Buying a Home

Everything you ever wanted to know about how to buy a home. Whether you're buying a home on the market, or building a brand new house, learn how to finance a new home, find the perfect place, and make a competitive offer.

What exactly is a house-price-to-income ratio?
Preparing to Sell
What exactly is a house-price-to-income ratio?

The house-price-to-income ratio is a rule-of-thumb measure of housing affordability. It compares the median price of homes to the median household income.

How to buy an apartment building in 2023
Preparing to Buy
How to buy an apartment building in 2023

Buying an apartment building is similar to buying a house, but you'll need to your due dilligence to make sure it's a profitable and safe property.

Appraisal waivers — Are they good or bad?
Home Inspections & Appraisals
Appraisal waivers — Are they good or bad?

Most lenders require an appraisal, but you can waive the appraisal in select circumstances

Top 15 under-the-radar cities to live in Colorado
Preparing to Buy
Top 15 under-the-radar cities to live in Colorado

Orchard analyzed 50 Colorado cities and built a list of places where the quality of life is high, prices are relatively low, and it's easier to buy a home.

A guide to the 1% rule — with examples
Preparing to Buy
A guide to the 1% rule — with examples

The 1% rule in real estate can help determine whether you'll make a profit on an investment property. Here's how to use it help inform your purchase.

Is buying a home as-is a good idea?
Preparing to Buy
Is buying a home as-is a good idea?

Buying an as-is home usually come with a lower purchase price, but may need extensive repairs. It's still a viable option if you're willing to take on the risk.

How to qualify for a mortgage in 2023 — 7 things to know
Mortgage & Financing
How to qualify for a mortgage in 2023 — 7 things to know

Thinking about buying a home in 2023? Understanding the qualifications for getting a mortgage can help you prepare for the preapproval and lending process. 

A guide to real estate purchase and sale agreements
Closing on a Home
A guide to real estate purchase and sale agreements

Purchase and sale agreements are important documents that outline the details of a real estate transaction between buyer and seller.

What's the deal with Walk Score?
Buying Your First Home
What's the deal with Walk Score?

Walk Score is a metric that helps homebuyers find walkable places to live. Properties are rated from 0-100 based on their walkability.

Is homeowners insurance tax deductible?
Buying Your First Home
Is homeowners insurance tax deductible?

You can’t deduct homeowners insurance premiums on your federal taxes, with two key exceptions: your home is your primary workplace or you rent out your home.

How much are HOA fees?
Buying Your First Home
How much are HOA fees?

The average HOA fee is $170 a month, but you could pay anywhere from $50 to $1,000 depending on where you live and what amenities your HOA community offers.

Buying a lake house? 9 reasons why might regret it
Preparing to Buy
Buying a lake house? 9 reasons why might regret it

Buying a lake house comes with many costs, challenges, and potential regrets so you’ll need to consider whether these negatives outweigh the benefits.

11 tax deductions for homeowners
Buying Your First Home
11 tax deductions for homeowners

There are a number of tax deductions available to homeowners, but most of these deductions are only available if you itemize deductions.

A guide to saving money with mortgage credit certificates
Mortgage & Financing
A guide to saving money with mortgage credit certificates

Mortgage credit certificates provide eligible homebuyers with a tax credit for a portion of the mortgage interest they pay annually.

Can I cancel PMI if my home value increases?
Mortgage & Financing
Can I cancel PMI if my home value increases?

You can cancel PMI early if your home value increases, but you’ll need to get an official appraisal showing what your home is worth.

The average cost to move in 2023
Preparing to Buy
The average cost to move in 2023

Learn how much it costs to move on average by geography, size of the move, services, and more. These numbers are current for 2023.

What is a quitclaim deed?
Preparing to Buy
What is a quitclaim deed?

A quitclaim deed allows a seller to quickly transfer property to a buyer. Learn how it works, when to use this deed, and more.

8 costs of homeownership you need to know
Buying Your First Home
8 costs of homeownership you need to know

After closing on a home you're not off the hook. There are various costs of homeownership you need to prepare for.

Should I put my house in a trust?
Buying Your First Home
Should I put my house in a trust?

Putting your house in a trust entails retitling it in the trust's name and it can help avoid probate, gettin the property to your heirs faster than a will.

