Buying & Owning Home

Looking back, I was an easy-to-please buyer—pretty much the opposite of anyone on “House Hunters.” Case-in-point: My 28-year-old self was impressed that the cheap, very standard mirrors in the bathroom came included with my newly built house. As I toured the upstairs of the home, though, my real estate agent immediately pointed out there were no baseboards in any of the bedrooms, a shortcut she was increasingly taking note of in new builds.

No doubt, credit can be confusing. Not only are there various factors that make up the anatomy of your credit score, there are also different credit scoring companies. Making things even more convoluted, achievements like paying off your student loans can actually cause a drop in your scores, plus there’s plenty of myths circulating about credit. Suffice to say, people have a lot of questions about credit.

They say that buying a home is the biggest investment you’ll ever make. And, while the jury is out on whether it’s always the best long-term investment for everyone, it’s important to learn the lingo so that you’re handling this big decision—and the big money that goes along with it—wisely. One of the most crucial things to know about home finance is equity. To break down exactly what equity is and why it’s important, we spoke to two real estate experts.

The real estate process begins well before you make your short list of dream homes and start attending open houses—and it can end there, too, if you’re not prepared. Many people worry about saving enough money for the down payment, but there’s more to learn about the process of buying a home, requirements for loan approvals and how to overcome obstacles to home ownership. Weigh your financial history carefully, because with the right knowledge comes home-buying power.

Have you ever wondered what your real estate agent is thinking — like really thinking? Well, now’s your chance to find out. Agents have to stay pretty neutral with their buyers—there are legal protections governing some of what agents can and cannot say in order to ensure buyers are making their own decisions. But we reached out to a few real-life agents to learn the truth: What’s the one thing you wish you could tell your clients?

While I’ve always wanted to buy a house to make into a home, my partner has always looked at real estate as a financial investment, not an emotional one. We both have our reasons: My family lost our home when I was 13, and I love the idea of raising a family and creating memories in a financially-stable house I own. My partner comes from an immigrant family, and he was brought up to see homeownership solely as a means of generating passive income. The thing we can agree on?

If you’re in the market for purchasing a home, looking into foreclosures and short sales might seem like a more affordable way into homeownership. The properties can be quite inexpensive in comparison to the traditional housing market, and if you’re a seasoned buyer, the idea of a fixer-upper might sound appealing.

In this modern era of home improvement TV, where homes go from beast to beauty in the amount of time it takes to do a quick scroll through Instagram (what? It’s called multitasking), what often gets lost is the immense amount of work and money that goes into an actual home renovation, let alone building a home. Beyond that, many of the everyday issues that DIYers, developers, and owners run into are edited out of the final cut—making things seem a lot rosier than in reality.

When my husband and I first started looking for a house in 2017, we had just brought our second baby home from the hospital. By the time we sat down at the settlement table, she was just a few weeks away from crawling. Neither of us expected the process to take so long. After all, “for sale” signs were going up and coming down across the state with breakneck speed. We didn’t realize at the time that those quick moving properties were actually bad news for us as buyers.

It’s that time of year again. The time where we either pull out the cumbersome, confusing forms to file our taxes—or look to an online service to do most of the heavy lifting for us. (Hello, Turbo Tax.) Last year’s major tax changes seemingly doubled or tripled the annual filing headache on top of all of the additional requirements for homeowners.

When it comes to home improvement, you probably associate the most dramatic changes with major hits to your wallet. However, that doesn’t always have to be the case. In fact, there are a number of small changes you can implement that can actually make a huge difference in your home’s appearance, functionality, and even resale value. One Redditor asked, “What small thing have you done that resulted in relatively large improvement to your home?

Turns out, millennials aren’t spending all their money on that infamous avocado toast. However, they are a lot more spendy than all other living generations. According to a new analysis from GOBankingRates, millennials spend $208.77 each day, on average—about $44 more than the average American, who spends about $164.55.

You step out of your car at an open house and walk into what looks like your dream home. It’s perfectly picturesque from the outside, but as soon as you get through the doorway, you see it—there’s a giant “Live Laugh Love” decal stuck onto the living room wall. For legions of prospective homeowners, real estate agents tell us that word art tends to be at the top of the cringe-inducing decor list—and, point blank, word art makes it hard to sell a home.

Establishing credit poses a tricky Catch-22: You need credit to get credit. This can prove to be quite a conundrum if you’re trying to rent an apartment, buy a home, or, heck, simply need car insurance but don’t qualify because of a thin credit file.

