Our Real Estate Blog
The homebuying process can be stressful, particularly for those who are purchasing a house for the first time. From the time it takes to find your "dream" home to the final closing, there may be many hurdles that you'll need to overcome to secure your ideal home. As such, it sometimes can be difficult for a first-time homebuyer to maintain a positive outlook during the most challenging times.
Lucky for you, we're here to help you remain calm, cool and collected throughout the entire homebuying cycle.
Now, let's take a look at three tips to help first-time homebuyers maintain a positive outlook at each stage of the homebuying journey:
1. Establish Realistic Expectations
Although first-time homebuyers would like to believe the property buying journey will be quick and seamless, it is important to realize that problems can arise without notice. However, homebuyers who understand the ins and outs of purchasing a house should have no trouble identifying potential issues and minimizing their impact.
For example, a homebuyer who defines his or her ideal residence can narrow a home search accordingly. This homebuyer also will be able to check out a variety of houses based on assorted property buying criteria and boost his or her chances of discovering the perfect residence without delay.
A homebuyer who establishes realistic expectations will be ready for the worst-case scenarios too. And if this homebuyer submits an offer to purchase a home that ultimately gets rejected, he or she will remain confident and be ready to restart the homebuying cycle from stage one.
2. Become an Informed Homebuyer
A first-time homebuyer who learns about the housing market can improve his or her chances of getting the best possible results.
Allocating the necessary time and resources to understand the differences between a buyer's market and a seller's market, for instance, can make a world of difference for any homebuyer, at any time.
Furthermore, an informed homebuyer may be more likely than others to get pre-approved for a mortgage. With a mortgage in hand, this property buyer can set a budget for his or her home search and increase the likelihood of securing a terrific house at an affordable price.
3. Work with a Real Estate Agent
When it comes to purchasing a home for the first time, why should a homebuyer leave anything to chance? Instead, a homebuyer can work with a real estate agent to reduce the risk of potential pitfalls throughout the homebuying cycle.
A real estate agent is happy to respond to a homebuyer's concerns and questions as the property buying journey progresses. This housing market professional will even help a homebuyer maintain a positive outlook, regardless of what happens. That way, a real estate agent can assist a homebuyer through both good times and bad and ensure a property buyer can purchase a first-rate house that matches or exceeds his or her expectations.
Take advantage of these tips, and any first-time homebuyer can keep things positive at each stage of the homebuying cycle.
If you plan to purchase a house in the foreseeable future, it generally is a good idea to plan ahead for all of your potential homebuying costs. That way, you can secure the funds you need to purchase your dream house.
Now, let's take a look at three costs that every homebuyer needs to consider during the property buying journey.
1. Credit Report
A lender likely will request a verified credit report before it provides you with a mortgage. The fee for a credit report usually is minimal, but it is important to note that this fee adds to the overall cost of purchasing a house.
Oftentimes, a homebuyer can get pre-approved for a mortgage and pay a credit report fee prior to conducting a house search. On the other hand, if a buyer wants to secure financing from a lender after he or she discovers the perfect house, the cost of a credit report may be incorporated into this individual's home closing costs.
2. Home Inspection
A property inspection is crucial, as it ensures a property expert can analyze a house and identify any underlying problems with it before a buyer finalizes his or her home purchase. As such, it is paramount to account for home inspection fees to ensure you have the funds available to hire an inspector who can perform an in-depth evaluation of a house.
The cost of a home inspection varies based on the size of a residence. Meanwhile, there is no need to forgo this evaluation. Because if you ignore a home inspection, you risk encountering costly, time-intensive problems after you buy a residence.
3. Pest or Mold Inspection
A pest or mold inspection is not a requirement if you purchase a new house. Conversely, if you purchase an older residence, it typically is beneficial to inspect it for pests and mold prior to finalizing your house purchase.
Pest or mold inspection costs vary based on a home's size and location. And if you feel a home may be susceptible to pests or mold, you should pay the necessary fees to conduct a pest or mold inspection. Otherwise, you could encounter home pests or mold that may cause major problems down the line.
As you prepare to pursue your dream residence, you may want to hire a real estate agent as well. If you have a real estate agent at your side, you can receive comprehensive guidance as you navigate the homebuying journey.
In addition to teaching you about homebuying costs, a real estate agent is happy to educate you about all aspects of the housing market. Plus, a real estate agent will respond to your homebuying queries and help you make informed decisions as you search for your ideal residence.
When it comes to purchasing a house, it helps to budget accordingly. If you consider the aforementioned homebuying costs, you can craft a homebuying budget and speed up your quest to discover your dream house.
You know that you want to buy a house, but you may have only a limited amount of time to conduct a home search and discover your ideal residence. Luckily, there are many things that you can do to speed up your homebuying timeline.
Now, let's take a look at three tips to help you accelerate your journey from homebuyer to homeowner.
1. Refine Your House Search
A list of homebuying criteria is a must-have, particularly for a property buyer who wants to enjoy a quick, seamless house search. In fact, with homebuying criteria in hand, you can refine your house search and move one step closer to finding your dream residence.
As you craft a list of homebuying criteria, think about where you want to reside too. That way, you can further narrow your house search and focus exclusively on homes in your preferred cities and towns.
2. Get Pre-Approved for Home Financing
At first, it may seem like a lot of work to get pre-approved for a mortgage. But if you receive pre-approval for a mortgage, you may be able to avoid time-consuming home financing hurdles down the line.
Oftentimes, it does not take long to get the financing you need to buy a house. Banks and credit unions are available across the United States, and these financial institutions are happy to teach you about a variety of mortgage options. Then, you can select a mortgage that matches your financial needs and kick off your homebuying journey with a mortgage at your disposal.