House poor: What it means and how to avoid it
Buying Your First Home
House poor: What it means and how to avoid it

House poor is term used to describe someone who is overspending on their housing budget, usually with 30% or more of their income dedicated to housing costs.

What is land value tax?
Buying Your First Home
What is land value tax?

Land value tax levies a tax on the value of unimproved land itself, regardless of what lies on the land, and is only asssessed in a few U.S. Cities.

Are property taxes deductible?
Preparing to Buy
Are property taxes deductible?

Homeowners can write off state and local property taxes on their federal income tax return. Married couples can deduct up to $10,000; singles up to $5,000.

Mortgages and homebuying for seniors at age 60 and above
Preparing to Buy
Mortgages and homebuying for seniors at age 60 and above

You're never too old to buy a house. Senior citizens can qualify for a mortgage so long as they can demonstrate their financial ability to repay the loan.

What does primary residence mean?
Buying Your First Home
What does primary residence mean?

The simplest definition for a primary residence is that it’s your home where you live, and it can affect your mortgage rates, tax benefits, and more.

Paying off a mortgage or investing: Which is better?
Preparing to Buy
Paying off a mortgage or investing: Which is better?

When weighing whether to pay off a mortgage early or invest, usually some combination of both would likely yield greater financial stability.

A guide to the home office deduction
Buying Before Selling
A guide to the home office deduction

To qualify for the home office tax deduction, you must use a space in your home exclusively for your self-employed business.

The 5 best grants and home loans for disabled homebuyers
Buying Your First Home
The 5 best grants and home loans for disabled homebuyers

Disabled homeowners can qualify for grants and home loans by getting a mortgage backed by a government agency like a USDA or VA loan.

What is a mortgage note?
Mortgage & Financing
What is a mortgage note?

Also known as a promissory note, mortgage notes are legally binding contracts that compels you to repay your mortgage loan within an agreed period of time.

A guide to residential energy tax credits: How homeowners can save money with green improvements
Buying Before Selling
A guide to residential energy tax credits: How homeowners can save money with green improvements

The residential energy tax credits help you save up to 30% of the costs of energey-efficient improvements, but there are certain limits and restrictions.

Can’t afford closing costs? What to know about no-closing-cost mortgages
Mortgage & Financing
Can’t afford closing costs? What to know about no-closing-cost mortgages

A no-closing cost mortgage is a type of mortgage where the borrower is not required to pay the traditional closing costs associated with purchasing the house

What is a homestead exemption?
Buying Your First Home
What is a homestead exemption?

The homestead exemption shields a certain amount or percentage of your home’s assessed value from taxes, but it isn't available in every state.

Are home equity loans tax deductible in 2023?
Mortgage & Financing
Are home equity loans tax deductible in 2023?

Yes, the interest paid on a home equity loan or HELOC is deductible if you used the loan to buy, build or improve the home used to get the loan.

Can you deduct taxes on a second home?
Buying Before Selling
Can you deduct taxes on a second home?

Second homes and investment properties are defined differently by the IRS, and both come with different tax benefits and applicable deductions.

VA funding fees explained
VA Loans
VA funding fees explained

The VA funding fee is a one-time fee that is charged to borrowers who use their VA home-loan benefits to finance the purchase of a home.

15 tips for moving with children
Preparing to Buy
15 tips for moving with children

Moving into a new home is already a stressful process filled with change and excitement. If you’re moving with kids, there is an added layer of pressure. 

A guide to decoding your VA loan entitlement
Buying Before Selling
A guide to decoding your VA loan entitlement

VA loan entitlement is the maximum amount the VA will repay a lender in the event that a borrower defaults on their loan.

How much VA loan can I get?
VA Loans
How much VA loan can I get?

For most people, VA loan limits are not an issue. But if you have impacted entitlement, then you're subjected to conforming loan limits set by the FHFA.

Is mortgage interest tax deductible?
Mortgage & Financing
Is mortgage interest tax deductible?

As long as you meet all the requirements and your house qualifies, you can deduct mortgage interest on your taxes but there are limits.

What exactly does it mean when a building is condemned?
Preparing to Buy
What exactly does it mean when a building is condemned?

