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7 Benefits of Buying a Small House
Posted on Tue, 15 Mar 2016, 04:35:00 PM  in Home buying tips,  Marketing strategies,  My services
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Many people think "bigger is better" when it comes to houses. Although bigger is indeed better when it comes to bank account balances, it's not necessarily so with houses. Often, smaller houses actually provide many benefits. Here are seven reasons why smaller is often better - much better.


1. Lower utility bills
When you have a smaller total area in your home than you would in a large home to heat and cool, you can save big on your utility bills. This includes costs for air conditioning, fans, heating, and electricity. If you have a small home that's also designed with energy-saving features in place, you can save that much more. These savings on utilities in a small house can add up quickly into huge amounts of money that you can allocate in other ways.

2. Lower repair and maintenance costs
Smaller homes come with lower expenses to keep them in tip-top shape. Think about common-sense factors like having fewer bathrooms and therefore less plumbing equipment that might eventually need to be repaired. There are fewer lighting fixtures and floors and many other items that will ever need to be smallhomeerepaired or replaced.

3. Less investment in cleaning
With a smaller home, you may have to spend a fraction of the time, money, and energy on cleaning and upkeep compared to what you'd invest in a larger home. You will feel like you have loads more freedom to get together with loved ones, relax, travel, garden, or whatever way you choose to spend all your extra time and energy.

4. Minimal decorating and shopping
With fewer rooms to furnish, anyone who buys a smaller home doesn't have to spend as much time coming up with decorating ideas and then spending time, money, and energy shopping around for all the home furnishings.

5. Less stuff
There aren't as many closets, drawers, cabinets, and storage spaces in smaller homes. There is also, of course, a whole lot less space and fewer rooms. Some view this as a negative, but others view this as a way to prevent the accumulation of excess belongings. This really keeps clutter under control, which is a major plus if you're seeking a simpler, more carefree life.

6. Quicker home payoff
Depending on a home's location and purchase price, it can be possible to pay off a small home much more quickly than a larger one, especially if the original purchase price was low to begin with and if the home is in an economical location. In addition, with a lower purchase price on a small home, it's possible to have much lower monthly home payments on the smaller home versus a larger one. That significantly eases financial stress and can be great if you're on a tight budget.

7. Close relationships
It's true that people living together in a home of any size can cultivate wonderfully close relationships, but many people who have lived in small homes have said that their family bonds are tighter as a result of being in more limited spaces together. Mileage may vary on this issue from one homeowner to another, but it's worth considering this often-overlooked benefit of living in small homes. With some creativity, even families with several people living under one roof find ways to thrive while living in small homes.

Downsizing has become more common in recent years as people discover the many benefits of this lifestyle shift. A simpler, scaled-down way of life isn't for everyone, but it is the perfect thing for many people. Consider whether it might be a great move for you and your family.

 


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Benefits of Making a Larger Down Payment
Posted on Thu, 28 Jan 2016, 10:15:00 AM  in Home buying tips,  Marketing strategies,  My services
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Anyone who is planning on purchasing their first home often takes the time to save for a down payment to ensure that they can obtain a mortgage loan from banks or financial institutions. Many people make the mistake of only putting a minimal amount of money down on a property just to purchase it quicker. Although it can take patience and time, there are several benefits to making a larger down payment upfront.

Lower Interest Rate
Lenders are more likely to offer lower interest rates to home buyers who have a larger down payment when you have a lower loan-to-value ratio, which lower's the risk for the lender. This can allow you to save thousands of dollars over the term of your home loan just by waiting longer to save. Your interest rate will ultimately increase with the number of risks that the loan contains for the lender. Not only will you obtain a lower interest rate, but having a larger down payment means that you're closer to paying off the property in full. The sooner you pay off the mortgage, the less interest you'll pay and the more flexibility you'll have with your retirement. 

Quicker Approval
Those who have a larger down payment are more likely to be approved quicker than the average person when applying for a loan. Having a larger down paymentpayment of at least 20 percent is a sign of borrower strength to lenders and makes it easier for them to trust that you'll make your mortgage payments on time. This can make it easier to begin shopping around for your new home without waiting several weeks or months to hear back from the lender. Although most borrowers have at least one or two risks when applying for a loan, a down payment of at least 20 percent eliminates any risks that may be present. 

Avoid Mortgage Insurance 
Lenders often require private mortgage insurance from borrowers who have smaller down payments that are less than 20 percent of the loan. Private mortgage insurance is used to protect the lender if the borrower is unable to make their payments on time during the duration of the loan. You can save even more money by avoiding the mortgage insurance completely with a larger down payment for one less expense.

Protect Yourself from Negative Equity
Many people are unaware that they can develop negative equity quickly when the value of their home decreases due to the state of the economy. This can make it easy to owe more on the property than it's actually worth, which can lead to foreclosure on the home. By putting down a larger payment, you can minimize the risk of having negative equity if the value drops in future years.

Improve Your Odds in Winning a Multiple-Offer Situation
It can be easy to fall in love with a property that other buyers quickly take notice of and also make an offer on. This can easily put you in the middle of a multiple-offer situation as you begin to try to outbid other people for the home, which can reduce your risk of obtaining the property. The seller is much more likely to favor the buyer who has the larger down payment and is already approved by a lender for a home loan due to less risk of the transaction falling through. You'll have more power when it comes to finding the home of your dreams and beating out other buyers to ensure that you get the home of your dreams.


How May I Contact You?

Please ask me your question by filling out this form. You will receive an answer to your question at the first opportunity I have to reply. I appreciate the time you have taken.

 

 


Thank you for taking the time to complete this questionnaire.
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