When you are considering a specific house, one of the most important questions you will ask is if it’s in a safe neighborhood. This is especially crucial if you are moving from out-of-town or into an unfamiliar area of your city. Do the research to learn if the location is safe for kids to play outside or for overnight guests to leave their cars parked in-front without problems. There are several ways to determine if you are looking at a danger zone, whether the threat is weather, crime or other risky possibilities.

Do some detective work

While your real estate agent can help you with practically every other aspect of home buying, there are some questions they legally can’t answer due to the Fair Housing Act. This means you will have to do some research yourself.  Fortunately, there are many online resources to address your concerns. Here are a few:

• AreaVibes helps you find appealing neighborhoods by rating subjects you find important. It ranks seven livability factors such as crime, schools, education and housing.
• NeighborhoodScout provides crime statistics and other information. You can measure your neighborhood against others in the area. Most of their information is free, but there is a fee for detailed data and reports.
• City-Data gives statistics on schools, neighborhoods, crime, sex offenders, and even nearby restaurant health violations.
• CrimeReports collects police and crime reports. Type in an address and the site will display a list of crimes committed in the area, broken down by types and dates.

Scout out the neighborhood. Drive through the streets surrounding your potential new home at different times of the day. Check out how well the homeowners keep up their lawns and homes. Well-kept properties tend to indicate a safer community. If you see many overgrown yards, sagging fences or broken windows, it may signal an unsafe neighborhood.

Introduce yourself to the neighbors and get their opinions. Ask if they feel safe and comfortable in their homes. You can learn a lot about mild irritations, such as a grouchy neighbor who doesn’t want kids and pets on his lawn, as well as significant problems.

Are there many homes on the market in the area? This could be an indicator of residents wanting to get out and find a safer place to live. Even if this is not the case, homes that stand vacant too long can attract trouble.

Finally, trust your gut feeling. If you have any concerns, don’t choose to move there. Find a place where you are confident that you and your family will be secure,

Note other safety issues beyond crime

Have your agent provide a flood zone map. Check how level the property is surrounding your potential home. If the yard is angled downhill, it may be at greater risk for flooded basements or worse.

Look up at the trees around the house. Towering trees are gorgeous, but could cause trouble in a windstorm or heavy rain. Roots from willow trees and other varieties can split a foundation, a driveway or sidewalks. An arborist or tree specialist can help you determine if you have any potential problems.

Carefully review the sellers’ disclosure. They have a legal obligation to disclose any likely problems or hazards. Does the basement leak? Is there damage from wood rot? If any red flags pop up, go back and ask questions. Use your agent; this is one of their specialties.

Check in with city hall. The city planning and code enforcement office should be able to let you know of any projects or construction coming up that could cause a problem for your neighborhood of interest.

Your home is likely your largest investment and the safety of your family is one of your greatest concerns. There is nothing that affects the value and enjoyment of your own home as much as the surrounding area. It’s crucial to know everything you can about your future neighborhood before signing any contracts.

Condominiums can provide an affordable living experience with pleasant amenities and benefits. However, some people will tell you they love condo life and others wish they had chosen a house instead. If you are thinking about purchasing a condo, carefully evaluate what goes into owning one.

By definition, a condominium is a shared property with individual owners of the units or condos. There are benefits and drawbacks that you will want to consider. Keep in mind that every condominium has its own set of rules and requirements, so be prepared to research your complex before making a decision.

Pros

A condo generally costs less than a house. That means you have a lower down payment as well as a lower monthly mortgage payment.

You are not responsible for exterior maintenance or upkeep. This is a big plus for many condo dwellers who don’t want to take care of a yard, garden or exterior paint and repairs.

Condominiums usually have amenities for you to enjoy. They can include pools, exercise rooms, tennis courts, jogging trails, pet areas or a golf course. Homeowners usually have to drive to find similar facilities, while condo owners have them immediately at hand.

There is often a strong feeling of community within a condominium neighborhood. Living in close proximity to many other people makes it easier to get acquainted and make friends. Condos frequently tend to attract people of specific age groups with similar interests making a social life easier.

Cons

In addition to your mortgage, you’ll be responsible for your association dues. Depending on the condominium’s size and amenities, dues can be a small fee or several hundred dollars each month. Know what the fees are before you decide to buy and know what they cover. Maintenance and insurance are commonly covered, but other expenses can include lawn maintenance and landscaping, snow removal, trash pickup, water, sewer and road repairs. Ask if any extra assessments for big maintenance projects are planned. If the roof needs to be replaced, for example, there could be a boost to the regular monthly fee for a year or more.

