Buying & Owning Home

When you’re house shopping, it’s easy to find faults with the homes you tour. Why is the master bedroom Cookie Monster blue? Whoever designed the kitchen didn’t know a thing about cooking. Did vampires live here; there’s hardly any natural light?! Sure, most design flaws could be remedied with renovations.

Thanks to social media, we can now turn to our friends (both online and IRL) for just about anything. Whether you’re looking for travel recommendations or advice on your high school reunion outfit, connecting is easier than ever. Another thing you can ask your friends for? Cold hard cash. Crowdfunding platforms like Fundly and Kickstarter have made it simple to ask for financial assistance for everything from unexpected medical bills to start-up seed money.

High-five, you did it! You paid off your student loans. While it takes a lot of financial discipline to get that balance to $0, your credit score unfortunately won’t be celebrating alongside you. In fact, after you pay off your student loans, you’ll probably see a slight drop in your credit score. Go ahead and file that in the “No fair, what gives?” category along with the fact that your credit will take a hit if you buy a house.

You’ve scrimped, saved, and spent more time on Zillow than you’d care to divulge, and you’re ready to add “homeowner” to your list of accomplishments. Now, to choose the right mortgage for you. When it comes to fixed-rate loan programs, there are several options—from five to 50 years. But it’s the 30-year mortgage that’s been most popular among Americans for decades.

Ask anyone about Waco, Texas, and most likely they’ll ask “Isn’t that where Chip and Joanna are from?” Thanks to Gaineses, the stars of HGTV’s “Fixer Upper,” interest in this central Texas community has skyrocketed over the last few years. As a result, Waco, Texas has not only become a huge tourist destination, but it has also sparked the interest of potential home buyers.

A lot of credit-boosting tips we hear are, frankly, pretty darn obvious. Don’t go over your credit limit, don’t pay bills late, check your credit score—yeah, yeah we got it already! So, my ears perked up when Brentnie Daggett, a rental expert at Rentec Direct, a property management industry website, dished a credit-boosting tip that falls into the “Oooh! Interesting” category.

Once you graduate college, you’re handed a diploma and—most likely—a mountain of debt. Your mission, should you choose to accept it, is to find a job where you make enough to pay off your student loans and then, maybe, move on to the next big investment of your life homeownership. Unfortunately, according to a study by Credit Sesame, the state in which you live may affect your ability to pay your student loans.

Like lots of things in life (including yourself!), the real estate world keeps rapidly evolving. Though some things will stay the same, at least one thing your broker told you a decade ago is no longer relevant. Here, five once-common pieces of advice experts say that you should now take with a grain of salt. “This advice is outdated because today—more than ever—people want to feel like they are getting ‘value’ in what they purchase.

We know, everyone already harps on millennials. So, we hate to give bashers any more ammo, but… millennial credit scores aren’t great. They’re not good, either. They’re actually just “fair,” according to data from Experian, a consumer credit reporting agency. Experian’s credit system ranges from 300 (eek!) to 850 (wow!), and millennials, on average, are stuck in the “fair” category, which is a score between 580 and 669.

Boulder, Colorado, is, for the uninitiated, a land of spandex-clad athletes driving Subarus with Namaste bumper stickers into the driveways of their $1.2 million single family homes. So when one of my friends broke into the pricey Boulder real estate market when we were in our 20s, I was intrigued to know exactly how she was able to do it. Surprise, surprise, it was a somewhat unconventional and unglamorous route: “Did I tell you we bought a hoarder house?

Don't want to spend a ton of money? There are more than enough small-scale kitchen repairs and replacements that can increase a home's overall value

If you’re a fan of NBC’s wildly popular drama, “This Is Us,” you probably know a thing or two about the Pearson family. Have you ever wondered about the beautiful (but doomed) home the family lives in? While the house is located in Pittsburgh on the show, it’s actually filmed at a home in the Eagle Rock neighborhood of Los Angeles—the place where Rebecca and Jack road-tripped to early on in their relationship, ironically enough.

Your real estate agent does so much more than just meet you at open houses or negotiate on your behalf.

Maxing out credit cards, falling behind on bills, going into foreclosure—these are all known villains that will slay your credit score. But did you know that buying a house will also most likely cause your credit score to drop? That’s right; after you’ve demonstrated utmost financial responsibility by establishing a solid credit score and saving for a down payment, taking out a mortgage will ding your score.