Whether you’re a serious buyer or daydreaming to pass the time at work, a common part of buying a home is trying to predict your monthly mortgage payments. Is it going to end up being cheaper than your rent? Are you going to need to downsize a bit? You probably want a ballpark number before you call your mortgage lender and hire a real estate agent, so you plug the numbers into an online mortgage payment calculator.

You see homeownership in your future. But, after looking into your crystal ball—err, savings account—are you envisioning yourself at the closing table in the next month? Year? Five years? TBD depending on if you win the lotto? Fewer than four out of 10 millennials own homes, according to research from the Urban Institute, a Washington, D.C.-based social and economic policy group.

Buying a home can be an incredibly stressful process. Although it’s exciting to look forward to having a new space to call your own, anyone who’s been through it before can tell you it’s not always as fun as it looks on HGTV. From trying to figure out what you can actually afford, to finding the right real estate agent, to the delicate art of making an offer, the home-buying process is not without its craze-inducing moments.

The ancient Greeks and Romans had some great ideas that are still around today in some form (The Olympics, geometry, newspapers, grid systems, bacchanals, etc.) Another unsung hero from the period? Stucco (the form of siding similar to plaster) which was formerly used as a base for painting frescoes. Though the average homeowner is no longer using it to paint “The Last Judgment,” they are still using it to side their homes.

As far as credit is concerned, there are no hacks that can cause your score to magically skyrocket overnight. (Ahem, we’re wagging our fingers at schemes promising you a “new credit identity.”) But, what does exist is good, sound credit advice that advocates for responsible borrowing and takes into account the anatomy of your credit score, like utilization and payment history.

In Los Angeles, people build entire careers out of resembling someone else. There are the impersonators, the stand-ins, and the stunt people who make a living looking like celebrities. It seems pretty cool to look like someone else—until you’re searching to buy your first house in a super competitive real estate market. Suddenly, you’re at an open house, surrounded by a swarm of doppelgängers.

Buying a home is expensive. Selling a home is expensive. This is common knowledge. Something I recently learned is not common knowledge? Just who pays the buyer’s real estate agent once a house sells (and who pays the seller’s, too). It’s likely you haven’t really thought about this ever. For expediency’s sake, the answer is “the seller.” Yes, the seller pays their listing agent and the buyer agent’s commission.

Before the deal is finalized, it’s important to ensure your dream home won’t come with any hidden surprises. When home shopping, things aren’t always what they seem. Some surface issues are more damaging to the value of the home than they seem, while others are easily fixed. Before you are knee deep in paperwork or empty your wallet for rounds of inspections, consider these five clear warning signs screaming at you to walk away.

In the world of credit, establishing a credit score of 850 is like being granted a lifetime achievement award. Both FICO and Vantage—widely used credit-scoring models—consider 850 to be the highest possible credit score. The score is perfect. Exceptional. Untarnished. But… is it possible? The short answer, according to experts: Well, yes. But an 850 credit score takes time and strategy.

When it comes to owning a home, it’s all about location, location, location. The city you choose to put down roots will affect so many aspects of your life, including the home you can afford. While certain urban hubs are notorious for being unaffordable, there are other markets that make buying a home just a little more achievable. Wondering where housing costs are lowest in your state? Yearly, the Census Bureau produces the American Community Survey (ACS), which asks U.S.

You consider yourself responsible with credit: You pay your bills on time and you don’t rack up any major credit card debt. And since you’re looking to apply for a mortgage sometime in the near future, you’ve been actively monitoring your credit. But since you’ve checked last month, your score has gone down. What gives? Why is your score acting so sensitive? Sheesh.

Even if you’ve just started to save for a big purchase like a home or for retirement, you’ve probably already run into plenty of bad advice. Everyone, especially your family, seems to have an opinion on where your hard-earned money should go. But not everyone knows what they’re talking about. (Sorry, Nana!) Luckily, five money experts weigh in on the worst savings advice they’ve ever heard.

It’s likely been awhile since you knew every state capital by heart. Even if you can’t remember every single one—Montana, I’m looking at you—many are probably still the first city that comes to mind when you think of a certain state. But contrary to what you may think, state capitals aren’t just wealthy metro hubs for local politics—a lot of them also offer amenities like quality school systems, an affordable cost of living, and cultural attractions.

