A popular mortgage at the time of writing is an interest-only one. This requires that only the interest on the mortgage is paid off on a monthly basis. The rest of the actual amount borrowed is then paid off via other means e.g. a pension, an endowment, or in the UK, an ISA.
This means that the monthly repayments do not actually pay back any of the initial loan, therefore you must make regular payments to the other method to ensure can own your house outright at the end of mortgage term.
The first step towards is to find out exactly how much money you can borrow. This is worked out according to your income. In the UK, it’s calculated as three times your annual salary before Tax and National Insurance are taken away. Currently, some lenders will offer up to seven times your salary. This is due to high demand for property and the low cost of borrowing. It is unlikely to last.
Write up your monthly expenses; factor in daily, weekly, monthly and yearly outgoings. It's always worth making a few calculations, using a mortgage calculator, as incomes and expenditure can vary from time to time, as do interest rates payable. Allow some leeway for the unforeseen.
For joint mortgages, the lender is likely to offer you either three times the annual income of the higher earner plus the total second income, or two-and-a-half times the total joint income. You can add your savings to the amount offered by them in order to estimate the range of house prices you can afford.
TIP: You may find many lenders offering very low initial rates, but hiding high additional costs in the small print. Ask the lender to explain all payment conditions, fees, additional costs and variable rates.
Don't just read the small print yourself. If you have doubts even after having it explained to you, or if you have a feeling that a particular lender is hiding something, just walk away and continue looking for something more suitable.
The lender will run credit checks, confirm income with an accountant, or even access your bank account to review your balance over a period of time. Not all lending institutions will do this; however, they do have the right to check your income is what you claim it is.
TIP: Don't buy a property without a professional survey. Human beings can be perverse; happy to spend $234,000 on a house after a half-hour's viewing, but begrudge spending $400 finding out whether it's worth buying in the first place! At the very least, get a builder-friend in to give the place a thorough going-over.
Find out the true market value of the place. Get more than one independent valuation. Compare it with the prices of similar-sized properties currently on sale in the same area. This is what mortgage companies and estate agents do. They value houses based on what other people will pay for similar properties.
Lastly: Don't sign papers without reading them thoroughly. As soon as possible, before you sign off, review them, and make sure you understand them, so you won't have to sign in a hurry. If it's all gibberish to you, get a friend, relative or an accountant who knows the jargon, and what it implies, to explain it to you.
home builder | custom home builder
Wednesday, July 14, 2010
Building The Dream Home
Building your Dream Home?
Maybe it’s a Low-country beauty overlooking a sun-kissed green or a contemporary A-frame along the fairway. Whatever and wherever your imagination goes, the dream homes provided by Golf Magazine, The Progressive Farmer and HGTV demonstrate the latest trends in laying a solid foundation for your dream home.
When plans go from daydream to drafting board to job site, it’s important to involve skilled professionals who share your vision and enthusiasm. Choosing a qualified architect to map out your dream home is a necessity. In the case of Golf Magazine’s Dream Home at Reynolds Plantation on Georgia’s Lake Oconee. Cincinnati architect Don Beck created plans for a lavish 4,500-square foot home with four master bedrooms and a locker room. Getting a feeling for how willing the architect is to work within your design requests is also essential. Emphasizing country living at its best, The Progressive Farmer dream house is designed for people with a penchant for rural life.
Building your dream home might mean incorporating your plans into a themed community – design restrictions and architectural standards. Builders of The Progressive Farmer dream house at McLendon Hills, a lake and equestrian community near Pinehurst, N.C., incorporate cottage influences into the design. HGTV’s dream home at Cumberland Harbour in St. Mary’s, Georgia has both coastal and Victorian elements.
Many of the nation’s top builders and suppliers contributed to the materials and amenities of each dream home – products you’ll want to consider using once two-by-fours start going up. Golf Magazine’s dream home features paint provided by Ace Hardware, broadband phone service by AT&T, and state-of-the-art appliances and consumer electronics by Best Buy. Your builder should be able to recommend materials that are both energy-efficient and consistent with your home’s design theme. Altogether – from breaking ground to laying a welcome mat – you can expect the construction of your dream home to take a year to a year and a half.
