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Your home isn't simply one of your biggest investments. More than just a physical shelter, it’s a space where precious memories are made. But as much as you love your home, there will always come a time when you feel like it’s time to move.

According to the National Association of Realtors® 2024 Profile of Home Buyers and Sellers, the median number of years a seller owned their home was ten. Some of the most commonly cited reasons for selling are that the house is either too small or too large or that the neighborhood is becoming less desirable.

While there are a variety of reasons, selling a home is undoubtedly a huge decision — one that will make you reassess your current situation. Maybe it's something you’ve been considering for a long time as you scrutinize the most recent property listings and daydream about a new house. If you’re still on the fence about selling, here’s a look at seven telltale signs that it’s time to sell your house.

Financial reasons:

Home equity, in simpler terms, is the difference between how much your home is worth and the amount you owe on your mortgage. Knowing how much equity you have in your home is usually the first step if you are considering selling, as sufficient equity may increase your chances of leaving the sale with a decent profit. 

The best way to calculate home equity is to subtract the value of your home from the loan balance. So, how much equity should you have before you sell your house? You want to at least have enough equity to pay off your current mortgage. And if you can make enough profit to cover the 20 percent down payment on your next home so you can avoid paying private mortgage insurance, plus enough to cover closing costs and other moving expenses, then even better.

Aside from your monthly mortgage costs, if you find that rising property taxes, homeowners insurance, and maintenance costs are starting to become unmanageable and have been straining your budget, the next resource may be to sell and find a more affordable home. Selling your home to ease your mortgage burden is a better route than risking foreclosure, especially if you underestimated your housing costs.

Lifestyle changes:

Changes in your needs and lifestyle can make you rethink your space. If you have a growing family, what might have been a good size when you first moved into the house might no longer be the case. Outgrowing your home is an indicator that you need to upsize, especially if you're already in a situation where your kids are crammed into a bedroom or your aging parents need to move in with you. The next logical step is to consider selling your home and buying a bigger one to accommodate this new chapter in your life.

On the other hand, you might need to downsize if your children have all grown up and moved out. It’s a simple solution that will not only lessen your maintenance and upkeep costs but also help you save money that can be used for retirement or other investments.

Certain life events, such as death, illness, divorce, or relocation for a new job, can also be significant factors that may warrant a need for a change.

Maintenance is one of the most significant responsibilities associated with homeownership. However, scheduled services such as landscaping, house cleaning, pest prevention, trash removal and recycling, septic service, and even tree or snow removal often come with a hefty price tag, particularly when getting the help of a professional. According to Homeguide, in 2024, the average home maintenance costs range from $4,000 to $22,000 per year, although the cost depends on the home's age, size, location, features, and condition.

If the energy or expenses of keeping up with your home’s maintenance is starting to feel more trouble than it’s worth, you may want to consider selling and instead buying a lower-maintenance real estate, such as a condo or new construction.

Neighborhood and market factors:

Seeing your beloved neighborhood change as time passes by can have its pros and cons. While changes are to be expected, it can be saddening if your neighborhood changes so much that it already affects your quality of life or displeases you, especially if you've lived in it for a long time. Issues like rising crime rates, unwanted construction, or increased traffic congestion can make you want to relocate. It can also be disheartening to see your closest neighbors move out one by one. These factors are good enough reasons to sell your home and find another neighborhood that will best suit your needs and lifestyle.

When deciding whether it's time to list your home for sale, the state of the property market can also be part of the equation. In a strong seller’s market, homes generally sell faster for a higher price since the housing demand exceeds supply. Competition among buyers might be higher when your home goes on the market, which means you can probably sell your house for more money and have plenty of offers to choose from.

While it goes without saying that you’d prefer to sell your home when the market is good, ‘timing the market’ shouldn’t be your top priority and should only be one factor.

Personal readiness:

Last but not least on this list, you'd want to ensure that you are emotionally ready to sell. The process of selling can be an emotional roller coaster. Are you ready to let go of your personal attachment to the home? Aside from the need to declutter and prepare the home for sale, you also need to prepare yourself for any kind of adverse feedback you may receive from potential buyers. Even if the numbers are all saying that it’s time to sell, your psychological preparedness matters as much, so give yourself time.

On the flip side, maybe you already have the next logical step and have the means to do so. Having a solid plan of what comes next makes you ready to move out and leave your beloved place to venture into something new.

Bottom line

Don't get us wrong—the decision to sell your house is still up to you, so take your time deciding if you should sell. Then, study the local housing market and find a trusted and knowledgeable real estate agent in your area so you can be completely ready when you do decide to move.

