Top 10 Things First Time Home Buyers Should Know

May 14, 2020 by admin Leave a Comment

Buying a house is a huge deal especially when you are buying your first house. This a major and exciting purchase not to be stepped into lightly. It is best to know everything you can about the home buying process and the current local market before you make that big exciting purchase.

Here are some key things that are important to know when purchasing a home:

What is your home budget/ What can you afford?- The spending limit of what you can afford and what the bank will approve you for can be two different things. In some cases the bank will pre-approve you for a number that will stretch your budget to its tightest point or even maybe go over it. It is wise to sit down and calculate your current monthly expenses minus rent and utilities you are paying for. Think of items like groceries, kids sports programs, insurance, vehicle payments, internet, gas, etc. Calculate all these expenses and then subtract them from your monthly income don’t make the mistake of stopping on this number as what you can afford now you need to subtract some money to put into savings for emergencies and home repairs/upkeep. Now you have a good number of what kind of payments you can afford to make on a home.
Pre-Qualified or Pre-Approved?- these are two very different things and many times first time buyers go out shopping with pre-qualification thinking that the number is locked in when it is not and the number drastically changes when officially doing paperwork. Pre-Qualification is an educated unofficial guess of what you may be eligible for pre-approval is what you want. In the pre-approval process your credit score and debt to income ratio are checked giving you a more solid number and a better bargaining tool when you make an offer.
Credit Score- Find a company that will give you a free copy of your credit report. Yes the mortgage lender will pull a copy when obtaining pre-approval but it is good to know what is on your report before applying and shopping for homes. If there is any incorrect information on the report it is easier to get it fixed before the loan process than when you are in contract on a home.
Type of Mortgage-Mortgages and financial jargon are confusing to a large number of us. It is very important that you ask every question you can possibly think of to know what mortgage is best for you. A great broker will make sure to ask plenty of questions to get to know your financial situation and find the best loan for you. Factors that will determine the best mortgage for you are; your current financial situation, if you financial situation will change over the next five years, if your income is steady or fluctuates, and how long you plan to stay in the home.
Documents Needed- when applying for a loan they will want to look at: W-2’s, pay stubs, bank statements, list of assets

Reasonable Offer- it is important to have a reputable buyers agent on your side. They can help you save money and know just how much is a fair offer on a home. They know the current market and many owners have listed homes above market value. You don’t have to offer list price to purchase a home. They can also advise you should you enter a bidding war or counter offer.
Inspection- this is one of the most important parts of buying a home. Just because a home looks good to the eye does not mean it is in perfect condition. Many homes loans put in an inspection contingency for a reason. Always pay the money and get a home inspection you don’t want to find out there is a huge problem you are stuck fixing all on your own that you didn’t know about.
Purchase Agreement- this is the offer that you write up. This includes what you will pay for the home, any contingencies, and anything that you would like to see stay in the home like appliances or even the owners kitchen table. It also states who pays what amount of the closing costs, how much earnest money is being paid, commission that goes to agents, etc.
Insurance- to get approval for your mortgage you will need to contact an insurance agent and secure home owner’s insurance sometimes this cost can be added into the mortgage payment.
Closing Costs- one of the top questions asked by buyers is “what are closing costs?” Closing costs are the cost of putting together closing documents, taxes, and signing agent to make the purchase of the home official. This cost should be included with you pre-approval papers.

For more helpful information on the home buying process or Sunset Beach NC real estate please browse our website or contact us.

Things You May Love About a Home Now But Hate Later

February 18, 2020 by Karen Baker Leave a Comment

Things You May Love About a Home Now But Hate Later – When we are shopping for a home we can get all dreamy and excited about finding all of the things we want on our list in a home, and maybe some extra style features we didn’t expect to fall in love with. All of a sudden we are falling hard for a home and putting in an offer anxiously hoping the seller accepts our offer because “we have to have that house.”

Sometimes, when we develop a love for something the romance can fade and home features we thought we would love aren’t really our favorites. We may even wish we had the time and/or money to renovate and make them different.

Before you begin home shopping, check out this list of things many homeowners think they want in a home and later wish they had something a bit different.

