Author: Cuselleration

4 Mortgage Myths Set Straight

Posted on | by Cuselleration

Going through the mortgage process can either be very frustrating, or surprisingly easy, depending on the circumstances. There are a lot of myths and half-truths that are commonly perpetuated in the industry, so be sure to read up on the four mortgage myths below so you can be well-prepared before starting the process.

Realtors Don’t Care About Your Lender: You are always free to pick whatever lender you want, thanks to the Real Estate Settlement Procedures Act of 1974. However, many realtors will pitch you their list of lenders.

If you go with a lender who is not from the area, the entire process might be slowed down a lot since they might not have the necessary experience dealing with situations in the area of your home. Realtors do notice this.

Plus, many realtors working for sellers usually opt for buyers who have better quality loan approvals. This means local lenders usually will win out, since they are known and respected by local listing agents.

You’ll Always Get The Quoted Rate: Rate quotes can and do change across the day because they are linked to daily mortgage bond trading. If you give a lender enough information, they might be able to lock a quoted rate so you do not have to worry about the price changing.

Locking a rate runs with a property and borrower, so you can’t actually lock your rate until you have come across a home you are ready to buy. Before this, you’ll need to stay in close contact with your lender as you are shopping to get new rates.

Always remember that a loan payment will be predicated on the locked rate, not the APR. The APR is merely a statistic which aides you in understanding fees.

Lenders Use Your Optimal Credit Scores: Many think lenders are going to use the best credit scores, especially if you are applying for a joint mortgage. However, the actually pick the middle across three credit scores, and then take the lowest one between middle scores (if you are applying for a joint mortgage).

Your rates are tied to your credit score, so this process could significantly drive up your rate, or even make you not eligible for the loan. Make sure to ask your lender about any possible exceptions to see what they can do, but keep in mind these types of exceptions are rare.

One exception, for co-borrowers, has to do with big loans over $417,000. Here, lenders might use the credit score that is associated with the higher earner, if that score is higher than the other borrower.

Click here to learn how to buy a home faster and smarter!

Fixed-Rate Is Preferred Over Adjustable Rate-Mortgages: A lot of people started to go with 30-year fixed loans after the financial crisis in 2008. People liked this idea because the rate and payment never changes, even though the rate is always higher for longer loans.

Before choosing a rate, think about how long you are willing to be in the home or keep the mortgage for. There are a variety of calculators out on the market that you can weight the pros and cons of each loan depending on your situation.

Just make sure the loan term is as close to the amount of time you are willing to stay inside of the home. This is to make sure your financing is maximized.

Are you in the market to purchase a home in Rancho Santa Margarita, Coto de Caza, or Mission Viejo? Click here to talk to the Kovacs Connection Team today!

Courtesy of Cuselleration

Pre-Approval vs. Pre-Qualification

Posted on | by Cuselleration

Looking to purchase a home in Orange County? Have you looked into getting pre-approved or pre-qualified yet? Here are some important things to keep in mind when choosing between the two since securing mortgage pre-qualification and pre-approval are important steps to the home buying process.

Pre-Approval is NOT the same as a Pre-Qualification

Many often get confused between the difference of a pre-approval and a pre-qualification and assume that they are the same, but this is where they may get ideas mixed up. A pre-approval is a statement from a lender that you qualify for a specific mortgage amount based on a review of all of your financial information meanwhile a pre-qualification is where a lender runs your credit and discusses your goals with you.

What Do You Need For Getting a Pre-Approval?

Pre-approval means the lender is confident you have the ability to make the necessary down payment as well as an income that can sufficiently cover mortgage payments, so in order to get a pre-approval, you will need:

  • Income Information. Be prepared to have your pay stubs, tax returns, W-2’s, and other documents that show any sources of income from the past two years.
  • Asset Information. If this applies to you, prepare to have bank account statements or any other forms of documentation that show other ways you have been given money.
  • Personal Information. Remember to bring a form of identification using a driver’s license or a passport and also be prepared to provide your social security number for a credit check.

