Tag Archives: real estate

Banking With Buch

I still remember buying my first home and the feeling I had in knowing it was mine. You wanted to make it look the best you could, decorate it with all the things you loved, and personalize it to reflect your personality. Besides that sense of pride in ownership, it was also a good investment. By taking good care of your home, paying the taxes and mortgage payment, your investment value would grow, and in return, be worth more than when you purchased it.

Today, I am helping others in buying their own home and I get to re-experience those great feelings over and over again. It is exciting to be a part of this process for my customers and see those same emotions on their face. There are many things different in the process of getting a mortgage, but that end feeling of home ownership is the same. That is what I like most in my job.

If you are just thinking of buying a home, here are a few suggestions:

  • Check your credit score. You will want to have it in the range of 660 or above. If you need suggestions on how to raise your credit score, stop in and chat with me.
  • Save a little each month into a savings account. Not only will this help you build up a down payment, but it will also help you budget with cash flow and get used to a possible higher mortgage payment.
  • Don’t go out and make a big purchase prior to house shopping. Sometimes a purchase of a new vehicle will cause problems in qualifying for a house payment or limit you to a lower price range of home.
  • Employment strength is also important. Hopping from job to job allows for gaps of income and makes it harder to qualify for a mortgage.
  • Stop in and get more information. Sometimes there are special loan programs that can help you out financially. Information is free and we will take the time to answer all your questions.

Buying a home is one of the largest investments that most people will make in their lifetime. Enjoy your experience as much as you enjoy your new home. One of my favorite quotes is “It’s not about the destination. It’s about the journey to get there.”

 

– Sue Buch, VP Real Estate Lending

Three Things to Look for in a Starter Home

Mortgage

If you’re in the market for your first home, congratulations! Becoming a homeowner is an exciting step on your financial journey. At Iowa State Bank, our dedicated mortgage lenders are here to help you find the best financing option for your new home. Remember to stop in and secure a pre-approval letter before you start your home search.

After speaking with a mortgage lender to help determine your family’s ideal price point, it’s time to start viewing potential homes. During this process you’re bound to find a home you’ll fall in love with, and others that may send you running for the hills. As you ride this rollercoaster of an experience, we recommend searching for the following three things in your family’s ideal new house:

  1. Good Bones. Starter homes are a great option to find a great house within an affordable budget. To ensure your investment lasts for the long-term, we recommend taking a hard look at any foundational cracks, leans, or other structural ailments. While the rest of the house could look fantastic, these three issues should be instant red flags signaling you to continue looking at other homes.
  2. Cohesive Neighborhood. The people you surround yourself could be the individuals you see at 6:00 AM taking the trash out, or the partiers you have to ask to turn down the music at 11:00 PM. As you tour properties, don’t be afraid to chat with any potential neighbors and see if there is any information they can give on families you’ll be living alongside.
  3. Suitable Layout. While some renovations are certainly possible when purchasing a starter home, obstacles such as load-bearing walls could limit your expectations. Consider the overall layout of the home at the showing, and see if you could picture yourself the ways it is. If the answer is no, then you may want to find a few backup options should the renovations not be available within your budget.

The perfect home will look different to everyone. If you’re ready to start searching for your family’s new house, our experienced mortgage lenders are here to help. We work with many successful local realtors, and we would be happy to refer you to the one that fits your needs best. Give us a call or stop by to begin the search for your home today.

 

The Real Cost of a Fixer Upper

Fixer Upper

The Real Cost of A Fixer Upper

Throughout your real estate search, you’ve probably asked yourself the infamous question, “What would Chip and Joanna do?” With HGTV’s Fixer Upper series gaining popularity, more and more families are looking to buy inexpensive fixer uppers to fulfill their home buying dreams. Filled with projects, setbacks, and endless design potentials, these diamonds in the rough come with their own unique set of pros and cons. Luckily, Iowa State Bank is here to help you discover the true cost to working through your own fixer upper.

Every home has different needs, but these are some key expenses you’ll need to plan for when purchasing a fixer upper:

  • Realtor Fee: if you’re selling your current property, be prepared to fork over the 6 percent fee to have your home sold. Ideally you’re looking to sell your home for a higher dollar than you purchased it for, but this is not always the case. Be sure to have some funds in reserve just in case you have to cover the realtor fee out of your own pocket.
  • Construction Costs: Typically divided into two billing arenas, you can expect to either pay one lump sum, or a calculated cost of labor, materials, and an added profit margin. Expect to pay $100-$200 per square foot of intensive renovation work.
  • Materials: The more upgrades you want, the faster your price will climb. While simply getting the property up to speed is a task all its own, creating your own customized space inside will continue to add dollars and cents to your overall bill.
  • Furnishings: Depending on the format of your last home, you may be upgrading your furniture in this new abode. After various searches and bargain finds, you’ll still need to tuck away and extra some extra funds to ensure you can furnish the home once it is finished.
  • Landscaping: Now that the house is complete, it’s time get to work on the curb appeal – and it isn’t cheap! With an average price tag of $5,000, finishing your home with a completed landscape design can also add to the overall budget.

Altogether, purchasing a fixer upper may cost about the same as a newer home purchase after the cost of renovations. The advantage to these love-needing homes however, is their potential for customization, and creating the ideal home for you and your family. If you’re looking to repair or update your next home, consider financing through one of our structured Home Equity Lines of Credit. Our experienced mortgage lenders are here to help you every step of the way!