Financing Your Dream Home: How To Balance Style And Budget

Buying a home is one of the most important financial decisions you’ll ever make. For many buyers, shopping for a home involves a careful balance of style goals and budget. Here are a few ways that you can get the home of your dreams without compromising too much on the style you want.

Set Priorities for Home Design

Before you start shopping for a home, you should do some homework. Make a list of the most important styles, design elements, and amenities that you’d like to have in your home. Get a sense of the types of homes you like and don’t like. Consider indoor and outdoor elements, from the look of the kitchen to the layout of the backyard or patio. If you’re buying a home with another person, you should each make a list and come to a consensus about your priorities. That way, you don’t waste your time looking at homes that don’t meet your needs.

Discover Your Buying Power

While you are working through your list of must have items for your new home, you should also learn what your realistic home-buying budget will be. Although you can get some general information from online calculators, your best bet is to get pre-approved for a mortgage. Mortgage pre-approval involves a careful and accurate look at your finances, so a lender can tell you how much they’d be willing to lend. With this information, you can go shopping with the comfort of knowing what is in your budget.

Be Realistic When Shopping for Homes

Buying a home is the biggest purchase most people will make. When you start looking at homes, be realistic about your expectations and your budget. Look for the absolute best homes in your price range and start there. Keep an open mind and shop for homes with great potential, not just the ones that look perfect to start. You may decide to put an offer in on an older home that you can customize to fit your style goals perfectly, instead of paying more for a newer home.

Budget for Upgrades

Even if the home you buy is brand-new, you may still need a little room in the budget to make it your own. Set a few realistic goals that you can achieve before you move in, such as buying appliances, upgrading the flooring, or painting the interior. If you have bigger plans, like remodeling the kitchen or finishing the basement, you should make sure that you can afford to finance it after you close on the home.

Plan for Monthly Housing Expenses

Once you buy a home, it is important to take into consideration all the expenses that come with it.. Start by determining how much money you’ll need for your monthly housing expenses, such as insurance, utilities, and your mortgage payment. Fixed-rate mortgages have a set monthly payment for principal and interest that remains the same for the entire loan. If you have an adjustable-rate mortgage, you may need to plan for the payment to change over time. The amount you have left after all your expenses are paid can be used to personalize your home.

Buying a home can be a dream come true, particularly if you start the journey with realistic expectations. By setting your sights on an affordable home and making plans to make it your own over time, you can have peace of mind that you won’t break your budget.

Erin Schlachter is Mortgage Sales Manager (NMLS#: 645889) at Right By You Mortgage, a division known for offering a comprehensive range of mortgage products. Backed by the strength and stability of Fidelity Bank, a trusted institution with more than 115 years in the financial services industry, Schlachter and his experienced team of loan officers provide personalized guidance at every step of the mortgage process, ensuring that clients receive expert support and a seamless experience from start to finish.

SOURCES

https://www.militarybyowner.com/resources/5-steps-to-balance-your-home-buying-dream/

https://www.build-review.com/6-tips-thatll-help-you-find-your-dream-home-within-your-budget/

Estate Planning And Homeownership: Protecting Your Assets

If you own a home, you have a good reason to form a plan for what happens to it after you die. Estate planning is not the most exciting of topics, but it can be incredibly important for your loved ones. With this information, you will understand the importance of setting up an estate plan for your home and your other assets.

Types of Homeownership

Leaving property to your loved ones can be a significant addition to their potential inheritance, but the amount depends on the type of ownership. Common ownership arrangements include:

• Sole Ownership: One person owns the property, which may transfer to their estate or their beneficiaries when they die.

• Joint Ownership With Right of Survivorship: Multiple people own the property. When one of them dies, the others automatically gain ownership of that person’s share of the property, without passing it to the estate.

• Joint Ownership Without Right of Survivorship: In this case, multiple people own the property, but they do not gain any of another’s equity when that person dies. Instead, the equity of the person who died passes to the estate.

• Ownership by Contract: A person owns a home and has control over it until they die. Once they die, the property passes to beneficiaries specified in the contract, bypassing the estate or probate.

When you start working on estate planning, be sure that you understand how you own your home. The type of ownership, as well as the extent of your estate planning, may affect how quickly your heirs can gain control of the property or the equity in it.