What Do You Need For Getting a Pre-Qualification?

Getting pre-qualified is an informal process where you are interviewed by a mortgage professional about your assets, income and expenses. Since this process is just to give you an idea of the price range you can afford, not much personal information is needed from you.

So which is the better option: Pre-Approval or Pre-Qualification?

This choice is up to you. Since your end goal is to give sellers the confidence to accept your offer on their home, it is your call on which process would show that the reliability and simplicity of your offer stand outs over other offers.

But many sellers often like seeing the individuals who show interest in their homes to be pre-approved since a pre-qualification really doesn’t bring you any closer to securing a mortgage. In the case that the home you are eyeing is in a very hot market, sellers may not even want to bother looking at your offer until you are pre-approved since a pre-approval may better show that you are serious in the competitive market.

Personal financing can be something difficult to execute, but it is possible. With a little planning and some thoughtful decision making, you can finally purchase your dream home. If you have any questions or need any help in regards to financing, contact the Kovacs Connection Team today!

Courtesy of Cuselleration

3 Things That Can Ruin Your Credit Score

Posted on | by Cuselleration

Whether you’re in Irvine, Laguna Niguel, or anywhere in Orange County, your credit score matters. Your credit score determines your history with money, which allows future lenders and landlords to gauge whether they can trust you with expenses and paying them on time. But if you aren’t forgetting to pay your bills on time and in full, why might your credit score still be low? Here are some things that affect your credit score that you may be overlooking.

Overusing Your Credit

Having trouble with controlling your finances may be a reason why your credit score is low. Even when you’re on top of your payments, you may be using your credit a little too much and this can harm your credit score more than you think. This may mean that if you had $2,000 as a line of credit, you are using $1,999 of it every month, which will cause you to earn a black mark on your credit score even if you pay it off before your bill is due. If possible, try to keep balances low on your lines of credit. You can keep track of how much of your credit you are using by calculating credit utilization rates, which is how much you currently owe divided by your credit limit.

Not Using Your Credit At All

You may think that not using your credit at all can keep your credit score healthy, but it can actually negatively impact your score. Not having a credit history may be equivalent to having a bad credit history in the eyes of lenders and landlords. Without a credit history, there isn’t a record to show whether you are able to use credit responsibly and maintain good balances or make payments on time. Not using your credit can also result in the bank closing your account, which can negatively impact your score.

Forgetting Past Overdue Payments

Small fragments of unpaid bills and fees greatly contribute to why you might have a poor credit score. Unpaid bills from a variety of sources can cause your credit score to sink if they are unresolved. To keep track of all your payments and make sure there aren’t any issues that slipped, sign up to receive a free credit report each year from credit-reporting agencies such as Experian, TransUnion, and Equifax.

If you want to secure a home or be able to borrow money in the future, be careful of any credit score pitfalls that can hurt your score. Discovering that you have a low credit score is not the end of the world because there are many approaches to fixing your credit score and all it takes is time. If you have any questions about your finances or need any help with fixing your credit score, contact the Kovacs Connection Team today!

Courtesy of Cuselleration

How to Buy a Home Faster and Smarter

Posted on | by Cuselleration

Are you looking to buy your home in Orange County? The home-buying process can take up to six months, a year, or even longer. Wouldn’t it be nice to finally own your home as soon as possible? Here are some tips to how you can buy your dream home faster and smarter.

But first, ask yourself these questions:

  • What type of home am I looking for?
  • Do I have a good enough credit score to buy a home?
  • Do I have any debt that can potentially affect my home-buying process?
  • Do I qualify for a mortgage?
  • What type of mortgage would best suit me?

Answering these questions will allow you to assess whether you are ready to begin and go through the home-buying process as well as understand what bumps might come into the road. Once you have the answers for these questions, you are ready to begin the home-buying process.

