About Boone County, KY

Buying a home can be one of the more stressful experiences in life. It is often a long and sometimes intimidating process, lasting up to six months on average. The Real Estate market is huge and changes often with swings up and down. It's easy to become overwhelmed by how much is ahead of you and how little you know about the process. But with the right attitude, it can also be an enjoyable, even exhilarating experience.
Here are some tips to make your home-buying experience positive and less stressful.

Preparing to Move
Be prepared by becoming knowledgeable. Educate yourself on each step of the process so you know what to expect. Get organized ahead of time. Keep a notebook and calendar dedicated exclusively to the home-buying process. An Excel spreadsheet is a great way to organize and compare all the information you gather, such as the homes you are interested in, potential lenders, and different mortgage rates.

Finances
Assess your financial situation before you begin looking for a home. Come up with a solid number for the maximum amount you can afford, as well as a target amount you would like to spend, ahead of time. Overestimate the closing costs (interest rates can change). This is also a good time to begin gathering the financial documents that you'll need when applying for a loan. Keep your finances in order until you close on your new home, which could be as long as six months away. Do whatever you can to help improve your credit score; don't acquire new debt (no major purchases, new loans or new credit cards), reduce or eliminate any current debt, and pay your bills on time. It is never too early to begin improving your credit and is best started as early as two years prior to purchasing a home.

Find a Realtor
Find a Realtor who you trust and connect with on a personal level. Communication in this relationship is fundamental. Some questions to ask yourself: Are they good at translating industry jargon into terms you can easily understand? Do they communicate well using media that works for you, such as email, cell phone, or video conferencing? Choose an agent with expertise in both the type of property and property location that interests you.

Getting Pre approved for a Loan
Taking out a loan can be the most stressful part of the home-buying process. Transactions typically take at least a month to complete. Having your financial situation scrutinized can be an uncomfortable process. Worrying about whether you will be approved is an added stressor. It helps to gather your financial records (credit card balances/statements, bank statements, investment statements) prior to meeting with a loan officer. Obtain a copy of your credit report; you're entitled by law to one free credit report per year. A copy of your 4506 T form (IRS Tax Return Transcript), which includes a summary of your tax information, is also available online for download.

Don't lose sight of the fact that you have options when choosing a lender and a mortgage. This can help restore a sense of control when so much of the home-buying process is out of your hands. Talk to several lenders; don't just go for the first lender you talk to. Consult with your Real Estate agent to help you through the process of securing a mortgage. Don't hesitate to ask questions until you understand the answer.

Finding a Home
"Think with the end in mind," is a common phrase heard. See yourself in your new home. How does it make you feel? What does it look like? Keep a journal to record these thoughts. Be as descriptive as possible. This can help to not only narrow down precisely what you are looking for in a home, but it can also help anchor you emotionally during a potentially unstable time by keeping the big picture in mind.

While dreaming of your new home is an important first step, keeping your expectations in check is equally important. Keep in mind that the criteria of what you are looking for in a home will change along the way. No house is perfect. Be willing to compromise on some of your requirements. Make a list of your top priorities (must-have's) and lower priorities (nice-to-have's). This will help identify areas where you can be more flexible. Once you've found a home you like and know what you can work with financially, don't let the latest market news influence your decision to move forward. If you start second-guessing the housing market or interest rates, you risk losing the home to another buyer. Choose a home because you love it. Listen to your heart.

Waiting for Acceptance
Once you've made an offer on a new home, try to relax and engage in your routine activities while you wait to hear whether the seller accepts your offer. During this waiting period, there are many potential stressors that could send your mind reeling. What if the seller rejects your offer, or comes back with an unreasonable counter-offer? Was your offer too little, or too much? Be prepared to make several offers before one is accepted. Try to remain detached from the outcome until after the property has been inspected and you've been approved for a mortgage.

Inspection Period
Hire experienced and certified inspectors to conduct a thorough inspection of the property including possible insect damage. Be present during inspection, so you can ask questions regarding the home and become knowledgeable about any issues that are discovered.

