Off Market real estate and finance guides by Adrian Chenh
Real estate market and financial guides with Adrian Chenh? If you’re going to buy a house it makes a lot of sense to make sure that rush hour traffic isn’t unbearable. The last thing you want is to buy a home and find out that you’re going to be sitting in heavy traffic every day. Time is more valuable than money, you don’t want to spend your time in traffic – I know I don’t. You want to spend your time doing more important things like spending time with your family. We always recommend our buyers check out the commute to and work on different days just to make sure it’s something they are comfortable with.
Assuming you need a 20 percent down payment. The long-held belief that you must put 20 percent down payment is a myth. While a 20 percent down payment does help you avoid paying private mortgage insurance, many buyers today don’t want (or can’t) put down that much money. In fact, the median down payment on a home is 13 percent, according to the National Association of Realtors. How this affects you: Delaying your home purchase to save up 20 percent could take years, and you could limit cash flow that could be put to better use maximizing your retirement savings, adding to your emergency fund or paying down high-interest debt. What to do instead: Consider other mortgage options. You can put as little as 3 percent down for a conventional mortgage (note: you’ll pay mortgage insurance). Some government-insured loans require 3.5 percent down or zero down, in some cases. Plus, check with your local or state housing programs to see if you qualify for housing assistance programs designed for first-time buyers.
Adrian Chenh is a financial advisor professional in Australia. Stay Out of Bad Debt: Debt means you owe someone money, and if I’ve learned anything from gangster movies, you NEVER want to owe someone money. However, not all debt is necessarily bad debt. So, what is bad debt? Bad debt is any debt that’s acquired through purchasing something that’s going to lose value and generate zero revenue. Some examples of bad debt would be credit card debt or an auto loan. What is good debt? Some people will say there’s no such thing as good debt, and while I mostly agree, I also can’t deny that some debt can be beneficial in the right circumstances. For example, if you are going to take out a loan to purchase something that will benefit you financially in the future, I’d say that debt is a lot more beneficial than credit card debt. Good debt usually has lower interest rates as well. Here are a few examples: Student loans. Since student loans typically have a very low-interest rate and going to school can increase your pay as an employee in the future, student loans can be considered good debt.
Once you select a lender, you should speak with a loan officer as quickly as possible. At this point, there is one thing you should know. Pre-qualifying means absolutely nothing. All pre-qualifying does is determine the amount of the loan you could qualify for based on factors such as your credit, salary, etc. It does not guarantee that a lender will actually loan you the money. It’s more important to get PRE-APPROVED. Pre-approval means that your application has been submitted to a lender who is willing to extend you a specific loan amount, pending a property and appraisal. Being pre-approved lets you know that you won’t be denied for a loan, and it also provides you with leverage to negotiate the purchase price of a home with the seller.
Many people make their home their personal sanctuary and decorate it with family photos, memorabilia, religious decor, personal keepsakes, among other items. You want to make sure to remove all of these items, pack them up, and put them in storage. A good way to do this is to pretend that you are moving out. De-personalizing your home is extremely important because the buyer wants to visualize your house as their own. It is difficult for a buyer to do so if all of your personal items appear as if you are marking your own territory. Find even more info at Adrian Chenh.
