What is PMI?

Posted by CJ Real Estate on with 0 Comment

What is PMI and How Does it Affect Your Home Buying Process?

 

Purchasing a home is one of the most significant investments you will make in your life. However, it can be a little confusing, especially when navigating through the financial aspect of buying a new home. One thing you may have come across in your research is something called Private Mortgage Insurance or PMI. In this blog post, we’ll dive a little deeper into what exactly PMI is and how it affects your home buying process as a first-time homebuyer.

 

PMI is a type of insurance that lenders require borrowers to pay when they have a down payment of less than 20% of the total mortgage amount. This insurance protects the lender in case the borrower fails to meet their mortgage payments. The cost of PMI varies based on the loan amount, credit score, and down payment, but it typically costs between 0.3% and 1.5% of the loan amount annually.

 

PMI is usually added to your monthly mortgage payment, increasing your overall monthly payment. It’s essential to factor in this cost when budgeting and calculating your mortgage payments. If you put down a down payment of less than 20%, you cannot avoid paying PMI unless you refinance or pay off the loan until the mortgage amount is less than 80% of the value of the property.

 

There are two kinds of PMI: borrower-paid and lender-paid. Borrower-paid PMI is the most common form, where the borrower pays the PMI premium to the lender. In contrast, Lender-paid PMI is where the lender pays the PMI premium, but this usually comes with a slightly higher interest rate, which may be more costly in the long run.

 

The good news is that PMI is not a permanent addition to your mortgage payments. Once you have paid off enough of the loan balance until the mortgage amount is less than 80% of the property’s value, you can contact your lender to remove the PMI. You must also have a good payment history with no late payments.

 

Understanding PMI is crucial when it comes to home buying. As a first-time homebuyer, you want to ensure you can afford the monthly payments that come with homeownership. Knowing that PMI is an additional cost to your monthly mortgage payment, you should factor in this expense when budgeting for your new home. It’s always best to speak with a mortgage specialist to review your options and figure out what loan works best for you. That way, you can make a sound financial decision on your home purchase, and avoiding PMI is always the goal.

First Time Homebuyers Guide

Posted by CJ Real Estate on with 0 Comment

First-Time Homebuyer’s Guide

 

If you are renting, you may be questioning whether home ownership is worth the investment. Renting may seem easier since it requires less upfront expenses, but owning a home brings many benefits that renting can’t offer. Here are several advantages of home ownership that could change your mind about buying a home.

 

What are the Advantages of Home Ownership?

 

  1. Build Equity Over Time. One of the most significant advantages of home ownership is building equity over time. Equity is the amount of your home’s value that you own compared to the amount you owe on the mortgage. As you pay off the mortgage, your equity increases. As your home’s value increases over time, so does your equity. Building equity through homeownership gives you access to funds, provides financial security, and builds wealth over time.

 

  1. Tax Benefits. Homeowners are entitled to various tax deductions that renters aren’t. Mortgage interest and property taxes are tax-deductible, which can significantly reduce the amount of tax you owe each year. When you own a home, you can itemize your deductions, which can lead to significant savings.

 

  1. Control Over Your Investment. When you own a home, you have full control over your investment. You can make changes, upgrades, and renovations as you see fit. As a homeowner, you can decorate your home to your taste, put up shelves, and even remodel when needed. Beyond the physical changes, homeowners have more control over the quality of their community and the safety of their neighborhood. You can meet your neighbors and get involved in activities that interest you. You can also influence and participate in your neighborhood’s decisions.

 

  1. Forced Savings. When you own your home, you must save money regularly to maintain and repair your property. These expenses may seem like a burden, but they are essentially forced savings. By paying maintenance and repair costs, you preserve the value of your home, protect your equity, and avoid costly surprises down the road.

 

  1. Long-Term Financial Benefits. Homeownership can have long-term financial benefits that far outweigh the cost. Owning a home offers greater financial stability, provides a hedge against inflation, and provides the opportunity to build wealth over time. If you stay in your home for an extended period, you may own the home outright and be free of mortgage payments altogether.

 

 

What are My Financial Considerations?

