Tag: House hunting

Understanding the Home Buying Process: Step By Step

Buying a home is one of the most significant investments you’ll ever make. It can be an exciting yet daunting journey, especially for first-time buyers. Understanding each step of the home-buying process can help make the experience smoother and more enjoyable. Here’s a friendly, step-by-step guide to help you navigate the path to homeownership.

Get Your Finances in Order

Before you start house hunting, you must get your finances in order. Check your credit score and review your credit report for any errors. A higher credit score can help you secure a better mortgage rate. Begin saving for a down payment; while 20% is the standard, some loans allow for lower down payments. It’s also a good idea to set aside funds for closing costs and other expenses that might come up during the buying process.

Mini house and heart, family members, US money bags on rows of rising coins on table. Family tax benefit, residential property tax concept: depicts home equity loan, real estate business investment.
 

Determine Your Budget

Knowing how much you can afford is crucial. Use an online mortgage calculator to get an idea of your monthly payments based on different home prices and interest rates. Consider your current expenses and future financial goals to ensure you’re comfortable with your budget. It’s better to be conservative with your estimates to avoid stretching your finances too thin.

Get Pre-Approved for a Mortgage

Getting pre-approved for a mortgage gives you a clear idea of how much a lender is willing to loan you and shows sellers that you’re a serious buyer. During pre-approval, a lender will evaluate your credit, income, and debt. Once pre-approved, you’ll receive a pre-approval letter, which can give you an edge in competitive markets.

 

Find a Real Estate Agent

A knowledgeable real estate agent can be your best ally in the home buying process. They have access to listings, market insights, and negotiation skills that can help you find the right home and get the best deal. Look for an agent with experience in your desired area and a good track record. Personal recommendations and online reviews can also be helpful in your search.

Start House Hunting

Now comes the fun part: house hunting! Create a list of must-haves and nice-to-haves for your new home. Consider factors such as location, size, layout, and amenities. Visit open houses and schedule private showings to get a feel for different properties. Take your time and be patient; finding the perfect home can take a while.

Make an Offer

Once you’ve found a home you love, it’s time to make an offer. Your real estate agent will help you determine a fair price based on comparable homes in the area and the property’s condition. They’ll also help you draft an offer letter, which may include contingencies such as a home inspection or financing approval. Be prepared for some negotiation with the seller until you reach an agreement.

Get a Home Inspection

A home inspection is a crucial step in the home buying process. It provides an opportunity to identify any potential issues with the property before finalizing the purchase. Hire a licensed home inspector to thoroughly examine the home’s structure, systems, and components. If the inspection reveals significant problems, you can negotiate repairs with the seller or reconsider your offer.

Home appraisal, real estate appraisers do home inspection. Property value, house assessment before purchase. Agent inspect building with magnifier. Cartoon flat illustration. Vector concept
 

 

Finalize Your Mortgage

With a signed purchase agreement in hand, it’s time to finalize your mortgage. Your lender will arrange for an appraisal to confirm the home’s value. You’ll also need to provide documentation to support your loan application, such as bank statements, tax returns, and proof of employment. Once everything is in order, you’ll receive a loan commitment letter.

Close the Deal

The final step in the home buying process is closing the deal. During the closing, you’ll sign all necessary documents, pay your down payment and closing costs, and finalize your mortgage. Your real estate agent and lender will guide you through the paperwork. Once everything is signed and the funds are transferred, you’ll receive the keys to your new home. Congratulations, you’re now a homeowner!

Move In and Enjoy

Now that you’ve successfully navigated the home-buying process, it’s time to move in and make your new house a home. Unpack, decorate, and settle into your new space. Enjoy the satisfaction and pride of homeownership, and start creating memories in your new home.

Buying a home can be complex, but understanding each step can make the process less overwhelming. With the right preparation, guidance, and patience, you’ll find the perfect home to call your own.

Virtual Home Tours: A Window Into Your Dream Home

In the fast-paced world of real estate, where time is of the essence, the emergence of virtual home tours has revolutionized the way prospective buyers explore properties. In the era of technology, these immersive experiences have become a game-changer, allowing individuals to step inside homes without leaving the comfort of their own. Let’s delve into the rise of virtual tours and how they are reshaping the real estate landscape.

The Virtual Revolution

Gone are the days of relying solely on static images and floor plans to envision your potential home. With the advent of virtual home tours, buyers can now virtually walk through properties, gaining a realistic sense of space and layout. This technology utilizes 3D imaging, providing a comprehensive view that static visuals can’t match. The keyword here is “immersive” – a quality that traditional methods often lack.

