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. 

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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.

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If you are selling a home, one of the best offers you can receive is that of cash. Any time someone makes a cash offer, you know as long as they actually have the cash, the selling process will commence immediately. Often times, sellers accept cash offers quickly and many buyers who are not offer cash lose out when their own offers are beaten.

If you are a prospective home buyer who wants to offer cash, it is a good idea to provide documentation with your offer that will prove the funds are available. A bank statement will usually work quite well in these situations.

If you don’t yet have the cash, but will very soon, other documentation will be needed. An example of this would be if you plan to liquidate stock or another type of asset. Here, you will need to provide a time table on when the asset will be converted to cash. Again, you will include this documentation with your offer.

While it is rare to pay for a new house using cash, it is possible. If you can do so, it is highly recommended. Some people are able to do this from the sale of other property. If you are able to get out the home you are selling exactly what you put into it, a cash payment may very well be possible. This is especially true if you have saved a significant amount of money to put toward the down payment of your new home.

Some home buyers expand slowly, paying cash for all their homes along the way. Many factors are involved in making this happen. Not only would you need to have the cash saved up and available, but the economy would also need to work in your favor.

If you have rental property, you may even choose to put the money you receive each month as a landlord into savings for purchasing new property on down the road.

Many sellers prefer cash offers because they re getting the money up front. Buyers prefer them because the home can be paid for very quickly, thus eliminating the need for a 30 year mortgage.

If you are the one making the offer, the key is to start by purchasing smaller homes and later working your way up to larger ones. Starter homes are a good way to begin. As you make money on each house you sell, you will be able to put it into your next purchase. Over a period of time, you will accumulate enough money to actually pay for a house in cash. This often brings peace of mind and financial security you would not have with a 30 year mortgage. Your home is paid for before you ever move in, and the seller rests easy knowing all the money has been received up front. 

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