 

The decision to buy a home is one of the most significant financial commitments you’ll make. It’s not just about finding your dream home; it’s also about weighing the financial factors involved. Owning a home is a substantial investment, and it’s essential that you’re prepared for the hidden costs beyond your mortgage payments. As a renter, you may have considered buying a home, but you may be hesitant because of the financial considerations involved. Here are the key financial factors you should consider:

 

  1. Upfront Costs: One of the most important financial considerations for home buying involves upfront costs. These include expenses such as closing costs, home inspections, appraisals, and down payment. Closing costs include attorney fees, title insurance, and transfer taxes. Home inspections can uncover unforeseen repair expenses. You will also need an appraisal to ensure that you’re paying a fair price for the home. Don’t forget to factor in your down payment, which is typically around 20% of the purchase price of the home. Knowing about these expenses upfront will help you budget and prepare for the buying process.

 

  1. Monthly Bills: As a homeowner, you will be responsible for new bills that you may not have had as a renter. These bills include property taxes, insurance, maintenance, and utilities that were previously included in your rent. Property taxes can vary significantly by state and locality and can be a considerable expense. Additionally, homeowner’s insurance is typically more expensive than renter’s insurance. Ongoing maintenance, repairs, and utilities can add up, so it’s essential to be realistic about these expenses.

 

  1. Long-Term Financial Planning: As a homeowner, you’ll need to think about long-term financial planning. Owning a home can provide a sense of stability and a long-term investment, but there are also costs involved, such as future renovations or upgrades. Additionally, you’ll need to consider the resale value of the property. An essential financial consideration can be the impact of putting down roots, making it harder to relocate for job opportunities. It’s crucial to be honest with yourself about your long-term financial goals and how a home purchase fits into those plans.

 

  1. Market Conditions: Another critical financial consideration for home buying is to consider market conditions. The housing market can fluctuate rapidly, and you may end up paying more for a home than what it’s actually worth. That being said, it can still be a good financial move to buy a home during an economic downturn when lower prices and interest rates can benefit you financially in the long run.

 

  1. Closing Costs Assistance Programs: Lastly, it’s worth mentioning the financial assistance available for first-time homebuyers who need financial help with upfront costs. Many states offer closing cost assistance programs that can help you cover these expenses, making the process of homeownership more feasible.

 

  1. Financial Stability: Unexpected circumstances are an integral part of homeownership. It is essential to be financially prepared for the expenses that come with owning a home beyond the upfront costs. Seek to ensure that the home you buy is a good investment and has the potential to retain its value over time. Maintenance and repairs will be your responsibility. Remember to take your time when considering buying a home and make sure that you are financially prepared for this significant investment.

 

 

Lifestyle and Location:

 

Lifestyle and location go hand-in-hand when deciding whether to continue renting or buy a home. If you have a job that requires frequent relocations, renting may be the better option since breaking a lease is typically easier than selling a home. If you have children or are planning to start a family, buying a home in a desirable school district may be a priority. Additionally, proximity to public transportation, entertainment, and necessary amenities should be taken into account when considering which housing option is right for you. Here are a few key factors first-time homebuyers should consider before buying their first home:

  1. The Location. One of the essential factors in home buying is the location of the property. There are several aspects of location that first-time homebuyers need to consider before buying a home. For instance, you need to choose a location that meets your desired commute. The location should be near your workplace, child’s school, and other amenities you frequently use, such as grocery stores, hospitals, and recreational parks. Also, you need to consider the neighborhood’s safety, and if it’s near public transportation systems, shopping centres, or restaurants.
  2. Another crucial factor when it comes to home buying is affordability. Before buying your first home, you need to determine the budget you are working with. You need to calculate your monthly budget that you allocate for mortgage payments, utilities and other housing-related expenses. Additionally, you also need to factor in the down payment and closing costs to avoid unexpected costs during the home buying process.
  3. Your lifestyle. Your lifestyle is another critical consideration when buying your first home. You need to ensure that your new home suits your lifestyle preferences. For instance, if you love outdoor activities, you can consider buying a home within a location that offers various outdoor amenities such as parks, hiking trails, and bike paths. Alternatively, if you enjoy hosting guests, you should choose a home that has sufficient living and entertainment spaces, including a backyard, patio or deck, and additional guest rooms.
  4. Property size and type. The property size and type are also essential considerations when choosing your first home. You need to determine if you require a single-family home, townhome, or a condo. Additionally, you should choose a property size that accommodates your current and future household needs. For instance, if you plan to start a family, you need a home with enough bedrooms and space for children’s play areas.
  5. Property condition. Finally, first-time homebuyers need to assess the property’s condition before buying a home. The condition of a property often determines the cost of repairs that you may be required to undertake should you buy the property. Therefore, you need to hire a qualified home inspector to evaluate the property’s overall condition before making an offer. A home inspection report can help you understand what repairs necessary and which you can defer to a later time.

