Preparing for Your First Year of Homeownership
Being a first-time homeowner can be exciting…and a little scary. Anytime anything breaks, no more calling the landlord. You must fix it yourself. Plus, the expense comes out of your pocket. In your first year of homeownership, the learning curve can sometimes be steep. But you will get through it. Find out what to expect when you become a homeowner and how to prepare for it by reading below.
First Year of Homeownership Expectations
Something Will Break
It is inevitable. Even owners of newly constructed Ventura homes find themselves fixing something during their first year. It might be something as simple as a doorknob or something more complicated like the air conditioner. The longer we live in a place, the more likely a repair or replacement comes up.
To prepare for your first year of homeownership and reduce your stress, create an emergency fund. Financial experts suggest your “rainy day fund” includes up to six months of mortgage payments, interest, insurance, and taxes. Even if you cannot afford that, start saving up what you can afford. Next, make sure you know where your water and gas shutoff valves are located in case of an emergency. Then, look for professionals you trust to handle electrical, plumbing, and other handyman issues that may reach beyond your skills. Finally, make sure you purchase a home warranty to cover unexpected repairs. Talk to your Ventura real estate agent to see if a home warranty can be included as part of the sale of the house. Even in a seller’s market, the seller might throw this in as a perk.
Hello Junk Mail
Once a bank approves you for a home loan, expect to see a lot of junk mail come your way during your first year of homeownership. While most of it tends to be junk, sometimes you find some pretty valuable deals for things like windows, roofing, landscaping, and flooring. Plus, expect to see refinance offers come pouring in. When you change your address with the post office, they also provide a welcome packet full of helpful information about your community and valuable coupons for moving supplies among other things.
Prepare to Spend Some Money
You just plunked down a nice chunk of change for a downpayment and closing costs on your new Ventura home. But the money train does not stop there. You will spend some money after you move in, too. You might need to buy a lawnmower, rake, and other landscaping implements. If you scuff up the paint or ding the walls during move-in, you will want to fix those when things settle. A good deal of the time, you tend to move from a small apartment to a larger home when you buy your first house. That means more square footage to heat and cool, raising your energy costs. (Perform an energy audit to reduce any extra costs.) With more room comes more furniture and other decorations, too. So, just be ready to dole out more cash once you start to actually live in your new home.
Expect to Boldly Go Where You Might Not Have Thought To Go Before
Finally, it is a good idea to clear out the air ducts and clothes dryer vents. The buildup of lint and debris in these two areas make it harder for their respective systems to work properly. And, unfortunately, people overlook these areas quite often. Plus, this buildup can be flammable, creating a potential fire hazard. While you are at it, change the batteries in your smoke and carbon monoxide detectors. Otherwise, you might get woken up in the middle of the night with an annoyingly grating sound tearing at your eardrums. Because, for some reason, the batteries in these devices only seem to start dying at 2 AM.
Congratulations on the purchase of your very first Ventura home. Do not let these things stress you out. You can handle them, especially if you prepare ahead of time.
Dave & Pat Zumbrun, your Ventura County real estate specialists
Fixed Mortgage Rates for Ventura Homes
Good news! Home mortgage interest rates remain at historically low levels. In the not so distant past, most Ventura home buyers had to finance their homes with a 30 year adjustable rate mortgage just to be able to afford the initial payments. Of course, after a couple of years, these payments went up so much that thousands of homeowners across the country ended up losing their properties to foreclosure. Nowadays, fixed mortgage rates for Ventura homes are so affordable that a 15 year FRM is a possibility.
According to Freddie Mac’s latest Primary Mortgage Market Survey, a 30 year fixed-rate mortgage (FRM) averaged 3.59%, down 0.63% from the same time last year. A 15 year FRM averaged 2.86%, down 0.53% from the same time last year. That means that someone who bought a Ventura home just last year is paying hundreds more in interest per year than someone who buys one today.
You’ve found the perfect Ventura home for you and your family. You need to finance $250,000. You qualify for the latest average interest rates. Which loan should you consider? A 30 year FRM will give you a lower monthly payment ($1135 per month vs $1710/month). However, you will be paying twice as long as a 15 year FRM and end up paying almost three times as much in interest over the life of the loan ($158,675 vs $57,741). That’s a lot of money!
Fixed mortgage rates for Ventura homes remain at amazingly low levels. That’s why now is as good a time as any to pursue your dreams of homeownership in Ventura County. When you’re ready, please contact us.
THE Z TEAM’S FEATURED HOME OF THE WEEK
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Dave and Pat Zumbrun, Your Ventura County real estate specialists
Top Three Reasons Why Homeownership Rules
Even in today’s topsy-turvy economy, owning a Ventura home is still a solid investment. Now that home prices are back at reasonable levels, mortgage rates remain incredibly low and inventory is plentiful, it’s a great time to buy. Here are the top three reasons why homeowership rules:
1. It’s Yours – Obviously, if you own it, it’s yours. But, when you own your Ventura home instead of renting it, you get to mold your living space into whatever you need or want it to be. You don’t need to ask permission from a landlord. Also, the longer you stay in a home, the more equity you can build up. Equity is the difference between what you owe on a property and what the property’s worth. In past years, homes typically appreciated at a rate of 4-6% per year. While some homeowners who bought a Ventura house when the real estate market was at its crazy peak a few years ago are experiencing negative equity right now, still more homeowners who have bought in just the last couple of years are experiencing a positive equity now. When home values go up (and they will), your equity will increase as well.
2. Sense of Security – Studies have shown that kids raised in a home that is owned by their parents rather than renting have a lower rate of pregnancy and drug use. This has been attributed to the fact that most homeowners stay in one place for a longer period of time rather than moving around from place to place every few months like renters tend to do. Also, if you have a fixed rate mortgage, you know what your monthly payment is going to be two, three, five and even ten years down the road. Rent, on the other hand, will fluctuate depending on how long your lease is and tends to increase after your lease is up.
3. Bargains Galore – I know we’ve said this before, but there are definitely bargains to be had in the Ventura real estate market. Whether you’re looking to buy that first starter home, you need a larger place for an expanding family or your little ones have grown up and moved out so you need to downsize, you’ll find it here. Ventura home prices are at exceptionally reasonable levels as well. When you partner that with interest rates hovering around 4%, it ends up being cheaper to buy than to rent a home.
What are you waiting for? Contact us now so you can learn for yourself why Ventura homeownership totally rules! Home prices in some areas are even beginning to go up. So, don’t miss out on your opportunity to own your own piece of the American dream now!
Dave and Pat Zumbrun, Your Ventura County real estate specialists
Originally posted on our Ventura County real estate blog here: http://activerain.com/blogsview/2586242/top-three-reasons-why-homeownership-rules.