Buying a home is no easy feat. You usually have to put money down equal to a percentage of the final purchase price, or your down payment. Having this upfront cash on hand may not be easy for everyone. In fact, it's one of the major hurdles when buying a home. This is why down payment assistance programs are available to qualifying home buyers. 

Here's a quick guide that will explain what a down payment assistance program is, how it works, and what are the different options that exist to help you reach your goal of owning a home.

Down payment assistance (DPA) is any type of program designed to help home buyers afford a down payment. Some programs also help lower or cover your closing costs. There are thousands of DPA programs available across the country, and the majority of them are offered at state, county, and city levels, and even through some banks and lenders. Down payment assistance is typically geared toward first-time home buyers, but there can also be assistance available for repeat home buyers. 

These programs typically have eligibility requirements and borrowers usually have to take out a mortgage with a participating lender to take advantage of their assistance program. The funds often come from the U.S. Department of Housing and Urban Development, or HUD, as well as employers, community organizations, and state and local governments.

Any type of down payment assistance is likely to have certain qualifications. The majority of these programs are geared toward first-time home buyers. A first-time homebuyer is someone who hasn't ever owned a home or hasn’t owned a home in the past three years.

Beyond that, other typical requirements include a minimum credit score of 620, a low-to-moderate household income, and a debt-to-income ratio. Do take note that these requirements vary from program to program. Likewise, many DPA programs also require the following:

• You must live in a certain city or county

• You must purchase a primary residence, not an investment or rental property

• You must attend a first-time home buyer class or financial literacy classes

• Purchase a single-family home, condo, or a townhouse

• You must be in a public service profession, such as a teacher, firefighter, police officer, emergency responder, active-duty service member, or other public servant.

• Qualify for a 30-year, fixed-rate first mortgage to buy the home.

Down payment assistance comes in three main types: loans, grants, and credits, each with its pros and cons. Here are some of the most common:

• Grants

Home buyer grants are the most popular and most valuable form of down payment assistance. This is because it provides homeowners the money that they never have to repay since it's considered a gift. If you qualify, you can use the cash sum to cover all or part of the down payment or closing costs. 

However, most grant programs are often more difficult to qualify for due to challenging requirements, such as that you need to live in the home as your primary residence for a certain number of years after your purchase. It’s also important to keep in mind that some programs labeled as grants by the organization providing the funding may create a second lien on your home. Just make sure that you know what you’re getting into and that your lender is aware of the grant. 

• Forgivable loans

A forgivable loan is technically a second mortgage large enough to cover the down payment, but it acts as a grant since you don’t have to repay the loan if you meet certain requirements. For example, a program might forgive the loan if you live in the home and pay the primary mortgage for a set amount of time, typically anywhere from three to 10 years. However, if you move, refinance your mortgage, or sell your home before the loan is forgiven, you’ll need to pay it back. Forgivable loans have an interest rate of 0%.

• Deferred payment loans

A deferred payment loan most often takes the form of a no-interest second mortgage that typically covers the cost of the down payment. But unlike forgivable loans, you will have to pay back the loan at some point. This happens when you sell the home, refinance your mortgage, or pay off your first mortgage.

• Low-interest loans

This type of down payment assistance also functions as a second mortgage but with a lower or more affordable interest rate than your first loan. Along with making monthly payments for your primary mortgage, you’ll likely need to repay this loan in installments, typically over a few years. This means you’ll be making two monthly mortgage payments.

• Individual Development Accounts or matched savings programs

Also called a matched savings program, an Individual Development Account (IDA) is a unique type of down payment assistance. It’s a special savings account that home buyers deposit money into, which is matched by either a bank, government agency, or community organization. For example, if you put $5,000 into the account, the agency you’re working with would match that amount, making it $10,000. The total funds can then be used to help cover their down payment or other qualifying costs. These programs often have strict requirements to qualify, such as income restrictions, and employment requirements, and participants usually need to complete financial literacy training.

There are many ways to find down payment assistance. Here's where to start:

• You can check the HUD website for local home-buying programs at the state level. You can also check for HUD-approved housing counselors in your area.

• Contact your state’s HFA or visit its website to learn about your own DPA options, as every state runs an HFA that helps homeowners and renters.

• Check your city or county website to see if they offer any grants or loan programs.

• States and some larger cities have housing finance agencies, which can be great resources for state-supported programs.

• Municipalities often have housing support programs in one form or another, regardless of whether they do so through a housing finance agency or otherwise.

• Nonprofits focused on housing also are good places to look for grants and other forms of down payment assistance.

• Look for down payment assistance programs for specific groups. There are programs for people who work in particular occupations, such as the Teacher Next Door program. There are also programs available for other public service professionals.

• Your real estate agent and mortgage lender can also be great resources when looking for an assistance program. Just don’t forget to find out if your lender works with the specific down payment assistance program.

