Finding Your Family's Home Sweet Home
By: Tammy McKillip
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| When my husband and I first learned I was pregnant, it didn't take long to realize that the little one-bedroom walkup we shared with our two cats and sheepdog in New York City's East Village would never be a suitable home for our growing family. There were no closets, the living room was too narrow for a full-sized sofa, and the bathroom was so small that there wasn't even room for a sink. | ||
| Of course, none of these things bothered us before. We didn't mind bending over the bathtub faucet to wash our hands or doing the crabwalk past each other in the teensy hallway because we knew how lucky we were to have an affordable apartment in the city. Besides, there was something romantic about snuggling up in a chair with our feet on the radiator during those cold winter nights. | ||
| But as my belly began to bulge, slipping past each other in the hallway became a challenge. And in my sixth month, as I panted my way up the stairwell to my apartment door, I wondered how I would lug a stroller, baby, groceries, and dog up the steps alone. | ||
| So after twenty years in the city, we put an offer on what appeared to be our dream starter home in nearby New Jersey. The quaint two-bedroom cape had an eat-in kitchen and a small yard, and the four-room property seemed palatial. Yet within two years we were ready to move into something larger—and so we did. A three-bedroom home in a nearby community with a mortgage payment close to what we'd been paying. | ||
| When my husband and I recently found out we were expecting another baby, we started thinking about ways to subdivide the upstairs playroom and office to fit another bedroom and bathroom, and then we realized that even if we did take out a home-equity loan and hire contractors to do the work, either one or both of our children would end up having a room on a floor by themselves. Who would we put upstairs alone? The baby? Our son? Or should we just move into the playroom and keep the kids downstairs by themselves? How would I sleep at night knowing they were alone down there?
Now our dream house is on the market, and we've begun searching once again for our "forever home." The process has been an interesting learning experience. Here are a few tips I've collected along the way. | ||
Most Homes Aren't "Forever" Don't worry if you are unable to afford your dream house the first time around. According to one realtor my husband and I worked with, the average American family will live in three homes over the course of 20 years. Buying a "starter house" is the first step that many families take toward building the equity to purchase the home of their dreams. | ||
| If you're ready to buy your first house, think your family will soon need more space, or if you're relocating to a different area, find a reputable realtor, put your current home on the market if you have one, and start looking. Don't worry about postponing until you have a larger down payment saved or interest rates are lower. The usual quarter point of fluctuation in daily market interest rates translates to very small increases in monthly mortgage payments over, for instance, a thirty-year period; and unless you are able to save at a rate better than that of the market value increase in your area, it isn't likely that you will save money by plopping down a larger down payment on a new home. | ||
Find a Great Realtor! Finding the realtor that's right for you doesn't necessarily mean limiting your dealings to top-selling agents. A "multi-million-dollar–club" realtor may not be as attentive to your needs as an ambitious agent that's just establishing her business. Ask friends and co-workers to recommend an agent, and work with the person that seems most interested in satisfying your needs without being pushy or unscrupulous. If you're buying your first home, you will especially want a patient, knowledgeable realtor who can help you avoid the pitfalls of the home buying process. Since all licensed realtors have access to the same Multiple Listing Service (MLS) listings, it will save you time and potential confusion if you limit yourself to working with just one agent. Whether buying or selling, it's best to work with someone local, since the agent's familiarity with the area will be very helpful in a buyer's learning about the schools, restaurants, parks, municipal and other services that are integral to the neighborhood. | ||
Shop Neighborhoods First, Houses Later It's better to buy a smaller house in a good neighborhood than to buy a larger home in an iffy area, even if the larger house is cheaper. You can always trade up into a larger home when you can afford more, but your chances of getting decent resale value for a home in a neighborhood with rotten schools, public infrastructure problems, or high crime are not very promising. That said, don't buy a home that feels too small for your family since your needs for space will almost always increase, not decrease. Buy the most suitable home that you can afford, and keep in mind that as long as the home is in a decent neighborhood with good schools, you can always move into a larger home later. | ||
| Before you buy, be informed about things like lead paint hazards, the quality of the local drinking water and soil, and other health-related concerns. If the house has a pool, make sure it's completely enclosed by a sturdy fence. Even if your own children know how to swim, an open pool can become a temptation to other neighborhood children, which can lead to tragic consequences. | ||
