Dean Graziosi

Buying a home can be an expensive venture, and there is no doubt that anyone preparing to purchase their first home understands this fact. However, most first time home buyers are not aware of all of the up front costs of buying a home. They know there is a down payment and something called closing costs, but what those costs are and how much they might be are beyond them. In addition, there are other up front costs to buying a home that many first time home buyers are completely unaware of until they get involved in the process. It is important to understand all of the costs associated with this type of investment so you can be prepared and have enough funds on hand to cover all of the expenses.

Of course, the biggest up front cost you will have is your down payment. The down payment is usually a minimum of three to five percent. You can opt to make a larger down payment of ten or twenty percent to get a lower interest rate or better terms. So, if you are buying a home worth $200,000, your down payment will be around ten grand.

The next bit of costs that everyone seems to hear about but barely understand is closing costs. Closing costs are costs associated with getting the loan to buy the house. These fees vary depending on the lender and the terms of your loan. There is really no way to know exactly what fees will be associated with the closing costs until you are involved in the process. All of the closing costs will be disclosed to you before the finalization of the sale. Additionally, closing costs must be paid before the sale is final.

There are a few other fees that you should also be prepared for. You will have to get an appraisal, a home inspection, a credit check, and a title check. All of these services come with a fee. In addition, you have to get insurance on the home prior to the closing of the sale, which means more out of pocket funds.

Altogether, between these fees and the closing costs, the cost of buying a home can add up quickly and catch a new home buyer off guard. It is important to be prepared for all of these costs. To be prepared for closing costs and other fees, you should have about two to four percent of the purchase price of the house for closing costs and other up front costs. So if you are buying that $200,000 home, you will want at least four thousand dollars saved up for the other up front costs of the home purchase. 

Bookmark With

The trend in obtaining a home mortgage tends to lean towards home buyers choosing a mortgage broker. And mortgage brokers are happy to let people continue on that trend, as evidenced by the number of them who comment on websites and articles that address this issue. Unfortunately, what too few of them add is that for some individuals, obtaining a mortgage directly through a bank is truly a better choice.

The first advantage is about saving money. Prospective home buyers who only need to borrow relatively small amounts will end up paying more in fees relative to buyers who are financing a larger amount of money. Mortgage broker fees of $1000 might make sense for a $250,000 loan, but make less sense for a borrower who only needs $50-$60,000. Those fees would be a full 2% of the amount being financed and that does not make sense. Skipping a broker will remove a layer of fees and reduce the costs attributed to financing a home purchase.

Another advantage of obtaining a mortgage directly through a bank comes when borrowers work with a bank with whom they have already established a relationship. Financial institutions want to keep as much of their depositors money as possible which is why they all offer a variety of home loans. It is a commonly held belief of financial institutions that if they can hook a client into using at least 3 or 4 of their services, then the client will stay with them longer. So to that end, banks and credit unions create attractive financial products to keep their existing customers in house.

Most people might not realize this, but not all mortgage brokers have access to every possible loan option available. Many times brokers will have a limited lender panel to choose from and then their clients are not presented mortgage options that might exist through community bank or credit unions. For this reason, shopping for a mortgage directly with a bank can result in lower fees and or rates.

The choice of how to obtain a mortgage is a personal one. All of the various pros and cons of mortgage brokers or working directly with a bank need to be weighed carefully by the prospective buyer. Even if that buyer has used a mortgage broker in the past, that does not mean it is the right choice for them now. Ultimately, one size does not fit all in the home financing market.

Due diligence is required of anyone who wants to purchase a home. For most people this is the largest single investment they will ever make and it makes sense to take the extra time needed to choose the financing option that is the best fit for your life at that time.

Bookmark With

Finding a great home that will work with your personal fitness goals is a lot easier than it seems. You may have to extra research into the homes you are interested in, to make sure that the floor is strong enough for your weight machine for example, but it should not be that difficult as long as you know what you need. A good real estate agent can give you ideas about what homes would be a good fit for you. Look for homes that will allow you to have the room you need to workout while still letting you entertain your friends and family. Pay attention to the shape of the rooms, as odd corners can be the perfect spot to store an exercise machine.

If you are a person who does athletic training, your needs will probably be different from someone who is more interested in aerobics or strength training. Athletes usually do such workouts as calisthenics and plyometrics, as well as using weights or resistance bands. You will need to have plenty of space for these vigorous workouts. If you can, find a home you can dedicate one room just to working out in. Otherwise make sure that there is at least one room that is big enough you can comfortably work out without risking injury.

If you are more interested in exercises such as yoga and aerobics, you probably do not need as much room as someone who does calisthenics. You may need only as much room as your yoga mat or aerobic step. This means you can get away with a smaller home and still be able to do your workouts. Make sure you have a closet or somewhere you can easily store your equipment, but you won’t need as large a  space for storage.

People who strength train tend to have a good deal of equipment. If you are someone who has a lot of equipment, make sure there is a room in your new home that it will all fit comfortably in. You can get away with a smaller area if you have equipment that you can fold or put away. Many people prefer to set up a garage or basement as a home gym, to protect the floors and avoid the risk of any weight machines being too heavy and damaging the floor.

No matter what your personal fitness goals are, a home with a pool is a great advantage. Swimming is one of the best exercises that you can do. If you can, look for a home that has a swimming pool. This will allow you to workout even if you are not able to do your normal routine. If you are just beginning to get into personal fitness, a pool can be an easy way to get into a workout routine while avoiding having to go to the gym or buy expensive equipment.

Bookmark With