Sometimes you need to see it to believe it. To stir would-be dream homebuilder’s imaginations, each of the 2004 dream homes spent several months open to the public.
In addition to being featured in its November 2004 issue, Golf Magazine’s dream house at Reynolds Plantation was open to the public. According to Bill Houghton, Vice President of Marketing for Reynold’s Plantation, approximately 17,000 people toured the home in six months. The Progressive Farmer Idea House and Farmstead was open for tours this summer and was featured in the August 2005 issue. HGTV’s dream home tours at Cumberland Harbour debuted in May 2007 with a Winner’s Weekend that awarded one of approximately 35 million contestants the dream house itself, worth $1.2 million. Also a giveaway event, the HGTV 2006 dream house is under construction at Grey Rock at Lake Lure, NC.
At 4,500 square feet, Golf Magazine’s dream house features a spacious, “’Hunt Club’ interior with leather as a fabric of choice, lending a ‘sense of sophistication’”, according to interior designer Jan Vorderburg. Four master bedrooms with accompanying bathrooms guarantee a luxurious stay even guests will enjoy. Golf Magazine publisher Chris Whitman said, “The Golf Magazine dream house has exceeded expectations on every level…truly a dream come true for golfers.”
Recalling America’s rural past, The Progressive Farmer 3,500 square-foot dream home at McLendon Hills is “designed for people who choose the country as their place to live…with stalls and a tack room, the tiered garden, the pond and pastures. It literally sets the standard for country living,” says Jack Odle, Editor in Chief of The Progressive Farmer.
The warm breezes of coastal Georgia influenced the building of HGTV’s Cumberland Harbour dream home. The 3,000 square-foot, fully furnished home includes Victorian influences that harkens to a by gone era. A 230-foot, screened-in boat dock allows bug-free access to local waterways. “We want every Dream Home to have its own identity,” said Atlanta consultant Jack Thomasson, who contributed to the 2004 HGTV home.
Capitalizing on its 2004 dream home success at Cumberland Harbour, Land Resource Companies (LRC) was again honored to play host to HGTV’s dream house giveaway. Currently under construction at Grey Rock resort in western, North Carolina – a mountain living community also forged by LRC – the 2006 HGTV dream home promises the same high quality and attention to detail as its coastal counterpart. “I am very pleased that we had the opportunity to offer another community that is on the level of Cumberland Harbour”, said Bob Ward, President and CEO of Land Resource Companies, with respect to the 2006 dream home site.
Originally appeared in Living Southern Style Magazine, Winter 2006
home builder | custom home builder
Maybe it’s a Low-country beauty overlooking a sun-kissed green or a contemporary A-frame along the fairway. Whatever and wherever your imagination goes, the dream homes provided by Golf Magazine, The Progressive Farmer and HGTV demonstrate the latest trends in laying a solid foundation for your dream home.
When plans go from daydream to drafting board to job site, it’s important to involve skilled professionals who share your vision and enthusiasm. Choosing a qualified architect to map out your dream home is a necessity. In the case of Golf Magazine’s Dream Home at Reynolds Plantation on Georgia’s Lake Oconee. Cincinnati architect Don Beck created plans for a lavish 4,500-square foot home with four master bedrooms and a locker room. Getting a feeling for how willing the architect is to work within your design requests is also essential. Emphasizing country living at its best, The Progressive Farmer dream house is designed for people with a penchant for rural life.
Building your dream home might mean incorporating your plans into a themed community – design restrictions and architectural standards. Builders of The Progressive Farmer dream house at McLendon Hills, a lake and equestrian community near Pinehurst, N.C., incorporate cottage influences into the design. HGTV’s dream home at Cumberland Harbour in St. Mary’s, Georgia has both coastal and Victorian elements.
Many of the nation’s top builders and suppliers contributed to the materials and amenities of each dream home – products you’ll want to consider using once two-by-fours start going up. Golf Magazine’s dream home features paint provided by Ace Hardware, broadband phone service by AT&T, and state-of-the-art appliances and consumer electronics by Best Buy. Your builder should be able to recommend materials that are both energy-efficient and consistent with your home’s design theme. Altogether – from breaking ground to laying a welcome mat – you can expect the construction of your dream home to take a year to a year and a half.