Wide Open Floor Plan

Upon reading the bullet point, this one may get some people fired up. Maybe you are asking, “what would possibly be wrong with an open floor plan, it is great for entertaining, or being able to see everything while cooking in the kitchen.”

Keep in mind the bullet says WIDE open floor plan. This would be a home where all of the main rooms are one wide open space. The reason some homeowners are looking to put in walls in their open floor plans is the lack of privacy and the noise. If you have older kids that want to invite friends over they may not enjoy the rest of the family being in the same room. If you want an open floor plan we suggest looking for a home that has other multi-purpose/multi-use rooms on other floors that allow family members to do other things or have more privacy.

On a design note: Large open spaces require larger furniture and artwork, which is more expensive.

Upstairs Laundry Room

Upstairs laundry rooms seem so amazing because they sound convenient and easy. No more lugging large piles of clothes up and downstairs from the bedrooms to the washer and dryer.

Upstairs laundry rooms generate a lot of noise throughout the rest of the house. Many upstairs laundry rooms end up getting moved down to lower floors because people do not enjoy hearing little other than the washing machine through the house when it is running.

Designer Sinks

Pedestal sinks, bowl sinks, and vessel sink all add stylish appeal to a bathroom, but when it comes to using them in your day to day routines, they are no longer so glamorous.

The height of bowl sinks can make them awkward or hard to use especially if you are washing your face or your little one needs to brush their teeth. They look glamorous in home magazines and makeover shows, but the ease of use in everyday life is more difficult. They can also take more effort to clean, especially those really fancy clear glass ones.

Pedestal sinks are pretty and add to certain design aesthetics, but they are tiny. There is no counter space for products and no storage underneath for products or cleaning supplies.

These types of sinks are not practical for primary bathrooms, they are better suited to a small guest bath. Keep this in mind when home shopping.

Hardwood Floors in the Wrong Rooms

Hardwood floors are beautiful and last a long time, as long as they are in the right room and finished with the right sealant. Kitchens and bathrooms really should not have hardwood floors in them. They will take a painstaking amount of work to keep them beautiful.

Hardwood flooring in any room of the house really should have a proper coat of protective finish applied to it. So if you are in love with a home that has hardwood floors make sure you know they have been properly cared for and are not installed in rooms where it just doesn’t make sense. A better solution for these spaces are tiles made to look like hardwood. This way there is no worry about moisture and extra wear.

Are you looking for the perfect home in Sunset Beach or the surrounding Brunswick County area? I would love to help!

More Valuable Tips for Home Buyers:

Buying New Construction? Don’t Make These Home Buyer Mistakes

Unexpected Issues You May Find When Home Buying

How to Sweeten the Deal in a Multiple Offer Situation

The Basics of the Home Buying Process

January is the New Hot Month to Start Looking at Homes

January 6, 2020 by admin Leave a Comment

We may not have snow on the ground but winter is still here. However, most people think that the best time to look for homes is in the springtime and while you might have more options, you will be paying more. In a new article by Realtor.com, January appears to be the new hot month to start looking at homes. In about 20% of the nation’s largest housing markets, January with the month in which buyers logged the most listing views. Buyers seem to be trying to get ahead of the competition before the spring rush hits.

This last November 2019, the number of properties for sale drops 9.5% compared to 2018. And first-time homebuyers trying to get a deal were out of luck as the number of homes priced below $200,000 fell 16.5% over the same.

Housing markets across the country have become more competitive due to rising prices and low inventory. So savvy buyers are choosing to search for home earlier and earlier. Now that we are out of the holiday rush, homebuyers may already start thinking about buying a home in spring and starting their search now. Last year at this time, January was the busiest month for listing views on record for homebuyers in a lot of major metropolitan areas. As everyone is so busy during the holidays, buying or selling a home just isn’t on the priority list. But now that we’re passed that, the holiday decorations have been put away, buyers want to get a jump on the home-buying season.