A condemned house is one that the government deems unfit for anyone to live in or use, due to health and safety concerns.

What's the deal with Victorian houses?
Buying Your First Home
What's the deal with Victorian houses?

You’ll recognize a Victorian house (or a Victorian-inspired home) by its ornate wood exterior, steep roof, and large bay windows.

How buying down your interest rate helps save you money
Mortgage & Financing
How buying down your interest rate helps save you money

Buying down your interest rate can lower your monthly mortgage payment, and it's most beneficial when rates aren't expected to go down in the future.

What exactly is a mother-in-law suite?
Preparing to Buy
What exactly is a mother-in-law suite?

Mother-in-law suites are living areas with a private entrance separate from the main home. While meant for in-laws, they can serve a variety of other functions.

Do VA loans require a down payment?
VA Loans
Do VA loans require a down payment?

VA loans don't require a down payment, but there are benefits to putting some money down even if it's not mandatory.

Is buying a duplex worth it?
Buying Your First Home
Is buying a duplex worth it?

Duplexes are more affordable than single-family homes, and if you rent out half you'll have passive income, but you'll have to contend with being a landlord.

When is my first mortgage payment due?
Mortgage & Financing
When is my first mortgage payment due?

Your first mortgage payment is usually due on the first of the month 30 days after closing, and the due date is affected by your closing date.

A guide to buying a house with a friend
Buying Your First Home
A guide to buying a house with a friend

To make buying a house with a friend work, you need to agree on a co-ownership arrangement and understand your financial duties as a borrower.

What is a Craftsman home?
Buying Your First Home
What is a Craftsman home?

Craftsman homes emphasize natural materials and individualistic handmade touches. This style of house and was made famous by architects like Frank Lloyd Wright.

Bi-level house vs. split-level house: What to know
Buying Your First Home
Bi-level house vs. split-level house: What to know

The primary difference between the two homes is that a bi-level home is a single level home, whereas a split-story home has multiple stories. 

VA construction loans explained
VA Loans
VA construction loans explained

A VA construction loan is a short-term loan that can help cover the costs of new construction homes or home renovations. Here's your guide to this VA benefit.

Is buying a tiny home worth it?
Buying Your First Home
Is buying a tiny home worth it?

If you love the idea of a flexible lifestyle and don’t mind living in a small home, a tiny home, which is less than 600 square feet, might be right for you.

Do buyers pay realtor fees?
Buying Your First Home
Do buyers pay realtor fees?

Realtor fees and real estate agent commission are paid by sellers and not homebuyers, and there are ways for you to save money on fees when selling your house.

How to buy a house online: What to know
Buying Your First Home
How to buy a house online: What to know

You can browse homes to buy online on real estate websites, some of which allow you to carry out whole homebuying process on the internet, too.

How a mortgage recast can save you money
Mortgage & Financing
How a mortgage recast can save you money

Recasting a mortgage can help lower your monthly mortgage payment, but it won't lower the interest rate or change the terms of your loan.

What is a barndominium?
Buying Your First Home
What is a barndominium?

Barndominiums or barndos are barns adapted into a residence, or a house that relies on a typical barn structure, and they can be cheaper than most homes.

What are VA loan appraisal and inspection requirements?
VA Loans
What are VA loan appraisal and inspection requirements?

VA loan inspection requirements are often conflated with appraisals, but their aims are different. Here's your guide to understanding the requirements of each.

Buying a house during a recession: What to know
Buying Your First Home
Buying a house during a recession: What to know

If you can afford it, buying a home during a recession isn't a bad idea since you'll face less competition and lower home prices, too.

Are VA loans assumable?
VA Loans
Are VA loans assumable?

Assuming a VA loan can be a great way to save on funding fees and other closing costs. Here's your guide to VA loan assumption.

What are VA loan credit score requirements?
VA Loans
What are VA loan credit score requirements?

Minimum credit scores for VA loans vary by lender. Our guide breaks down everything you need to know about VA loan credit score requirements.

What is a gift letter for a mortgage?
Mortgage & Financing
What is a gift letter for a mortgage?

A gift letter is a form signed by you and the person who's giving you money towards your mortgage loan. You can usually get a gift letter form from your lender.