From skipping title insurance to letting the seller stay in the home after closing, there’s a lot of bad real estate advice out there. But one of the most ill-advised tips? You don’t need a real estate agent. The benefits of using an agent are well-documented, but it seems like an alarming amount of people haven’t gotten the memo.

Maybe you’re afraid of racking up too much debt. Or, perhaps you fall into an “anti-credit card” category who loathes the potential of paying interest. It could just be that your debit card is at the front of your wallet and, by default, gets swiped far more than your credit card.

There are quite a couple of “luxury” amenities in homes that are actually nothing more than a bother. Whirlpool tub expectation: Hop into a relaxing candlelit bath the moment you even begin to feel stress. Whirlpool tub reality: Who the hell has the energy to clean all those valves? But then there are actually those that are, indeed, worth your time and money for the amount they make your life better.

Coming up with a down payment for your first home is no easy task. In fact, according to a recent study from HotPads, renters spend about six and a half years saving up before they have enough. (I personally predict I’ll be eligible for AARP before I could build up a nest egg hefty enough to become a homeowner.) Finding clever ways to cut back and save everywhere you can is helpful, but at a certain point, you may realize that you simply need to rake in more dough.

It’s not hard to see why high ceilings are highly-coveted real estate assets: Being typically found in pre-war homes, they give a historic feel and evoke a sense of grandeur. After all, a chandelier looks a bit more stately hanging from a 18-foot ceiling than an eight-foot one. They’re not just impressive looking, either. Tall ceilings also make spaces look and feel bigger than they actually are—a nifty trick in otherwise small apartments.

When you think of romance, pinching pennies isn’t necessarily what comes to mind. But let’s face it: When you’re spending a chunk of change on your housing every month, you can’t afford to break the bank for holidays like Valentine’s Day by planning lavish dates and buying expensive gifts for your special someone. So why not whisk your bae away to a locale that can do both? I found seven great examples from coast to coast that are both affordable and romantic.

It’s not unusual to live with a roommate to cut down costs. Hey, life is expensive! But 2018 demonstrated that an unlikely population is taking on roommates in order to make ends meet: married people. Economists at Trulia determined that in 2018, over 280,000 married couples (or 0.46 percent of all married U.S. households) lived with a roommate or boarder. Now, you may think that number sounds minuscule. But it’s a serious jump compared to just over 20 years ago.

You know a strong credit score will help you get into your next home. To get specific, if you’re renting, landlords like to see a score of at least 650 before they start asking for extra deposits and guarantors. If you’re taking out a mortgage, a score that’s 760 or above is the magic number that will get you the best interest rate on a home loan. But establishing and maintaining a good credit score isn’t just necessary for keeping a roof over your head.

Before you know it, your down payment savings account will be a bit more full.

Any renter with an internet connection and a passion for painting the walls dark green (or black or maybe just wallpapering a bit) can attest to the bit of confusion you feel when first encountering a mortgage calculator or payment estimator online. You approach the thing with some very rough estimates researched in haste about what a modest little 2-bedroom in an up-and-coming neighborhood might cost.

When my husband and I—aspiring landlords that we are—found out we could get an FHA loan to cover the purchase of a duplex, triplex, or fourplex, we thought we had it all figured out. But four months and a dozen offers later, we were still discovering surprises right and left. Here’s what we wish we’d known before navigating on our less-informed, high-risk multi-family home search. Read up on landlord/tenant laws in your area before embarking on this journey!

First comes love. Then comes marriage. Then comes an 18 percent higher probability of being a homeowner. According to research from the Urban Institute, delayed marriage is a major factor holding millennials back from homeownership. If the marriage rates were the same as they were in 1990, the millennial homeownership rate would be about five percentage points higher, says the Washington, D.C.-based economic and social policy research institute.

In many locations across the country, having a $350,000 budget to buy a home will get you some pretty nice digs, but when you’re looking in some of the big cities that stack of cash can translate into what some people may consider a college dorm room. Interested in seeing just how far your dollar stretches in the five major cities?

When my husband and I decided to take out a home equity line of credit for a renovation, we assumed we’d get a great interest rate based on our good credit scores. We’ve always paid our bills on time and don’t maintain any credit card debt. There’s just one demerit on my report; a medical bill in collections I’ve unsuccessfully disputed. But even with that blip, the credit monitoring service I use—CreditWise—said my score hovered in the high 700s!

It’s no secret that the dream of home ownership is increasingly a daunting prospect. From overwhelming student loan debt, to less-than-stellar credit scores, to steadily-climbing home prices, there’s no shortage of factors keeping a lot of us from achieving that hallmark of adulthood. However, some markets are tougher to pull off this particular aspect of “adulting” in than others.