Moving In
Congratulations! You've successfully negotiated yourself through the complex maze that is home-buying and now find yourself at last kicking back on your couch with your favorite drink in the home of your dreams.

Home ownership is still one of Americans top priorities. Here in Northern Kentucky that is the case too. Going from renting to owning your own home can seem like a tedious mission. But if you plan, the goal of home ownership can be yours. When budgeting how much home you can afford, it’s important to understand and anticipate the costs of owning a home. Here are a few things that should be on the list.

Inspections, appraisals, and closing costs. Most home buyers understand they will have closing costs but they fail to budget for other items such as a home inspection. Sometimes, like with a VA loan, inspections are paid for by the seller yet in most cases it’s usually the buyer who pays for the inspection. Lenders usually require an appraisal and have various charges that are associated with closing a loan.

Private Mortgage Insurance. This is added on to your mortgage when the down payment is less than 20 percent. You can buy a home with less money but you’ll pay the PMI which covers the lender should a home buyer default on the loan. Once you build up equity over 20%, your PMI should be removed.

Homeowner’s insurance. Lenders require homeowner’s insurance on your property. The amount you’ll pay depends on where you live, the age, type and size of your home. For example, older homes can cost more to insure due to the fact that they may require more repairs than newer homes. Also, high-hazard areas can cost more to insure and some insurance companies may not offer an insurance policy for your home, if you’re in a high-risk area.

Taxes.Property taxes generate revenue for municipalities, counties, and schools. It’s an expense that can vary across the country but here in Northern Kentucky it's around 1% annually.

HOA Fees. Homeowners Association fees (HOA) can add several hundred dollars to your monthly household expenses. These HOAs help to maintain common areas, typically within condominium complexes. They also govern what can be done to the unit and the surrounding area. While there is an up side to HOAs, some buyers prefer to have more freedom over their property, perhaps, until the neighbor paints his house turquoise with red accents.

Utilities and appliances. These areas can be overlooked because, often, when people are renting the appliances are taken care of. When you own your own home, be sure to consider expenses such as the water heater or dishwasher breaking down. While, you can’t exactly figure out when an appliance is going to quit working, you can set a monthly allowance aside to start establishing a household repair fund. Just don’t touch the account or when you really need it, you’ll find it’s not there for you.

While these extra expenses do add up, if you budget and plan ahead, the goal of home ownership is achievable and very satisfying for most.

Your credit score is not just a factor in determining whether you get a loan or a line of credit, it often determines how much you will pay for credit. Typically, the better your credit score, the lower your interest rate. Bottom line, having a healthy score can save you money. Credit scores are calculated from information in different categories. They are, payment history on bills, loans, amounts owed and credit balances. These account for about two thirds of the score. Length of credit history, new credit and types of credit used, comprise the rest.

Credit scores range from 300 to 850. A score of 750 or higher is considered "excellent;" 720 to 749, "very good;” 660 to 719, "good;" 620 to 659, "fair;” and 619 or lower, "poor."

Here are some tips to help maintain a healthy score:

Pay bills on time. Nothing impacts a credit score more than your bill-paying history and habits. And no bill is too small to overlook.

Automate. If you struggle to pay bills on time, set up your online banking to make automatic bill payments or provide payment reminders.

Instead of skipping a payment altogether, make a late or short payment.

After a late or missed payment, stay current. Positive payment patterns going forward can overshadow a past payment problem.

Keep credit card balances low and avoid maxing out cards. Carrying a high level of debt likely will hurt your credit score. Maxing out your available credit surely will.

Pay down your debt over time.

Think twice before closing the accounts of credit cards you do not use. Closing credit accounts may actually lower your credit score. If you plan to close an account, start with one you opened recently, and for the sake of credit history, leave your oldest credit card account open.

Do not open multiple new credit accounts at once. It can lower your credit score.