Exploring from Anywhere

One of the significant advantages of virtual home tours is the convenience they offer. Prospective buyers can explore multiple properties from the palm of their hands, whether it’s during lunch breaks, late at night, or on weekends. The keyword “convenience” encapsulates the flexibility and accessibility that virtual tours bring to the table. No need to schedule multiple in-person visits; instead, buyers can narrow down their choices efficiently.

Saving Time and Energy

The traditional process of house hunting involves a considerable investment of time and energy. Driving from one property to another, sometimes across town, can be exhausting. Virtual home tours eliminate this hassle, allowing buyers to filter out homes that don’t meet their criteria from the comfort of their home. The keyword “efficiency” shines here, emphasizing the time-saving aspect of this technological advancement.

A Detailed Glimpse

Static images can only convey so much about a property. Virtual tours, on the other hand, provide a detailed and realistic glimpse into every nook and cranny. Buyers can virtually navigate through rooms, examine fixtures, and get a feel for the overall ambiance. This level of detail ensures that buyers have a more comprehensive understanding of a property before deciding to visit it physically. The keyword “detail” underlines the depth of information available at the fingertips of potential buyers.

Reducing Foot Traffic

In the wake of global events that have emphasized the need for social distancing, virtual home tours have become an invaluable tool. By allowing buyers to explore homes online, the need for unnecessary in-person visits is significantly reduced. This not only aligns with health and safety concerns but also streamlines the process for both buyers and sellers. The keyword “safety” encompasses this aspect, highlighting the role virtual tours play in minimizing physical interactions.

Making Informed Decisions

Virtual home tours empower buyers to make more informed decisions. Armed with a realistic sense of a property’s layout, condition, and features, individuals can shortlist homes more effectively. The keyword “informed” emphasizes the shift from speculative decisions based on limited information to choices grounded in a thorough understanding of the property.

Conclusion: A New Era in Home Exploration

As we navigate the ever-evolving landscape of real estate, virtual home tours stand out as a transformative force. The convenience, efficiency, and immersive experiences they offer have reshaped the way buyers approach house hunting. With safety concerns in mind and a desire for detailed information, virtual tours have become an integral part of the home-buying journey. Embrace the virtual revolution – your dream home might just be a click away.

 

3 things you can do this week to get closer to buying a home

Many Americans are putting their home purchases on hold over the uncertainty about the housing market. While we don’t recommend trying to time the market, it’s certainly understandable that some folks are a bit trepid right now.

Even though you may not be actively looking at homes to purchase right now, there are things you can be doing so that if the opportunity arises you can jump right into the market. Let’s take a look at three of those.

1. Talk to a lender

Sure, we hear a lot about cash buyers but most need a mortgage to buy a home. Get the process started by calling or visiting a lender. Family and friends, colleagues and real estate agents are good go-to sources for names of trusted lenders.

Although the initial consultation is typically quick and involves some number crunching and a list of paperwork you may need to submit, you’ll hopefully find a lender who will take some time to walk you through the process. Check out “The Smart Way to Shop for a Mortgage Lender.”

Some lenders can also counsel you on improving (or maintaining) your credit score over the next couple of months until you’re ready to buy. If not, read up on the process at MyFico.com.

Requesting loan preapproval offers real benefits, including saving time by not wasting it looking at homes you can’t afford.

In addition, “Sellers are looking for pre-approved buyers. Many prefer to entertain offers only from pre-approved buyers,” according to the pros at Capital Bank Home Loans, and we agree.

Finding out where your finances stack up in home loans is always a good idea, so this is an important step.

Preapproval from a lender is imperative, especially if you are close to being ready to buy.

When you call or visit a lender, ask all your questions, regardless of how basic you may consider them. This includes:

  • Current interest rates
  • Is a government-backed loan or a traditional loan the best choice for you?
  • Should you go with a fixed or adjustable-rate mortgage? If you don’t understand the difference between the two, ask.
  • Which down payment assistance programs are available to you?

2. Talk to a real estate agent

Retaining a real estate agent to help you buy a home is never too early. We are happy to offer you counsel on what to do right now to make you market-ready should the occasion arise sooner than you’d thought.

Sitting down with us briefly may give you insight into the current market, expectations for the future market, and other real estate-related topics you may not have considered.

Then, be sure to regularly visit our social media platforms and blog. We post a lot of educational content that you may not find elsewhere.

