Real Estate, Style

A Guide to Shopping Second Hand

One of the joys of moving into a new home, whether it’s a condo, house, or apartment, is getting to furnish and design your living spaces. You have a blank canvas that you can decorate any way you want. However, this can often come at a high expense. If you’re looking for a budget-friendly and sustainable way to find pieces for your home, try looking for used items instead of buying new. It may take a little longer to find the perfect pieces, but if you use these tips, shopping secondhand will be a breeze.

Have an Idea of What You Need

Unsurprisingly, shopping for secondhand items can quickly become overwhelming due to how many options are out there. Between thrift stores, Facebook Marketplace, estate sales, and antique malls, there are often a lot of items to sort through and choose between. Before you start shopping, you should take inventory of what items you need for your home so you have a general idea of what you’re looking for. For online shopping, begin with specific search terms like “couch,” “dresser,” “rug,” or “coffee table.” This will narrow the field and help you better assess what’s available to purchase in your area. For thrift stores and antique malls, you can stick to the home goods sections, if the store is divided into categories, or simply walk the aisles with specific items in mind.

Thoroughly Review the Item

When shopping for used goods online, you should try to get as many details as you can before purchasing an item. After all, it’s hard to know the true condition of a couch or if a table would fit in your dining room through only a few pictures. Don’t hesitate to ask for more information on the item beyond the listing description, including extra pictures to get a better idea of the object’s details, such as color or fabric. If you plan on shopping in person, be sure to measure the space you’re trying to fill and then take the tape measure with you to the store. This way you’ll be able to check the dimensions of any item to make sure it’ll fit.

You’ll also want to closely check items for any damage. While it’s common for used goods to have some wear and tear from everyday use, things like a loose drawer, a broken seat back, or a torn rug corner can cause more problems than they’re often worth. When you have the option, you should look at an item in person before you buy it. This will give you the chance to ensure not only that it is the right color, size, and look that you’re after but also that it’s in a condition that works for you. That said, there are also a lot of ways to upcycle old items to give them new life; you can always re-cover seat cushions or add a fresh coat of paint to a table or dresser, for example. So if you like the bare bones of an item, get creative and make it into a perfect piece for your home.

Verify the Price Before You Purchase

While shopping secondhand is more environmentally friendly, part of the appeal comes from getting good deals on things you need; you don’t want to wind up paying more for the secondhand item than you would if you bought it new. Before you say yes to an item, do a little online searching to be sure that it’s priced fairly based on its current condition. For instance, if you’re searching for antiques, you can look up the makers and see what kind of materials they used and how well they tend to hold up. For more modern pieces, you can search for the exact item online, read reviews from other customers, and check the current selling price.

Take Your Time

While it may be tempting to quickly fill your rooms with items that simply get the job done, it’s important that you prioritize quality when shopping secondhand. Finding the perfect used goods can take some time, but it’s worth waiting for the right thing to appear instead of buying something “good enough” just because it’s there. Your patience will definitely be rewarded in the end.

Real Estate

Lora Rousseau – Power Agent

Hickory, NC – Lora Rousseau from Weichert, REALTORS® – Team Metro has secured the prestigious POWER AGENT® designation, a symbol of unparalleled service and professional excellence in the real estate industry. This honor not only highlights Lora ‘s commitment to superior skills and ethical service but also positions her as a dedicated advocate for clients.

Industry expert Darryl Davis shed light on the significance of this rare distinction. “The POWER AGENT® designation is held by less than 1% of agents globally. It’s a testament to an agent’s exceptional ability to elevate their client’s real estate experiences,” Davis commented.

Davis further explains that the POWER AGENT® designation is more than a title; it symbolizes the relentless pursuit of excellence and a promise of delivering top-tier client service with unmatched expertise.

For more insights on how this elite designation benefits buyers and sellers in your market, reach out to Lora.

Real Estate

How Much Down Payment Do I Need?