Be on Top of Tracking New Listings

Once you know what you are looking for in your home search, being tracking down new listings that meet the needs and wants you have for your dream home. You can even sign up for automated emails with your local agent to stay on top of all the listings that pop up and fit your needs. Being on top of new listings is a good strategy for having an edge over other buyers because it shows sellers that you are able to potentially make an offer before another buyer sees the listing.

Look For Down Payment Assistance

Did you know that homebuyers could qualify for over 2,200 different down payment assistance programs that are offered nationwide? These assistance programs were created to help homebuyers by providing low-interest loans, grants, and tax credits. Homebuyers who sought out down payment assistance in the past have saved an average of $17,766 between upfront savings and lower mortgage payments throughout the life of their loan. Homebuyers can become eligible for down payment assistance by meeting requirements such as income, occupation, or credit.

Make Sure Your Finances Are in Order

Closing times for the home-buying process nowadays are getting longer and longer. A recent report by Ellie Mae, a software company that processes almost a quarter of U.S. mortgage applications, revealed that it now takes 50 days on average for a buyer to reach closing while it took 40 days in 2015.

In order to close faster in the home-buying process, make sure your finances are in order by getting pre-approved for a home loan before submitting an offer on a property. This is why it is important to assess your finances and financial capabilities before starting the home-buying process. A mortgage pre-approval involves a lender running a credit check and verifying a buyer’s income and assets.

The home-buying process may seem difficult, but it is possible to get through it quickly and smoothly. If you have any questions or if you need any help, contact the Kovacs Connection Team today!

Courtesy of Cuselleration

How to Take Control of Your Finances

Posted on | by Cuselleration

Living in Orange County and need help saving money? Here are some tips to help you take control of your finances and as well as unexpected money leaks.

Create A Budget

Taking control of your finances all begins with creating a monthly budget for yourself by taking a good look at your monthly income versus your monthly expenses. A budget should be created by looking at past spending habits and coming up with a reasonable max dollar amount to allow yourself to spend for categories such as food, groceries, clothing, and more. A helpful way to track your progress for staying within your budget is to record all your spendings and categorize them in a spreadsheet. This may seem tedious at first, but this will be a great help in the long run. Seeing how close you are or how far you are from the max amount you allow yourself to spend will help you be more careful with each transaction based on whether it is something you need or something you want. Having a budget can also be a useful tool for saving money and for helping you only spend a reasonable amount rather than overspending your account balance.

Prioritize Necessary Recurring Payments

Prioritizing the categories in your budget will help you keep in mind of which categories are more crucial to include in your budget over others, such as clothing and miscellaneous items. You might have payments that are recurring on a month-to-month basis, such as utilities, credit card bills, and so on. On top of creating a monthly budget for yourself, prioritize important categories such as those recurring monthly payments in order to be sure that those are paid off first.

Consider Food Expenses

Food is one of largest categories that drains your money over others. This drainage isn’t just from buying groceries or eating out too much, but it also includes the food you buy that goes to waste. Although buying food in bulk may seem cheaper short-term, it can easily be forgotten and end up going to waste to cost more long-term. The best way to minimize your spending towards food is to meal plan and purchases groceries on a weekly basis in order to resist the urge to buy in bulk or eat out.

Implement Energy-Saving Efforts

Energy costs can skyrocket if you don’t pay attention to them and can result in a significant money leak. This may include keeping your lights, heat, or air conditioning on when you are away or when they do not need to be on. Here are some simple ways to reduce your energy costs by using the resources you already have or implementing cheaper alternatives:

  • On a sunny day, open shades or blinds to let the natural light in instead of turning on your lights.
  • On hot days, open all your windows to let air in instead of turning on the air conditioning. You can even buy portable fans that can help you cool off without it being too costly.
  • On cold days, try to layer up to keep warm instead of turning on the heater. Using thermal curtains or draft stoppers can also help keep warm air in to keep your home cozy.

Some energy costs that are out of your control can include outdated appliances or old light bulbs because they can be using up more energy than they need. Look into investing in more energy efficient appliances and bulbs because they can be expensive short-term, but worth it long-term.