• Private company Down Payment Resource also provides various resources for homebuyers, real estate agents, and lenders, including an eligibility and assistance lookup tool.

Understand that down payment assistance varies from state to local levels, so the amount of time it takes to get one mainly depends on the program and the type of assistance. While the timeline varies, you can expect that it will be a relatively long process.

If you're considering applying for a down payment assistance program, you may want to start looking for your options before you start your home search. This is so you can give yourself plenty of time. If you’re required to take a first-time home buyer course or a financial literacy course, you can still complete it within the dedicated timeframe.

For many, the start of the year is a wonderful opportunity to refresh their living spaces. Aside from cleaning your home, tidying and decluttering might also be at the top of your list. 

Decluttering, albeit a daunting task, can be very rewarding. Letting go of items you no longer need or no longer serve their purpose frees up space in your home and your mind, leaving you feeling lighter and happier. 

If you feel like decluttering is such a chore, it might be because you haven't found a method that works well for you. Understand that there isn’t a “one-size-fits-all” decluttering solution. Tidying up your space will always depend on your time, energy, or interest, so you don’t have to follow only one rule. Here we’ve rounded up five of the most popular and expert decluttering approaches to owning less, hopefully to make the task a little easier for you. 

Whether you want to experiment with these methods to see what works best for you, or you already have a favorite approach but want to try a new one, the results will remain the same: your remaining items will have more meaning and you’ll also have the chance to help others when you donate the ones you no longer need.

What is the KonMari Method™?

The KonMari Method™ is probably one of the most famous decluttering methods, introduced by Japanese organizing consultant Marie Kondo in her 2014 bestselling book “The Life-Changing Magic of Tidying Up.” She also starred in her own Netflix show, “Tidying Up With Marie Kondo.”

The core principle of the KonMari method is simple — choosing what sparks joy. Instead of choosing what to discard, you are choosing to keep only the items that speak to your heart. Kondo recommends tidying by category and not by location, starting with clothes, then moving on to books, papers, komono (miscellaneous items), and, finally, sentimental items. To get started, collect every single item you own in a particular category and put them in a big pile. Gather all your clothes, for example, and then start the process of deciding what to keep. As you go through your belongings, Kondo suggests that you thank your items for their service before throwing or donating them.

This method is also an effective way to make a lot of progress decluttering in specific categories across multiple areas of the house at once.

Who is it for?

• People who love mindfulness and intentional living can greatly identify with this approach. 

Any drawbacks?

The KonMari method can be time-consuming since you will be sorting through your entire stuff instead of focusing on a particular room or space. Additionally, this is not entirely a minimalist method as it can also encourage hoarders and pack rats to continue keeping things they don't need, just because they think these items still spark joy in their lives.

What is the one-in, one-out technique?

This simple rule means that in each category, you can't add another item until you remove or donate one you already have. This can apply to books, clothes, shoes, sets of glassware, cutlery, and kitchen tools, among others. If you follow this method properly, you’ll never accumulate more than you should and can keep the volume of your belongings constant.

Who is it for?

• Perfect for impulsive buyers, especially those who always love to shop for clothes and other personal items. Keeping this in mind can help you avoid unnecessary purchases and teach you how to be less materialistic. Before buying an item, it will make you stop and think first: “Do I really need this item?” “Do I have a similar item that serves the same purpose?” “Is there something I am willing to let go of in return?” 

• Homeowners who want to try a strict approach this year can follow this one, especially if you’ve just finished decluttering or are in the process of it.

Any drawbacks?

Things can get out of hand when you use this rule as an excuse to purchase new items and bring more things into your home. If you continue to buy and just tell yourself that you’ll get rid of something in its place, it can eventually lead to a never-ending cycle of buying and decluttering.

What is the 20/20 rule?

This rule is simple: If you are unsure about an item but it costs under $20 and could be replaced within 20 minutes, you can declutter it.

Who is it for?

• For those who need a low-commitment push to get started on their decluttering journey, especially if they have a nice pile of things that haven't been used for months or years.

• Perfect for those “I-could-use-it-one-day” or “just in case” items, such as when purging your kitchen or junk drawers

Any drawbacks?

You may not be able to apply this tactic to a lot of sentimental items, since if they are really sentimental, then they can’t be replaced for less than $20 in 20 minutes.

What is the Swedish Death Cleaning method?

While this decluttering idea sounds morbid, the intention is important and meaningful. Swedish Death Cleaning was first introduced by Margareta Magnusson in her book Dostadning: The Gentle Art of Swedish Death Cleaning. Dostadning, or the art of death cleaning, is a Swedish phenomenon by which the elderly and their families set their affairs in order. 