Though 20% has traditionally been the ideal amount for a down payment, this simply isn’t the true standard.

In fact, according to the National Association of Realtors®, in 2022 first-time homebuyers put down an average of 6%, while repeat buyers typically put down an average of 17%.

Different loan programs come with varying down-payment requirements. The program that is best for you will be determined by how much you can afford. Whether you’re a repeat or a first-time homebuyer, the following guide can help you understand your options and discover the best one for your budget.

Conventional Loan
These are usually the most popular types of loans; each comes with varying requirements related to the amount of your down payment, income, and credit.

Conforming
As a general rule, the maximum amount you can borrow on a conforming loan is $726,200, though this limit can be higher in more expensive markets. Depending on your location, credit score, and home price, you can put down as little as 3%.

Nonconforming
If your home loan needs exceed the conforming loan limit, you must apply for a nonconforming one. This option necessitates a minimum of a 20% down payment, which may lead to a higher interest rate.

HomeReady
One of Fannie Mae’s more affordable loan programs, HomeReady is geared toward low-to-moderate-income buyers. It offers flexibility that other mortgages do not, as there are no income or location requirements, you can put down just 3%, and only one applicant needs to be a first-time homebuyer.

Government Backed Loans
These loans receive financial backing from the government and are designed to provide lenders with added security against payment defaults. This enables those lenders to offer lower interest rates to prospective borrowers, making it more affordable for lower-income households and individuals purchasing their first homes.

Federal Housing Authority (FHA) Loans
FHA loans are accessible in every state and accommodate various income levels. Eligible buyers can make down payments as low as 3.5%. Even individuals with limited or subpar credit history can potentially meet the criteria to obtain a loan.

United States Department of Agriculture (USDA) Loans
Supported by the US Department of Agriculture, this initiative primarily targets rural regions, assisting would-be buyers in acquiring a modest home. It provides several advantages, including 100 percent financing without a down payment (meaning there’s no down payment requirement) and lower interest rates. USDA loans are renowned for being the most cost-effective among all government-backed loan options.

The United States Department of Veteran Affairs (VA) Loans
Available in every state, these loans are available to active military personnel, armed forces, National Guard members, veterans, reservists, and qualifying surviving spouses. These loans offer 100 percent financing, reduced interest rates, and fewer associated fees.

How much is enough?
With such a wide range of programs, you have many options to choose from depending on your needs. However, as you embark on your homebuying journey, consider the advantages and disadvantages of having a lower down payment before you decide on the one that’s right for you.

Advantages

  1. You can buy a home sooner
  2. By paying less up front, you may be able to achieve your homeownership dreams quicker. With the escalating prices due to inventory shortages, you could save several thousand dollars.
  3. You can build home equity faster
  4. If you have been renting, it may be an ideal time to purchase a home so you can start building your own equity rather than your landlord’s.
  5. You won’t deplete your savings
  6. A lower down payment can mean reserving money for moving costs, repairs, and updates. You may also be better able to save for an emergency fund.

Disadvantages

  1. You’ll have a larger mortgage
  2. A smaller down payment means a higher principal amount, making it take longer to pay off. You’ll also have a greater monthly payment.
  3. Your interest rate will be higher
  4. Although you can save money up front, putting down the minimum will likely cost you more in the long run due to having a higher interest rate, which will further increase your monthly payments.
  5. You’ll pay private mortgage insurance – except if it is a VA Loan (this loan type does not have PMI)

Conventional loans require private mortgage insurance if your down payment is less than 20 percent. The precise amount hinges on your credit score and may fluctuate between 0.46% and 1.50% of the loan amount. These payments must continue until you’ve built up 20% equity in your home.

If you’re not able to put 20% down on a home, this doesn’t need to signify the end of your homeownership aspirations. Consult with a mortgage lender and your real estate agent to explore alternatives and identify the most suitable loan for your specific requirements.