‘Tis the season… to look for houses? It may seem counterintuitive since it’s actually a slower time of year and there may be fewer houses on the market, but the holiday season might actually be the ideal time to house hunt.

Certain areas of the country, like Seattle, Washington, and Denver, Colorado, are notorious for their influx of young folk—be it for their tech-hubs, Instagram-worthy walls, or to-die for food. But when it comes to putting down roots, where are younger people buying homes? A new report from LendingTree ranked America’s metropolitan areas by average age of homeowner, and not surprisingly, (with one exception) the coolest millennial cities didn’t fare too well.

This past summer, my husband and I checked off that most elusive goal on our “someday” list: We bought our first home together—a perfect open loft space, one of seven carved out of a small former factory building in intown Atlanta. I say that laying claim to our humble loft was “elusive,” only because I honestly didn’t think we’d ever be able to make it happen. Buying a home requires a serendipitous set of circumstances to all fall into place.

House hunting? You probably need a broker to help with your search. A great broker can find you a place to live but also sometimes winds up acting as your best friend, your mom, and your therapist all in one. For a successful end result, you really want to make this complex relationship work; we’ll let you in on what your broker might really be thinking… When you’re a broker there are no guarantees.

You need a little creativity to make ends meet these days. With wages stagnating and housing prices skyrocketing, people are looking for ways to cut expenses and boost their income. And that’s especially true for anyone trying to save for a down payment on a house. This was all top of mind several years ago when Sam (my now-husband, then-boyfriend) and I decided to move in together.

I asked some experts about the smart way to buy a house with partner—both financially and emotionally—if you're not married. Here's what they said.

Whether you are home shopping or considering adding new bells and whistles to your current pad, the fact is that some features aren’t worth the time, effort, or cost. We asked the experts for add-ons that you may think are a good investment but actually turn out to be pretty annoying (and costly in terms of your ROI!)—some may just surprise you: Just say not to those fancy-schmancy rain showerheads.

For those that don't know much about VA loans, you'll be surprised at how much it has affected the way many Americans live—even today.

The 800-and-up credit score club is an elite one: 20.7 percent of Americans have reached this upper echelon of credit worthiness, according to the latest data from FICO, a widely-used credit score rating system. But, finance experts explain that you don’t actually need to have a score in the 800 range to qualify for the best mortgage rates. In fact, the score you should really aspire for is… drumroll, please: 760!

Budgeting can be pretty hard—especially on a measly income. And some places, it’s nearly impossible to live a full life on your income alone—so you’re likely to slip into debt to pay the bills. Though it’s not ideal, for many it’s just the way it is. But in other places, it’s much, much easier—like in San Jose, California.

As the millennial job market becomes mobile, many twenty- and thirty-somethings are looking outside the big cities for places to settle down. If you haven’t been keeping score like I am, the Midwest is proving itself to be an increasingly attractive option with up-and-coming cities that offer millennials the lifestyle they’re searching for—and the price they want to pay.

It’s funny how buying a home became known as “The American Dream,” because for decades, it wasn’t a dream at all. Just a few generations ago (basically: your grandparents), buying a house in your 20’s was just reality. I love this story from Relative Realty about a couple of real first-time buyers in Toronto—Ron and Joan, both “in their early 20’s”—achieving The American Canadian Dream.

These days, actually using the phone to call people has pretty much fallen by the wayside. But here’s ample reason to pick up the phone: By making a few simple calls—and asking the right questions—you could save hundreds on your household bills. And the best part about living in 2018? You can actually pay someone to do it for you. According to U.S. News & World Report, there are several services that will lobby with your providers for better rates.

When you think of home upgrades that can save you money over time, are you imagining hefty investments like solar-powered roofs and native landscaping? Those projects certainly are the green goddesses in eco-friendly renovations. But, when it comes to upgrades, there are several smaller features that, over time, can pay for themselves, too—and they’re a lot easier to incorporate into your home. What we’re getting at?

So—you’re searching for an apartment on Craigslist. You click on “housing” and enter your search criteria: min bedrooms, max price, X miles from your zip code of choice, only show ads with pictures—GO! Aaaaaand you’ve already made a huge mistake. Not only did I do an annual housing hunt every five years while living in Brooklyn (I’m now in L.A.), I also worked as a real estate agent in Brooklyn for two years. I know the deal.