Cancel Unnecessary Subscriptions and Memberships

Subscription services are easy to sign up for and can easily be forgotten because a small monthly charge may not be as noticeable. Many of these subscription services are even prone to becoming less useful long-term, so take a moment to reconsider whether it is necessary to keep some of your subscriptions and memberships or whether you should say goodbye to the ones you no longer use. A helpful way to make this decision is to look at the financial benefits a subscription or membership would have for you to help you keep your expenses within your monthly budget.

Personal financing can be something difficult to execute, but it is possible. This can prevent you from being in debt, help you get out of debt, improve your credit score and ultimately allow you to take control of where your money is going. With a little planning and some thoughtful decision making, your bank account will become much healthier.

If you have any questions or need any help in regards to financing, contact the Kovacs Connection Team today!

Courtesy of Cuselleration

7 Staging Tips For Selling a Small Home

Posted on | by Cuselleration

Are you trying to sell a small home in Orange County? One of the biggest components that contribute to a successful sale is how you stage your home, so having a small home does not mean a trickier sale. Follow these steps to see if you are being the most successful in preparing a small home for sale.

1. Say Goodbye to Clutter

The most important thing you can do to prepare a small home for sale is to get rid of any clutter. Clutter makes a home look unorganized and usually is a result of having too much furniture. This may make a small space feel even smaller! Take a hard look at the pieces of furniture you currently own and consider what you can live without. An organized layout comes a long way when you have a reasonable amount of furniture and more open space to work with.

2. Rearrange Your Furniture

Rearrange your furniture to organize the layout of your home. In the living room, symmetrical arrangements work well. A home can look more organized with furniture that is in pairs as well as pulling furniture away from the walls. Place pieces so that the traffic flow in a room is obvious. This will create a more open and walking space to make your home feel spacious yet inviting.

3. Strategize the Use of Mirrors

Mirrors can do more than allow you to see your reflection. Mirrors can brighten a dark room and make a small space look much bigger by reflecting natural light. Placing a mirror either next to or directly across from a window can also help by adding more depth to your home.

4. Let Light In

Having good lighting in your home is one of the biggest aspects that can help make a small space seem larger. Good lighting can come from how much natural sunlight can be let in as well as the type of lighting you use in your home. Here are three types of lighting to consider implementing into your home:

  • Ambient (general or overhead),
  • Task (pendant, under-cabinet or reading)
  • Accent (table and wall)

An added bonus is that this will also help make your home feel warm and welcoming!

5. Utilize Rugs

The larger an area rug, the more spacious the room will seem. Having small rugs can actually make a home seem smaller because it makes the space seem choppy. Situating rugs under groupings of furniture can help add contrast to your home to help organize the different sections of your home. This will overall allow you to have a more organized layout in your home because not using any rugs in your home can make the space look like a big maze of furniture.

6. Take Down Decorations and Artwork on the Walls

Walls with a blank space gives a room a chance to breathe. Taking down the decorations and artwork on the walls also contributes to decluttering your home to make it more organized. Having open walls can also make a small space feel bigger.

7. Take Your Doors Off Their Hinges

Removing all your interior doors besides the ones that lead to bedrooms, bathrooms, and closets can help your home feel more open. This allows a small space to feel larger as if there is more room to walk around.

Successful staging a small home may seem difficult, but it is not impossible. If you have any questions or if you need any help, contact the Kovacs Connection team today!

Courtesy of Cuselleration

4 Tips for Getting Out of Debt

Posted on | by Cuselleration

The process of getting out of debt may seem hard or tricky. It may even seem impossible when it comes to dealing with credit cards, student loans, car loans, and other debts. Although getting out of debt is not something that can be dealt with overnight, it is something that can be dealt with over time; all it takes is a goal to reach, a plan to execute, and help from a loan officer. Here are some tips that you can look at to ease the process of getting out of debt!