This also means that homebuyers should consider locking in rates while their low. December had some of the lowest rates on record for any December in the past seven years so January is just a carryover from those low rates. Locking in a rate now might get you a better deal on a home within the next month or two. Many rate locks can last anywhere from 30 to 60 days so it will give you some time to search for homes without losing a low-interest rate.

Contact Us for a Reputable Lender

We love to help you find the property you’re looking for in Brunswick County or throughout Sunset Beach North Carolina and surrounding suburbs and communities. Start your online search here or contact our office at any time to get in touch with a lender in our area that we recommend or for more details on any listing you see.

What is Home Buying Power and How can a Buyer Use It?

October 28, 2019 by Karen Baker Leave a Comment

Buyers always want to have the upper hand when it comes to purchasing a property or at least getting an offer accepted. In a buyers market, the homebuyers definitely have the upper hand. This means there are plenty of properties on the market and prices are relatively low. In a seller’s market, there are plenty of buyers and very few homes, which means sellers can up the price of their property and get more eyes on their home. But how can homebuyers harness the power in a buyers market?

There are several steps to organizing your home buying power position before actually looking at property.

#1. Organize your finances.

Before looking at homes it’s important to understand how much you can actually afford in a monthly mortgage payment. Remember, that payment should include property taxes and maybe homeowner’s insurance as well. A $1000 mortgage can easily bump up to $1500 with these added fees, taxes, and potential homeowner association fees. Understanding how much you’ll be paying each month in a monthly mortgage payment plus general upkeep, you can attack the real estate market with a little more confidence and preparedness

#2. Consider up and coming neighborhoods.

An up-and-coming neighborhood is one that may have gotten a bad reputation in the past but could be turning itself around. You might see a lot of major renovation going on throughout the community and it has close proximity to other higher-end neighborhoods. Ask local stores and restaurant owners of prices have gone up in the last couple of years and if there’s a lot of young people, artists, and musicians in the area, chances are it’s on its way up. But, you can buy now and be ahead of the game later on when property values really increase.

#3. Be patient.

Finding the right home does take some know-how, knowledge, the right real estate agent, and a whole lot of patients. It’s okay to make a lowball offer but if you don’t get the counter offer you had in mind, simply be patient and perhaps wait it out. A seller can change their mind and come back to the buyer’s agent asking for another offer. Don’t be afraid to walk away because it’s sellers know that you are extremely motivated to buy their home, they’re not going to budge on price or terms.

#4. Mind your manners.

This is a very elementary thing but agents take careful note of customers who view properties and polite and respectful behavior can go a long way. Even if you’re only dealing with a buyers agent, that buyers agent wants to work the best for you and being polite and courteous along the way can really work wonders. They may offer extra tips, work extra hard, or put in those extra late-night hours simply to get you the exact terms and price you want. A little “please” and “Thank you’s” really can work wonders.

#5. Penny wise, pound foolish.

Try not to get so focused on getting every aspect of the deal exactly the way you want it because you tend to lose the big picture. If you are nickel and dining the seller to death they may throw their hands up and reject everything. A good rule of thumb to remember in the home inspection report is if you ask for everything you’re likely to get nothing so run over the mandatory items and deal breakers with your real estate agent and pick and choose your battles so that everyone gets a win-win in the end.

MORE GOOD STUFF:

Does the Layout Mean More Than Square Footage?

Who Pays for What in a Real Estate Transaction?

How to Sweeten the Deal in a Multi-Offer Situation

We Submitted an Offer But Haven’t Heard a Thing, Now What?

How to Sweeten the Deal in a Multiple Offer Situation

August 6, 2019 by Karen Baker 1 Comment

Homebuyers can get frustrated when there are multiple offers on a highly desirable property. Even a solid, full price offer may not be enough to sweeten the deal. There’s smaller inventory than there was a few years ago and the demand is strong so buyers need to know how to create an amazing offer that will stand out above the crowd. Here are some simple ways to sweeten the deal on a multiple offer situation.

#1. It’s not always about the price.

Sellers are looking for more than just the price. You might’ve even offered over the asking price, but if other terms are not as favorable, your offer may get rejected.

#2. Minimize contingencies.

