Buying a Home
Buying a home is an exciting and complex adventure. It can also be a very time-consuming and costly one if you're not familiar with all aspects of the process, and don't have all the best information and resources at hand.
One of my specialties is representing the best interests of my local area buyers throughout the home buying process. My comprehensive, high-quality services can save you time and money, as well as make the experience more enjoyable and less stressful.
If you're like most people, buying a home is the biggest investment you will ever make. So whether you're buying a starter home, your dream home or an investment property, why not take advantage of my experience as an area marketing expert for Hunterdon & Warren Counties.
Call me today to schedule an area tour or to set-up an automatic Drip Email campaign that will send you properties based on your criteria, and conveniently display them on your computer in the privacy of your own home or office. Utilize the most advanced software available to the public today, which will help you to make the most informed decisions that you can. Checkout: Photos, Tours and Detailed Information.
The following articles provide useful information and are a great place to start if you're considering buying a home.
I created the Buyer's Preferred Service for buyers that are serious about finding a home. There is zero obligation for this service and no fee. Preferred Buyers are placed ahead of all my clients and given attention specifically focused on meeting their exact needs.
Preferred Buyers Receive Completely Free:
1. Priority Listing Identification We search local listings daily to find the home that fits exactly what you desire in a home. We will then email, fax or call you with the homes we find, depending on the method you desire.
2. One-On-One Personal Attention I will make myself accessible so you can reach me at any time. Your calls will be taken as priority, no matter when you call.
3. Flexible Scheduling I will open my schedule to ensure I can show you any desired home on your timeframe.
4. Comprehensive Education We want you to feel comfortable, so I will take the time to answer your questions and provide you with plenty of material so the process of buying a home is enjoyable and not filled with uncertainty and stress.
5. Priority Team During the process of buying a home, if you need any outside services, I have a list of local companies that deliver superior professionalism in their fields. You are not required to use these providers. This service is provided so you have the option to work with providers that have a proven track record.
Sign Up Is Easy
Please fill out the form on my Home Page in the blue box. I will then start sending you updates of listings that match your specified criteria. You will be amazed on how easy this premiere service makes it to find a home!
Get The Red Carpet Treatment
Signup for the Buyer's Preferred Service! and receive red carpet treatment. You will be amazed on how easy it is to find the home you have been dreaming of! Take advantage of this service, it is free for my web visitors!
WHAT FIRST-TIME HOMEOWNERS NEED TO KNOW
If you are interested in buying your first home, don't allow myths to discourage you from trying.
With home prices increasing, it's a little more difficult for first-time homeowner simply based on price. However, with so many options available, that doesn't mean you can't qualify for a mortgage loan. You just need to know what to plan for and what questions to ask.
Studies show that many potential homeowners believe they can't buy a house when, in fact, a strong
possibility exists that they can. Close to 15% of people living in the United States state they would like to buy a home within the next few years but believe that its impossible from a financial perspective. Another 10% state they can afford a home but for other reasons, probably won't buy for a while.
Here are some myths:
In order to qualify for a house, you need 20% down
Lenders are required by law to provide you with the best possible rate for your loan
You can't qualify for a house if you've been with your current employer less than five years
Your credit must be perfect
Mortgage interest is not tax deductible
These are just myths. Now for the truth:
More and more innovative mortgage packages are being created, offering the borrowers options
between 3% and 5% down. Some lenders offer zero down, if you have excellent credit. For first-time
buyers, it's in your best interest to do some serious comparison-shopping.
Every lender works with its own rates, based on their standards as well as the type of loan being
considered. Rates change every day, so once you've made the decision to buy a house, check rates
with more than one lender, and check on a daily basis.
Job stability is important, but the five-year rule is merely a myth. For example, if you have worked in
public relations or some other industry for 10 years but have had three jobs in that time, because
you've stayed within the same business, lenders will often consider this as continuous employment,
especially if you've made advancements. In addition, solid credit and a larger down payment can
compensate for work history in some instances.
It's true that credit is very important when qualifying for any loan. However, if you have been out of a bankruptcy for two years and can provide a good letter of explanation to the lender, it will usually be
accepted. If your credit is in bad shape, consider a credit counseling service to help you get back on
track. Generally, this can be done in as little as 12 to 18 months.
As you make financial comparisons between renting versus owning, be sure to consider tax
deductions. When you buy a home, the closing costs, mortgage interest, and points are all tax
deductible. The wisest moves a first-time homebuyer can make are conduct research and ask questions. Purchasing a house is never easy for anyone. However, interest rates are currently lower than they've been since the 1960's, so if you can buy a house, this is probably a great time.