It took some deep digging to figure out which option best fit our needs right now and for the term of our loan. Here's how we made our decision.

New York’s Central Park is one of the world’s most well-known parks. Even if you’ve never set foot in the city that never sleeps, you’re likely familiar with this natural respite in the middle of one of the world’s most densely-populated urban environments.

Andrea Kaplan-Chambers and her husband have owned their Austin, Texas, home for a year now, but the path there wasn’t easy. The couple were both freelancers when they were applying for mortgages, (Kaplan-Chambers worked as a contract programmer and her husband owned a small sound design business) something they didn’t know was going to be as big of a problem as it ended up being.

I started my first teaching gig only a few months after finishing college. At first, I was thoroughly unprepared, but two years later, I was confident enough to land a coveted job teaching English at one of the best high schools in the county—a 30-minute drive south of my grubby apartment in Daytona Beach, Florida. After a few too many days of dragging myself out of bed at the crack of dawn to beat traffic, I decided I had to move closer to the school in New Smyrna Beach.

There are a multitude of reasons why people don’t make it to move-in day after an offer is accepted: Your financing doesn’t go through, inspections uncover major issues, or you don’t move quickly enough. But one issue you usually don’t hear about? The seller backing out. “It is very rare for the seller to back out of the sale,” says Alex Lehr, proprietor of Lehr Real Estate in San Carlos, California.

Fact: The majority of people don’t have amazing credit. In fact, the median credit score, according to Experian, is only “good,” the average score hitting 700. But some people do blast their way into 800 territory—a tier known as “exceptional.

First, a disclaimer: You should, of course, live your life on your own timeline. But, if you were curious about the median age of homebuyers, a snapshot from the National Association of Realtors reveals that it’s 32. To get super specific… the average household income of the median homebuyer is $75,000, their homes were 1,640 square feet, and they spent $190,000 on their first property.

You’re trying to save 20 percent to put down on your first home, but do you know exactly why you’re striving for that amount? Though you don’t need to put down that percentage of your home purchase price in order to buy, it does help in two major ways: It saves you money in the long run by shredding off interest and makes you a more attractive loan applicant. And while all that sounds like a great goal, it can feel impossibly to many.

When my husband and I put an offer on our house, I asked our agent if he thought sending an offer letter, or a personalized letter to the buyer explaining why they should pick us over another offer, would be appropriate. “Yes, definitely do that,” Mark Branch, our real estate broker with Century 21 Scheetz in Indianapolis, Indiana, told me. “And send pictures, too.

Congratulations! You just moved into your new place and can’t wait to get settled. There are boxes to unpack, new neighbors to get to know and a new neighborhood to explore. But wait! Before you leave your new home to say hi to the Joneses or even rest your moving-weary head on the pillow that very first night, there are a few things you must know and do: You know that key that opened your front door? Think about how many other people might have the same key. Former residents?

There are many reasons to love old homes—the unique charm, the historical touches, the amazing architecture. But taking on an elderly home comes with its own set of challenges, too.

And how to know if it's a good idea for you to use it.

I had lived in my first home for almost one and a half years before I knew furnaces had filters that needed to be changed on the regular. Here’s how that discovery went down: My mom was at a hardware store, and she texted me about filters being on sale! Did I want her to pick me up some? I Googled: “How often do furnace filters need to be changed?” Google responded: “Check them once every month.

My husband and I are “recession kids.” We were just starting high school when the Great Recession brought the most significant economic downturn in the United States since the Great Depression. We watched our parents, neighbors, and family friends struggle with unemployment and the housing market crash. Foreclosures surged throughout the country, and home values plummeted following the housing bubble.

You’ve been squirreling away dollar after dollar and finally have a pile big enough to consider buying your first home. That’s the good news. The not-so-great news: First-time buyers are prone to making some pretty big mistakes. “Home sales have gone up and many first-time homebuyers are coming down with a case of home-buying FOMO,” says Tanya Hobson-Williams, an attorney in Jamaica Estates, New York.

Read over these missteps, as well as what you ought to do instead, so that you can handle your inspections with a sense of confidence.

