Does Location Matter When Buying a House?

Does Location Matter When Buying a House?

 “Location, Location, Location”

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That phrase has been in use at least since 1926, according to The New York Times, and is just as relevant now as it was then.

Why does location matter when buying a home?

home, adding, updating, and renovating down to the last square foot. What you can’t change is where it’s located. “A home is an investment – and the best investments have the most room for improvement,” said Realtor.com. When you buy a home in a good location, it’s usually a solid long-term investment.

Advice Real estate agents often give their clients is to purchase the worst house in the best neighborhood. Why would I do that? Well, because fixing up a home in a great neighborhood will give you the best return on your investment. Meaning, it will be easier to sell later on if you choose to sell. On the other hand, you can buy a beautiful home that doesn’t need any work, but if the block is on the sketchy side you could have a hard time selling the property at a decent price.

So if “location, location, location” is so important, what makes a location good? Here are five characteristics to look for when buying a home. If you can get all five, chances are the home’s a great investment.

  1. A safe neighborhood

It may be a good idea to do a little research in the potential neighborhoods where you’re looking to buy. Ways you can investigate a community include talking to area neighbors and businesses owners and check crime records. Most people want to live where there’s little to no crime and will pay extra to feel safe in their homes.

  1. Excellent Schools

Being in a great school district is important, even if you don’t have school-age kids. Young families always will do their home search based on location in general and good school districts in particular. The better the school district, the higher the values of the surrounding homes can be.

  1. Water access and views

No matter which town or city, someone will always pay for a great view or to be on or near the water. Put a home right on a waterway or on a hill with panoramic views and you’ve got a great location. You can’t put a price on beautiful scenery.

  1. Convenient access to popular places, shops and restaurants

Who doesn’t want to be near the best commercial districts. The closer to the excitement of a particular town or the best parts of a city, the better the location — and the more someone is willing to pay for a home.

  1. Access to public transit and/or freeways

In major cities, the farther you live from the bus or other types of mass transit, the less valuable the home. A good location means being very close, and having easy access, to public transportation. In some towns, where a commute by car is inevitable, easy access to the freeway makes for a good location.

Depending on the community, the “good” and “bad” qualities will vary. When looking into buying a home, do a little research so that you know which parts of town are less or more desirable.

All these things matter when you’re considering the location of a home for sale. But never lose sight of what matters most to you about the location.

Truth or Myth About You Credit Scores

Is It Truth or Myth About You Credit Scores?

If you are looking for Credit Score Repair in Folsom & Greater Sacramento, read this!

The dreaded FICO score. It’s that number that’s associated with every credit report. We all know about it—most people have one—but what does the credit score really mean?

We met up with Jeff Sipes, Owner of Blue Water Credit in Roseville, CA to dispel some myths about your credit score and expose the truths.

One aspect you may not know is that 30% of your Credit Score has to do with your credit card balance. That’s relation to the credit limit. You want to try to have no more than 10% charged on your credit card about 30 to 45 days before you apply for your loan.

“I pay my bills on time, so my credit score is going to be high.” But, only 35% of your score is your payment history. This includes late payments, collections, and even bankruptcies and tax liens. Each type of account will stay on your credit report a specified period of time and each type of derogatory will hurt your score differently. 30% of your score is credit card balances. So, paying down those balances will maximize your credit score.

“If you pay off your collections, it’s going to disappear.” But, paying off a collection can actually lower your score. Before you pay off all your collections, talk to an expert!

“Every time your credit is pulled, it hurts your score.” If you pull your credit from a website, there’s no impact and if multiple lenders pull credit it only effects the score one time (as long as you’re within the shopping period.) FICO states for a mortgage inquiry, there’s 30 days to rate shop and it effects the score one time and the impact is 1 to 5 points. It is important to note than when searching for a home you are allowed unlimited inquiries over a 15-30 day period since it is assumed you are rate shopping. Inquiries made by yourself or for unsolicited offers do not count against your score, but are shown on your report.

Credit Scores can be a bit confusing and overwhelming, but if you want more information on credit don’t hesitate to call! We are more than happy to help!

Things to Toss in the Kitchen

Things to Toss Kitchen

It can be overwhelming when you see how much STUFF our family manages to accumulate. With 3 growing boys, who outgrow, lose parts and pieces, or break things, we have to purge at least once a year.

We’ve been working on a series, “Things to Throw Out Today” so we can transform our home by decluttering each room one by one. Similar to our tips on decluttering the bedroom, I have a list of items to get rid of in the kitchen! Remember, donating is great if it’s not too worn or broken.