Challenges to the Estate Settlement Process

When you think about estate settlement, it might seem like an easy process, especially if you only have a handful of major assets to settle. Settling even a small estate, however, can create a variety of potential challenges, especially if you intend for your loved ones to inherit a property they can live in:

• Lack of a Will: If you fail to leave a will or a trust, your heirs will have to go through the probate process. This process can be faster if everyone agrees on the best way to settle the estate but can take months if there is any disagreement.

• Contested Will: Even if you leave a will with clear expectations, it’s possible that your heirs will disagree over the settlement. A contested will or probate can be expensive and time-consuming to resolve.

• Mortgage: The presence of a mortgage on the property may affect whether your heirs can maintain the property or if they must sell to settle the mortgage.

• Late Payments/Taxes: If payments for the mortgage or property taxes are late or several months behind, heirs may have to catch up on the payments before they can decide what to do with the property.

An experienced financial advisor working together with your attorney to create a clear estate plan can potentially minimize or eliminate most of these possible challenges.

Leaving Property to Your Loved Ones

If you want to avoid many of the possible challenges that heirs face during the estate settlement process, creating a will or a trust is the best way to ensure it. Much of the probate process involves researching the person’s assets and debts, so that the debts can be settled and the remainder of the assets handed down to appropriate beneficiaries. If the information about your wishes is not clear, the probate court may take months to sort it out.

By comparison, if you set up a trust for your assets, you may be able to bypass the probate process entirely. As an added benefit, the financial institution setting up your plans for the estate may also act as an executor, ensuring that the estate is settled according to your wishes as much as possible. 

The best gift you can give to your loved ones on your death is a concrete plan that they do not have to find on their own. Grieving the loss of a spouse, parent or sibling can be less stressful when the settlement of the estate is handled by a competent party with all the information.

Author bio: Jonathan Kuiter is the Director of Business Development at Brown and Company, a wealth management firm dedicated to simplifying its clients' financial landscapes by removing uncertainty and providing clear, tailored strategies.

SOURCES

https://trustandwill.com/learn/property-ownership-estate-planning

https://www.fidelity.com/learning-center/personal-finance/estate-planning

https://www.thebalancemoney.com/overview-of-types-of-property-ownership-3505420

Securities and advisory services offered through LPL Financial, a Registered Investment Advisor, Member FINRA/SIPC. Brown & Company and LPL Financial are separate entities. Brown & Company and LPL Financial do not provide legal advice or services. Please consult your legal advisor regarding your specific situation.

5 Ways to Enhance Your Home and Finances With Equity Solutions

We understand that managing a household can be a challenging, but rewarding endeavor. That's why we're here to offer you five practical and effective ways to use your equity to improve your home and financial situation. Whether you're looking to increase the value of your property or simply make some extra cash, we've got you covered. So sit back, relax, and let's dive into this helpful neighborly guide on using equity solutions for your benefit.

Renovating for Increased Property Value

One of the most common ways to use equity is by investing it back into your property. This can be done through renovations, upgrades, or even adding additional living spaces such as a basement suite or extra bedroom. By using your equity for these types of improvements, you can increase the overall value of your home and potentially see a return on investment when it comes time to sell.

Not only does this benefit you financially in the long run, but it also allows you to enjoy a more comfortable and updated living space while you're still in your home. Just make sure to do proper research and budget planning before diving into any major renovation projects.

The cost of renovations can vary greatly depending on the type and scale of the project. For example, a minor kitchen renovation could cost anywhere from $10,000 to $15,000, while a major bathroom remodel could cost upwards of $25,000. Be sure to carefully consider your budget and prioritize which areas of your home will benefit most from renovations before deciding how much to spend. It may also be helpful to consult with a professional contractor or real estate agent for advice on which renovations will add the most value to your property in your specific market.

Paying Off High-Interest Debts

Another way to utilize your equity is by paying off high-interest debts such as credit cards or personal loans. By using your home's equity, you can potentially secure a lower interest rate and save money in the long run. This can also help improve your credit score as it shows responsible financial management and reduces your overall debt-to-income ratio. Keep in mind that this option may not be suitable for everyone, so it might be a good idea to consult with a financial advisor, such as someone with a HELOC payment calculator, before making any decisions.