Of course, you’ll want the home inspected but if you know you’re going to buy the home regardless of what you find, you can waive the home inspection or offer shorter deadlines to accommodate the seller.

#3. Get preapproved.

Most buyers are preapproved for a home loan before even making an offer but if you haven’t done this, you will probably get rejected right away. Make sure you are preapproved for the exact amount you are offering and sent a letter of preapproval along with the offer to prove you’ve done your financial homework.

#4. Simplify the offer.

You don’t need a lot of flowery words to sweeten the deal. Sometimes, unneeded language can lengthen the offer and feels a little threatening to the seller. Spell out the terms of the deal without complicating things and make it as easy and as flexible as possible.

#5. Have your agent stay on the ball.

Sometimes just communicating with the listing agent is enough to stand out above the crowd. Think of it this way, if the listing agent has some random offer come faxing in or email without any communication, it probably will not get as much attention as the agent that’s talking to the listing agent, communicating on what the seller really wants, and trying to be flexible with dates and solidifying the offer before actually submitting it.

We want all of our buyers to get exactly what they’re looking for and that means submitting an offer that stands out and is really attractive to the seller. Our experience with buyers and listing agents can put your offer ahead of the crowd.

We Submitted an Offer and Haven’t Heard a Thing? What Now?

Is a Verbal Acceptance of an Offer Good Enough?

What to Expect at the Inspection of Your New Home

April 25, 2019 by Karen Baker Leave a Comment

You’ve done it! You’ve pulled the trigger on an offer and the seller has accepted! Now what? Once the seller accepts your offer, even after there has been some negotiation, the transaction moves on to inspection. This is where your earnest money will be deposited and you or your real estate agent can set up the inspection. You are free to choose whomever you want as your inspector but often times your buyer’s agent will have a list of references and reputable home inspectors for you to choose from. It is not mandatory for you or your agent to be present during the home inspection but it is strongly recommended that you attend. What to Expect at the Inspection of Your New Home

Home inspectors know a broad range of information about a lot of different things when it comes to the house. They usually are not experts on every detail of the home. If they recommend having an additional inspection, such as to the roof or to the septic system, it’s important to listen. Some home inspectors do know a lot about many different features of the home, especially if they have been in the business for several years. The more experienced the inspector, the more trustworthy their information and advice can be.

It is always important to accompany your home inspector throughout the property asking questions and learning about your home. Remember, this is one of the most expensive investments you’ll ever purchase and it’s important to know as much as you can about the property, protecting it, and maintaining it. Home inspectors will issue a report of all of their findings which then you can use to negotiate further requests for the seller.

A good rule of thumb is that if there is a lot of issues wrong with the house and you “ask for all of them to be repaired you may get nothing” and end up with the rejected or terminated real estate contract altogether. Discuss your findings with your real estate agent to determine the best way to approach the inspection report and request addendum. If there are hazardous or unsafe items, large problem areas or issues that should definitely be addressed before the home is even sold, these are items to certainly ask for. Simple items such as a missing light switch plate or holes in the walls from picture frames are probably not worth losing the deal over.

You have several choices on the inspection addendum:

You can accept the home inspection as is and move the transaction on to closing
You can request money off of the purchase price to cover any repairs after the closing
You can request certain repairs or replacements be completed before closing
You can simply reject the entire inspection and terminate the transaction walking away with your earnest money deposit.

The inspection doesn’t have to be a scary event but it is something that is critical to loving and appreciating your new home. The home inspection will also be paid out of pocket at the time of the inspection. Home inspections can run anywhere from $300-$800 depending on the type of inspection needed. Additional inspections from specialists can run as high as $1200 depending on what they are inspecting.

Finding out all you can about your new property can help you make wise financial decisions on repairs or major replacements in the future. If you have more questions feel free to give us a call at any time.

Thank you to Tina Saporito for her guest post this week. Tina is an expert in Palm Desert real estate in helping buyers and sellers in her area.

Top 10 Things First Time Home Buyers Should Know

Here are some key things that are important to know when purchasing a home:

Things You May Love About a Home Now But Hate Later

Wide Open Floor Plan

Upstairs Laundry Room

Designer Sinks