Sometimes you need to see it to believe it. To stir would-be dream homebuilder’s imaginations, each of the 2004 dream homes spent several months open to the public.
In addition to being featured in its November 2004 issue, Golf Magazine’s dream house at Reynolds Plantation was open to the public. According to Bill Houghton, Vice President of Marketing for Reynold’s Plantation, approximately 17,000 people toured the home in six months. The Progressive Farmer Idea House and Farmstead was open for tours this summer and was featured in the August 2005 issue. HGTV’s dream home tours at Cumberland Harbour debuted in May 2007 with a Winner’s Weekend that awarded one of approximately 35 million contestants the dream house itself, worth $1.2 million. Also a giveaway event, the HGTV 2006 dream house is under construction at Grey Rock at Lake Lure, NC.
At 4,500 square feet, Golf Magazine’s dream house features a spacious, “’Hunt Club’ interior with leather as a fabric of choice, lending a ‘sense of sophistication’”, according to interior designer Jan Vorderburg. Four master bedrooms with accompanying bathrooms guarantee a luxurious stay even guests will enjoy. Golf Magazine publisher Chris Whitman said, “The Golf Magazine dream house has exceeded expectations on every level…truly a dream come true for golfers.”
Recalling America’s rural past, The Progressive Farmer 3,500 square-foot dream home at McLendon Hills is “designed for people who choose the country as their place to live…with stalls and a tack room, the tiered garden, the pond and pastures. It literally sets the standard for country living,” says Jack Odle, Editor in Chief of The Progressive Farmer.
The warm breezes of coastal Georgia influenced the building of HGTV’s Cumberland Harbour dream home. The 3,000 square-foot, fully furnished home includes Victorian influences that harkens to a by gone era. A 230-foot, screened-in boat dock allows bug-free access to local waterways. “We want every Dream Home to have its own identity,” said Atlanta consultant Jack Thomasson, who contributed to the 2004 HGTV home.
Capitalizing on its 2004 dream home success at Cumberland Harbour, Land Resource Companies (LRC) was again honored to play host to HGTV’s dream house giveaway. Currently under construction at Grey Rock resort in western, North Carolina – a mountain living community also forged by LRC – the 2006 HGTV dream home promises the same high quality and attention to detail as its coastal counterpart. “I am very pleased that we had the opportunity to offer another community that is on the level of Cumberland Harbour”, said Bob Ward, President and CEO of Land Resource Companies, with respect to the 2006 dream home site.
Originally appeared in Living Southern Style Magazine, Winter 2006
home builder | custom home builder
A Single Mom's Guide to Home Improvement
When I bought my house nine years ago, my son was about to turn three and I reveled in the security of owning my slice of the American dream. Being a single mom was (and is!) both challenging and rewarding, but I knew that having a house to call my own was the best thing that ever happened to my son and me.
My house was ten years old when I bought it, and it was in excellent condition. Still, as time passed, a variety of issues cropped up. I think my way of handling (or not handling) home improvements is fairly typical for single women who own their own homes. Hopefully, my experiences will help you navigate the waters of home improvement. Here's what I've learned:
1. You can go places with a good book and a toolbox. The Christmas of the year I moved in, my sister and brother-in-law gave me a toolbox filled with the basics: screwdrivers, wrenches, a hammer, nails, nuts and bolts, and so forth. They also gave me a book on basic home repairs. Their gift literally provided me with the tools I needed, but it also gave me confidence that I could tackle minor home improvement projects. My advice: invest in some tools and use a book or online sources to guide you through the routine maintenance that your house requires.
2. Ask for advice. As a single woman who is now 49 years old and has limited knowledge of more complex home improvement issues, I'm always afraid that I'll be taken advantage by a repair company. When my air conditioner conked out on a 100-plus degree day, for example, I had no way of knowing if I really needed a new unit. I've learned to call on neighbors, family members, and friends - whose collective knowledge exceeds mine - to get their impressions. They've steered me in the right direction on a number of occasions.