We’ve all heard it. If you’re looking to buy, you should always go for the worst house in the best neighborhood. But have many of us ever stopped to question that conventional wisdom? I thought I was bucking convention when I bought one of the lowest priced houses in a neighborhood that many locals steer clear of (and to my eternal frustration that Uber drivers tell my Airbnb guests they should avoid) — but is it true?

Ask real estate agents and they’ll admit that they’re just as frustrated about some quirks in the home buying process as you are. Here, seven things that bother them the most: Usually it’s no one’s business but yours if you’re messy or tidy—but when your place is on the market, your cleanliness habits can affect how quickly your home sells: “It should go without saying, but I have to say it all the time: Tidy up!

When my husband and I finally started looking for a home (after years of renting a barn loft that was short on insulation and long on character), our budget led us to two options: a newer home we would reluctantly call “nice,” or an older home in need of some major updating but one that we could definitely see becoming ours.

You’ve saved a good chunk of money, or at least are on a path to do so. Now, you might be wondering what’s better: Invest in real estate or put your money in the stock market? It’s a question you can wrestle with to no end since several factors come into play. Helping to frame the debate and lend advice below are a host of real estate and finance experts. Here are six questions they suggest you ask yourself if you’re exploring your investment options.

Sure, there’s plenty of parental advice that will never grow old: Learn to prioritize your time. Follow the Golden Rule. Wear sunscreen. But when it comes to financial tips, some of those age-old lessons fail to fit in with a millennial’s reality.

Buying a home can be an overwhelming experience. There’s no shortage of advice on the process out there—especially from friends and family members just trying to help. Unfortunately, not all of it is good. Thankfully, three experts have cut through the clutter.

Congratulations! You’ve taken the real estate plunge and bought a place of your very own. It’s a scary time, but also a really exciting time. I bet you can’t wait to share the good news on Facebook and Instagram. But wait—before you do, we have some advice for when and how to use social media responsibly while you bask in that new homeowner glow. DO take and share great photos of your new place.

Zillow was the matchmaker that introduced me to my dream home. I had been saving for a down payment and was “just curious” what I could get near Denver in my budget, which led me to casually scroll through listings on my lunch break. I found my three-bedroom row home on the real estate site, and it was love at first site. I then called up a real estate agent my friend referred to me, had a showing the next day, and closed a few weeks later. I’m not alone.

According to a 2015 Urban Institute report, delayed marriage and student loan debt are the biggest factors holding millennials back from buying homes. But though the path to homeownership is rocky, many millennials still want that “American Dream.” In fact, according to the Census Bureau, nearly 37 percent of them already own homes.

If you're in the 63% who doesn't own property, you may be interested in hearing from fellow millennials who accomplished the seemingly impossible. Here's Lauren DiTullio's story.

According to a 2015 Urban Institute report, delayed marriage and student loan debt are the biggest factors holding millennials back from buying homes. But though the path to homeownership is rocky, many millennials still want that “American Dream.” In fact, according to the Census Bureau, nearly 37 percent of them already own homes.

Though some people may consider a dream home to come with a garage, hardwood floors, and the most quiet neighbors in history, truth be told, simply owning a home could be a millennial dream come true for some. According to a 2015 “Millennial Homeownership” report from the Urban Institute, a Washington, D.C.

You can shop for just about anything online these days, from your groceries to shipping containers-turned-houses. So, when it comes to home buying, it only feels natural for digital natives to crack open the laptop to start shopping for a mortgage. Once you tell Google you’re in the market for a mortgage, oodles of comparison sites will pop up, eager to get to know you better with icebreakers like “what’s your credit score?”, “where are you looking to buy?

If you’re in the market for a house, first of all, congrats! Buying a home is one of the most rewarding—albeit at times exasperating—things you’ll do in your life. By the time you’re ready to buy, you likely have a sufficient grasp on the basic necessities: a solid foundation, a roof that doesn’t leak, wiring that won’t cause your new home to spontaneously combust, and so on. But what about the other stuff you should be mindful of?

First comes love. Then comes marriage… or a civil union or cohabitation. From there, we’re cheering for something along the lines of “and they lived happily ever after.” But because life is full of plot twists—and because divorce rates are around 40 to 50 percent in the United States—it can be important to take some precautions when you’re buying a house with a partner. Who better to offer that advice than divorce attorneys?