 

Home Maintenance:

 

It’s crucial to understand what you need to maintain to keep your property in good shape. Homeownership requires ongoing maintenance and repairs. Owning a home allows you the freedom to customize and improve your living space to suit your personal needs and tastes. If you’re willing to invest the time and money it takes to maintain a home’s upkeep, homeownership can be a rewarding experience. Here are the most critical home maintenance considerations for new homeowners:

  1. HVAC Systems. A properly functioning heating, ventilation, and air conditioning (HVAC) system is critical for maintaining indoor comfort and air quality. As a homeowner, you should understand the basics of how your HVAC system operates. Check the air filters monthly and change them regularly. Schedule regular HVAC maintenance with a licensed and qualified technician to keep your system operating efficiently and identify potential issues before they become costly repairs.
  2. Gutters and Downspouts. Gutters that are clogged with leaves, debris, and water can cause significant damage to a house’s foundation and roof. As a homeowner, inspect and clean the gutters and downspouts regularly. If left unchecked, clogged gutters can lead to water damage, foundation problems, and basement flooding.
  3. Electrical Systems. Your home’s electrical system is complex and vital to everyday life. Inspect your electrical outlets and wiring regularly for signs of damage and wear. Check the circuit breaker panel to see if any breakers have tripped and replace any that continuously trip. If you notice any electrical issues, hire a licensed electrician to diagnose and repair the problem.
  4. Water damage can be an expensive and time-consuming problem to fix. Regularly inspect your pipes and plumbing fixtures for any leaks, rust, or corrosion. Ensure that the drainpipes and gutters are functioning correctly and keep an eye out for any water spots or discolored walls and ceilings. If you have any concerns, consult with a licensed plumber.
  5. Roof and Windows. Your roof and windows are your home’s primary defenses against the elements, so it’s essential to maintain them. Conduct regular inspections of the roof and look for any signs of wear or damage, such as cracked or missing shingles. Clean your gutters and downspouts to prevent clogs that can lead to water damage. Inspect the windows and look for any cracks, leaks, or damage.

 

Investment Potential:

 

Buying a home can be a good investment in the long run, but it’s important to consider the potential return on investment. If you live in an area with high demand for housing or a steady increase in property values, your home’s equity could appreciate over time, providing you with a return on investment. On the other hand, if the housing market is unpredictable or the demand for housing is low, homeownership may not be the best investment.

 

Emotional Factors:

 

Your emotional state should also be taken into account when deciding whether to continue renting or buy a home. Homeownership can be incredibly rewarding as it provides a sense of stability and ownership, but it can also be stressful and lead to unexpected expenses. Renting can offer flexibility and the option to move without the burden of selling a home but can also feel transient and lack the sense of permanence that homeownership provides.

 

Conclusion:

 

When deciding whether to continue renting or to buy a home, there are many factors to consider, including financial considerations, lifestyle and location, home maintenance, investment potential, and emotional factors. Ultimately, the best decision is one that takes into account your unique personal situation and preferences. As you explore your options, carefully consider each factor and seek advice from trusted professionals, such as a financial planner or a real estate agent, to help you make an informed decision that aligns with your goals and aspirations.

 

Owning a home can provide a sense of stability and investment return but requires careful planning and budgeting. Be realistic about your budget and financial expectations, and don’t forget to factor in hidden costs beyond your mortgage. With the right mindset and approach, buying a home can be a rewarding and sound financial decision.

 

ABOUT CJ REAL ESTATE:  CJ Real Estate is a full-service brokerage helping people across Oklahoma, Arkansas, Missouri and Kansas buy and sell residential, lake, land, ranch and commercial real estate with confidence.

 

MEDIA CONTACT:

Ronn Cunningham

1.918.550.8122

Info@CJ-RE.com

 

SOURCE: Cunningham-Johnson Real Estate

Home Seller Checklist

Posted by CJ Real Estate on with 0 Comment

Home Seller Checklist

 

Selling your home is a significant milestone in anyone’s life.  Planning and preparation are key to achieving all of your goals. A comprehensive home seller checklist can help simplify the process and ease the anxiety. Check out our home seller checklist to get the most out of the market.