1. Find out how much debt you have and write it all out onto a list.

The first step is to have a set goal to work towards. Your total payoff number is a real, complete goal to work towards.

You can do this by:

  • Gathering your most recent statements for all loans and credit cards
  • Getting your annual credit reports to check them for accuracy and to identify all debts
  • Getting your credit score to find out whether you’re eligible to lower your interest rates or for a debt consolidation loan
  • Checking the National Student Data System to gather all student loan information

2. Plan your strategy.

Once you have gathered all the numbers to calculate the total amount of debt you have, you will need to set a plan to reach towards decreasing that total number.

Here are some things to keep in mind when formulating your plan:

  • What are you going to pay off first? Your plan should include a set area for where your money is going to be allocated on a monthly basis. That may include targeting the debt with the highest interest rate or the debt with the lowest balance.
  • How are you going to pay off your debt? Debt can only be paid off with some sort of cash flow either from working or from selling unwanted items.
  • Do you need any help? Because the process of getting out of debt is tricky, you may need some advice. Being in debt is not an uncommon thing, so your loan officer will know exactly how to make a plan that will help you successfully get out of debt as soon as possible.

3. Adjust your spending habits.

Getting out of debt does not just include minimizing your spendings overall, but it includes adjusting your current spending habits to differentiate your needs from your wants. The best way to get out of debt quicker is to avoid using your credit card and live frugally.

Using your credit card is equivalent to using money that you don’t have, which will end up increasing how much debt you have rather than helping you get out of debt. So the first thing to do before you adjust any spending is to not use your credit cards at all.

Adjusting your spending habits and living frugally may look like this:

  • Cook and pack your own meals. Once you do this, there is no need to eat out or buy your meals. It is as simple as cooking your own breakfast, lunch, and dinner and packing them accordingly to be on-the-go. As a bonus, this is also a healthier option than eating out.
  • Budget your grocery trips and make a grocery list. This will help you set aside a budget for the ingredients you will need to cook your own meals. Having a budget will allow you to pick and choose what you would really need when making your grocery list. Having both a budget and a grocery list will refrain you from making impulsive purchases.
  • Learn to say “no” towards unnecessary spending. This includes putting a pause on expensive hobbies and activities or cutting your monthly subscriptions to Netflix or Spotify. When money is tight, it will take some sacrifice to help you get back on your feet.

4. Monitor your plan.

Once your plan is set, you will need to track your behavior closely to make sure you’re making progress and making the necessary adjustments towards areas in your plan that isn’t effective in helping you reach your goal.

When you monitor your plan, track whether your credit score is improving while keeping in mind that getting rid of debt this is not an overnight process. If you see that your credit score is improving, think about getting a consolidation loan or balance transfers to save the money that’s often spent on interest charges for your remaining debts. If your plan is effective as is and you see that the amount of debt you owe is decreasing, stick with your plan until your debt is paid off.

Don’t let past mistakes keep you from getting out of your debt. Getting out of debt takes time, but it’ll be completely worth it. Since the process is not a quick fix, the best thing to do to get out of debt is to manage it responsibly over time. If you need any assistance, contact the Kovacs Connection Team today!

Courtesy of Cuselleration

How To: Declutter Your Kitchen in 5 Steps

Posted on | by Cuselleration

The kitchen may be one of the rooms in your home that is the easiest to get cluttered. Keeping your kitchen clean does not only involve washing the dirty dishes in the sink and wiping down the stove or dirty counters. A crucial step in maintaining a clean kitchen is making sure that everything in the kitchen is organized, whether they are items that are out in the open or whether they are items stored in the cabinets and drawers. This may include your plates, bowls, silverware, spices, ingredients, and more.

On top of these steps, it will be helpful to make a weekly checklist or kitchen maintenance sheet to make decluttering a habit. Keeping your kitchen clean is not a one-time-thing, but is an ongoing effort.