Some questions you may need the answer to when we get together:

  • Which banks or lenders are best for the homebuyer
  • Can you set up your home search criteria on the website so that you can regularly search for homes for sale?

3. Internet search

Speaking of searching, the sooner you start, the more familiar you’ll become with the process.

Internet searches can help you narrow down your choice of neighborhoods, the prices there, and the types of homes.

Doing drive-throughs of neighborhoods will also help you narrow down the choices. Then, when the time is right, you will have several neighborhoods on which to focus and won’t waste your precious time on those you don’t like.

Three small steps with huge rewards when the time comes to buy your home.

Reach out if you’d like to set up a meeting. We love to talk about houses!

 

Things to consider when you want to buy a house with a pool

Some homebuyers wouldn’t think of buying a home that didn’t offer a swimming pool. You’ll typically find these folks in the warmer parts of the country. Then, there are those who didn’t have a pool on their wish list but fell in love with a home that offers one.

Whichever group you belong to, there are a few things to consider about swimming pools and the homes that wrap around them.

 

Get as much information on the pool as possible

Boat owners are familiar with the old saying that “A boat is a hole in the water you throw money into.”

The same can be said about a pool, which is a hole in the ground you throw money into.

Naturally, you’ll want to have the pool inspected and find out:

  • How old it is as well as the age of the equipment
  • The size
  • How often it’s used
  • The history of any maintenance and/or repair issues
  • Does the pool meet local and state safety requirements?

The answers to most of these questions may help you figure out how much it will cost to maintain the pool.

Maintenance of a pool isn’t quick or cheap

The goal of pool maintenance isn’t just to make it Instagram-ready. You’ll need to keep it sanitized, free of algae, and pH balanced.

If you think you’d like to save money by doing it yourself, you may, but don’t forget the time you’ll spend on the job.

Stacey Freed at AARP.org crunched some numbers and found that if you DIY  your pool’s maintenance, plan on spending “… about five to 10 hours of your spare time,” each week on it.

Nicole Shein at BobVila.com lists the bare minimum when it comes to pool maintenance tasks:

  • Cleaning out debris, such as hair, garden litter, bugs, etc. This is known as “skimming” the pool.
  • Clean out the pool’s strainer basket. This task helps “… protect the pump from any damaging materials settling in the pool and its plumbing,” claim the experts at Evoqua Water Technologies.
  • Scrub down the pool’s floor and walls to help prevent algae buildup.
  • Vacuum the pool. The pool filter doesn’t catch everything, unfortunately.
  • Refill the pool if needed.
  • Test the water to determine if it needs additional chemicals.

“It’s a good idea to skim, check the baskets, and make sure the filter is functioning as it should on a daily basis,” Shein suggests.

“Vacuuming and tending to the pool water’s chemical makeup is usually a weekly chore,” she concludes.

Then, there is the cost of the equipment and the chemicals you’ll need to purchase to do it yourself.

You can always hire a professional to maintain the pool. The average monthly cost, nationwide, for this service ranges “… between $110 and $351 per year, with an average cost of $229.” (HomeAdvisor.com)

Take all of this into account when considering a home with a pool.

Maintenance isn’t the only way a pool grabs your cash

Before you sign on the dotted line, contact your homeowner’s insurance agent (you’ve chosen one, right?).

You’ll want to get this insurance nailed down so there are no financial surprises when it comes time to close escrow. But you’ll also want to know how much coverage for the pool will run you.

“… homeowners insurance with a pool is generally priced a bit higher than the typical cost of home insurance,” suggests Christy Bieber, insurance expert for Fool.com.

Shein suggests that some insurers consider an in-ground pool as part of the home, or, it could be classified as an “other structure.”

“Liability” is the name of the insurance game when it comes to swimming pools. Perform your due diligence by having your real estate agent obtain the answers to the questions we suggested above, in the third paragraph.

The most important of these questions is the one about meeting safety requirements. These might include a fence around the pool with a secured gate and/or an alarm.

 

Does a pool add value to the home?

Good for you to consider a home’s future value before buying it.

When determining whether or not a pool adds value to a home, consider the climate in the region. For Minneapolis or Fargo residents, for instance, a pool isn’t as high on the list of wanted amenities as it is for a buyer in Las Vegas or Phoenix, where it’s likely the pool will get used year-round.

“But if you live in a typical community where some houses have pools but most do not, having a pool built will probably not have any impact on the value of your home,” Robert Taylor, a real estate investor in Sacramento, California, tells Bankrate.com.

If you have additional questions, please let us know. Advice is always free and helping you find the right house for you and your budget is always our goal.