Review the condo association rules. This could be a lengthy list of requirements, such as where you or your guests can park, whether you can have a pet or what kind of pets are allowed or if there are enforced “quiet hours” during the nighttime. If you have a difficult neighbor, these rules will be a help. Just make sure they are rules you can live with all the time.

Living in close proximity to other people belongs on the plus side, but it can also present problems, especially if you prefer not to be among a crowd. Hopefully, you can find a condo community where privacy and rules are respected.

Condos usually do not appreciate as quickly as a single family residence would. You want to know if the condominium in question is well funded and well managed. If a large number of residents struggle with their monthly payment, money may be tight for regular maintenance and if the place has a run-down appearance, resale will be more difficult.

Buying Tips

Make sure you look for a real estate agent who is experienced in buying and selling condos. There are differences in purchasing a condo versus a house – different contingencies, possible additional contracts – and you’ll want to be guided by an agent with the right expertise.

Condo living may be perfect for you depending on your time of life. Perhaps you are a first-time buyer, or an empty-nester, or you’re downsizing for retirement. Begin by deciding whether the condo’s style and requirements are right for you.

As the owner of a new home, you should be pleased that you have successfully negotiated all the financial requirements to close the deal and take possession of your new place. However, the down payment and mortgage are just the beginning of new financial demands. Owning a home has plenty of expenses that need careful consideration as you plan your new budget.

Making the House a Home

You will likely have a few updates in mind to shape your new home to your tastes. Many of these tasks can be spread out over the upcoming months, but there are some you may want to complete immediately. For example, painting the rooms in colors you like or replacing worn floor treatments might be on your list right away. If the windows facing the street or looking into your neighbor’s house are bare, you may want window blinds, draperies, or sheers sooner rather than later. These updates can be expensive, even if you provide the manpower.

If you’ve purchased a fixer-upper, you probably have plans for what needs to change first. Remodeling a kitchen or bathroom is costly. Knocking down a wall between two small rooms to create a larger space is pricey, too. Figure out your priorities, make a list, and create a reasonable project plan that fits your budget.

Utilities

If you are a first-time homeowner, you are probably used to having some or all of your utility bills covered with your rent payment. More will be required of you now. The list generally includes: electricity, gas, water, sewer, trash and recycling. You may choose to add others, such as internet access and cable. Some of these may be much larger than you paid as a renter. Before you move in, you can ask your real estate agent to contact the seller’s agent to see if you can get a look at the current owner’s utility bills. This will give you a head start in mapping out your monthly expenses.

Maintenance and Repairs

If you were a renter, you reported maintenance issues and expected that the landlord would take care of the repairs. Disasters like a broken hot water heater, a backed up sewer, or issues with the heating and air conditioning system can be very pricey. Termites, a cracked foundation, and dry rot can be calamities.

Even smaller problems like a broken dishwasher or a jammed garbage disposal are the kinds of expenses that must be included in your budget. Maybe you’ll get lucky and avoid some of these surprises, but eventual maintenance costs are inevitable. Lawn maintenance and exterior painting are two such examples.

Stay ahead of the game by getting important things like the HVAC system, roof, and water heater inspected annually. Build an emergency fund to cover possible maintenance issues – both the unexpected and the routine. You are likely to spend a few thousand dollars every year on home repairs and improvements.

Plan Wisely

In addition to your home projects, you want to be able to easily pay bills, buy gas and groceries, and enjoy an occasional evening out. Other life expenses, such as saving for retirement, college or travel cannot be overlooked. Plan ahead to stay in good shape.

Many retirees decide to purchase a vacation home as their ideal place to rest and relax. A second home can be a gathering place for friends and family, and a supplement to your retirement income via future renting potential. Plus, any mortgage interest you pay is tax deductible as long as it’s a personal residence, meaning you occupy the home at least 14 days a year. Two weeks of vacation doesn’t sound so bad, does it? Renting comes with tax deductions and other benefits to consider as well. If you think a vacation home might be right for you, check out these home-buying tips.

Spend Some Time There

You’ll be using the property regardless of whether you choose to rent it out part of the year. It’s important that you actually get a true feel for the area. Consider visiting during every season, taking rental demands into consideration. Whether it’s peak season or off season, you’ll want to be sure your property has features that appeal to renters in order to help keep your home occupied and your rent paid. Since you don’t live there, you probably won’t be able to do the work yourself. Instead, you’ll need to hire a pro.