Welcome to Scandi Week—Apartment Therapy’s seven-day focus on all-things Scandinavia (often defined as the countries of Sweden, Denmark, and Norway). Sometimes it seems like the whole world is obsessed with trying to copy this corner of the globe, from its timeless style aesthetic to its now-famous coziness rituals. For the next week, we’ll take a look at all of it—cleaning, pop culture, and of course tons of eye-popping design inspiration.

So your credit score is less than perfect and you’re doing everything in your power to improve it. The bills are paid on time and you’re only charging about $20 on your credit card every month (because the limit is only $500!). But, even with all of this, your credit doesn’t seem to budge more than a few points because your bills aren’t tied to your credit or you have just one measly credit card.

When buying a house these days, homeowners insurance is typically mandatory–even if you don’t think you’ll ever need it. However, the hefty monthly sum you pay for coverage may be more useful than you realize. “It is important to remember that a homeowners insurance policy provides important coverages beyond just the structure of the house,” says Michal Brower, spokesperson for State Farm Insurance.

As a renter or a buyer, you’ve probably heard the words agents, brokers, and Realtors used to describe the same person who is helping you buy, rent, or sell your house or apartment. There’s even a chance you’ve used these three terms interchangeably. While an agent, a broker, and a Realtor will all help you buy or sell a home, these terms are not synonyms and do mean different things.

Whether you’re starting the process of buying your first home or want to sell the home you’re in to upgrade or change neighborhoods, the process of buying a new home can seem daunting. From finding a great real estate agent, working with a lender, acquiring a real estate lawyer, and getting a home inspector—all on a short deadline—buying a home can often feel like writing the most overwhelming and emotional college research paper.

Your final walk-through is the last hurdle before going to closing and becoming a homeowner. Since it’s so close to the finish line, many first-time buyers have a tendency to try and rush this appointment or not take it as seriously as they should. Unfortunately, this can lead to unintended consequences. With that in mind, we’ve created a guide on how to handle your walk-through the right way.

Many people feel that New York City is the center of the universe. And if that center had a center, it just very well may be Times Square. Though it’s often called “the Crossroads of the World,” many New Yorkers will tell you that Times Square itself is nothing but a tawdry tourist trap. But there’s no denying its proximity to many of the features that make New York City a major hub, including the Broadway theater scene and “restaurant row.

Why bring that negative energy into your new home?

Tiny homes have had a big rise in the popularity over the last two decades, with television shows, books, and Instagram pages dedicated specifically to the under-400-square-foot abodes. And the next trend in these kitschy, wanderlust-style homes? Having a huge price tag.

Each year, millions of people flock to Disney World in Orlando, Florida for a magical vacation. But for those lucky enough to live in the area, a fun day at the parks can be more than just a once-a-year or once-in-a-lifetime experience. Have you ever wondered what it would be like to live close enough to Disney World to visit on a regular basis? If you’ve dreamed about making the Orlando area home, you’ve probably been curious as to how much it would cost to live there.

If you’ve ever looked at a house for sale and thought to yourself, “That is an incredible washer/dryer set, fridge, piece of artwork, etc.” then you’ll be pleased to know that if you play your cards right, you actually can get it with the house. It just needs to be in your inclusions/exclusions list.

After toiling through an endless trail of listings and showings, you’ve found your dream home. The only problem? The price tag that’s out of your budget. But that doesn’t mean you have to give up your dream of home ownership; if you’re willing to put the research and effort in, you can often move the price point down significantly (within reason, of course).

Sure, you already know a tiny home is likely to be a fraction of the cost (and size) of a traditional starter home. But you may be curious how the two home types compare when it comes down to day-to-day living costs—and which one shakes out to be a better investment in the long run. While expenses (often unexpected ones) are a common denominator in ownership for both home types, the things that will siphon money from your savings account can differ dramatically between the two.

They say that your home is your biggest investment–meaning you’re going to sink a good chunk of change into your new abode, both at the outset and over the years. With that kind of money on the table, it’s crucial to save some dollars wherever you can. With that in mind, I picked the brains of three real estate professionals to determine the easiest ways to save money when buying a home.

