A mortgage is a loan you take out on a piece of land or real estate when you don’t have all the cash-on hand to buy, improve or maintain it on your own. A bank or other financial institution will lend you the money under the condition that you repay the loaned amount by a set number of years and also pay interest on the borrowed amount during that time.
Check out the Mortgage Calculator to see what you can afford.
Knowing what you can afford and having a budget in place will help to narrow your search or give you the incentive to work towards your goal.
A mortgage works by using the property as collateral for the loan. As the home buyer, you pay an upfront down payment. The lender pays the difference between the down payment and the total sale price of the home.
Getting pre-qualified is the smart way to start the process.
Selling costs:
Transaction costs of selling a house include standard closing costs as well as potential charges associated with preparing the home for sale, relocating your belongings (and sometimes yourself), and offering concessions to the buyer.
Preparing your home to be ‘on the market’:
• Cleaning and decluttering – Home staging can take many forms, but at a minimum, you should declutter and arrange furniture to make the most of the space.
• Landscaping – Your ‘curb appeal’ is your home’s first impression, so you’ll want to make your home’s exterior look its best.
• Repairs and improvements – There is always things you can do before listing such as repairing or replacing old systems such as the roof, heating units, windows, etc. Most sellers undertake some sort of home improvements before selling.
• Marketing Costs – There are costs associated with listing your home on the local MLS, but it is usually covered by your real estate agent.
• Professional Photos – Most home buyers will be viewing your home’s exterior and interior online. Professional photos can be extremely important. It’s a small investment that can have a huge payoff.
• Inspections: This is optional, but if you choose to do one ahead of time, you’ll be aware of any major issues that need to be addressed.
It can exciting to find out how much your home is worth. If you are considering selling, be sure to explore all the options that are involved.
• Home seller concessions – It’s rare that you receive a buyer’s offer and close without making any concessions. There is usually some kind of trade-off with the buyer to facilitate the home’s sale.
• Typical closing costs for sellers – these costs include the real estate commission, transfer tax and title insurance, escrow fees, prorated property taxes, HOA fees – if applicable, and attorney fees. You should be aware of these costs and your agent can explain what they all are for.
• Real Estate fees – After the closing costs are settled, there are still a few more costs of selling a house that you need to be aware of:
– Outstanding mortgage balance: Part of the closing process will include paying off the balance of your mortgage. You’ll want to check with your mortgage company to see if there is a prepayment penalty as well.
– Capital gains tax: This cost is often overlooked. If you’ve lived in the home for at least two of the last five years, you’ll get a tax break on the profit you make on the sale, up to $250,000 or $500,000 depending if you’re single or married filing jointly. Check with your tax professional about how best to handle this for your situation.