Caring for the Property

Renovations and upgrades can be difficult to manage from afar, so building a good relationship with your contractor helps. Just remember to communicate your desires and budget effectively, and be prepared to compromise. In the end, the job will be done to professional standards and you may even save money.

Budget Properly

It’s no surprise that homes come at a price. When you factor in beautiful weather, proximity to large cities or nature’s beauty, you can have high potential for rentals. You’ll find that it all pays off in the long-run. Of course, you still need to budget carefully. Find a real estate agent who is familiar with the area and can be honest with you about price histories and resale potential. You’ll need to factor in costs such as maintenance, insurance, and a second mortgage. Additionally, if the location of the home is a good distance away, you’ll need to budget money for gas or plane tickets.

Plan for Away Time

A vacation home is a second home, so you won’t always be living there. Unfortunately, your home doesn’t go into a protective bubble when you are away, so you’ll need to make plans for upkeep. If your home is a condominium, you can usually count on the maintenance being provided. If not, then it’s up to you to take care of repairs. This upkeep includes yard work, interior cleaning, and general home maintenance. You’ll also need the right tools and equipment as well as a place to store everything when it’s not in use. Many people turn to storage sheds so extra equipment is not an eyesore for renters.

If time is a factor, the alternative is to have someone else tackle the upkeep. A property management firm can provide weekly visits, maintenance, repairs, housekeeping (for renters), security checks, and overall peace of mind. You need a point of contact in order to remain informed on what is happening to your home so that it is a positive in your life rather than a source of stress. In addition to a professional, get to know the neighbors so that you have an extra layer of security. They can let you know about any issues, including suspicious activity or a rambunctious renter.

Retirement is the perfect time to start thinking about buying a vacation home. A home away from home can be the perfect escape for you, as well as a way to earn some income on the side. Before you jump right in, spend some time there, take a fine-tooth comb to your finances, and determine how you’ll take care of your home when you can’t be there.

This article was provided by Jim McKinley, a former banker who uses his background and skills to provide advice and valuable resources to anyone who needs help with their financial literacy.

Money With Jim

Almost all adults in this country believe that home ownership is an important part of the American dream and that it increases financial stability. But many Americans think that owning a home is out of their reach. In truth, many perceived obstacles are simply misconceptions about what is required to purchase a home. After reviewing the list here, you may discover that you’re more prepared than you think.

“Renting is always cheaper than buying a home”
Renting may be your best choice if you plan to move frequently. It usually takes up to seven years of home ownership to offset the cost of renting. However, if you plan to stay in your home for a longer period of time, buying is likely the better financial choice. Assuming that your home appreciates in value, you should realize a good profit when you finally decide to sell. Also, you can have a fixed-rate mortgage that won’t change instead of facing the risk of a surprise price hike in a monthly rental fee.

“You need to have 20% for the down payment”
The average American thinks they must have between 17% and 21% of the purchase price for a down payment. While 20% is the industry standard, many people with high credit scores are approved for a mortgage loan that requires much less down. Discuss with your lender what is possible in your case. Loan programs through the VA, FHA and USDA all have low down payment programs if you qualify.

“Once you’re pre-qualified you’re guaranteed the loan”
Although pre-qualification is not the same as pre-approval, it does give you a chance to see what loan amount you should expect from your lender. This is helpful when you are house hunting and need to know how high an offer you can make. However, pre-qualification usually does not include a credit report analysis, so you may still be denied a loan. Pre-approval for a loan amount is better that pre-qualification.

“30-year fixed-rate mortgages are the best option”
A traditional fixed-rate mortgage is likely the best choice for buyers who intend to stay in their home for many years. However, an adjustable rate mortgage may be a better choice for those who know they will move within a few years. Additionally, there are shorter fixed rate mortgages that will have a higher monthly payment, but will save a lot in interest charges. This may be a good choice for buyers expecting to retire soon. Look at all options. A traditional 30-year loan may not be your best choice.

“Mortgages are the same with every lender”
All lenders offer a variety of products, interest rates and fees for mortgage loans. Not all lenders are right for every customer, so be careful to choose one that fits your needs. The lender with the lowest interest rate may not be best because they may be new to the business or have a reputation for instability. You want a company that you can trust to deliver the mortgage package they promised and provide consistent service. As always, you should be able to turn to your real estate agent for advice. They quite likely have a mortgage company that they work with regularly who they depend upon to give their clients good deals and excellent service.