If there’s one home amenity that frequently tops a house hunter’s wish list, it’s a big yard. And though you might have had a mammoth half-acre backyard to play in, your kids (and pets) will have less room to grow—especially if you’re buying a newly-built home. According to a new analysis from the National Association of Home Builders (NAHB), via data from the U.S. Census Bureau’s annual Survey of Construction, yards are growing smaller and smaller every year.

The terms pre-qualified and pre-approved almost sound like they could be synonyms. But when it comes to home financing, there’s actually quite a big difference between the two—and securing pre-approval for a loan is actually what brings you closer to the closing table. Think of it this way: Getting pre-qualified is like taking baby steps towards getting approved for a mortgage. You call up a lender, self-report your credit score, and relay information about your income.

Two years ago, I got divorced. Because I needed cash to pay my lawyer, I put my everyday expenses on a credit card. Before I knew it, between what I charged and the high interest rates, I was in considerable debt. I had a little over $17,000 on two cards. I looked into transferring my debt to an 18-month no-interest credit card and spending every penny I could to pay off my debt before that interest kicked in. But when I ran the numbers, I wouldn’t make it.

It’s common knowledge that owning a home is cheaper than renting (at least in the long term), but anyone who has ever sat down to try and figure out the numbers knows that finding out how much you’ll save is harder than it looks. There are so many factors to consider. To try and help you come as close to the real number as possible, we’ve outlined three ways your rent-vs-buy math might be wrong — and how to straighten things out to give you the best picture possible.

If you haven’t been furiously refreshing Zillow for the past couple of months, here’s a bit of news for you: It’s a seller’s market right now. Even if you’re not pining over a dream home currently, you might know that, well, because the thought of buying a home hasn’t even popped into your head anytime recently.

In a hot real estate market, where sellers are receiving multiple offers close in price, a well-written offer letter can be the ace in your pocket. “A letter can make you feel more like a person to the sellers rather than an offer and number,” says Lauren McKinney, broker and realtor with Gold Leaf Realty and Development and marketing director for Judd Builders. With that said, buyers’ letters should be short and heartfelt, says McKinney, whose based in North Carolina.

Getting ready to sell a house can be an intimidating prospect. As you prepare for your next move, you’re likely concerned about one question above all else: How much money will you make from selling your home? The profit from your home will determine your budget for your next home (or maybe it will determine your budget for the business you’re starting or your year traveling around in an RV).

How many times did you burst into tears when buying your first home? Tears are apparently very normal—a new survey from Homes.com found that one in three Americans ended up crying during the home buying process. In fact, of the 2,000 home buyers surveyed, 13 percent of respondents cried “a lot.” Why is the process so difficult? The survey points to a few key reasons that adults may be overwhelmed by the search.

In 2012, my husband and I decided to take the next big step together—investing in a starter home in Atlanta, Georgia. We had been married a little over five years, and my husband’s above-average credit score of 780 meant we would easily be approved for a mortgage. We sought a home in the $250,000 range with a mortgage of $1,200 per month that we could repay in 30 years. We decided to only look at foreclosed homes since they were the most affordable option.

My fiancé and I found ourselves approaching the end of 2013 with two goals in mind: 1. Make it through the wedding planning process and 2. Buy our first home. For a 26-year-old, these were both two exceptionally expensive activities—especially in northern New Jersey where we lived. But we’d been living at home and saving since graduating from college and our parents were very generous in their contributions to our wedding, so these two expenses were somewhat doable.

It’s not news that increased capital flowing into the San Francisco Bay Area has made the area’s housing market absurdly competitive. But it’s still shocking to see the already high numbers get even higher—and so quickly. Case in point: Zillow recently released a study stating that, by June 2019, a whopping nine cities in the Bay Area will likely have median home values of more than $1 million.

Buying a home—especially for the first time—can be an overwhelming and confusing ordeal, and your real estate agent is your guide through that complicated process. So it’s only natural that you look to them for guidance and trust their advice and expertise on matters big and small.

My husband and I can’t buy a home in L.A. because we’re spending too much money on avocado toast. Just kidding—fancy brunch isn’t the problem. The problem is that houses, even “starter” homes in decent neighborhoods, are too expensive. If we wanted to purchase a home in Highland Park, it would likely cost around $737,700 (the median home value for that neighborhood, according to Zillow). That would mean forking up close to $150,000 as a downpayment.