 

Hire a Reputable Real Estate Agent

 

Hiring a professional. Listen to their advice and make informed decisions. You’ll ease your stress, likely sell your house quicker and ensure you’re getting a fair price. Do research on the agent’s experience, customer satisfaction rates, and areas of expertise before hiring them.

 

Begin with a Pre-Listing Inspection

 

Before putting your property on listings, have a professional inspector examine your house for any potential issues. A pre-listing inspection can help you address any repairs that need to be done before listing the house on the market. Repairs and replacements can be expensive, and it is best to address these issues early on to avoid future problems.

 

Do Necessary Repairs

 

Once the inspection is done, fix all the issues that were identified, even minor ones, before listing your house. This can enhance your house’s value and make it more attractive to potential buyers. If the repairs require professional services, hire contractors, and purchase the necessary materials to get the job done.

 

Staging and Cleaning

 

Nowadays, staging your house has become a norm in the industry. Staging aims to present your house in its best possible light and allow potential buyers to imagine themselves living in the house. Once your house is staged, it’s time to clean thoroughly. A clean, uncluttered house can significantly increase its value and make a lasting impression on potential buyers.

 

Set the Right Price

 

Pricing your house correctly is crucial to attract potential buyers and sell your house fast. Research the desirability and demand for your property, and set a fair price. Your real estate agent can offer you insights into market trends in your area.

 

 

Conclusion:

 

Selling a house can be overwhelming, but having a comprehensive checklist can simplify the process. Preparing your house before listing it on the market, setting the right price, and hiring a reputable real estate agent can help you sell your house quickly and at a fair price. By following our home seller checklist, you can avoid the common pitfalls that can hinder you from getting the most out of your property sale.

 

ABOUT CJ REAL ESTATE:  CJ Real Estate is a full-service brokerage helping people across Oklahoma, Arkansas, Missouri and Kansas buy and sell residential, lake, land, ranch and commercial real estate with confidence.

 

MEDIA CONTACT:

Ronn Cunningham

1.918.550.8122

Info@CJ-RE.com

 

SOURCE: Cunningham-Johnson Real Estate

Maximize Your Lands Value

Posted by CJ Real Estate on with 0 Comment

Managing your ranch land well now will pay big dividends when the time comes to sell. Well managed ranch land attracts a larger pool of buyers, increasing competition for your land which leads to higher sale prices.

Auctioneer Sonny Booth advised, “High sales prices don’t happen by accident. I’d like to take all the credit for high re-sale prices but the truth is that ranchers with a reputation for quality land management is an auctioneers best friend when it comes to getting top-dollar on sale day.”

As a rancher, you already know the importance of proper land management in ensuring the well-being of your livestock. Have you truly considered how good ranch land management can also impact the bottom line when it comes time to sell your property? Check out these tips for maximizing your re-sale value through effective ranch land management.

Regularly Check and Maintain Fences

One of the most important aspects of ranch land management is keeping your fences in good condition. This not only keeps your livestock safe but also prevents them from wandering off into neighboring properties. Regularly check your fences and make any necessary repairs. A well-maintained fence can also make your property look more visually appealing to potential buyers.

Implement Sustainable Grazing Management Practices

Many ranchers are shocked to learn that nearly 70% of available grazing land in the United States is degraded in some form as discussed in this recent article published in the Angus Journal.   Overgrazing can have a negative impact on your pasture’s health and, in turn, decrease your property’s sales value. Consider implementing sustainable grazing management practices that allow for adequate rest periods between grazing cycles. This will help maintain the health and productivity of your pasture while also ensuring the long-term profitability of your ranch.

Properly Manage Water Resources

Water is a fundamental resource for both your livestock and your land. Properly managing water resources can prevent soil erosion and maintain pasture productivity. Regularly cleaning out and maintaining ponds and waterways can not only make your property look better but also make it more appealing to potential buyers.

Remove Unwanted Vegetation

Weeds and invasive plant species can significantly reduce the productivity of your pastureland. Consider implementing a regular weed control program to keep unwanted vegetation under control. Not only will this help maintain the productivity of your land, but it will also make your property look more visually appealing.

Maintain Buildings and Infrastructure

Maintaining your ranch’s buildings and infrastructure doesn’t just make your property look better, it also increases resale value. Regularly inspect and maintain your ranch’s buildings, corrals, and other infrastructure to ensure they’re up to code, fully functioning and eye-appealing. This makes your property more attractive to prospective buyers and increases the sale price.