All about A-frame houses
Buying Your First Home
All about A-frame houses

While A-frame houses are cheaper to buy or build, usually with a kit, compared to other homes, they come with their own set of disadvantages.

Who are Zillow's competitors? 10 alternatives to know
Buying Before Selling
Who are Zillow's competitors? 10 alternatives to know

Zillow isn't the only real estate site around. A number of competitors and alternatives exist to help you buy, sell, or browse available homes.

10 common types of houses to know
Buying Your First Home
10 common types of houses to know

You can distinguish different types of homes by building structure, like condo or single-family, or by architecture style — like ranch or Colonial.

How do property taxes work?
Buying Your First Home
How do property taxes work?

Property taxes are based on the assessed value of your home and the tax rate, both of which are set by your local government.

What is an inspection contingency — do I need one?
Home Inspections & Appraisals
What is an inspection contingency — do I need one?

A home inspection contingency clause allows a potential homebuyer to back out of a purchase contract if a professional finds there are issues with the property.

Gated communities and neighborhoods: What to know
Buying Your First Home
Gated communities and neighborhoods: What to know

Living in a gated community can bring security, but there are disadvantanges to living in this type of neighborhood, including extra costs.

How to save for a house while renting
Buying Your First Home
How to save for a house while renting

The first step to save for a house while renting is to create a budget and get familiar with your finances. Here are 12 ways to get started.

What is an assumable mortgage?
Mortgage & Financing
What is an assumable mortgage?

An assumable mortgage is when a buyer takes on an existing mortgage, including its remaining balance and mortgage rate, from the person selling their home.

What is a joint mortgage?
Mortgage & Financing
What is a joint mortgage?

A joint mortgage allows you to borrow money with another person — or a few other people — and use it to buy a house together.

Offer accepted? Here's what happens next
Buying Your First Home
Offer accepted? Here's what happens next

After your offer has been accepted you'll sign a purchase agreement, which is typically contingent upon a few things, laid out in the terms of the contract.

What is private mortgage insurance (PMI)?
Mortgage & Financing
What is private mortgage insurance (PMI)?

Private mortgage insurance or PMI protects the mortgage lender, and it's required if you put down less than 20% when you buy a home.

Home touring: 9 things to look for
Buying Your First Home
Home touring: 9 things to look for

The average home tour lasts 15 to 30 minutes. Make the most of your time by looking for odors, signs of damage, and more.

What is a property survey?
Closing on a Home
What is a property survey?

A property survey is a professional evaluation that determines the boundaries of a property, and it's required by a mortgage lender before you close on a home.

How to get pre-approved for a mortgage
Mortgage & Financing
How to get pre-approved for a mortgage

You can get mortgage pre-approval from an online lender in minutes by filling out an application, providing financial documents, and undergoing a credit check.

Co-borrower vs cosigner: Which is better?
Mortgage & Financing
Co-borrower vs cosigner: Which is better?

A co-borrower takes out the loan with you and is equally responsible for it. A cosigner signs the loan with you but is only responsible if you neglect to pay.

Baseboard heating vs. forced air: Which is better for your house?
Buying Your First Home
Baseboard heating vs. forced air: Which is better for your house?

Although it's costly to install, forced air is the preferable method of heating your home compared to baseboard heaters, which are less energy efficient.

Your guide to FHA loans
Mortgage & Financing
Your guide to FHA loans

FHA loans are backed by the government and have less strict requirements compared to conventional loans.

What does turnkey mean?
Buying Your First Home
What does turnkey mean?

Turnkey real estate refers to move-in-ready homes and properties that don't require repairs or renovations. This makes them particularly desirable to investors.

What is hypothecation in real estate?
Mortgage & Financing
What is hypothecation in real estate?

Hypothecation is when one party agrees to use an asset as collateral in exchange for the loan, and it occurs commonly in mortgages.

Does my home need an air quality inspection?
Home Inspections & Appraisals
Does my home need an air quality inspection?

Home inspections can identify any severe air quality issues, and if they persist you'll need to find a professional to conduct an indoor air quality inspection.

19 questions you need to ask when buying a house
Buying Your First Home
19 questions you need to ask when buying a house

Here are the top 19 questions every homebuyer should ask themself, their agent, and the seller to ensure that they've covered all their bases.