As a first-time homeowner, there are many questions you'll want to ask. It's easy to focus on the size of the rooms, the structure, and the lot, but there are other factors to consider - things you need every day to live. Here are some examples:
Public transportation - If you depend on public transportation, check available options.
Aging parents - More and more families are taking care of elderly parents; therefore, you should think about special needs your parents might have as you look at houses.
Public safety - What is the crime rate in the area? How close are public services such as police, fire, and hospital?
Parking - Will there be any issues with parking? If the house you're interested in doesn't have a
garage, does ample off-street parking exist?
Utilities - This is an important finance to review. Usually the seller can provide copies of the past few months, providing an idea of budget costs.
New communities - If the area you want is in an entirely new community, what recreational amenities are offered? Is there a clubhouse? Pool? Playground? Exercise facilities?
Property taxes - Some tax rules provide special benefits for veterans, elderly citizens, and even longtime residents. You should inquire what these benefits are and whom they cover.
When you get to the point of being serious about buying a house, follow these steps to make the qualifying and purchase process as easy as possible.
Establish good credit habits and clean up any unfavorable reports
Start saving for down payment, closing costs, and any hidden expenses. Don't forget about utilities,
moving expenses, and items needed for the home.
Research and read. Go to your local library and educate yourself about financial management and
home buying.
Start looking at various areas where you might be interested in living. Visit some open houses and do
some comparison-shopping.
Meet with a reputable real estate agent and start the preliminary process.
Remember, there is no reason to be afraid or intimidated when it comes to buying a house. The main concern expressed by young couples is that they aren't sure where to begin. There is also the fear of rejection, when in reality: their credit situation isnt as bad as they believe.
Home buying has become increasingly easier thanks to the Internet. Years ago, people hated the one- on-one approach of determining if they qualified for a loan. The Internet has made it much easier where people to check out various lenders, obtain information, and be notified online as to whether or not they qualify. In addition, mortgage advice is readily available. Whatever questions you have can easily be asked from the privacy of your own home. Responses are accurate, thorough, and always confidential.
TIPS FOR SINGLE HOMEBUYERS
There are probably few things in life that are as exciting--or as nerve-racking--as the search for a house. With an organized home-buying plan, a great deal of the emotional impact is minimized. By determining your buying power, your desires and needs, and having an organized search plan, your chances of a stress-free experience increase.
Certain types of homes may appeal a bit more to some single homebuyers. For example, since most of the maintenance will be done by one person rather than two, many single buyers prefer homes such as townhouses and condominiums where some or all of the exterior maintenance, landscaping, snow removal, etc. is handled by the homeowner's association. In addition, some single buyers prefer the community aspect of these types of homes and the sense of safety that may be conveyed by having neighbors close by.
Many single homebuyers are single parent families. A common mistake is to tailor their purchase too closely to their current needs and not enough to future resale. For example, a one bedroom, two-bath single-family home with a kitchen may be perfect for you, but it could be next to impossible to sell. It would be far better to have additional bedrooms and have them sit empty (or use them as an office, exercise room, etc.) than to not have them at all. Experts suggest that single buyers consider a few issues when preparing for and purchasing a home.
· Run before walking. This is easy to do once the decision to buy a home has been made. It means rushing off to look at homes, surfing the web, or calling on advertisements before doing some up-front preparation.
· Don't over-buy the first time. A large and beautiful home with little or no furniture tends to be empty and cold. A life where almost every dime of your earnings goes to the support of your house wears thin very quickly and is a frequent cause of family stress. Leave yourself some breathing room!
· Compare mortgages. Don't accept the first plan presented to you. Spend time comparing to garner the most advantageous plan for your requirements and financial situation.
· Get a pre-approved mortgage. Pre-qualification and pre-approvals are a necessary part of the home buying process. It will give you an exact price range for your purchase, and the pre-approval will add more strength to your offer.
· Don't wait for the "perfect" home. Many first time buyers make the mistake that if they search long enough, theyll find a home that contains 100% of their needs and wants. Instead, it makes sense to determine your top needs and desires. Then, select a home that meets the majority of them.
· The inspection process. This can involve skipping a whole house inspection completely in order to save the relatively small amount of money involved, or it may involve using a friend or relative with limited experience to conduct the inspection. In either case you run the risk of not exposing potentially expensive--or even hazardous--defects in the property. Protect yourself by investing the $200 to $500 for a professional inspection. Some experts advised that once the decision to buy a home is cemented, take time to prepare before you go on your home search.
· Get your financial house in order first!
· Determine what your budget will comfortably allow and stick to it.
· Get pre-approved for a mortgage.
· Get familiar with the different housing types available to help narrow your search.
· Determine your minimum requirements of a house as well as any additional desire features.
