My tip – STICK TO YOUR PRICE RANGE! We looked at 10 houses in our price range and one house just north of our price range. Of course – the more expensive house looked better. We fell in love with it and we stretched our budget to afford it! We didn’t have a chance to view any other prices in that higher price range either so didn’t know if our offer was too high (it was in hindsight). Just a tip!
Beyond pride of ownership, it's important to realize another benefit. First, real estate moves in cycles, sometimes up, sometimes down, yet over the years, real estate has consistently appreciated. The Office of Federal Housing Enterprise Oversight tracks the movements of single-family home values across the country. Its House Price Index breaks down the changes by region and metropolitan area. Many people view their home investment as a hedge against inflation.
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As a metro area straddling two states – Missouri and Kansas – Kansas City keeps the cost of living cheap for residents of both states. With housing and utilities typically costing just over 26.3 percent of the blended annual household income, Kansas City moved up two spots on the Best Affordable Places to Live list this year, when it ranked No. 19 in 2016.
The home buying process can take anywhere from one month to a few years, depending on the unique experience and expectations of the home buyer. On average, a home buyer can spend one to two months searching listings, several weeks to negotiate and close a deal, and then make the first mortgage payment several weeks after that. With these variations in mind, a home buyer can realistically expect for the home buying process to take roughly three months.
Many home shoppers use a lender who was recommended by a friend, family member or real estate agent, and they don’t bother shopping around. But that doesn’t guarantee you’ll get the best rate, or even get a lender who is experienced with loans for your particular situation. The CFPB recommends talking to at least three lenders to get the best loan for you.

While getting pre-approved for a mortgage is not necessary to close a deal, it can help you close the deal quicker. In turn, being pre-approved can give you more bargaining power when negotiating as it signals to the seller that you have strong financial backing. Getting pre-approved for mortgage also allows you to know the limit up to which you can go for purchasing a property. It helps in saving time and effort while searching for the properties that fit into your budget.
I believe some of the best advice is to PREPARE! I hear so many people say “Ok, we wanna buy a house now” and it’s like…WOAH WOAH WOAH…you can’t just go out & get one! There’s several things that need to happen beforehand. Unfortunately, money management is not a strong point for many of us young folks, but I’m getting better at it (and helping my husband do the same!). Thank you! 🙂

From this chronological, step-by-step explanation of the home-buying process, you will learn everything you should be thinking about and doing at each point of the process. Sure, the process may still be difficult, stressful and draining at times, but at least you’ll know what to expect and understand what’s happening at every point along the way. You don’t have to rent forever if you don’t want to. (For resources on deciding if you’re ready to be a homeowner, see To Rent or Buy? The Financial Issues and To Rent or Buy? There’s More to It Than Money.)


You can find for-sale properties through listing websites, local publications and your real estate agent. Start touring homes to develop a sense of what you want and don’t want in your home, as well as what type of inventory is available in your desired neighborhood. Once you find a property that meets your needs, work with your agent to negotiate a fair price with the seller.
You might have some empty rooms for a little while, but your budget and your future selves will thank you! And if you find yourself thinking, Oh well, I’ll just put it on credit—stop right there! Debt is dumb. Plus, taking on new debt in the middle of buying a house could delay your approval for a mortgage and make you miss out on the perfect home. Don’t do it!
Contingency clauses also offer a form of protection. "A mortgage financing contingency clause protects you if, say, you lose your job and the loan falls through or the appraisal price comes in over the purchase price. Should one of these events occur, the buyer gets back the money he used to secure the property. Without the clause, he can lose that money and still be obligated to buy the house," explains Justin Lopatin, a mortgage planner with American Street Mortgage Co., to MSN.
In a perfect world, I would love to get a 15 year fixed rate mortgage using a conventional loan where I put down 20% (avoiding PMI altogether) in a great neighborhood close to the city (but not too close) with a white picket fence, red door, and black shutters with a boatload of money in the bank to go with it. But here I am, writing about the process and not buying any homes – I’m just trying to pay off my student loans.
Realize it will be an emotional process. This tip goes for first-time homebuyers especially, Lewis said. Your emotions in the process can range from the excitement of finding a home, the anxiety tied to making an offer or the disappointment of not getting that house. "When you go into the process knowing that you're going to have these huge emotional ups and downs, you can weather them more easily," Lewis said.
You might have some empty rooms for a little while, but your budget and your future selves will thank you! And if you find yourself thinking, Oh well, I’ll just put it on credit—stop right there! Debt is dumb. Plus, taking on new debt in the middle of buying a house could delay your approval for a mortgage and make you miss out on the perfect home. Don’t do it!
You'll want to know in advance that you likely qualify for a home loan, and that's where a credit check can prove invaluable when you buy a house. Your credit check will track your financial health using data from the three primary credit reporting agencies -- Equifax, TransUnion and Experian. Your credit score from each agency can range anywhere from 350 to 800. The higher the credit score, the more likely you'll be granted a home loan, and the more likely you'll pay a lower interest rate when securing a home mortgage (that's because a high credit score will be viewed by a mortgage lender as a lower-risk loan proposition). In your run-up to your credit check, avoid taking out any loans or credit -- that will raise your credit risk level in the eyes of lenders -- and make sure you pay down any debt owed, and ensure you've got a good track record of paying your bills on time.

Do some research online, but work with a live person who can review your situation, answer questions and, if necessary, suggest how you can improve your credit.“Online calculators do not always include insurance and taxes or PMI [private mortgage insurance required if the down payment is less than 20%] and are not always an accurate picture of what the payment or actual fees for the loan are,” says Anita Wagoner Brown, director of sales and marketing for Home Creations, the largest new home builder in Oklahoma.
Minneapolis-St. Paul scores high for its flourishing job market and quality of life, but the area increases its appeal with a low cost of living. The Twin Cities have a median home value of $223,995, according to Zillow, which is slightly over the national average at $211,731. But residents still only pay 25.71 percent of the blended annual household income toward housing and utilities.
The winning bid isn’t always about price – the seller wants to feel confident about the entire transaction at the end of the day. If your bid includes your preapproval letter as opposed to a competing buyer’s prequalification, or you’re willing to let the seller take a little more time to move out, your offer might be the package the seller chooses.
Some other things home buyers can do to turbocharge their scores is to bring any past-due credit card balances current and stop using credit cards altogether — but don’t close the accounts once you pay off the balance. It looks good for you to have established and available credit, as long as you don’t use it. That means keep that Old Navy card and Visa gas card open, even if you no longer use them. The longer you’ve had the account, the more it enhances your score.
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