Do I need a well inspection?
Buying Your First Home
Do I need a well inspection?

A well inspection involves testing a home's water source for purity and quanity to ensure the water is safe to drink and that there's enough of it.

11 documents you need for a mortgage application
Buying Your First Home
11 documents you need for a mortgage application

Mortgage applications require documents demonstrating your personal details, credit, income, and assets, as well as information about the house you're buying.

7 signs a house will collapse
Buying Your First Home
7 signs a house will collapse

A house may collapse if you see signs of structural issues, like sagging walls, uneven floors, leaking roofs, or visible cracks.

Well water vs. city water: What’s the difference?
Buying Your First Home
Well water vs. city water: What’s the difference?

Well water is a private form of water that comes an aquifer on your property, while city water is a public water source that is managed by the government.

What is a half bath?
Buying Your First Home
What is a half bath?

A half bathroom is a bathroom that contains a toilet and a sink. Full bathrooms, on the other hand, include four elements: a toilet, sink, shower, and bathtub.

Radon gas in homes: What you need to know
Home Inspections & Appraisals
Radon gas in homes: What you need to know

The presence of radon doesn’t have to be a deal breaker, especially if there’s a radon mitigation system in the home. It just helps to be prepared.

Checklist: Things to buy for a new house
Buying Your First Home
Checklist: Things to buy for a new house

To help narrow your focus before you hit the shops, keep reading for our list of things to buy for a new house.

What's considered unethical real estate agent behavior?
Finding an Agent
What's considered unethical real estate agent behavior?

No matter where you are in the home buying or selling process, it’s important to educate yourself about what qualifies as unethical or illegal behavior.

What is a real estate referral fee?
Finding an Agent
What is a real estate referral fee?

There are a few different reasons why agents or brokers might refer a customer to another real estate professional instead of accepting them as a client.

What is a balloon mortgage & how do balloon payments work?
Mortgage & Financing
What is a balloon mortgage & how do balloon payments work?

A balloon payment is an extra-large payment due at the end of the loan term. Balloon mortgages have some benefits but aren't right for most homebuyers.

Can I work with multiple real estate agents?
Preparing to Buy
Can I work with multiple real estate agents?

You can work with multiple real estate agents if you haven’t signed an exclusive contract. However, working with multiple agents is generally frowned upon.

Do houses come with appliances?
Buying Your First Home
Do houses come with appliances?

Whether or not an appliance come with a house depends on the type of home, the homeowner's preferences, and if the appliance is considered a fixture.

Your guide to buying a house as a married couple
Buying Your First Home
Your guide to buying a house as a married couple

Except in community property states, a married couple can apply for mortgages, pay for a house, and title a house under the name of just one spouse.

How to make an offer on a house
Offers & Negotiation
How to make an offer on a house

Your offer is more than just your purchase price, it also dictates the terms and conditions for the transaction. Here's how to craft a winning offer.

What to know before buying a house in a flood zone
Buying Your First Home
What to know before buying a house in a flood zone

Just because a house is in a flood zone doesn’t mean you should rule out buying, you just have to prepare your offer and consider the future accordingly.

7 things not to do after closing on a house
Closing on a Home
7 things not to do after closing on a house

What you do during and after closing can make your first year as a homeowner a pain or jeopardize your home sale. Here's what not to do after closing on a home.

What affects mortgage rates?
Buying Your First Home
What affects mortgage rates?

Mortgage rates change daily based on many factors, some of which you can control but many of which you can’t.

What is loan-to-value ratio?
Mortgage & Financing
What is loan-to-value ratio?

LTV is the ratio of your loan compared to the value of the asset it is used to purchase, and it's just as important for borrowers as it is for lenders.

Do medical bills affect your credit when buying a house?
Buying Your First Home
Do medical bills affect your credit when buying a house?

As of July 1, 2022 medical debt will begin to impact consumers’ credit scores in fewer ways.

How does an interest-only mortgage work — and is it worth it?
Mortgage & Financing
How does an interest-only mortgage work — and is it worth it?

Interest-only mortgages have two phases: making small payments and then much larger ones, which can make this type of loan unaffordable if you're not careful.