| If you've found a house that interests you, check out the surrounding area. Are there businesses or schools close by? How far is the nearest firehouse or police station? Is the home on or near a busy street, or is it located at the end of a quiet cul-de-sac? Are there factories in the area that might be the source of contaminants or pollutants? Is the home located in a good school district? All of these things could affect your family's lifestyle and might even affect the resale value of your home. | ||
| If you have young children, consider who your neighbors will be. Are there other families with young kids in the area, or will you frequently have to drive your child to playdates? Are there playgrounds nearby? If you buy in the country, consider the isolation that accompanies the beautiful pastoral setting. Who will your children play with while you are renovating that old farmhouse? | ||
Consider a House's Features While you may not be able to find every feature you desire in a house, it's crucial you think about what aspects of the house will strongly impact your family now and as it grows. The following few suggestions may help you start thinking about what is needed in a family home. | ||
| For instance, a single bathroom might be suitable for a couple with one small child, but if your family expands by even one person over the next few years, you will probably want another bathroom to accommodate your potty-training toddler, older sibling, Mom and Dad, playdate kids and their folks, and visiting Grandmas and Grandpops. When it comes to resale value, homes with only one bathroom tend to sell slower and for less money than their better-outfitted counterparts. | ||
| If you have a messy brood and don't like schlepping loads of laundry up and down the stairs, look for a home with a laundry room on the ground floor or even off the master bedroom.
If you have infants or toddlers, keep in mind that any open staircases will need to have safety gates attached to keep the little ones from taking a tumble. Make sure that there are open spaces in the home where children can play safely. If you spend a lot of time in the kitchen, consider homes with a playroom or TV room off the kitchen so you can keep an eye on the kids while you make dinner. | ||
Can You Afford It? One common mistake people make when looking for a new home is underestimating what they can afford. Although it's important not to overextend yourself when applying for a mortgage, many people base their estimated spending potential on what they were paying for their old home, not realizing that the drop in interest rates over the past several years means that a much more expensive house may carry a lower monthly mortgage payment. | ||
| Generally speaking, your total expense for housing should not exceed more than 25 to 30 percent of your family's gross income, but factors such as your income, outstanding financial obligations, assets, credit, and job history can all play a role in determining how much you will be eligible to borrow. It's a good idea to get a prequalification from a mortgage broker even before you begin searching for a home. | ||
| If you're willing to wait several months to a year or so, building a new home might be a cheaper alternative to buying an already existing property, while allowing you more choice in the design and style of house. Tales of contracting delays, underestimates on the cost of building materials, and unscrupulous contractors are not unheard of, so if you consider building, do careful research before selecting a builder. If you're working within a fixed budget and time-frame, buying a pre-existing home may be your safest bet. | ||
Finding a Mortgage Mortgage interest rates can vary substantially from lender to lender, so it's a good idea to do as much comparison-shopping as possible before committing yourself to one bank. Keep in mind that your credit score is affected negatively each time a credit check is performed, so it's best to narrow your choices to two or three banks before allowing your credit history to be reviewed. Use the Internet to compare common interest rates of various lenders, and then check with your own bank or credit union to find out if they will be competitive. Most lenders will favor their own depositors with better interest rates than the average bank, but make sure you get a complete estimate of application and processing fees, since closing costs can vary from bank to bank and are often higher at institutions with lower interest rates. | ||
Say Goodbye to Buyer's Remorse Once you've committed yourself to buying a home, trust that you've made the right decision. Don't let your sentimental feelings for your old neighborhood, home, or child's school interfere with what should be a happy time of anticipation and excitement. If you've made it past the period of attorney review and have been through local inspections without any sign of trouble, chances are that all of your preparation for home buying has paid off. Embrace the idea of your new home, look forward to meeting the new neighbors, and celebrate the next exciting chapter in your family's life together. Take a few photographs of the home you're leaving, put them in the scrapbook, and pack up! The future awaits! | ||
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