First of all, we want to say congratulations. Buying a home, or even thinking about buying a home is a huge step. It’s an exciting milestone in your life and a wonderful investment.
It can be so confusing when you think about how much credit you need in order to purchase a home. Many people also wonder how much money they need to be able to put down. Both of these answers are short and long. Today, we are going to tell you exactly how much credit you should have in order to buy a home. Keep reading to learn more.
The first thing to keep in mind is that it doesn’t need to be high, the negative if it’s not high though is that your internet rate will be higher. This means it will end up costing you more money over time. Therefore, trying to have the highest credit score possible is a great goal.
If you have started thinking about purchasing a home, it’s important to also try and boost your credit score. This does not mean going out and getting credit cards, so you can pay them off. In fact, you really don’t want any new credit cards coming in when you are trying to purchase a home loan. If you are getting ready (maybe a year or two away) from your first home, this is a great time to start preparing for the credit check by making it as high as possible.
There are two factors that go together to determine how you can get in your mortgage. The first is your credit score and the second is your down payment. They work together to come up with your total.
Since your home loan will go on for so many years, they want to ensure you have past examples that you will be able to pay every single month.
The minimum you want to have is a 500-credit score with 10% down on a home. This should guarantee you a home with most loans. However, bigger the better. Having a credit score in the 600 range is a lot better to ensure your chances of getting a loan and for a better rate.
Another factor that goes into your home mortgage is your salary. Your income should be at least 3 times your payment.
That all may have been a little confusing for you. We hope we cleared it up.
The more money you put down the better.
The higher your credit score is the better.
If you can make up for one of those you have a better chance of getting approved and having a lower interest rate.
Keep working hard at increasing your credit by paying off your credit card monthly and not using it on purchases too large.
For more tips on purchasing your first home, contact us today!
Your furry friend is like a family member to you. They probably feel (and sometimes act) like one of the kids. Are we right? If you answered yes, you probably want to incorporate their needs into your housing purchase.
Although you are not purchasing a house specifically for them, it’s important to have a pet-friendly home so they can live in peace
Keep reading to learn how you can keep your dog in mind while purchasing your home.
Some areas have HOA rules and regulations. If you are looking into communities with these laws, make sure there are not rules for dogs. Some even say you cannot have them. Some of the rules are not strict, but it is still important to keep any restrictions in mind.
If you have a larger dog a backyard is always a nice addition to the house. It’s important to have a well secured fence if you have a backyard though. The first step is to ensure the HOA does not have any rules against this. If there already is a fence, that’s a great positive! Fences are not impossible to build, so it’s something you can always add in the future. However, you can’t add a backyard if you don’t have the room on your property. If you have a larger dog, this is a great addition to keep in mind.
If you don’t mind your pets roaming the neighborhood, this is something to keep in mind too. Some houses are way too close to large streets to be safe for dogs. Some neighborhoods also don’t like this. If you like the idea of your dog being able to roam around free, make sure you check out the neighborhood multiple times before purchasing. Try and find another dog family and ask them questions too.
Some floors are terrible for dogs, they scratch instantly. If you plan on putting in new floors, try a distressed wood which will easily hide scratches. Also, luxury vinyl and laminate are great options. Carpet is never the best option, especially if it is lighter colors. Dogs bring in dirt and mud, it’s just natural for them to bring it in. That may mean a lot more vacuuming for you. Try and stay away from a lot of carpet, and if you do don’t get a pure white option.
If your dog is getting older stairs may not be the best option for them. If you want a two-story home and do have a dog, make sure the first floor is equipped with everything they will need. If not now, you never know what will happen in the future. Picking them up every time they need to go outside can end up being a lot of work.
When selling your home, one of the most important steps is showing your home to potential buyers. If you make mistakes during this crucial step, you can drive away buyers, and cost yourself offers on your home. This is why staging your home is so important, and why you should make sure to not have these things out in view during a home showing.
Items that showcase your political views
You want to make sure your home is appealing to as many buyers as possible, and if you lay your political views on the line, you may instantly be driving away half of your potential offers. Make sure to put away any political pictures, flags, or other items you may have out in your home.
Weapons or taxidermy
For avid hunters, this one may be difficult, but it is very important to put away any weapons or taxidermy displays that you may have showcased in your home. Hunting displays such as deer mounted on the walls may give off a sense of dread to some potential buyers, and weapons may take the focus off of your home’s great features, and just make buyers remember your house as the one with the swords or guns.
Jewelry and other valuables
Make sure to lock up or store any valuable items before showing your home to potential buyers. You will have strangers in your home walking around, and you do not want anything to go missing.
Make sure to put away any R rated material before you show your home, because many potential buyers may be with their families. The last thing you want during a showing is to make your guests uncomfortable with adult art pieces, or sexual objects.
Lots of family photos
While your family photos add sentimental value to your home for yourself, it will not for your potential buyers. You want to make sure that buyers are able to picture themselves living in your home, and they will not be able to do that with dozens of your family’s photos hanging on the walls.
You may be packing up the home as you are selling it, but make sure to keep your moving boxes put away during showings. Moving boxes will make your home seem cluttered, and will not give off the most livable impression of your home.
