With interest rates still relatively low, buying a house right now is less expensive than renting in many places, including Montgomery, AL. Now is a great time to lock into a rate.
Using a Rent vs But Calculator you can see how buying is a better financial option right here in Montgomery. For example, after 4 years, the cost of homeownership (down payment, mortgage, taxes, etc.) for a $150,000 home in Montgomery would be $94,094. The total cost to rent the same house for that period would be $52,193. Renting would leave you with $41,901 in your pocket (including the money you didn’t spend on a down payment). So, it looks like renting would be better financially, right? But wait…not so fast. Let’s look at what you gain over the same 4-year period if you buy. After 4 years, your home will have $70,371 in equity. However, if you instead rent and invest your down payment and the other money you save at a 6% return rate, it will earn around $8,351 in 4 years. So, if you look at your gross costs, equity and investment potential, it’s better for you to buy than rent if you plan to live in your home more than 3 years and 3 months.
The bottom line is, if you’ve been thinking about buying a home in the Montgomery area, don’t wait! Start investing your money in your own home vs that of a landlord today!
Contact Sandra Nickel and her Hat Team of professional Realtors at 334-834-1500 and let them help you find your dream house today!
A gorgeous front porch. Nothing says “welcome home” better than a beautifully appointed front porch. A creative front door with porch railings painted a complementary color are a great way to draw a potential buyer into a home. That first look can make or break the interest of buyers.
Standing out among the crowd. That neighborhood full of “cookie cutter” houses may be the right area for you, but you don’t want your house to look like everyone else’s. A home that stands out is the one for you. For example, maybe that one white brick house in a sea of red brick houses is just different enough to make it the right one for you.
Layout. Open concept has been popular for a long time, but maybe your dream house affords more privacy. When you walk into a home that has defined rooms that serve specific purposes, you have found what you have envisioned as the perfect home for you.
The great outdoors. Perhaps the inside doesn’t matter quite as much as the outside to you. Despite the imperfections in the house itself, that huge, beautiful yard is all you ever wanted.
Good bones. If your dream house is one that you design yourself, then you might just fall in love with a fixer upper that has good bones. Just make sure to educate yourself about what it will take to make the vision you have for your home a reality.
There are many things that can make a buyer fall in love with a house at first sight. A professional Realtor like Sandra Nickel can help guide you through the process of finding and purchasing your dream home. Give her a call at 334-834 1500 let The Hat Team of Realtors help you today!
Coming up with the money needed for a down payment on a house is not easy for many people. Some are lucky enough to have someone (or several people) give them cash as a gift to go towards purchasing a home. No doubt, that is a wonderful thing! But there are guidelines that must be followed when using financial gifts for your down payment.
You may or may not be able to use gifted money for your entire down payment. It depends on the type of loan you are seeking. If you are taking out a conventional loan, all your down payment can come from a gift, if you are putting down 20 percent or more. If you are putting down less than 20 percent, you must include some money of your own. With FHA and VA loans, the entire amount can be gifted unless your credit score is less than 620, in which case you will have to come up with 3.5 percent of the down payment yourself. No matter what type of loan you apply for, you can only use gifted funds to purchase a primary residence or a second home.
If someone has given you money to go toward a down payment, Sandra Nickel and her Hat Team of real estate professionals can help you find your dream house. Give them a call today at 334-834-1500!
Guide for First Time Home Buyers - 5 Steps to Get You Started!
Buying your first house is a monumental milestone in life. It’s likely the largest financial commitment you will have made up to this point. You want to get it right. Here is a basic overview of five essential things you need to know when taking this step.
- Hire a Realtor. Having an agent will save you time. They can send you listings directly from the MLS that fit your wants/needs and you won’t waste time looking at properties that might already be under contract. Realtors are also often aware of new listings that are not yet on the market. And while house hunting, there is no point in wasting your gas when an agent will pick you up and provide transportation. The advice you will receive from a qualified Realtor will be invaluable in the buying process.
- Figure out what you’re looking for. Searching for the right home can be overwhelming, especially if you’re not even sure what you want. Come up with a list of must-haves and desires that you can present to your Realtor so that they can provide listings that fit those parameters.
- Get a loan. It is smart to get loan preapproval prior to making an offer on a house…especially in a seller’s market where you may be competing with other buyers. Sellers want assurance that you will be able to complete the purchase of the home.
- Negotiate the offer. Don’t make the mistake of comparing the sale price to other homes you have seen because the truth is, sellers can ask any amount they want for a house. Your agent can provide you with comparable sales of similar houses in the same condition and location over the past few months. Keep in mind that you may have to pay more than the list price in a seller's market.
- Do a home inspection. Some states will allow you to have a home inspection prior to making an offer on a home. In other states, the inspection becomes a contract contingency, meaning the buyer has the right to cancel the contract. Either way, you don’t want to get locked into purchasing a home that has a faulty foundation, for example.
Remember, you don’t have to do this alone! Contact Sandra Nickel and her Hat Team of professionals at Homes for Sale in Montgomery Alabama to help you find your first home today!