This method of decluttering is designed for those later in life and involves removing all non-essential items to ease the process for your loved ones once you've passed on. It’s a wide-scale method to declutter your home, with suggestions that include dealing with larger items then moving down to smaller items (junk drawer, wardrobe), and then saving sentimental things for last. It allows you to keep the more precious items since you might decide to give them away to the special people in your life. Fans of this method see it as a gift to your loved ones, especially if you don’t want to end up leaving your mess for them to deal with for months or even years.

Who is it for?

• While the original intention is for the elderly or those who are in their later years of life, Magnusson points out that people of any age can use Swedish Death Cleaning to help them declutter and organize. This is especially true when you realize that you can hardly close your drawers or cabinets. 

Any drawbacks?

It’s worth noting that the Swedish Death Cleaning is designed to be slow, so expect that it can be a long and thorough process.

What is the four-box method?

As the name suggests, all you need here are four empty boxes that you will label with their purpose. While there are some variations, most experts include the following: keep, trash or throw away, donate, and sell. Other variations also include ‘rehome' and ‘undecided.’

This is quite an easy, straightforward, and flexible way to deal with your clutter as you can do it for however long and whatever frequency you prefer. You can also use the ‘Undecided’ box if you are still unsure about any particular item. If you have several family members, they can have their boxes and even have them customized to the categories they need.

Who is it for?

• Highly recommended for those who are just starting their decluttering journey because of its simplicity and effectiveness.

• Those who are decluttering small, dedicated spaces can also benefit from this method.

• Go for this if you like putting things in fixed categories.

Any drawbacks?

While this strategy is pretty straightforward, the problem comes when you become indecisive on a lot of items and everything ends up in the ‘undecided’ box. If you don’t have the time or confidence to address them later, you might end up with piles of miscellaneous items that will either just stay in the box or clutter up other areas of your home. The key is to follow through with what you’re supposed to do with your stuff according to the category they fall under. Also, you may need a little guidance when it comes to deciding on things that fall into one or more categories.

If you're thinking about selling your home this year, you’ve probably been monitoring its value for a while so you can sell and still get a substantial profit. But before you start counting how much money you’ll make, don’t forget to factor in seller closing costs into the sale price. 

Let's take a closer look at closing costs and an overview of the fees that will be deducted from your overall profit.

“Closing costs” is a catchall term for the various fees and expenses you must pay upon closing or completing a real estate transaction. These can include various fees, expenses, and charges, which are split between the home's buyer and seller. These fees do not include realtor commissions.

The exact fees can vary depending on your location and the house’s cost. But in total, closing fees can add up to around 2 to 5 percent of the home’s sale price, according to Freddie Mac. Sellers usually take these costs out of their sale proceeds (unless you specifically ask to pay them separately), while buyers need to pay them upfront.

• Transfer tax

Most states or local governments charge some form of transfer tax. According to Bankrate, a real estate transfer tax, also sometimes called a deed transfer tax or documentary stamp tax, is a one-time tax or fee imposed by a state or local jurisdiction upon the transfer of real property. In other words, it's a fee that you’ll pay when the title for the home passes from you to your buyer upon closing. The cost varies widely by location but is typically dependent on the home’s sale price. Also, take note that not every state has this tax.

• Title-related fees

In most markets, it is the seller who pays for the owner’s title insurance, which protects against potential ownership issues. It’s a one-time payment that protects the future owner from the financial burden of sorting out title issues in court, whether they arise at closing or years down the road. Costs can vary from a few hundred dollars to $1,500 or more.

• Attorney fees

In some states, home sellers are required to have a real estate attorney to help them with the transaction. The transaction cannot legally close without one. And even when it isn’t mandatory, many choose to hire one to ensure their interests are protected. This is especially true when dealing with complex transactions, distressed properties, or inherited homes. 

Since markets also vary, in some areas both the buyers and sellers have their attorneys, while in others, it’s common to have one settlement attorney for the real estate transaction. Their fees range significantly — anywhere from $150 to $350 per hour, or it could be a flat fee depending on what they do for you.

• Escrow or settlement fees

Funds are usually held in escrow during the course of a real estate transaction, which means there will likely be fees owed to cover the services of the escrow company. This independent third party not only handles the money that’s being exchanged between the seller and buyer but also manages the signing and recording of the closing documents. As with other fees, the amount varies by state but can range from $300 to $700, or sometimes more. This can also include extra line items related to documentation (drafting, notarization, recordation) and money movement (wire transfers).

• Prorated property taxes

One of the costs of homeownership is property taxes. And these must be up to date before you hand over the keys to the buyer. All states have some form of property tax, although the rate can vary widely. When you sell your house, you'll be responsible for prorated property taxes due up to the date of the sale, at which point the buyer will take over. Depending on your timing, you may have to pay money at closing to bring yourself up to date.

