This section is dedicated in providing you with useful information to help you make the best buyer decision possible.
Avoid the most common mistakes home buyers make…
- Not understanding what makes our local market unique and how to leverage that information for your benefit.
- Not being selective enough when choosing the right price range for your budget.
- Not understanding pricing and the value of certain amenities.
- Weak negotiating. This mistake alone can cost buyers thousands of dollars.
- Not requiring the proper inspections.
- Not understanding all available financing options.
- Looking for the “perfect” home.
- Not previewing school, shopping, and other neighborhood amenities.
The end of the year is a great time to buy a home, and here are 7 reasons why:
- Save on Taxes. Closing on a new home by December 31st allows you to deduct some closing fees, mortgage loan interest, property taxes and points on your loan from your tax return. There may also be deductions available from repairs, Energy Efficient Tax Credits and Home Office Deductions.
- Motivated Sellers. Many sellers will also be looking to close the sale of their property so they can enjoy tax savings on their next home purchase. They may be eager to close and flexible with negotiations.
- Less Competition. Many house hunters suspend their search until Spring. By December, most buying competition has been put off for the holidays and winter weather.
- Affordable Contractors. The winter is a slow season for many industries, including contractors, inspectors, electricians, plumbers and roofers. Your project may be completed faster and at a lower cost.
- The Joys of Homeownership. A monthly mortgage payment goes toward something you own. And when you own your home, you can make updates, decorate and have pets without running anything by a landlord.
- Equity. Your mortgage payment goes towards paying off your loan. Once you begin to pay down principal, the value of your property increases, and you build up equity.
- Extra Income. If you decide to, you can rent out your property or part of it and earn a consistent stream of revenue from tenants.
What to do before you buy a house
- Save for a down payment. The minimum down payment for an FHA loan is 3.5% of the property’s purchase price. This might be a pretty good chunk of money for many homebuyers, but don’t worry! If you’re not quite there, you can work on the rest of these steps while you save.
- Review your credit history. The better your credit history (and the bigger your down payment) the more desirable your loan terms and interest rate will be.
- Improve your credit. Pay your bills and pay them on time! If you tend to be forgetful or too busy when the first of the month rolls around, set up automatic monthly payments.
- Do not purchase any big-ticket items on credit. This includes vehicles, furniture, or even a vacation. These personal loans increase your debt-to-income ratio which in turn will decrease your borrowing power.
- Shop around for a home loan now, before you begin to shop for a home. Many homebuyers neglect this primary step toward purchasing a home. Shop around for the best loan offer. Comparing loan offers will expose big differences in loan terms and costs.
- Get a written preapproval. A preapproval letter sets you above other buyers in a competitive market. It tells sellers you mean business, and you have the money to back up your offer.
- Find a real estate agent you are comfortable with. Buying a home is a huge deal. Selection is about when, where and what price, and includes a big financial commitment. You need an expert at your side to guide you through the process and help you make intelligent decisions.
This section is dedicated in providing you with useful information to help you sell your home.
SAVE FOR:
• Down payment
• Closing costs
• Escrow for insurance and taxes
CREDIT SCORE:
• Stay current on all bills
• Do not cancel any credit cards
• Avoid major purchases
• A higher credit score leads to a lower interest rate
AFFODABILITY:
• Calculate what you can afford
• Find an online calculator that will help you plug in all pertinent numbers to deliver an estimated monthly cost
• Try BankRate.com
PRE-APPROVAL:
• Shop for the best mortgage deal
• Choose a primary and backup lender
• Seek mortgage advice
• Find low-interest mortgages or programs you may qualify for
CHOICES:
• Figure out what you want and need in a home • Create a “Home Wishlist” checklist
REAL ESTATE AGENT:
• Choose a real estate agent that you feel comfortable with
VISIT HOMES FOR SALE:
• Make notes and take photos
• Use your Home Wishlist checklist
MAKE A DECISION:
• Narrow down your choices
• Visit the neighborhood(s) during the day and night time (check for traffic, noise, activity, etc.)
• Calculate commute times
• Consider resale value
MAKE AN OFFER:
• Common contingency opt-outs: home appraisal returns less than mortgage amount, inspection reveals problems that seller will not fix, you lose your job before the deal closes, etc.
HOME INSPECTION:
• Schedule home inspection
FINAL WALK-THROUGH:
• Turn on and off every light fixture
• Run water and check for leaks under sinks
• Test all appliances
• Check garage door openers
• Open and close all doors
• Flush toilets
• Inspect ceilings, wall, and floors
• Run the garbage disposal and exhaust fans
• Test the heating and air conditioning
• Open and close windows
CLOSE:
• Close on the home and move in___Welcome Home.