3. Collaborate with a Real Estate Agent
If you face a time crunch to purchase a house but don't know how to start the homebuying journey, there is no need to stress. By hiring a real estate agent who can offer in-depth homebuying guidance, you can find your dream house in no time at all.
A real estate agent will do everything possible to ensure you can speed up the homebuying journey. First, he or she will learn about your homebuying goals and help you create a homebuying strategy. A real estate agent next will help you search for residences and assess houses in the cities and towns of your choice. And if you discover a house that you want to buy, a real estate agent will help you craft a competitive offer to purchase your ideal residence.
Let's not forget about a real estate agent's housing market expertise, either. A real estate agent understands how to navigate a buyer's or seller's market. As a result, he or she will make it simple for you to review houses that match or exceed your expectations. If you have concerns or questions as you pursue your dream home, a real estate agent is ready to respond to them as well.
Ready to streamline the homebuying journey? Use the aforementioned tips, and you can quickly and effortlessly find a great house and make your homeownership dream come true.
Have you heard the term “earnest money” but really aren’t sure what it means? Once you have found the perfect home and are all set to make an offer, there’s one more step that you need to take. That’s to make a deposit on the home you want to buy. This is known as an “earnest money deposit.”
The Purpose Of The Deposit
The deposit shows the seller that you’re serious about buying the home. It’s a measure that allows the seller to have some faith in you as a buyer that you’re truly moving forward with your decision; you’re ready as a buyer to make the financial commitment. This deposit allows the deal to begin on a solid basis without much question.
Is The Deposit Required Legally To Buy A Home?
From a seller’s perspective, a deposit keeps a buyer from changing their mind. If there is a significant amount of money involved, the seller sees the deposit as a way to keep the buyer locked in. This makes it easier for sellers to accept an offer.
How Much Is Expected For An Earnest Money Deposit?
These deposits don’t quite have a standard amount. The general rule is that they range from 1% of the home price up to 5%. The more expensive of a home that’s being purchased, the larger the earnest money deposit should be. In some cases, the seller may even ask for a certain amount of a deposit to ensure that buyers are serious. How much money you pay at once is often negotiable. You may be able to pay part of the money at one time and the other part at a later date.
New Construction Can Require Large Deposits
New construction homes can require large earnest money deposits- up to half of the purchase price of the home. This is because the construction costs need to be paid upfront and the bank wants proof that the units being constructed with loan money are being sold to buyers who can pay for the home.
New construction homes are often customized as well. It would be detrimental to a developer to make special changes to a home only for a buyer to walk away.
Getting The Deposit Refunded
As with everything in real estate, you’ll have a contract. If you don’t follow the terms of the contract, you risk losing your earnest money deposit. Two main reasons for buyers to walk away are a flopped home inspection or financing that falls through. Read your contracts carefully. Sellers sometimes state that deposits are nonrefundable after a certain number of days.
You need to be sure that you are covered as a buyer in the purchase and sales agreement. If you back out of a home purchase without good reason like a contingency included in the agreement) you could be out of luck when it comes to getting your deposit back.
People have different notions about living in an HOA community. As much as there is a bright side to living in such an environment, you also need to consider the potential disadvantages. Some HOAs have an organized and well-maintained neighborhood, while others may have lackluster management and community issues. Before you make your decision to move to an HOA community, understand the pros and cons of living in that environment.
What is an HOA?
An HOA (homeowners association) is an organization that oversees maintenance and enforcing rules within a group of homes. HOAs are quite common in planned condominium complexes and townhouses, but they also are found in planned communities of single-family houses. The HOA is made up of the owners who reside within or own property in that community.
Advantages of Living in an HOA Community
Typically, the association has jurisdiction over and maintains all common areas. These include pools, clubhouses, playgrounds, park areas, and all the adjoining landscaping. In many HOAs the association also maintains landscaping in the front of the home while the owner maintains their private backyard area. Some advantages
You Don’t Have to Mow the Lawn: For people who do not enjoy the tedious job of maintaining their landscape – you are in luck. The HOA community takes full responsibility for maintaining the landscape within the shared areas. You might be allowed to personalize your backyard or patio – but typically, the HOA covers all other maintenance, including pest control and tree pruning.
You Pay Monthly Fees That Include Utilities: In most HOA communities, homeowners are expected to make a monthly payment that covers all their expenses for that month. For some people having a defined estimate every month that covers utilities and other housing expenses makes it easy for them to have a financial plan.
You Have Access to Amenities: Living in an HOA environment gives you access to various recreational amenities like golf, table tennis, swimming pool, a gym, and clubhouse. You do not have to worry about cleaning or management as your association does all of these from your monthly funds.
Disadvantages of HOA Community Living
Just as there are advantages to living within an association, a homebuyer needs to be prepared for challenges that come with areas in common.
Fees: The fees charged by most HOA communities factor in expenses like maintenance of recreational facilities and cleaning of the shared spaces. Be sure you can make these monthly payments before moving to an HOA community.
No Personal Touch to Your Home Exterior: Most HOA communities restrict homeowners from adding unique touches to the outside of their homes. If you like a brightly colored front door or interesting yard decorations, an HOA community may not be the right environment for you.
Poorly Managed Community: Not all HOA communities operate smoothly. There can be various challenges within the system. When you find a community you’re interested in, speak to established owners. Ask how their particular HOA functions to get a better idea of what to expect as an incoming resident.
Less privacy: Most homeowners living in HOA homes share walls or buildings with other homeowners. If you love privacy, this might be challenging for you.
You live by the rules: There are always rules to adhere to when living in an HOA community. Be sure this idea works for you as most regulations are non-negotiable.
Depending on your lifestyle and what you want in a home an HOA community might be perfect for you. Carefully consider the pros and cons of living in such a community before committing. Ask your realtor about the HOAs in your area to better target your property search.