Julianne Krutka
Park Square Realty | 413-297-6718 | julianne.krutka@gmail.com


Posted by Julianne Krutka on 10/5/2017

For the generation that grew up at the height of the subprime mortgage crisis, buying a home is a scary concept. Many young people in the 18-34 age range are dealing with high rent, a poor job market, unpaid internships, and student loans the size of a home loan. Yet, others are finding their footing and realizing that owning a home is advantageous in the long run. If you're thinking of delving into the world of home ownership for the first time here's a crash course in Home Buying 101.

Figure out your finances

You should be an expert at you and your significant other's personal finances if you are thinking about buying a home. The first thing to look at is your income and expenditures. Put the following information in a spreadsheet:
  • Total monthly income
  • Total monthly expenditures (bills, gas, food, etc.)
  • Total monthly savings
  • Total savings and assets
  • Credit and FICO score (request both of these online)
When crunching these numbers you should (hopefully) find that your income is higher than your expenditures and your savings should account for most of the difference. If your savings is lower than it should be, you either missed something on the expenditures list or you are spending more than you should be if you want to buy a home. Down Payments Down payments on a home, post-financial crisis, range from anywhere between 0-25 percent of the price of the home, 20 being the median. A down payment ideally shouldn't break your savings in case you have any unforeseen expenses once you buy your home. Moving is time-consuming and can be pricey, so you'll need to account for this in your finances.

Lock Down Your Financing

There are several types of mortgages that you'll need to choose from, and you'll want to learn about fixed and adjustable mortgage rates. This information should be informed by your long-term plans. Are you looking for your first home or your forever home? If you don't plan on fully paying off the home you might look for a low, adjustable rate while you earn money. But if you want to stay in your home until it's paid off, a fixed rate might be better for you.

Finding and buying your home

Once you've determined your price range, start thinking about things like location and the kind of home you can afford. If you're handy with tools and have the time, it might be in your best interest to buy a home than needs some work at a lower cost. If you'd rather put in more hours at work, go with the home that needs less work and save money that way. Depending on whether or not you're in a buyer's market or a seller's market, the ball can be in your court or the seller's. In a seller's market, which is more likely today in many parts of the country, the seller will have more leverage in negotiations, including closing dates and move-out dates. Due to high competition, you should also be prepared to miss out on some offers. But be patient, and you should find the home you're looking for.  





Posted by Julianne Krutka on 10/24/2013

Some people think that bigger is better even when it comes to buying a home. Before you buy the biggest house your budget allows you may want to consider if the size of the home is what will make you a happy homeowner. Besides the size of the home there are many other factors to consider, here are a few things you may want to think about when buying: Your Commute Often times a bigger home is one that has a longer commute. So would you choose a bigger home over a shorter commute? When considering a longer commute most home buyers significantly underestimate the negatives of a long commute like high stress levels, poorer health, and less active social lives.  Swiss economists, Bruno Frey and Alois Stutzer coined what they call “the commuters paradox”. They found that someone with a one-hour commute must earn 40% more money than someone who walks to work to be as satisfied with life. Community Another thing that can affect buyer satisfaction is the quality of a surrounding community Think about the community your home would be in. Is it a subdivision? Do you have to drive to get places? How far away are neighbors or stores? Walkable communities have more active residents, they are better for the environment and help us save money too. Studies have shown residents of a walkable neighborhood on average weigh 6 to 10 pounds less than someone in a car-dependent one. Walkable neighborhoods also give us more opportunities for social interaction. The more neighbors walk around the more involved they are in the community. Ultimately the more community involvement the happier people are.