Home showings are an extremely important part of the home selling process, so make sure not to damage your home’s appeal by leaving these objects out. If you think ahead, and stage your home properly, you will have a great home showing, and improve your chances of receiving a fantastic offer.
If you would like to learn more about how to properly sell your home, contact us today!
Buying or selling a home is a massive decision. The steps you take along the way in this important process will have a huge impact on your finances, and overall quality of life. The first thing you should do when heading into a real estate transaction is find a professional, helpful, qualified, and experienced realtor. Your real estate agent is crucial as they will be the one helping you through this journey and making sure that you get a good return on investment in your transaction. It may be tempting to hire a friend or family member that has their real estate license, but this may actually be a mistake. Here are some of the reasons not to hire someone close to you as your realtor.
They may not be the most qualified
Just because you know and like someone doesn’t mean they are the best person for the job at hand. When buying or selling a home, you want someone who is extremely qualified to help you through the process. Your friend or family member may have great intentions, but if they are not experienced and competent enough, you may be losing out on thousands in your deal. Oftentimes, you are much better off picking an an agent that is very proficient at their job, and has a lot of positive reviews.
They may not be knowledgeable about your area
When picking a realtor, you want someone who specializes in the market you are working with. Not all real estate markets are the same, and it is important to hire someone that knows the ins and outs of the neighborhood your listing or potential home is in.
It is harder to be honest with each other
When you are dealing with someone that you aren’t close with, it is much easier to be honest. If you are dealing with a realtor that you don’t know personally, it is much easier to fire them if they aren’t working out with your transaction. With a loved one, it is tough to get rid of them if things aren’t going well. On the flip side, your realtor needs to be honest with you when you are not being realistic. Someone you are not close with will be able to tell you that your home isn’t worth as much as you think it is, or that you need to get rid of ugly furniture before a showing. It is much more difficult for a friend or family member to say these things to you because they do not want to hurt your feelings.
Mixing business with family or friends can be a disaster. Countless relationships have been destroyed over business related disagreements. With a realtor you aren’t close with, you don’t have to worry about running into them at a family reunion if your deal goes sour.
Choosing a realtor is one of the most important decisions you will make when making a real estate transaction. Oftentimes, you are much better off going with a realtor you do not know personally because of the reasons above. Remember, that there are certain situations where your loved one may be the best person for the job, and it can work out well. However, always proceed with caution. To learn more about how to hire a real estate agent, contact us today.
Buying a home is a huge decision that will greatly impact your life. If you make a mistake during this process, it may come back to haunt you for an extended period of time. Be prepared and cautious during the home buying process to make sure you do not have regrets in the future. Here are some of the most common regrets homeowners have after purchasing a home.
Agree with each decision
Oftentimes, a buyer will be so desperate to close on a home that they will agree with all of a seller’s terms, even if they are detrimental to the buyer. Never be so desperate for a home that you make poor financial decisions. If a seller is not willing to work with you, and create a fair deal for both parties, walk away. If you do not walk, you may end up regretting it later.
Not purchasing the correct size
When buying a home, it is important to try to anticipate how many bedrooms and square feet you will need. Many people anticipate that they will have a lot of children, and buy a home far too big for their current situation. Always remember that you can buy a larger home in the future if you end up having a large family down the road. On the flip side, do not buy a small home when you are planning on having a lot of people under the roof in the near future. Try to think ahead to what is realistic, and find the middle ground of the size home you should have.
Not adding in small details to the budget
Sometimes people overlook the small details of a home because they fall in love with one they view. When viewing homes, bring a list of all the features you need, and one for the features that would be nice to have. This will give you something to review when looking back at multiple homes you viewed. Remember that lacking many small details can add up into something huge.
Including location in home purchase
Location is everything when buying a home, so make sure you buy in the right area. Try to account for your commute to work, proximity to schools (even if you don’t have kids yet), amenities nearby, and how the neighborhood is projected to grow in the future. Do your research, and try to buy in an area that should rise in value over time.
Standing the searching process too late
Many people wait to start searching for a new home until they absolutely must move right away, and this is a big mistake. There is nothing worse than being rushed during the home buying process because you will likely make bad decisions out of desperation. Make sure to start looking into the home buying process long before your lease runs out, or you outgrow your current living situation.
These are some of the common regrets home buyers have after purchasing a house. If you have some forethought, and think clearly during your real estate transaction, you can avoid these mistakes and be thrilled with your home purchase decision. If you would like to learn more about how to make a great decision during a real estate transaction, contact me today!
You have probably heard that getting a home inspection is important. Whether you are getting on before you sell your home or before you purchase a home, there are important questions to ask. That is why we came up with the most important questions to ask a home inspector. We will also explain why these questions are so important. Keep reading to find out!
Ask them to be specific
The inspector may be using fancy words. Those fancy words may be leaving you confused but you continue just smile and nod your head. You also may not know a whole lot about home and the various aspects of them, so you are ready confused on many levels. During the inspection, ask the inspector to go through the entire house. If you are not completely clear on something they are saying, ask them to be specific. Don’t be afraid to ask questions about what they are telling you, and make sure that you understand the issue before moving to the next room.