• Mortgage payoff

If you still have a mortgage on the property you’re selling, which is common, the remainder of that loan will need to be paid off before the sale is finalized. In some cases, your lender may require you to pay a prepayment penalty for paying off your mortgage before the end of the term. To get an accurate picture of this closing cost, make sure to talk to your lender about what will be required to pay off the home loan.

• HOA fees

Just like with property taxes, if you’re living in a community that is subject to a homeowner’s association, HOA fees will also need to be paid up-to-date as of closing day. Some HOAs also charge a transfer fee to transfer your property to the new owner. Best to check with your HOA’s rules and regulations so you won’t be surprised by any charges.

• Seller concessions

In a buyer’s market or just to make the deal go through, it’s a common practice for a seller to offer to pay some of the buyer’s closing costs. This is also referred to as seller contribution or seller credit, which can help sweeten the deal and make your home more attractive to potential buyers. One of the most common seller concessions is agreeing to cover the cost of necessary repairs, especially after the home inspection. 

The total amount of seller concessions may be limited by the type of home loan the buyer is using. For example, loans backed by government agencies, such as the Federal Housing Administration (FHA), have their limits on seller concessions. If you’ve offered any seller concessions as part of your deal, expect that these funds are also due at closing.

Closing costs are so named because they are literally due when you close on the sale of your home. This is after you and the buyer meet with the closing agent, title company, and/or attorneys to disburse the funds and sign all necessary documents. All of the items we've covered above will be deducted from your proceeds on the sale so you won’t need to bring cash to your closing unless you specifically ask to pay for them separately or your property is underwater, which means you owe more on it than it's worth.

Unfortunately, though, you often won’t know how much your closing costs will be until roughly three business days before closing day. You will receive a closing statement or settlement statement, a document that includes an itemized list of closing fees. If you have a trusted and reliable agent working on your side, they may prepare a seller’s net sheet. This is an unofficial document that is an itemized breakdown of all of the closing costs, plus an estimate of the sum you will receive, or net after the final purchase contract is signed.

Planning to buy a home in 2025? With only a few days left ‘til the new year, it may seem like an extremely distant and daunting goal. But the good news is that you still have the whole year ahead of you, which means you can take it step by step. Getting started today is already a huge feat, so here's a comprehensive guide that you can use to navigate through this journey toward your homeownership dreams.

Building up your savings is a fundamental part of your home-buying journey. Whether you're purchasing next year or in the next few years, you’ll need funds for things like down payment, closing costs, maintenance costs, and even moving expenses. Once you’re done evaluating your finances, create a plan to save up for what you need. Here are some things you can do:

• Create a dedicated savings account and automate savings.

Having a separate savings account can help you stay organized and focused. You can track your progress and won’t be tempted to use your funds for other expenses. Consider setting up a high-yield savings account or a money market account to earn interest on your savings. 

• Set a down payment goal.

Before you can take out a mortgage, you’ll have to put down some of the cost upfront since a bank won’t loan you the full purchase price. This is why the down payment is often the biggest hurdle for many first-time home buyers. Your down will be a percentage of the total purchase price, and it’s typically paid in cash at the closing of the transaction. There are multiple factors to consider when deciding how much to save for a down payment, such as your price range for the home and the programs you qualify for.

• Consider ways to increase your income.

You might want to look for opportunities to make more money that you can put directly into your house fund. It could be asking for a raise at your company, moving into a new role with a better income, or picking up part-time jobs, freelance opportunities, consulting jobs, or side gigs that align with your skills and interests. And if you happen to have some tax refund or bonus at work, use the money to boost your savings and reach your goals faster.

Saving up for a house can be pretty intimidating, but it doesn’t mean sacrificing everything fun in your life. With a combination of strategy, discipline, and smart financial planning, it isn’t impossible to reach your savings goal that will help achieve your homeownership dreams.

Homeownership comes with a lot of expected and unexpected expenses that many first-time home buyers may not fully anticipate. When setting a realistic monthly budget for a home, here are some things to include:

Before the home purchase:

• Down payment

• Closing fees and other legal costs. Which typically range from 2-5% of the property's purchase price. Closing costs usually include attorney fees, title fees, as well as inspection and appraisal fees.

After the home purchase:

• Monthly mortgage payments, which is recommended to keep at or below 25% of your after-tax income to stay on solid financial ground.

• Home Insurance

• Property taxes

• Homeowners association fees, if applicable

• Utilities

• Regular maintenance, such as lawn/yard care and seasonal upkeep

• Unexpected repairs, such as broken appliances, damaged windows, etc.