· Make a list of any items that you don't want in a house.
· Determine the desired location (schools, work, public transportation, etc.)
· Choose an agent that you feel comfortable with and understands your needs.
Experts suggest using a scoring system to compare homes as you search. A scorecard is a great tool when it comes time for comparisons (and for remembering which home had which features)."
First-time buyers often find out too late that buying a home can be an emotionally charged experience. Once they plunge into the process, they find out how addictive it can be. When the time arrives to make an offer, they can hardly think straight.
Here are some tips on how to handle the most common emotional and family-related problems that crop up in the home-buying process.
* PROBLEM: Should I buy or should I rent? Even if you know you would be better off financially if you buy a home, you might still be better off renting. Here are some legitimate reasons to rent: You don't know where you want to live, your desirable neighborhood is too expensive, you're at risk for a job transfer, or your company seems to be on shaky ground. You may also be carrying a lot of personal debt (credit card, car or school loans) and lack cash for a down payment. If you can't deal with the potential risk of an investment in real estate, you should also consider renting for a while longer.
* PROBLEM: I feel like I'm being talked into buying a home I can't afford. The idea behind homeownership isn't to force you into bankruptcy. If it is done correctly, you can set yourself up financially for years to come. The answer is to "under-buy." Basically, you spend less than you can afford to spend. That will leave you more cash for other investments and the ability to treat yourself and your family to a few meals out and perhaps a vacation or two.
* PROBLEM: My divorce wrecked my credit. Unfortunately, rarely does a divorce end happily for all. More likely, everyone ends up with tattered emotions. The first thing to do is purchase a copy of your credit report from each of the three major credit-reporting agencies (Experian, Trans-Union and Equifax). Start writing to creditors and try to negotiate an end to the finance charges and comply with a schedule.
If you haven't canceled your joint cards, now is the time. Pay off all outstanding bills. If you owe spousal or child support, continue making your regular payments or you could find yourself in even worse trouble.
* PROBLEM: I have a great job and lousy credit, and my spouse has great credit and a lousy job history. Mismatched careers and credit histories are extremely common. In the real world, rarely do spouses or partners generate the same amount of money. The best solution is to remain at your jobs for at least a year and work on improving the credit history.
* PROBLEM: I don't know how to approach my partner about a partnership agreement. Find a quiet, relaxing time to bring up the issue of a partnership agreement. Together, you should find a real estate attorney who can review your various options and help you outline the goals of the partnership. If the conversation becomes uncomfortable and you find yourself unable to resolve simple conflicts, you may want to rethink your choice of a home-buying partner.
* PROBLEM: We can't agree on what we want to buy. You and your spouse or partner should each write up a wish list and reality check. A wish list is everything you've ever wanted in a home, from size, shape and amenities to school district and the ideal commute to work. The reality check is everything you can't live without. Once you've completed your separate lists, sit down and combine them.
How to Avoid a Lemon:
KNOW WHAT TO LOOK FOR WHEN BUYING A HOME
Whether you are considering buying a house or selling one, conduct a rundown of property items. The
rundown could make all the difference in the world. Although not everything will require costly repairs, some might, which is why it's important to be prepared. Before you head out to look at homes or put your home on the market, check these items to ensure they are properly working:
Look for settlement cracks on the wall, floor, or ceiling. Every home, at one time or another, will get a settlement crack, so if you find a few, there's no need to panic. However, if you notice major cracks, this could be a sign of structural problems. Mark down the location of where you find cracks and point them out to the inspector, who will determine the degree of damage. If they are small cracks, they can easily be filled with plaster and repainted.
Look for leaks. Water damage marks on the walls, floors, or ceilings may simply be from a bathtub or toilet that overflowed, or it could be serious and due to a leaky roof. Also, check the tile in the
bathrooms and kitchen for any indication of behind the wall leaks, such as mildew or loose tiles.
Open and close all the doors and windows. Listen for squeaks or sticking. In most cases, this is simply a matter of spraying some lubricant such as WD-40, but it could also be another indicator of
settlement.
If there is an outside deck, check for rotted wood, which could be a sign of termites or simply old wood needing replacement.
Check all of the electrical outlets. You can simply take a working nightlight with you, plugging it in to
each outlet to make sure theyre all working properly.
Check the garage doors, if applicable. Make sure they run smoothly on the tracks and that the openers are in good working order.
Look for pests such as termites or ants. The best place to look is around the foundation, wiring, pipes, doors, and windows.
Look at the grade of the yard, front and back, to ensure that run-off water flows away from home.
Look at the gutters to ensure they are properly installed and that water flows out adequately.