Is this a big deal?
Although you want the home to be in perfect condition, small issues may not be a big deal at all. It’s important to know what a big deal is and what is a minor issue. For example, a foundation problem can be a lot more crucial and a small detail. Also, if the inspector does talk about a foundation problem, find out if it even is a big deal. Many scary sentences that include the foundation or the roof can sound like a big red flag, in realty they may be a $50 quick fix.
If you see anything that looks odd or out of place, don’t be afraid to ask questions. If there is anything bothering you about the home it is important to note it and discuss it with the home inspector.
Ask their option
Asking the question of, what is your biggest concern about this property? Can answer a lot of questions when it comes to how big or little some of the issues are. This will also allow you to leave the appointment with a mental (and sometimes written) list of things that need to be addressed with the buyer or seller.
The home inspection is a very important process during any real estate transaction. Your home is such a big investment and it is important to know if you are making a great choice or not. Knowing more details about the home will allow you to do just that. For more information on the home inspection process, or if you are buying a home, contact us today!
You may have been cruising the internet for homes for sale and noticed a home that is a steal! You probably want to buy it immediately since it is going for a fraction of the price of other homes just like it. It is probably a foreclosed home. This is not always a bad thing, but it can have its negatives. Keep reading to find out more about buying a foreclosed home.
A foreclosed home is not like a typical home purchase. It will typically only have one real estate agent involved. The seller will want a preapproval letter from a lender prior to accepting any offer. There is little to no room for negotiation. Finally, the home is sold as-is. It is completely up to the buyer to pay for all repairs.
If you have read this and you still want to buy a foreclosed home, great! Here are the 4 steps to buying one.
1) Find an agent. Try and find one with prior foreclosure experience. Some realtors will even specialize in foreclosures. (We would love to help!)
2) Get preapproved for a mortgage. These first two steps go hand in hand. Unless you are paying in cash, you will need a recent letter from a lender that will show how much money you can borrow.
3) Study the market in terms of the sale prices in homes in your area. There’s no rule what the bottom line is on that house. Make sur that you look at the real estate purchases on comparable properties. Many people call these the “comps”.
4) Remember that the home is sold as-is. There is no going back. Since repairs are almost inevitable, it’s important to budget an air conditioning or possibly heating system to need a replacement (or both).
If this still sounds great to you, then dive on in! You may end up getting a home that needs little updates and you will get a great price on a beautiful home. For more information on foreclosure homes, or to get started on buying one, contact us today!
Real estate can get very confusing. It has changed over time and the market always changes. With that said, it’s great to read facts that you should know about buying a home. It will help to educate you with the process, and what false information that could be out there. Keep reading to learn more!
How much can you afford? There are many online calculators out there that can help determine how much you will be able to qualify for. This is one of the first steps in the home buying process.
Yes, a realtor is so important. It will save you money and keep you out of any potential legal issues. Although there is a fee, it will be well worth it.
There are many kinds of loans that you can get to receive your mortgage. Some loans require 20% down and some only require 3%. It’s important to shop around to get the loan that will best suit your needs.
Make sure that you always have a home inspection done. You have the right to have a home inspection down after you have negotiated the offer. This may have you come back and let the seller know any additional issues going on in the home.
Understand that your loan has an application fees and this needs to be paid prior to closing.
The seller pays the realtor fees. Know that when you are buying, there are no realtor fees involved.
Understand how your payments work every month. Typically, your payments will not include the home owner’s insurance and property taxes like an online calculator will tell you. So, know each monthly charge prior to purchasing the home.
Get a copy of your credit report before you buy your home. This way you can correct any problems on your report before a lender sees it.
Your home has the best change of selling during the first 10 days on the market.
We hope that these tips helped! For more information on home buying, contact us today!
Shopping for homes without being pre-qualified can prevent a heart break. There are also other things that can go wrong without finishing the pre-qualification process. Learn what they are now.
Being pre-qualified is typically good for about 30 days. Once you have the documentations in hand, you are ready to start shopping!
A pre-qualification is the process in which your lender determines how much home you can afford based on your current financial budget and credit history. You may speak to a few different lenders before picking one that you will go with. Asking friends and family who they use is always a great idea.
To be pre-qualified, you must give your name, address, income, assets, and social security number. This will allow the lender to see your credit history, and what kind of loan program you are able to qualify for to purchase your new home.
It’s so important to give your lender all the correct information. For example, you may give your income before taxes and the lender is calculating your monthly income after taxes. This would leave you shopping for a home either under what you can afford or even way over your head. It’s so critical to be exact and honest with your home lender.
One you are pre-approved, you have a piece of paper to start shopping! Loan programs can change very often, so once you have the approval, it’s a good idea to start the process right away.
Many agents won’t start showing you homes without this paper. They know how devastating it can be when you fall in love with a home outside of your budget.
Lastly, if you were to fall in love with a home, you want to be able to close quickly. The buy will take you more seriously and will be more likely to accept your offer if you have already gone through the pre-approval process.
If you are ready to get started, we would love to help! Give us a call today.