No matter how exciting, buying your first home is a complicated undertaking. Would you want to risk your hard-earned money and your sanity going through the process alone? Building a team of knowledgeable and reliable professionals can make all the difference. Here are some of the people you need in your corner to help you streamline the process and avoid unpleasant surprises down the road.

• Real estate agent

Working with a local and experienced real estate agent can make the home-buying process less daunting. They can provide valuable insights into the housing market, share information about your target neighborhoods, negotiate deals on your behalf, and guide you through the complex paperwork. Look for an agent who knows your preferred areas inside and out, understands your needs and unique circumstances, and has a solid track record of helping first-time buyers in your price range. 

• Mortgage lender

Connecting with a trusted mortgage advisor will help you understand your financing options and give you a clear understanding of your buying power. Your lender will also help you track the best mortgage rate trends and explore tools to keep your mortgage payments manageable. A pre-approval letter from your lender also provides you with a clear estimate of how much you can borrow and shows that you're a serious buyer.

• Home inspector

Hiring an inspector who will thoroughly inspect the property’s condition will make sure that you can protect yourself from hefty expenses caused by unseen major repairs. They can easily uncover any hidden issues related to structure, electrical, or plumbing. The inspection results can help you and your realtor negotiate with the seller to either cover the costs of repairs, lower the home’s purchase price, or simply walk away from the transaction if the home is found to have some serious structural problems.

Other professionals that you may need in your team include: a financial advisor who will ensure you’re prepared for the financial responsibilities of homeownership, a home appraiser who will determine the value of the property for sale, and a real estate attorney who will review documents and agreements carefully for your peace of mind.

Finally, remember that any significant milestone in your life requires time and patience, including your journey to homeownership. Remember to set realistic expectations while staying committed to your goals. Be prepared for the ups and downs of the process, especially if you're in a competitive market where bidding wars are common and your offer might get rejected. Avoid rushing into a decision and trust that the right property that fits your needs and financial capability will eventually come along.

Planning to buy a home in 2025? With only a few days left ‘til the new year, it may seem like an extremely distant and daunting goal. But the good news is that you still have the whole year ahead of you, which means you can take it step by step. Getting started today is already a huge feat, so here's a comprehensive guide that you can use to navigate through this journey toward your homeownership dreams.

Buying a home is one of the biggest and most significant financial decisions you will ever make. This is why it's critical to ensure that your finances are in order. Homeownership is already complex as it is, so you need to have a clear understanding of your current financial status before buying. Here are some things to consider:

• Assess your savings and see if you have an emergency fund in place.

Start by evaluating your current finances, including your sources of income and savings. List down your after-tax income, cash savings, investments, and inheritances, making sure to leave out your retirement account. Ensure that you also have an emergency fund in place, which is recommended to be three to six months’ worth of living expenses to cover any unexpected costs. 

• Track your spending habits.

Tracking your expenses gives you a clearer picture of how you’re spending your money. Are you still paying for an unused gym membership? Are there any subscriptions you’re not getting your money’s worth? Have you been spending more on restaurant meals recently instead of cooking at home? When you closely monitor your fixed expenses as well as discretionary spending, you’ll be able to avoid impulse purchases and instead allocate the extra money towards your goal.

• Keep an eye on your credit score.

If you still aren’t keeping an eye on your credit score, now is the time to start. Your credit score is one of the foundations of buying a home as it can make or break your ability to get a mortgage. The stronger it is, the easier it will be for you to secure the best mortgage rates. Conventional loans often have a minimum credit score requirement of 620 or higher. On the other hand, programs like FHA loans may allow for lower scores. To prepare for a successful home purchase, it’s essential to boost your credit score in advance. Here are some steps you can take to strengthen your credit:

• Review your credit report from all three major bureaus (Experian, Equifax, and TransUnion) to ensure there are no errors. Dispute any inaccuracies as soon as possible as any mistake can harm your report.

• Pay all your bills on time.

• Pay down credit card balances and other high-interest loans to improve your debt-to-income ratio.

• Avoid opening new lines of credit while preparing for your home purchase.

• Understand market trends in your target area

Housing markets vary greatly. Some areas lean toward buyers, while others remain as seller's markets. In many areas, the housing market slows in the winter months and picks up in the spring and summer. This means that buying a home during off-peak seasons may give you more negotiating power while purchasing during peak seasons can increase competition. Understanding where your market stands can help you recognize opportunities and make informed decisions.

• Monitor interest rates

During your prospective purchase period, any potential changes in interest rates and housing costs could directly impact your purchasing power and monthly payments. Interest rates are still unpredictable, so it’s important to monitor them over time. If rates seem favorable, it may be worth locking in your rate sooner rather than later. 

Just remember that the perfect time to buy is when the home fits your needs, lifestyle, and budget, regardless of whether rates are up or down. You have the option to refinance later if rates improve.