3. Keep tabs on the neighbors. All of the houses in my immediate vicinity were built by the same builder at roughly the same time. Getting to know my neighbors and talking to them about home improvement has helped me get a sense of what to plan for. For example, two years ago I began to see that the houses around me were starting to get new roofs. Although I didn't have a leaky roof, a few months ago I decided to re-roof. I wanted to be proactive so I didn't get stuck with the expense of drywall repairs in addition to the cost of a new roof.
4. Ask for referrals, and then check them yourself. Through my neighbors' referrals, I've been able to find a superb roofer, an impeccable exterior house painter, and a terrific tile guy. But I don't just rely on their word. I always - repeat, always - check with my state's contractor licensing board to verify their licenses and with the Better Business Bureau to check on past complaints. I get all estimates in writing, and ask for proof of insurance.
5. Don't put your head in the sand. There has been more than one occasion when I've chosen not to deal with a home improvement issue, and I've always regretted it. I knew, for example, that the exterior of my fireplace had some dry rot. Unfortunately, by letting it go for so long it cost me much more than if I would have dealt with it immediately.
6. Make a list. This last bit of advice is basic, but critical. Start and keep a home improvement list. As a single mom, it's all too easy to get caught up in the hectic pace of daily life and let routine home maintenance fall by the wayside. I divide my home improvement list into three sections: one for items that need attention in the next three months; one for home improvement projects for the coming year; and one that maps out what I want to accomplish with the house over the next five years. The short- and medium-term lists keep me motivated, while my long-term list helps me save the money needed for the big-ticket items.
home builder | custom home builder
My house was ten years old when I bought it, and it was in excellent condition. Still, as time passed, a variety of issues cropped up. I think my way of handling (or not handling) home improvements is fairly typical for single women who own their own homes. Hopefully, my experiences will help you navigate the waters of home improvement. Here's what I've learned:
1. You can go places with a good book and a toolbox. The Christmas of the year I moved in, my sister and brother-in-law gave me a toolbox filled with the basics: screwdrivers, wrenches, a hammer, nails, nuts and bolts, and so forth. They also gave me a book on basic home repairs. Their gift literally provided me with the tools I needed, but it also gave me confidence that I could tackle minor home improvement projects. My advice: invest in some tools and use a book or online sources to guide you through the routine maintenance that your house requires.
2. Ask for advice. As a single woman who is now 49 years old and has limited knowledge of more complex home improvement issues, I'm always afraid that I'll be taken advantage by a repair company. When my air conditioner conked out on a 100-plus degree day, for example, I had no way of knowing if I really needed a new unit. I've learned to call on neighbors, family members, and friends - whose collective knowledge exceeds mine - to get their impressions. They've steered me in the right direction on a number of occasions.
3. Keep tabs on the neighbors. All of the houses in my immediate vicinity were built by the same builder at roughly the same time. Getting to know my neighbors and talking to them about home improvement has helped me get a sense of what to plan for. For example, two years ago I began to see that the houses around me were starting to get new roofs. Although I didn't have a leaky roof, a few months ago I decided to re-roof. I wanted to be proactive so I didn't get stuck with the expense of drywall repairs in addition to the cost of a new roof.
4. Ask for referrals, and then check them yourself. Through my neighbors' referrals, I've been able to find a superb roofer, an impeccable exterior house painter, and a terrific tile guy. But I don't just rely on their word. I always - repeat, always - check with my state's contractor licensing board to verify their licenses and with the Better Business Bureau to check on past complaints. I get all estimates in writing, and ask for proof of insurance.
5. Don't put your head in the sand. There has been more than one occasion when I've chosen not to deal with a home improvement issue, and I've always regretted it. I knew, for example, that the exterior of my fireplace had some dry rot. Unfortunately, by letting it go for so long it cost me much more than if I would have dealt with it immediately.
6. Make a list. This last bit of advice is basic, but critical. Start and keep a home improvement list. As a single mom, it's all too easy to get caught up in the hectic pace of daily life and let routine home maintenance fall by the wayside. I divide my home improvement list into three sections: one for items that need attention in the next three months; one for home improvement projects for the coming year; and one that maps out what I want to accomplish with the house over the next five years. The short- and medium-term lists keep me motivated, while my long-term list helps me save the money needed for the big-ticket items.
home builder | custom home builder
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