Our Real Estate Blog
The homebuying process sometimes can be tough to navigate. Fortunately, we're here to help you achieve the optimal results throughout the homebuying cycle.
Now, let's take a look at three questions that every homebuyer needs to consider as he or she pursues a home:
1. What is my "dream home" definition?
If you know what you want to find in your "dream home," you may be better equipped than ever before to streamline your home search. Thus, it generally helps to establish a list of home must-haves and wants to guide you along the homebuying journey.
As you check out a broad range of houses, don't forget to update your list of home must-haves and wants too. By doing so, you may be able to further accelerate your home search.
2. What can I afford to pay for a home?
The prices of homes vary based on location, size and other factors. As such, you may want to get pre-approved for a mortgage to ensure you know exactly how much you can spend to acquire your ideal residence.
Getting pre-approved for a mortgage can be fast and simple. If you meet with banks and credit unions, you can learn about all of the mortgage options at your disposal.
Of course, you should ask plenty of questions any time you meet with mortgage specialists. This will enable you to evaluate myriad mortgage options and choose a mortgage that complements your finances perfectly.
3. How can I quickly and effortlessly achieve my homebuying goals?
The homebuying journey differs from buyer to buyer. However, homebuyers who work with real estate agents typically can boost the likelihood of achieving the best-possible results during the homebuying journey.
A real estate agent knows the ins and outs of the housing market. He or she can teach you about the real estate sector and help you narrow your home search. Also, a real estate agent is unafraid to be honest with you and will offer unbiased recommendations to ensure that you can make an informed homebuying decision.
Let's not forget about the comprehensive assistance that a real estate agent can provide throughout the homebuying cycle, either. A real estate agent will keep you up to date about available houses that match your homebuying criteria. In addition, he or she will set up home showings that enable you to check out residences in-person. And once you discover your dream residence, a real estate agent will help you put together a competitive offer to acquire this house.
Furthermore, a real estate agent is ready to respond to any of your homebuying concerns and questions. As a result, a real estate agent will allow you to quickly and effortlessly navigate the homebuying journey.
When it comes to buying a house, there is no need to worry. If you collaborate with a real estate agent, you can get the support you need to make your homeownership dream come true.
If you’re a first-time homebuyer, you might be wondering what all of the expenses you can expect to have when it comes time to close on your home.
Ideally, you’ll want to understand all of the closing costs months in advance so that you can plan accordingly. However, even if you’re close to purchasing your first home, it’s still useful to get to know closing costs better.
In today’s post, I’m going to cover the closing costs that are typically the buyer’s responsibility.
Buyer’s closing costs
There’s good news and bad news when it comes to closing costs for buyers. The bad news is that buyers are typically on the hook for the majority of the closing costs associated with a real estate transaction. The good news, however, is that many of these fees will be grouped together as part of your mortgage, meaning you won’t have to devote much time or thought to them individually.
That being said, to ensure that you know where your money is going, here’s a breakdown of the main closing costs that you’ll likely be responsible for as a buyer:
1. Attorney fees
Real estate attorneys research the ownership of the home, ensuring that the seller actually has the right to sell you the property. Though this is usually a formality, it is an important one.
Attorneys can either charge a flat fee or hourly rate.
2. Origination fees
The origination fee is paid upfront to the lender. It’s the fee that they charge for processing your mortgage application and getting you approved as a borrower.
3. Prepaid interest
Many buyers pay their first month’s interest in advance. This is the amount of interest that will accrue from the time you purchase the home until your first mortgage payment is due (a month later).
4. Home inspection
Inspections are one of the closing costs that can save you a ton of money in the long run if they find anything during their visit to the home. Inspectors should be licensed in your state, and you should choose your own inspector based on ratings and reviews (not at the recommendation of someone who is incentivized to sell you the home such).
5. Escrow deposits
Escrow deposits are typically shared between the buyer and seller and it is the fee that escrow agents charge for their services. You can think of an escrow as a neutral third party that keeps your money safe while purchasing a home.
6. Recording fees
All real estate purchases have to be recorded by the local government. Typically, this is performed by the county or town hall. Recording fees are charged whenever a real estate transaction occurs.
7. Underwriting fees
Mortgages are all about determining risk. A lender wants to know whether they will see a return on their investment by lending to you. To do so, they research your credit and income history. The fee the charge for this work is called the underwriting fee.
Filling out a mortgage application may prove to be a long, exhausting process. Fortunately, we're here to help you streamline the mortgage application process so you can move one step closer to acquiring your dream house.
Now, let's take a look at three tips to help you approach the mortgage application process with confidence.
1. Be Thorough
A mortgage application likely requests a lot of information about you, your finances and your employment history. However, it is important to answer each mortgage application question to the best of your ability. Because if you fail to do so, you risk delays in getting approved for a mortgage. Or, perhaps even worse, a lender may decline your mortgage application.
In addition, be honest in all of your mortgage application responses. This will ensure that if your mortgage application is approved, you will receive a mortgage that corresponds to your finances.
2. Ask Questions
There is no need to leave anything to chance as you complete a mortgage application. Thus, if you're uncertain about how to respond to various mortgage application questions, reach out to a lender for assistance.
Remember, there is no such thing as a "bad" question, especially when it comes to filling out a mortgage application. Lenders employ friendly, knowledgeable mortgage specialists who are happy to assist you in any way possible. Work with these mortgage specialists, and you can get the help you need to finalize your mortgage application.
3. Get Multiple Quotes
It may seem like a good idea to complete a single mortgage application to request home financing from a single lender. Yet doing so may be problematic, particularly for those who prioritize affordability.