Home loan programs aren't one size fits all. As a first-time home buyer, you’ll want to explore your options. Start by researching the different types of mortgages and loan programs available, as each loan type comes with its own benefits and requirements. Here are a few of them:

• Conventional loans are great if you have a solid credit score and sufficient savings as they typically require a 20% down payment but offer competitive interest rates.

Government-backed loans such as:

• FHA loans are geared toward borrowers with lower credit scores or smaller down payments.

• USDA loans often require no down payment and are perfect for rural and suburban buyers.

• VA loans are low or zero-down payment mortgage options perfect for eligible veterans, active-duty military members, and their surviving spouses.

• Other kinds, such as fixed-rate mortgages, adjustable-rate mortgages, jumbo loans, among others.

Understanding the various types of mortgages is essential so you can sort through your options and find the one that best fits your needs and financial situation. 

First-time home buyers often qualify for special benefits and programs, including lower minimum down payment, special grants, assistance with paying closing costs, tax credits, and other valuable resources to make homeownership more affordable. They may be available through the state, county, and city governments, so it's always worth checking to see the specific offerings available in your desired area. 

A quick web search will help you find specific sources of government help. If you want to take it a step further, contact your state or county housing authority. You may also reach out to your local government office and check if there’s any housing assistance department.

[To be continued…]

From December to February, the real estate market is at its slowest due to the holidays and the cold weather in many regions. But according to the National Association of REALTORS®, over 11,300 existing homes and 1,600 new homes are sold per day on average from December to February. 

That's still a lot of houses! The winter months certainly provide a different set of challenges and complexities compared to the peak-selling season of spring and summer, but they do have several benefits. Sellers can take advantage of the less competition in the market during this period, while buyers have more negotiating power as homes stay longer on the market. Here are some things you should know about buying or selling a home in winter so you can take advantage of the season’s unique upsides.

For Sellers:

You've probably heard that winter is a tough time to sell a house. Traditionally, it was. Fewer people were looking to sell in the winter months because in many regions, the weather is not as nice and it’s difficult to improve a home’s curb appeal. 

However, this has become less of an issue due to the widespread use of real estate technology. The seasonality of house sales has become less of a concern since there are home-buying apps and virtual home tours now available. Even if the weather’s cold, buyers can now view the home from their computer or mobile device so they can get a good insight into the property. Online property portals also provide a platform for endless images and videos of a listing. Video messaging apps, such as Skype, Messenger, or FaceTime, also make it easier now for real estate agents to carry out live tours and Q&A sessions regarding the property.

Of course, virtual tours can never replace in-person visits. After all, buying a home is a huge commitment so serious buyers will still want to visit the home at some point. But because of these tools, the winter months are no longer as difficult a time of year to sell a home.

Staging is a crucial element when selling your home. To specifically appeal to winter buyers, you may need to make small but effective changes to make your home stand out. Here are a few tips to make your home as inviting as possible for a showing:

• Ensure that your home is well-lit. Since a home will appear darker and less appealing in winter, lighting goes a long way to make your home seem welcoming. Bring in as much natural light as you can by pulling all the curtains to the side of the window. To better accommodate viewings after dark, brighten your home's exterior by having plenty of porch lights, decorative lanterns on walkways, and attractive side lighting to create a warm glow. 

• Make sure the holiday decorations do not overpower the space. If you’re selling around the holiday and have put up decorations, keep it simple. If you’re selling once the holidays are over, carefully consider your displays so your house won’t show wreaths and reindeers in the middle of January.

• Avoid showing a winter wonderland. Snow looks great in photos, but buyers would want to see details of the property, not a blanket of snow. Have photos of your home in clear weather for buyers to see.

During the busy spring and summer months, many people attend open houses without a clear plan to buy. In winter, though, it's different. If anyone is looking at your property for sale this time of the year, chances are that person is serious and ready to buy. They’re breaking away from their hectic holiday schedule or spending their time off attending house showings despite the freezing weather. These winter buyers could be working against a deadline, whether it’s a job relocation by the start of the year or an expiring lease on their current home. They may also be trying to snag some tax breaks before the end of the year.

For Buyers:

This is probably one of the major advantages of buying a home in winter. It's a great time to see how energy-efficient the home is, especially in parts of the country where winters can be harsh. Savvy buyers are more interested in seeing the property when the weather is at its worst. Because when buying a home in the spring and summer, it might not even cross your mind to evaluate the efficiency of the insulation, windows, fireplace, furnace, and water heater. These are essential considerations, though, especially if you want to cut energy costs during colder months.