Checking your credit score regularly is smart, especially if you’re planning to buy a home. You shouldn’t have to pay for a monitoring service to help you keep your credit on track, either. Fortunately, you can choose from a variety of free credit score sites and apps to keep tabs on your numbers. But with so many options, which is the best? By law, you’re entitled to view your credit report once a year on annualcreditreport.

Most first-time home buyers know not to take out a bunch of new debt, quit their job, or ignore their bill due dates when applying for a mortgage. But several other factors—from all those morning java runs, to a lack of planning, to carrying a high credit card balance—can affect your chances at snagging that house at the best interest rate.

Imagine my surprise when my real estate agent gave me a simple appraisal number—and all additional information in a completely jargon-free way.

Now that we’re settled in the New Year, you may have noticed that your credit score has taken a hit after some overly joyous holiday spending. You’re not the only one: A recent report from Marcus by Goldman Sachs says almost half of the U.S. (48 percent) carries a balance or goes into credit card debt over the holidays due to travel, entertaining, and gift costs. While this can make for an exciting holiday season, it usually leaves our wallets—and credit scores—hurting.

Millennials are losing faith in the American dream—at least according to a new survey from Trulia. In 2015, 80 percent of Americans ages 18-34 said homeownership was part of their personal “American dream.” This year, that number dropped to just 71 percent. For the survey, Trulia asked more than 2,000 American adults about their attitudes toward home ownership.

If buying a home is living the dream, paying your mortgage off early could seem like a next-level fantasy. Just imagine what life would be like without forking over monthly mortgage payments. More money for investments! Retirement savings! Home upgrades! Silk bow ties for your dog! But is paying your mortgage off quicker than is required actually a smart financial move? While there’s no “one size fits all” answer, financial experts say it’s not always the wisest decision.

Some bad advice you receive is NBD, honestly. Those bangs your best friend swore would look great on you will eventually grow out after an awkward phase. And maybe one day Dad’s method of filling out a March Madness bracket based on team mascots will actually pay off. But then there’s some bad advice that qualifies as a VBD—yes, a very big deal because it concerns your financial well-being.

Sisters are doing it for themselves—and building equity while they do it! All over the United States, single women are outpacing single men when it comes to homeownership. LendingTree, an online loan marketplace, determined that on average, single women own around 22 percent of homes, while single men own less than 13 percent. Considering how expensive it is to buy a house, that’s quite the statistic, particularly since the average woman in the U.S.

Shopping for a home means weighing wants and needs, and making careful compromises to squeeze as many of those must-haves and wish-list items into your budget as possible. But many buyers focus on typical home features while overlooking one potentially important detail. Nine out of 10 home buyers would like a laundry room, for example, while 82 percent want hardwood floors. Most buyers are looking for a three-bedroom house with two bathrooms, a new kitchen, and an open floor plan.

Have you ever scrolled through social media and secretly wondered “How the heck are my peers affording that lifestyle?” Yeah, we don’t know how they are funding those Bora Bora vacations, either. But a recent report from Zillow gave us some pretty good intel on how people are actually affording down payments for homes in big cities. We’ll give you a hint: It has nothing to do with skipping avocado toast or cutting Netflix from the budget.

Looking to buy a home? 2019 may be your year. According to a new report from CoreLogic, experts predict that this year’s real estate market may swing in favor of buyers. What is causing this shift isn’t necessarily news to potential homeowners: again, it’s a story of increasing home prices and rising interest rates. However, it seems like these factors are finally hitting the market hard enough to cause a change. Over the last several years, home prices have steadily increased.

Contrary to popular opinion, millennials are buying homes. According to a study conducted by the team at LendingTree, an online loan marketplace, nearly one-fourth of all mortgage purchase requests made on their website between January and November of 2018 came consumers under the age of 35. And three American cities managed to rake in millennial buyers—making up almost one half of total new purchase requests.

​If you’re planning to buy your first home, you should pick up a guide (or two) to help you get started on thinking about what homeownership really means.

Between saving, searching, and signing on the dotted line, buying your first home can be an overwhelming process. Making the whole experience even more daunting is the real estate jargon, which can sound like Greek to a real estate newbie. Not sure where to start? Don’t stress. We spoke to two real estate professionals to find out the 10 terms millennials should know before they even think about buying their first home: 1.

I'd managed to raise my credit score 30 points, and snagged a mortgage approval letter from my credit union. These experts agree with me.