  A good mortgage broker will also take a moment to let those would-be buyers who don’t qualify know why they were turned down and the steps that they can take to get approval in the future.

You can learn more about buying a home the right way from Vickie Nagy on her Pleasonton real estate website. You can also search homes for sale in Blackhawk and homes in Livermore, CA on her website using the latest technology.

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With increasing awareness about environmental issues, many people are looking for ways that they can do their part. Not only will more energy efficient real estate help you achieve this, it can reduce your energy bills drastically.

There are a variety of ways that a home can be considered “green” but it is not as complicated as you might think. From passive solar energy to the appliances within the home, there are a number of more energy efficient techniques and items to be on the lookout for.

Heating, Cooling and Insulation 

Passive solar energy is not as complicated as it sounds. Using passive solar energy for heating and cooling revolves around the overall design of the home. Having more south facing windows will help to heat the house naturally with sunlight during winter months. Having less east to west facing windows will help keep the home cooler in the summer time. Proper insulation and air sealing will go a long way towards helping these natural heating/cooling methods to be more effective. These are all things to look for when pursuing a more energy efficient home.

Appliances 

On average, appliances and electronics are responsible for about 20% of your energy bill. That may not seem like a lot, but it can really add up. Look for appliances in the home that have the Energy Star rating, these will save a great deal of money in energy bills over time.  Look for heat on demand water heaters in the home. These reduce energy costs by heating water as you need it instead of maintaining 40 gallons of hot water all the time.

Home Energy Rating System (HERS)

These are audits performed by most utility companies or home inspectors that will provide a report on the overall energy efficiency of the home, and which areas of it need work. If the property you are interested in buying or renting does not have a HERS report, don’t be afraid to request one. It is very useful information to have, particularly if you plan on purchasing the property and eventually making more energy efficient changes yourself.

Outside The Home 

Building materials made of natural substances will always be better for the environment than those that are made with chemicals. Wood sidings for homes not only are better for the environment, but they can be very attractive. The location of the home also factors in to its energy efficiency. If it is in an area that is within walking distance of schools, grocery stores, and other necessities it will cut down on the number of trips you will need to make with your vehicle.

Keeping It Simple 

Once you have purchased or rented the “green” real estate, it is easy to maintain some good practices that will help keep the home energy efficient. Making sure that windows and doors are properly sealed go a long way towards retaining heating or cooling within the home. This can be done with caulking, weather strips, or energy efficient tinting for the glass panes. Using heavy drapes over the windows during the summertime will help keep the house cooler, while uncovering the windows during the winter months to allow sunlight in will help keep it warmer.

This guest blog was provided by Jolenta Averill of Lake & City Homes Realty. If you’re curious about living green you may want to check out Jolenta’s news blog here. You can also join Jolenta in the social world on her Lake & City Homes Realty Facebook Page.

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