Ultimately, meeting with multiple lenders and getting several mortgage quotes is ideal. If you shop around for a mortgage, you may be eligible for a low interest rate that helps you save money when you complete a home purchase.
Once you finish a mortgage application, it may be only a matter of time before you find out if you have received approval. Then, if you receive a "Yes" from a lender, you can accelerate the homebuying journey.
Of course, for those who plan to buy a home soon, it may be beneficial to employ a real estate agent. This housing market professional can put you in touch with the top lenders in your area, as well as help you complete a home search in no time at all.
A real estate agent typically learns about a homebuyer's goals and crafts a strategy to help this buyer accomplish his or her aspirations. Furthermore, a real estate agent provides recommendations and tips to help a homebuyer make informed decisions throughout the property buying journey. And if a homebuyer ever has concerns or questions, a real estate agent is available to respond to them.
Ready to complete a mortgage application? Use the aforementioned tips, and you can finalize a mortgage application, obtain home financing and make your homeownership dream come true.
Filling out a mortgage application may prove to be a long, arduous process, particularly for those who are buying a house for the first time. Lucky for you, we're here to help you dot the I's and cross the T's on your mortgage application to ensure you can quickly and effortlessly acquire your dream house.
Now, let's take a look at three tips to help you prepare your mortgage application.
1. Be Diligent
A mortgage application may appear daunting at first. The application may include several pages of questions, and you may have only a limited amount of time to finalize your submission.
When it comes to completing a mortgage application, it generally pays to be diligent. If you answer each mortgage application question to the best of your ability, you likely will have no trouble moving forward with your home purchase.
2. Avoid Guessing
If you're uncertain about how to respond to certain mortgage application questions, there is no need to guess. Instead, search for the information that you need to provide a comprehensive response. This will help reduce the risk of encountering potential problems down the line that otherwise could slow down your home acquisition.
Remember, guessing on a mortgage application probably won't do you or your lender any favors. But if you allocate the necessary time and resources to understand mortgage application questions and provide thoughtful responses, you can minimize the risk of application errors.
3. Ask Questions
Completing a mortgage application sometimes can be tricky. Fortunately, a lender employs mortgage specialists who are happy to respond to your application concerns or questions at any time.
If you're unsure about information that is requested on a mortgage application, don't hesitate to reach out to a lender's mortgage specialists for help. These specialists possess extensive mortgage expertise and can help you complete a mortgage application.
Furthermore, mortgage specialists can offer insights into a wide array of mortgage options. These specialists can explain the differences between fixed- and adjustable-rate mortgages and enable you to select the right mortgage option based on your financial situation.
As you prepare to buy a house, you may want to consult with a real estate agent as well. In fact, with a real estate agent at your side, you can seamlessly navigate the homebuying process.
A real estate agent understands exactly what it takes to acquire a house, regardless of the finances at your disposal. This housing market professional can set up home showings, help you submit offers on houses and ensure you can purchase a residence that matches or exceeds your expectations. And if you need help getting a mortgage, a real estate agent may even be able to connect you with the top lenders in your city or town.
Ready to move forward in the homebuying journey? Use the aforementioned tips, and you can finalize a mortgage application and secure the financing that you need to acquire your ideal residence.
You’ve been binging on HGTV and DIY network every weekend while you save up your money and you’re ready to take the plunge. Your agent tours you through several potentials and there it is … the perfect corner lot, the mediocre house with the awkward layout, chopped up floor plan, aging kitchen, and dated bathrooms. It’s just waiting to reveal shiplap behind the cracked plaster, original hardwood floors under the stained and dusty carpet, and other treasures you can only dream about until their uncovered.
You make the deal … now it’s all yours. Where do you go from here?
Find the right professional
Ideally, a contractor with renovation experience toured the property with you, casting a professional eye over potential problems and exciting possibilities before you made the deal. If not, engage one now. Renovations require specific knowledge of structural issues like which walls to safely remove giving you that open-concept floor plan and which might be load-bearing. Experienced pros know when to call in an engineer to determine whether to expose the beams or if the wiring needs pulling.
Make a plan
As with any project, make a basic plan before you start. Unlike new-builds, however, your plan might be more general until you’ve removed walls and studs, discarded old cabinets and fixtures, and revealed the location of existing drainpipes, wiring, support structures, and other hidden gems. With everything visible determined, it’s time for demolition. Just know that with a renovation, once demolition starts, plans can change. A supporting beam here, an unmovable drain there, a hidden chimney under that plaster … could derail your perfect original plans. When that happens, a pro can help you figure out what do.
Don’t underestimate time
Watching a 57-minute renovation on television might give you an unrealistic expectation of how long it might be until your home is ready. After all, you don’t have a trove of assistants ordering cabinets, changing out flooring samples and visiting showrooms to cull through items for you. Choice fatigue (the inability to choose between too many choices) can stymy a project for a novice.
Normal delays, hidden issues
You’ve planned, then modified the plans after the demo, selected, deselected, then re-selected the cabinets, flooring, and fixtures. Now it’s time to get approvals and permits. Moving a project through the approval process in your municipality could be smooth sailing or rife with delays. Your professional contractor should help you navigate this process, but waiting for a permit can add days, or weeks to a project.
In addition to the normal delays, your demolition may uncover other issues that require remediation. These include lead, mold, asbestos, termite damage, shifting foundations, broken pipes, and myriad other possibilities. Bringing wiring up to code and changing out electrical panels consumes precious time and adds to the delays.
Before taking on a fixer-upper, seek the advice of a real estate professional with renovation experience to help you make a plan, and plan for contingencies.