1. Clear off your counter tops.

Counter tops are the first things that catches the eye when you walk into a kitchen. The biggest tip to having a cleaner kitchen is making sure you have the least amount of items stored on your counter tops. To be able to do so, utilize all your storage space to keep all the items in your kitchen out of sight. If there are loose items that do need to be kept out, place them into pretty baskets or bowls.

Making it a habit to clear and organize your counter-tops often even allows you to have the open counter space every time you need it, so you don’t have to make the extra effort to push things aside or place items in random places when you do need the extra room on the counter.

2. Keep what you actually use/need.

One of the biggest components of a cluttered kitchen is having more dishes, utensils, and cups than you actually need. You should only need to keep just enough for regular use and for gatherings. To better identify what needs to be thrown out on top of this, look out for the dishes that have chips or cracks in them.

If there are any spices or ingredients you have only used once for that one recipe you made in the past, throw those out too. Those items will not only take up space in your kitchen, but may not even be used any time in the near future, so there would be no purpose in keeping them.

3. Utilize simple and affordable storage racks and lazy susans.

Storage racks and lazy susans are a good investment because they may go a long way in helping you with both organizing your kitchen and making your life easier the next time you’re looking for condiments or spices.

Using storage racks may allow you to stack your bowls on top of your plates without the hassle of difficult access to either. Using the height of your cabinet in this case allows you to place more things in the cabinet that you might have kept on your counter tops. Utilizing the height of your cabinets and shelves over the width of your cabinets and shelves allow you to have more space available for storage.

Using a lazy susan by grouping condiments and grouping spices will allow you to find what you need with a quick spin rather than digging through your cabinets.

4. Utilize storage containers and labels.

All the different sizes of the boxes and containers that your foods and ingredients came in may make your cabinets look cluttered. The best way to approach this is to repackage all those foods and ingredients into storage-friendly containers that allow organization,easy-access and decor to your kitchen. After repackaging, organize the containers into your shelves and cabinets according to their purposes. Then, use labels on the containers, shelves, and cabinets to create a user-friendly organizing system for you and the others in the household so everyone will know where to find things as well as where to put things away.

5. Group the items that have similar purposes.

Start by grouping the items in the kitchen that have a similar use and create zones for them in different parts of the kitchen. For example, all the mixing bowls and baking necessities can be organized in a specific shelf or drawer of itself so that the next time you bake, you will have all you need in one area. This helps you refrain from rummaging around all the shelves and drawers in your kitchen to find that one utensil you need, avoiding a future mess.

The kitchen is the perfect place to start because it is probably one of the areas of your home that you are in on a daily basis, making it easier to get cluttered. In order to take preventative measures, it is crucial that you tidy up the kitchen consistently. Keeping your kitchen organized is just one part of cleaning your home.

A clean home is a happy home. Happy tidying!

If you need any assistance, contact the Kovacs Connection Team today!

Courtesy of Cuselleration

3 Tips to Help Improve Your Credit Score

Posted on | by Cuselleration

Your credit score is one of the most important aspects that determines how much you can qualify for when applying for a loan.

Here are the credit tiers to gauge where you stand:

  • Excellent Credit: 750+
  • Good Credit: 700-749
  • Fair Credit: 650-699
  • Poor Credit: 600-649
  • Bad Credit: Below 600

Building your credit is not a quick or easy process, but it is possible with some careful thought and help from your loan officer! Here are some tips that you can look at to ease the process of improving your credit score and to make sure you are headed towards the right direction.

1. Regularly Check Your Credit Report

The first step to improving your credit score begins with checking your credit report frequently. A few places you can check your credit report are Experian, Equifax, and TransUnion. Your credit report will reveal to you why you have the credit score you have. But don’t always fully trust your credit report! Make sure to go through them thoroughly to check for any inconsistencies.

It will help to ask yourself these questions:

  • Is all your personal information correct? (includes your social security number, birth date, full name, and address)
  • Are all of your credit accounts being reported?
  • Are there any late or missed payments listed that you remember making on time?
  • Are there any accounts or applications for credit you don’t recognize?
  • Are there any items from decades ago still appearing on your report?

