Building Your Home Equity and Improving Your Income

Who knew that simply living in your home would actually build something called home equity? That’s a good thing, by the way. What is “home equity” on your zero-down home from the H.O.P.E. Program, for instance?

Simply Put, Your “Home Equity” Is the Combined-Amount Market Value of Your Home Based on All the Interest You Invested in It

That could easily include anything from renovations to countless mortgage payments over time. So it’s true: you literally could increase the value of your home — simply by living in it, generally speaking.

You can’t ever know what your home’s value is, though, just by lying on your bed eating some Doritos,real estate Doritos though. You have to call your lender and get the figures from him/her. This isn’t an etched-in-stone situation either, as home equity largely does depend on the market itself around your neighborhood. If your real estate market’s hitting it big in your area, you might see that your property’s appreciating much more, increasing the home equity — or the real property value — a lot more substantially than you would think. Hence you might actually get approved for something called a “home equity loan.”

Since you put so much money already into the home — either through your mortgage payments or renovations — there’s some investment paid off to you in the long run in the event you want to sell the home and move out. Gives you a bit of a cushion and makes it a lot easier to answer any questions you may have about the possibility of upgrading to a new dwelling.

Additionally, Your Professional Life Might Also Progress

This can happen naturally. Perhaps you hit a big raise. Or a promotion. Maybe you changed jobs. Who knows. Regardless of home equity, your income somehow increased and you can actually afford a larger mortgage payment, covering all sorts of additional costs such as closing expenses and additional renovations to the new property, wherever it may be. Suddenly the prospect of moving out seems to be that much more plausible.

Things to Consider When Thinking About Moving Out of Your Current Home

You could ponder on a home equity loan with a line of credit to net you some funds for moving out. Or maybe your career has advanced so well that the idea of moving to a different home makes sense. Whatever the case, know that it’s all about finances. If you don’t have the dollars to do it, please don’t do it! If, however, you might be “rolling” in it to some degree, perhaps you can explore the possibility.

3 Questions You Should Ask as You Consider Moving “Up” in the Real Estate Market

If you’ve clicked on this, you’re probably asking the ultimate question of the universe for those individuals and families progressing toward the next step in life. Whether you’re knee-deep in the real estate market as a renter and seeking a prospect for new home ownership, or you’re currently a homeowner looking to upgrade for more square footage (more rooms, increased space, accommodating more family members), the fact is you’re at a crossroads: should you move forward? Should you move “up” in this real estate market? Yes or no? Should you contact H.O.P.E. to Own, seeing if you can get a lender’s approval for a home mortgage? (Yes)

Before You Even Ask That Question, Though, There Are Three More You Must Address….

Tricky real estate market you’ve got there…. You’re faced with a lot of planning issues, because the odd real estate highwaything about the real estate market is that it’s a lot like a 1-way highway with just one on-ramp and only a few exit ramps for the next thousand miles or so. Once you get on, you have a long time before you’re able to get off — and getting off will land you in the middle of nowhere. Not a fun place to be in the real estate market.

What I mean by that is that you can make a decision, find a better place — and realize that you’re in a much worse place than you were in before. There’s no going back. You might be caught in a money pit, shelling out dollars you don’t have to pay for repairs you don’t want, for instance. Or perhaps the relocation loses you on some amenities you once had. It’s such a risk: this question about moving “up” in the real estate market. You can be better prepared, though, if you ask (and then answer, of course) these three imperative questions:

  1. “Do I Have Good Enough Finances to Manage a Move With My Current Equity?” — Maybe, maybe not. Improving your income and home equity may be a must for the renter or homeowner seeking a move “up” in the real estate market.
  2. “Are there sufficient options out there in the market?” — The real estate market’s very much like an up-and-down wave, trends rising and falling regularly. Sometimes the supply of available homes are aplenty, and sometimes they’re not. Check and see how the real estate market looks before even considering a move.
  3. “Do I Have a Way to Renovate My Home and Add on to It?” — Who knows: you might not even need to move up at all! What happens, though, if you can’t renovate your home to increase your space? What then?

The Real Estate Market Is Tricky, Yes

You’ve got to be on point with that, and that’s just the start of it. Getting a realtor, touring homes, figuring out what your priorities are: these are all necessities, and it’s a big decision. So prepare yourself. You’ve got to start, though, at the very beginning and make sure you’re even thinking of making a move for the right reasons. If you don’t, you could be heading down the wrong highway off the on-ramp and would have to wait a few hundred miles before getting off…. Stay on the right path and SIGN UP RIGHT HERE TO REGISTER FOR YOUR NEW HOME.