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FINANCIAL FUNDAMENTALS FOR FIRST-TIME HOMEBUYERS

Rick Cunningham • Dec 29, 2022

By Rick Cunningham, 

 

Are you prepping to buy your first home? If so, one of the steps you should take early on is making sure you’re financially ready for your purchase. Here are just a few of the financial fundamentals you’ll need to focus on as you set out to buy a home.

Build Your Credit

Your credit is one element that helps determine which home loan you’ll qualify for. It also impacts your mortgage interest rate. While there are many factors that go into your mortgage application, a higher credit score could lead to a lower monthly payment in the long run.


So how do you make sure your credit is in the best shape possible when it’s time to buy? A recent article from NerdWallet lists a few tips you can use as you work to build and strengthen your credit. They include:


  • Tracking your credit and disputing any errors that show up on your reports.
  • Paying your bills on time. This includes making loan payments and paying down any open lines of credit.
  • Keeping your credit card balances low. Paying more than your minimum monthly balance when you’re able can help.


Automate Your Savings for Your House Fund

You might also be wondering how you can achieve your down payment savings goals. Bankrate provides buyers with a number of tips to help you save, including searching for down payment assistance programs and ways you can save more, faster. As the article says:



“One of the best ways to save for anything — including a down payment — is to set it and forget it. If you receive a regular paycheck, ask your employer to direct a portion of that payment into a savings account. If you’re a freelance worker or independent contractor, set up a recurring transfer from a checking account to a savings account to establish the routine.”



Get Pre-Approved

As you prepare for your purchase, you’ll also need to have a good grasp on your budget and how much you’ll be able to borrow for your home loan. That’s where the pre-approval process comes in.


Pre-approval from a lender lets you know how much money you can borrow for your home loan. And having that knowledge, plus an understanding of your savings, can help you decide on your target price range for a house.


From there, you can start browsing for houses online and see what’s available in your area in that general price point. This can help you really understand your options so you can start to picture your future home.


For Customized Advice, Build a Team of Professionals

Finally, the best way to make you’re prepared for your purchase is to connect with trusted real estate professionals. Having expert advisors in the industry will help you make strong decisions throughout the homebuying process based on your specific goals, finances, and situation. They know the market and can guide you toward the home of your dreams.


Bottom Line

If you’re ready to get the homebuying process started, let’s connect so you can begin to build your team of professionals today.

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By Rick Cunningham • 08 Apr, 2024
As Earth Day approaches, it’s the perfect opportunity for us to embrace the spirit of eco-friendly living right in our backyards. In a city known for its sunshine and unique climate, sustainable gardening can be a rewarding way to contribute to environmental health. Let’s explore how you can turn your Los Angeles garden into a flourishing, sustainable oasis. The Basics of Sustainable Gardening Sustainable gardening is about creating a garden that lives in harmony with the local environment. Due to L.A.’s Mediterranean climate, it’s important to choose gardening practices that conserve water and support native wildlife. Whether you have a spacious yard or a cozy balcony, every green space can become an eco-friendly haven. Choosing the Right Plants In Los Angeles, the key to a sustainable garden is selecting native and drought-tolerant plants. Native plants such as the California Poppy, Matilija Poppy, and various types of sage not only require less water but also provide essential habitats for local pollinators. Consider incorporating plants like Lavender, Salvia, and California Lilac, which thrive in L.A.’s climate while adding beauty and biodiversity to your garden. Water Conservation Techniques Water is a precious resource in Los Angeles. Implementing water-wise practices is essential for a sustainable garden. Drip irrigation systems and soaker hoses are efficient ways to water plants, minimizing waste. Also, consider installing rain barrels to collect and reuse rainwater for your garden. Organic Gardening Practices Embrace organic gardening by avoiding chemical pesticides and fertilizers. Composting kitchen scraps and yard waste not only reduces landfill waste but also enriches your soil naturally. In L.A., composting can be a year-round activity due to the mild climate. Natural Pest Control In an L.A. garden, natural pest control means encouraging beneficial insects and birds that keep harmful pests in check. Planting a variety of species creates a balanced ecosystem where nature manages itself. For example, attracting ladybugs can help control aphid populations naturally. Upcycling and Creative Use of Space Los Angeles’s diverse culture is reflected in its creative use of space. Upcycling old furniture or containers into planters not only adds character to your garden but also aligns with sustainable principles. Utilize vertical spaces like walls or fences for gardening to maximize your area. Community Involvement This area is home to numerous community gardens and environmental initiatives. Engaging with local community gardens can be a great way to learn and share sustainable gardening practices. Participate in local plant swaps or workshops to deepen your knowledge and connect with fellow garden enthusiasts. Conclusion: Making a Difference in L.A. Starting a sustainable garden in Los Angeles this Earth Day is more than just a hobby; it’s a step towards a greener, more resilient community. Embrace these practices and watch your garden transform into a vibrant, eco-friendly ecosystem, right in the heart of the city.

SPRING EVENTS

By Rick Cunningham • 05 Apr, 2024
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THE RISK OF OVERPRICING YOUR HOME

By Rick Cunningham • 05 Apr, 2024
Spring has sprung, and it's not just the flowers popping up – it's the "For Sale" signs too! If you're thinking of selling your house, you're in luck. We're riding the waves of a seller's market, thanks to a lean supply of homes. And let's not forget, spring is when buyers come out of hibernation, eager to find their perfect nest. So, slapping a "For Sale" sign on your lawn? Exciting times ahead! Pricing: The Make or Break Factor But here's the catch – while the market's in your favor, setting your asking price is like walking a tightrope. Aim too high, and you might just lose your balance. Why? Because a sky-high price tag could end up costing you more in the long run. Think of your asking price as your home’s first handshake with potential buyers. It’s that crucial first impression, along with those snazzy photos you’ve got lined up. Price it too steep, and you might as well be saying, “Thanks, but no thanks” to interested buyers. As U.S. News Real Estate points out, “Even in a hot market where there are more buyers than houses available for sale, buyers aren’t going to pay attention to a home with an inflated asking price.” Let’s face it, nobody wants to overpay. Today’s buyers are already feeling the squeeze from rising home prices and mortgage rates. An overpriced home? That's just going to send them walking, probably without even peeking through your front door. And if they sense it's too pricey, expect crickets instead of offers. Here’s the real kicker: if your house sits on the market too long because of an inflated price, people start to wonder. What’s wrong with it? Forbes explains that the longer a house lingers unsold, the more buyers start to get suspicious, even if there’s nothing actually wrong. It’s human nature, after all. Lean on Your Agent for the Golden Price Tag So, what's the game plan? Pricing your home at, or a smidge under, market value is the sweet spot. But how do you find that magic number? That's where a pro comes in. A real estate agent has the know-how to sift through market data and nail down a price that hits the bullseye. Your agent will consider your home's condition, any upgrades you've jazzed it up with, and how similar homes in your area are faring. This isn’t a guessing game; it’s strategy. The right price can bring a flock of buyers to your doorstep and even spark a bidding war. And let’s not forget, homes priced just right don’t tend to overstay their welcome on the market. The Takeaway Selling your home is about making a smart move, not just a bold one. Sure, you want to make a pretty penny on the sale, but overpricing? That's a strategy that can backfire big time. Connect with our team and we can help you strike that perfect balance. You want a price that's like a magnet for buyers – attracting and holding their attention. That way, you’re not just listing your home; you’re setting it up for a successful sale.
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