Now, here is my list of 10 things you can toss out of the kitchen today:

  1. Plastic containers without lids, or lids without bottoms. I cannot tell you how much Tupperware we’ve accumulated over the years. It seems as if we never have matching lids and bottoms and then we buy more without ridding the ones that don’t have a match! Next thing you know, we have a mountain of plastic containers.
  2. Small appliances you never use (when is the last time you used the waffle maker or bread machine?) I know we’ve all gotten inspired from Pinterest to make beautiful baking masterpieces and we somehow ended up with a doughnut pan that we don’t actually use but thought it would be a good idea at the time.
  3. Anything rusted. This one speaks for itself.
  4. Promotional or free water bottles that you will never use. Who doesn’t like free water bottles? But when you have over 50 of them taking up precious space in your kitchen, it’s time to donate them. Pick your favorites and free yourself from the rest.
  5. Anything chipped, broken, or wonky. Please toss these items! One time I had chipped my favorite coffee mug but I refused to throw it away. One day the chip got really bad and I forgot about it and then cut my lip! Broken items can be a tad bit dangerous.
  6. Utensils that are burnt or melted. I know, our favorite spatula melted…throw it away. You can do it!
  7. Anything expired herb; spices, gravy packages, or prepared boxed, jarred, or canned food. Yes, these items do expire. Who knew?
  8. Chopsticks, soy sauce and ketchup packets, red pepper flakes, and any other “delivery” accessory. We keep saving these items thinking we will use them but never do.
  9. Twist ties, rubber bands, and bread clips that you collect and never use. Keep a couple of these but get rid of about 90% of the twisty tie stash.
  10. Plastic grocery bags… limit yourself to a few and toss the rest, or better yet, use all those totes you’ve saved for your grocery shopping. This one is great! Keep a couple of reusable totes in your car and you wont gain anymore plastic bags!

Now, I bet that felt great. Getting rid of unused, broken or unnecessary items can free up your kitchen storage and help you stay more organized too. Keep a lookout on our next “Things to Throw Out Today” topic! Soon we will have tackled the whole house!

Rates are amazing right now, so if you’ve been thinking about refinancing or purchasing, give us a call at Iron Point Mortgage to set up your appointment!

Why Now is Time to Buy a Home

Why Now is Time to Buy a Home in Greater Sacramento, CA

You may be going back and forth questioning whether you should buy a home or not. Can I afford this home? Does this home meet my family needs? Is this a good investment? These may be some of the questions you may be asking yourself. Stop riding the fence and commit to purchasing your home today! NOW is the time to buy. Jump on the opportunity today to get the best deal.

Here are my top 6 reasons:

  • #1: Interest rates are still at record lows – Even though they may creep up at any moment, it’s nonetheless a fact that interest rates on home loans are at historic lows. Doug Duncan, Fannie Mae’s chief economist, notes that the current market is highly favorable for home buyers, “Interest rates are at historic lows. It’s hard to imagine rates going any lower than they are now. House prices have come down considerably, and if your credit is good, there’s lots of money available.”
  • #2: Rents have skyrocketed. Over the past year, rents in Sacramento have increased a huge 5%, where if you owned, Zillow says you would have received an 11% increase in value Sacramento. Instead of handing money to your landlord, why not use that money in investing in your own home!
  • #3: Home prices are stabilizing – The Sacramento market is considered HOT because of low inventory. You can buy your home today at $300,000 or buy the same home next year at, maybe, $310,000. I don’t know about you, but I would want to buy now.
  • #4: Low to No Down payment programs – Today, you don’t have to save for years for that chunk of change, thanks to a variety of programs to help home buyers. You may be able to put a lot less down than you think. There are different options you can consider.
  • #5: Mortgage insurance is a deal, too – If you put less than 20% down, you are required to have mortgage insurance. However, with an FHA loan the fees are way down from 1.35% to 0.85% of the mortgage balance. PMI is down too!
  • #6: Major tax breaks – Tax laws favor homeowners, so you’re not just buying a place to live—you’re getting a tax break! You may be able to deduct the interest you pay on your mortgage from your taxable income. New homeowners with recent home loans tend to get the greatest tax benefit. Homeowners often find that owning a home costs substantially less than renting a home.

There are many other good reasons of course are building equity, predictability in monthly payments, freedom to do what you want, stability for your family and on and on…

If you have any questions about mortgage, loans, interest rates, and so on, please do not hesitate to ask! Here at Iron Point Mortgage, we are dedicated is helping you get the right residential financing for home purchase. Our passion is providing education and guidance so you’ll understand the process, how to plan for the future, take advantage of available opportunities, and build long-term wealth through Real Estate. Thanks for reading and we would love to answer any questions you may have and help you get started on making the first steps in purchasing your home!