Conclusion:

Proper ranch land management is critical to maintaining both the short-term productivity and long-term profitability of your ranch. Investing in regular maintenance and improvements to your property can make it more visually appealing to potential buyers, increase its sales value, and ensure the continued success of your operation. By implementing the above tips for effective ranch land management, you can maximize your sale profitability and set your ranch up for long-term success.

 

ABOUT CJ REAL ESTATE:  CJ Real Estate sells ranch and residential real estate across Oklahoma, Arkansas, Missouri, and Kansas.

 

MEDIA CONTACT:

Ronn Cunningham

1.918.550.8122

Info@CJ-RE.com

 

SOURCE: Cunningham-Johnson Real Estate

Home Buying Deal Breakers

Posted by CJ Real Estate on with 0 Comment

Top 10 Deal Breakers for Home Buyers & Sellers

 

Buying or selling a home is rife with risks and pitfalls. That’s why having a trustworthy advise from a real estate professional that’s not afraid to have difficult discussions with you is vital. Certain deal breakers exist that can turn a dream home into a nightmare. It is important to identify these deal breakers before considering a property to avoid any future regrets and avoid financial troubles. Remember, deal breakers you accept when you buy the home are potential barriers to you selling the home when that time comes. Here are top 10 deal breakers to watch out for when buying a home.

 

Poor Neighborhood:

The neighborhood plays a crucial role in the quality of life one can expect in their new home. A high-crime area or a rundown neighborhood can be a deal breaker for many homeowners. Research the neighborhood thoroughly, check the crime rate and talk to the neighbors before making any final decision.

 

Structural issues:

Structural issues such as cracks in the foundation, water damage, and rotten roofs can be costly and time-consuming to fix. It is best to hire a professional home inspector who can identify these issues before purchasing a home.

 

High Property Taxes:

Although high property taxes may not be a deal breaker for some, it is important to consider the cost of owning a home in relation to the amount of taxes paid. High taxes can put a strain on your budget and may make the property less desirable to potential buyers in the future.

 

Bad School Districts:

If you have children or plan to have children in the future, the quality of the local schools is a key consideration. Poor school districts can be a deal breaker for many home buyers, and may affect the resale value of a home in the future.

 

Lack of Storage Space:

Inadequate storage can be frustrating for homeowners, and can lead to cluttered spaces, less functionality, and a lack of privacy and organization. Homebuyers should ensure there is enough space for their belongings, and if not, factor in the cost of adding additional storage space before making an offer.

 

Unfavorable Floor Plan:

The floor plan is an important consideration when purchasing a home. Home buyers should ensure that the layout meets their family’s needs, provides sufficient living space, and allows for future home modifications if necessary.

 

Noisy Roadways and Airports:

Proximity to noisy roadways or airports can be a deal breaker for many home buyers. The noise pollution can not only affect daily life, but it can also make the property less desirable to potential buyers in the future.

 

Old or Outdated Kitchen and Bathrooms:

Kitchens and bathrooms are some of the most important features of a home. An old kitchen or bathroom can often be a deal breaker for many home buyers who are looking for a move-in ready home. Such upgrades are pricey and take time to complete, so assess the respective spaces before making any offers.

 

Poor Natural Lighting:

Natural lighting plays an important role in the overall aesthetic and ambiance of a home. A poorly lit home can be a major turn-off and can leave the space feeling dark and uninviting. It is important to visit the property during different times of the day to assess the natural lighting.

 

Termites and Pests:

Termites and pests can cause extensive damage to a home, and require professional intervention to eradicate. A termite or pest infestation can be a major deal breaker for many home buyers, and is another reason why it is important to hire a professional home inspector to identify any potential issues.

 

Conclusion:

 

Buying a home is a major financial decision and it is important to take time to determine what factors are deal breakers for you. Identifying deal breakers can help you make a more informed decision, and can save you time and money in the long run. Always consult with a professional real estate agent and a home inspector before making any final decisions. With adequate preparation, you can be confident in your decision to purchase your dream home.

 

ABOUT CJ REAL ESTATE:  CJ Real Estate is a full-service brokerage helping people across Oklahoma, Arkansas, Missouri and Kansas buy and sell residential, lake, land, ranch and commercial real estate with confidence.

 

MEDIA CONTACT:

Ronn Cunningham

1.918.550.8122

Info@CJ-RE.com

 

SOURCE: Cunningham-Johnson Real Estate