It's a fact that fewer people put their homes up for sale during the winter, which means a lower inventory. But at the same time, winter can be advantageous to you as a buyer since there is less competition from other prospective buyers. There’s less movement and it’s less busy, making the whole process a little less stressful for you. Moreover, you can have more negotiating power since sellers may be more motivated and willing to accept offers. These motivated sellers might also be willing to offer you off-season discounts and negotiate on all other terms, including the closing date.

If you close on your home purchase on or before December 31st, you can enjoy some tax deductions for mortgage interest, property taxes, and interest costs of the loan. If this is one of the reasons you're aiming to make a move during the holidays, make sure you consult your trusted real estate agent and a tax professional to fully understand and take advantage of the tax benefits associated with homeownership.

For Buyers and Sellers:

Whether you're selling or buying a home, having a trusted and knowledgeable real estate agent by your side can make a huge difference in your real estate journey. During peak home-selling seasons, though, their schedules can get crazy. So even the best real estate agents can have a challenging time in providing their undivided attention to dozens of clients. 

With fewer listings on the market in the winter, agents have more time to provide you with personalized support during your house hunting or home selling. They will also have more time to arrange showings, host viewings, assist with market research and pricing, and help you negotiate the best deal for you.

During house-hunting, it isn't just the house itself that you have to consider. The property’s location still plays an important role, especially its surrounding areas and the neighborhood. A home’s proximity to a school will likely be one of the many factors you consider, whether or not you have children. 

If you're interested in a home near a school, you should understand how it might affect your day-to-day living situation. With school in session 180 days a year, you should weigh the advantages and disadvantages before deciding. To help with your homework, here are some pros and cons to consider before buying a home near a school.

PROS

School drop-off and pick-up can get chaotic and dreadful. The line of cars moves slowly, wasting so much of your time, especially during mornings. Just as you'd factor in a work commute, if you have children, you should also consider how long the car line will take when dropping them off at school. While the school bus can also be a convenient option, it may mean that your kids need to get ready early so they won’t miss it. Living close to their school means you can skip the drive and just walk, getting that much-needed exercise as a huge bonus. Your mornings will be easier and faster, and your kids can get home quickly after a school day.

Schools prioritize safety. Many schools have tight security measures around their campuses. Police and local law enforcement also have a more active presence near schools and surrounding neighborhoods. If you're a home buyer who is looking for a safe community, living near a school or within a school district can be beneficial for you. Of course, this might not apply to every single community, so don’t forget to check the local crime maps to verify information about neighborhood safety in general.

Schools, especially in small towns, usually have a track or a playground that can be accessed after the school day ends. Even if the children don't attend school, they could play at the school park just like they would at a public park. This could include swings, monkey bars, basketball courts, and track and field, among others. It’s a great resource to have close to your home since it encourages your kids to spend time outside and be active. Just do your homework before choosing a home based on this information since larger school districts often set their school grounds off-limits to the general public.

Schools also promote a sense of community, often providing social activities for children and adults alike. Weekend community markets, craft fairs, and sporting events are just some of the things you could look forward to participating in and enjoying when a school is near your home. In small neighborhoods, schools also serve as community centers in addition to providing educational services, so you can expect to see adult education classes or club activities post-school hours.

Expect that homes near what is considered a good or excellent school district have a higher price tag when you buy. If the house is within walking distance of the school, it's even more desirable to parents and families and often has a higher resale value.

CONS

One of the biggest issues when it comes to living near a school is limited street parking. Unless there's a large parking lot on the campus, school staff, parents, and students might park all along the street during the school day or special events in the evening. When house-hunting, you might want to look for a home with a spacious driveway or prepare to be amenable when the majority of people park on the street.

Let's face it: schools are noisy. Living near a school can expose you to all kinds of noises—loud cheers during sporting practices, PA system broadcasts, and band practices, among others. Living right next door or across the street means noise can be a nuisance, so don’t forget to factor in noise when looking for a home near a school.

Similar to parking issues, living near a school can mean dealing with heavy traffic. Expect idling cars of parents or guardians, buses shuttling kids to and from school, and traffic issues during special events such as plays, sports games, and parent-teacher conferences. Car crashes are also frequent since many students new to driving are more likely to have accidents. So before buying a home near a school, consider traffic and assess whether it's a dealbreaker for you. You might need to plan before running errands or visiting places so you won’t get stuck on the road during the school’s rush hours.

Last but not least, living near a school means you'll see a large volume of children all over the neighborhood, especially during after-school hours. The problem is that some kids might even loiter or trespass on your yard, sometimes unintentionally since they might not yet understand that they should keep off other people’s property.

Bottom line

As with any location, living near a school or within a school district has its pros and cons. Can you tolerate the noise levels and prioritize safety for your kids? Will you be okay even if there isn't enough parking space? Do your homework and weigh all of the pros and cons carefully before making your decision.