Investing in Home Energy Efficiency

Making energy-efficient upgrades to your home not only benefits the environment but can also save you money on utility bills in the long run. By using your equity to invest in solar panels, energy-efficient appliances, or insulation, you can reduce your household expenses and potentially increase the value of your home. Additionally, many local and federal governments offer incentives and rebates for homeowners who make energy-efficient upgrades, making it a smart financial decision.

To ensure that your energy-efficient upgrades continue to provide benefits, you need to properly maintain them. This can include regularly cleaning and servicing appliances, replacing air filters, and checking for any signs of wear or damage in insulation. By keeping these systems well-maintained, you can extend their lifespan and continue to save money on utility bills—a win-win for everyone!

Starting a Home-Based Business

If you've always dreamt of being your own boss and starting a home-based business, using equity can be a great way to finance it. Whether you need money for startup costs or want to use your home as collateral for a business loan, utilizing your equity can provide the necessary funds without putting too much strain on your current finances. Just remember to carefully plan and research your business idea to ensure its success.

There are countless home business ideas that you can pursue. Some popular options include freelancing, online retail, pet sitting or dog walking services, tutoring, and event planning. You could also consider using your home as a rental property. The possibilities are endless and with the right planning and dedication, you can turn your passion into a profitable business right from the comfort of your own home. Just make sure to research the market demand for your chosen business idea and create a solid business plan before diving in.

Creating an Emergency Fund

Life is unpredictable, and having a backup plan is always a good idea. By using your equity to create an emergency fund, you can have peace of mind knowing that you have some financial cushion in case of unexpected expenses or job loss. This allows you to avoid taking on high-interest debt or dipping into your retirement savings in times of need.

The amount of money to maintain in your emergency fund can vary depending on your personal financial situation, but it's generally recommended to have at least three to six months' worth of living expenses saved up. This should cover essentials such as rent or mortgage payments, groceries, and utilities.

However, if you have a higher income or more significant financial responsibilities, you may want to aim for a larger emergency fund. It's always better to be over-prepared than underprepared when it comes to unexpected expenses. So take the time to assess your finances and determine an appropriate amount to save for your own peace of mind.

Utilizing your equity solutions can provide numerous benefits for both your home and finances. Just be sure to carefully consider all options and consult with professionals before making any major decisions. With the right approach and use of equity, you can enhance your home and financial situation for a brighter future. So go ahead and make the most out of your equity today!

How Can Community Support Efforts Help in Acquiring and Improving Your Dream Home?

We partnered with a real estate company for this post. The opinions in the post are honest. All reviews and opinions expressed in this post are based on our personal views. We are excited because we know you will love it.

Acquiring and improving a dream home is a significant milestone, often requiring substantial resources and effort. However, community support efforts can play a crucial role in making this goal more attainable. From financial assistance and volunteer help to local knowledge and networking, community initiatives can provide invaluable support. This guide explores how community support efforts can assist in acquiring and enhancing your dream home, emphasizing the importance of collaboration and shared resources.

Financial Assistance and Opportunities

One of the primary ways community support can help is through financial assistance. Various community-based programs and initiatives are designed to make homeownership more accessible.

Grants and Subsidies

Many communities offer grants and subsidies to assist with the purchase and renovation of homes. These financial aids are often targeted at first-time homebuyers, low-income families, and those purchasing homes in revitalization areas. By tapping into these resources, you can significantly reduce the financial burden of acquiring and improving your dream home.

Home Lottery

Participating in a prize home lottery can be an exciting way to potentially secure a dream home. These lotteries often feature luxurious homes as prizes, providing a unique opportunity for participants to win a fully furnished and upgraded property. The funds raised from these lotteries typically support community projects and charities, making it a win-win scenario.

Low-Interest Loans and Financing Options

Community banks and credit unions often offer low-interest loans and favorable financing options to local residents. These institutions are more likely to consider the community impact of their loans, providing flexible terms and lower rates to support homebuyers. Additionally, some communities have established revolving loan funds that provide short-term financing for home improvements.

Volunteer Help and Skilled Labor

Improving a home often requires skilled labor and significant time investment. Community support can bridge the gap by providing volunteer help and access to skilled professionals.