2. Pinpoint What You Need to Improve

After analyzing your credit report, make a list of what went wrong so that you know where to pinpoint what you need to improve.

One of the biggest contributing factors to your credit score is whether you are making your credit payments on time. Creditors see you as a bigger risk when missed payments become a habit. A history of missed payments will make creditors skeptical towards allowing you to take on more credit. If this is the case, try setting up payment reminders to help you pay your bills on time.

3. Create a New Game Plan

This new game plan will help you improve and maintain your credit score. To begin improving your credit score, you should aim to keep your credit card balances on the lower end along with any other type of revolving credit you may have.

This may involve fixing your late payments first to get yourself back on the right track. You can try asking your credit card issuer if they can fix a late payment. Credit card companies are usually pretty forgiving if you have a long track record of making on-time payments.

Don’t let past mistakes keep you from improving your credit score. Improving a credit score takes time, but it’ll be completely worth it. Since the process is not a quick fix, the best thing to do to improve your credit is to manage it responsibly over time and to get tips from your loan officer. If you need any assistance, contact the Kovacs Connection Team today!

Courtesy of Cuselleration

Old House vs. New House: Which is the better option?

Posted on | by Cuselleration

It’s finally time for you to purchase a home and you’ve probably already found the ideal price and location, but there’s something else you’re forgetting to look into.

Are you looking to buy a new home or are you looking to buy an old home?

Considering the age of the home is something that’s usually overlooked, but it is actually something important to think about because it has many factors with pros and cons that may affect you as a future homeowner.

Old Homes: Pros

Unique – Designs of old homes have been more thought out with architectural details, meaning no two homes would look the same. With this, older homes also have a story to tell that may date back to decades ago, providing more value to your home and a story to share to your friends.

Communities – Older homes are usually located in an area that has a stronger and closer-knit community. This is especially a pro if you have children because your child can play with the kid next door or the kids down the block. Something to also consider in the community is who your potential neighbors would be. Imagine living next to a home with a teenager who blasts music all night vs. living next to a home with grandparents who are quiet and like to sleep early.

Old Homes: Cons

Expensive Utility Bill – Old homes probably don’t contain insulation, new windows and doors, and energy efficient heating and cooling systems. This may result in costly utilities that may not outweigh the benefits that do come with living in an older home.

Maintenance – Older homes mean older appliances, old pipes, and more systems that are old and not guaranteed to last for a long period of time before maintenance is needed. Costs may add up for repairs, replacements, and upgrades shortly after buying the home itself.

New Homes: Pros

Design/Space – Newer homes are more modern with sleek designs and abstract structures as well as enlarged rooms, bathrooms, and kitchens. Who doesn’t like the extra closet space or just the extra space in general? Newer homes built from the ground up include blueprints and structural designs with larger rooms and larger spaces compared to older homes. These new homes are built on areas with more square feet, giving them more flexibility with how to distribute the space around the home. So now, you may even be able to have that dream pool table right in your living room.

Stronger/Safer Structure – The structure of the home itself is also better engineered because the walls and ceilings of the home are no longer made with lathe and plaster, but now with shear walls. These shear walls provide stiffness and strength to the home, which reduces potential damage to the home in the case of large horizontal earthquake forces.

New Homes: Cons

Costly – Newer and bigger homes are more expensive than older homes. The new innovations and engineering behind the construction of your new home will allow it to last longer and defy potential natural disasters, but this also makes the construction of your home as a whole more costly. Older homes may not have as much protection and stability as the blueprints for newer homes, but they have enough to stay intact in the case of an incident.

While looking at the pros and cons that contribute to the comparison of old homes and new homes, this decision is not a one-for-all. There may be even more factors out of your scope that are involved in weighing the pros and cons of old homes and new homes. If you have any questions or are unsure about anything, contact the Kovacs Connection today so you can go through the decision-making process smoothly!

Courtesy of Cuselleration