Check driveway to look for crumbling concrete, pockmarks, or holes that would need to be fixed.
Have the roof looked at by a professional. Make sure the turbans are installed correctly to eliminate
any leakage and that no portions of the roof need to be fixed or replaced.
Carefully check out the heating and cooling systems. These can be high dollar expenses; so, it's
important that they are running properly. Often, these items are covered under a warranty; so if there
is a problem, see if there is warrant coverage.
If there are any fireplaces or wood-burning stoves, make sure the chimneys are clear of debris and the flues are working properly.
Caulking and weather stripping are important as well. Improper coverage will cause air leaks into the
home, raising utility bills and causing unwanted drafts. The good thing is that everything can be fixed. The bad part is that some items are costly, which is why it's so important to ensure you keep operating systems of the home in good working order. If you are buying a house, a good inspector should find all of these items and work with the seller to ensure that most or all are taken care of. If you are selling your home, having these things working properly will put you in a much better position of getting a good price for your home.
WHAT YOU NEED TO KNOW ABOUT YOUR CREDIT
BEFORE BUYING A HOME
Sometimes being approved for buying a home can be difficult; however, there are things you can do to be approved. One of the greatest obstacles with home buying is having less than perfect credit. Credit is a huge advantage when buying a home; so if you do have bad credit, before you start into the home-buying phase, take time to get copies of your credit report from the three main reporting agencies and clean up discrepancies. Keep in mind that this effort can take years, so be prepared to spend some time getting it in order.
There are things you should know before you venture out to buy your home:
· Payment history - No matter what type of loan you apply for, one of the first things any lender will look at is your payment history. If you have made payments on time and even paid off loans early, that's a bonus.
· Create a budget - This is highly recommended and will help you prepare for a home loan as well as keep you on track once you've purchased your home. If at any time you run into a problem and start to fall behind inpayments, it's very important to contact your lender to let them know. In almost every case, the lender will gladly work with you to keep you from losing your home.
· Credit Counseling - Sometimes people set up budgets with the best intentions but then slip off their schedule. There are credit counseling services that can help by setting up payment plans to help you stay on budget or get out of debt. Lenders don't want you to lose your house no more than you want to lose it. Not all lenders will work with credit counseling services, but it's always an option to ask for.
· Bankruptcies, tax liens, and foreclosures can haunt you for years. Most stay on your credit for up to ten years and can have a negative impact on purchasing a home. However, if you stay up to date on payments for two to three years after running into one of these situations, with a strong letter of explanation and the proof that you've been working to stay on target, lenders will work with you. It may take a little more work, but it is possible.
· Debt Consolidation - This is another option for reducing your debt to buy a house. In this case, the balance of your debt remains the same, but companies are willing to lower interest rates, which do two things - the help lower your outgoing monthly payment and lower the overall balance you will be paying. If you have a lot of debt and need to bring your debt to income ratio down in order to qualify for a house, this might be a consideration. The normal ratio is what's called "28/36", meaning lenders believe you cannot spend more than 28% of your gross income for housing expenses and that the total amount of debt payments cannot exceed 36% of your income for a normal 10% down payment loan.
· Flexible Guidelines - Lenders are becoming more and more flexible in order to approve people for loans. The way they do that is by allowing a greater percentage of monthly income to be used toward the mortgage payment.
· Pay-off Options - If you plan to pay off some of your debt prior to applying for a home loan, consider going after the ones with the highest balances first. Although it's nice to pay off credit cards, available credit puts a person in risk of recharging after the home loan goes through and may actually hurt you in the approval process.
· Near Pay-off or Minimum Payment - If you are close to having a loan paid off, often times a lender will overlook this debt when looking at the ratios. In addition, lenders don't look favorably at loans where only the minimum payments are made.
· FHA Changes - Recently the Federal Housing Administration, FHS, has created new mortgage programs for potential homebuyers. This means that single-family closing costs can be 100% financed where the borrower doesn't have to come up with so much money to close the deal.
· First-time Homebuyers - There are new programs with the Federal National Mortgage Association, Fannie Mae, that help first-time homebuyers, who allows slightly more debt when qualifying for a loan and raise the percentage of gross monthly income that borrowers can spend on housing payments.
· Affordable Interest Rates - This helps more people qualify when buying a new home or larger home, as well as lenders providing more attractive mortgage offers.
· Computer Programs Rate Borrowers - Traditional underwriter's judgments on how credit worth an applicant is have moved to a computerized system called "credit scoring" This new way of assessing one's ability to qualify for a loan still relies on the same information but this new systems helps determine who will default on a loan. To do this, a numerical score is assigned to each factor and then calculated. The bottom line is getting your credit in order and asking your lender for options.