Community Build Days

Community build days are events where volunteers come together to work on home improvement projects. These events can range from painting and landscaping to more complex renovations. By participating in or organizing a community build day, you can gather the manpower needed to complete large projects quickly and cost-effectively.

Skilled Trades Volunteering

Many skilled tradespeople are willing to volunteer their time and expertise for community projects. Electricians, plumbers, carpenters, and other professionals may offer their services at a reduced rate or for free as part of community support efforts. This can be a tremendous help in tackling specialized tasks that require professional knowledge.

Tool Libraries and Equipment Sharing

Some communities have established tool libraries or equipment-sharing programs. These initiatives allow residents to borrow tools and equipment needed for home improvement projects, reducing the need to purchase expensive items that may only be used once or twice. Access to these resources can make a significant difference in the feasibility and cost of your home improvement plans.

Local Knowledge and Networking

Community support extends beyond financial and physical assistance. Access to local knowledge and a strong network can be invaluable in acquiring and improving your dream home.

Real Estate Insights

Local real estate agents, community organizations, and neighborhood associations can provide valuable insights into the housing market. They can inform you about upcoming listings, market trends, and potential opportunities that may not be widely advertised. Building relationships with these local experts can give you a competitive edge in the home-buying process.

Referrals and Recommendations

Word of mouth is a powerful tool in any community. Neighbors and local contacts can provide referrals and recommendations for reliable contractors, suppliers, and service providers. These recommendations can save you time and money, ensuring you work with trusted professionals who deliver quality work.

Networking Opportunities

Engaging in community events and activities can expand your network and introduce you to individuals who can assist in your home acquisition and improvement journey. Networking can lead to discovering off-market properties, finding investment partners, or even gaining access to exclusive community programs and resources.

Educational Programs and Workshops

Education is a key component of successful homeownership and improvement. Many communities offer programs and workshops designed to equip residents with the knowledge and skills needed to achieve their home goals.

Homebuyer Education

Homebuyer education programs provide essential information about the home-buying process, financial planning, and mortgage options. These programs often include personalized counseling sessions to help prospective buyers understand their financial situation and create a plan for purchasing a home.

DIY Home Improvement Workshops

DIY workshops teach residents how to tackle common home improvement projects themselves. Topics can range from basic carpentry and plumbing to more advanced renovations. By learning these skills, you can take on projects with confidence, reducing the cost of hiring professionals and adding a personal touch to your home improvements.

Energy Efficiency and Sustainability Courses

Many communities offer courses focused on energy efficiency and sustainable living. These programs provide practical advice on making your home more eco-friendly, which can lead to long-term savings and a reduced environmental footprint. Learning about sustainable practices can also increase the value and appeal of your home.

Community Engagement and Support

The sense of community and mutual support can be a significant motivator and resource for homebuyers and homeowners. Engaging with your community fosters a collaborative environment where everyone benefits.

Neighborhood Associations

Neighborhood associations play a crucial role in fostering community engagement and support. These groups often organize events, provide resources, and advocate for the interests of residents. Joining your local neighborhood association can connect you with like-minded individuals and provide access to collective resources and support.

Crowdfunding and Community Fundraising

Crowdfunding and community fundraising initiatives can be an effective way to gather financial support for home improvement projects. Platforms like GoFundMe or local fundraising events can help raise the necessary funds for specific projects. These efforts not only provide financial assistance but also foster a sense of community involvement and ownership.

Shared Resources and Community Projects

Many communities have shared resources and collaborative projects that benefit homeowners. Community gardens, shared green spaces, and cooperative housing developments are examples of initiatives that enhance the quality of life for residents. By participating in these projects, you can contribute to and benefit from the collective efforts of your community.

The Power of Community Support

Acquiring and improving your dream home is a significant endeavor, but with the support of your community, it becomes a more achievable and rewarding goal. From financial assistance and volunteer help to local knowledge and educational programs, community support efforts provide a wealth of resources that can make a substantial difference.

Engaging with your community not only helps you achieve your personal goals but also strengthens the community as a whole. This collective effort enhances the quality of life for all residents, fostering a vibrant and thriving community.

Remember, the journey to acquiring and improving your dream home is not one you have to undertake alone. Embrace the power of community support, and you’ll find that together, you can achieve remarkable things.