Our Real Estate Blog
Let's face it – there is no shortage of buyers competing for the top residences. However, there are many things you can do to rise above the homebuying competition, and these include:
1. Review the Local Housing Market
The housing market fluctuates. In some instances, the housing market may favor buyers. Or, in other cases, it may favor sellers.
If you analyze the local housing market closely, you can differentiate a buyer's market from a seller's market. You then can map out your homebuying journey accordingly.
To distinguish a buyer's market from a seller's market, you may want to look at available houses in your city or town. If homes are selling just days after they become available, a seller's market may be in place. Comparatively, if houses linger on the real estate market for an extended period of time, the real estate sector likely favors buyers.
2. Get Pre-Approved for a Mortgage
With pre-approval for a mortgage, you will know how much you can spend on a house. Then, you can narrow your house search to residences that fall within your price range.
To get pre-approved for a mortgage, you should meet with a variety of lenders. These financial institutions can teach you about many mortgage options and help you choose home financing that suits you perfectly.
Of course, selecting a mortgage can be difficult, regardless of whether you are a first-time or experienced homebuyer. But if you ask mortgage questions and perform a comprehensive home financing analysis, you can choose the right mortgage without delay.
3. Establish Homebuying Criteria
Homebuying criteria is a must, particularly for those who want to seamlessly navigate the property buying journey. Because if you enter the real estate market with homebuying criteria in hand, you can speed up the process of finding your dream residence.
As you craft homebuying criteria, you should try to define your dream house. Think about the features you want to find in a home. You next can include these features as "must-haves" on your list of homebuying criteria.
In addition, consider where you want to reside. If you hone your house search to residences in a select group of cities and towns, you may be able to quickly discover a great home that you can enjoy for years to come.
For those who require extra help during the homebuying journey, you may want to hire a real estate agent, too. In fact, with a real estate agent at your side, you can receive in-depth assistance as you pursue your ideal house.
A real estate agent understands what it takes to navigate any housing market, at any time. He or she will help you search for residences that match your expectations. Plus, if you have any homebuying concerns, a real estate agent will address them right away.
Gain a competitive advantage over rival homebuyers – use the aforementioned tips, and you accelerate the process of finding and purchasing your dream residence.
You don't need to be a real estate market expert to find and acquire a great house at a budget-friendly price. In fact, if you use common sense during your home search, you should have no trouble achieving your desired homebuying results.
Now, let's take a look at three tips to help you discover your dream home.
1. Consider Your Home Must-Haves
You know you want to purchase a house, but you still have no idea what defines your ideal residence. However, if you devote time and resources to establish home must-haves, you could speed up your house search.
Think about what will make you happy and what you need from a house. For example, if you want to own a home that is close to your office in the city, you can narrow your home search to residences in or near the city itself. On the other hand, if you require a home that offers multiple bedrooms, you can explore residences that match your needs.
2. Create a Budget
A budget often plays a key role in the homebuying journey. And if you fail to create a budget before you start a house search, you risk checking out residences that fall outside your price range.
To establish a homebuying budget, you should consider your current and future expenses. It may be helpful to make a list of your expenses and compare them against your income. Then, you can determine exactly how much you can afford to pay for a home.
You may want to get pre-approved for a mortgage, too. If you enter the housing market with a mortgage in hand, you can search exclusively for houses that you can afford.
3. Work with a Real Estate Agent
There is no reason to search for your dream home on your own. If you hire a real estate agent, you can receive comprehensive guidance as you explore houses in your preferred cities and towns.
Typically, a real estate agent is willing to go the extra mile to help you achieve the best-possible results. If you want to purchase a home near a beach, for example, a real estate agent can help you do just that. Conversely, if you want to acquire a top-notch house as quickly as possible, a real estate agent will help you accelerate the homebuying cycle.
Let's not forget about the assistance that a real estate agent can provide as you weigh the pros and cons of submitting an offer to purchase a home, either. If you find a home you may want to buy, a real estate agent can help you determine the best course of action. And if you decide to submit a homebuying proposal, a real estate agent will help you craft a competitive offer to purchase.
Want to acquire your dream home? Take advantage of the aforementioned tips, and you can use common sense throughout the homebuying journey and make your homeownership dream come true.
Your credit score is a fundamental component of a mortgage lender’s decision to approve you for a loan. It can also affect the interest rate and loan amount you can secure.
Along with your income history and down payment, a solid credit score is one of the three most important things you’ll need when it comes to buying a home.
Credit scores themselves, however, can be a complicated business. And finding out what score you need to buy a home and how to achieve that score can also be a complex topic.
So, in this post we’re going to break down some credit score basics as they relate to buying a home.
Types of credit scores
You may have heard of the three main credit bureaus, TransUnion, Experian, and Equifax. Each of these bureaus keeps a detailed credit history for everyone in America (except for those who have yet to open a line of credit or take out a loan).
Since each credit bureau may have slightly different information available data to draw from, your credit scores from each company may vary.
However, when it comes to buying a home, most lenders use a standard scoring model called a FICO score to ensure that all mortgage applicants are treated fairly when they seek a loan.
Things are further complicated by the fact that there are several different FICO scoring models designed for different types of credit. So, if you’ve seen your FICO score when applying for an auto loan, it may be a different score than you will see when applying for a mortgage.
Build credit; raise your credit score
All of the types of credit scores and scoring models can be confusing. But what you mostly need to worry about is how to boost your score.
Your credit score will be based on five main factors:
Making on-time payments
The percentage of available credit (not maxing out your cards)
Having diverse types of credit (auto loans, student loans, credit cards, etc.)
Not opening new lines of credit frequently (a red flag that you’re struggling financially)
The length of your credit history, or how long you’ve been consistently paying your bills
What score do you need to buy a home?
There are several different mortgage types available for buyers. First-time homeowners, veterans, people seeking to buy a home in a rural area, and any other number of circumstances can help you qualify for mortgages even if you have a low credit score.
A general rule, however, is that it’s always better to apply for a mortgage with a high credit score to help you secure the best possible interest rate.
Some programs do have minimum credit scores that they will accept for a mortgage. FHA loans are one common example. The Federal Housing Authority guarantees loans for people across the country who are hoping to buy their first home (or who haven’t owned a home in the last three years). Their guarantee is what enables lenders to safely approve mortgages for borrowers with low credit scores. The current requirement for an FHA loan is a credit score of 580 or higher for a mortgage with a 3.5% down payment. You can secure an FHA loan with a lower credit score, but you’ll have to make a larger down payment.
There are several other options available for hopeful homeowners when it comes to mortgages. But, if you aren’t planning on moving in the next few months and your credit score could use some work, now is the time to start focusing on building credit.
Everyone defines the term "quality of life" differently, but if you asked 100 people, you'd probably hear a lot of similar answers.
According to a Gallup study entitled "The State of American Well-Being," the basis for a good quality of life includes having a sense of purpose, feeling good about what you do every day, having supportive relationships, being motivated to achieve your goals, being able to effectively manage your finances, having the energy and health to pursue your interests, and sharing a sense of community pride. Feeling safe and liking where you live were also key ingredients in the formula for a high quality of life .
The Gallup/Sharecare report focuses on several aspects of community life, such as the role local governments play in offering amenities and resources to citizens. The study concluded that "communities that invest in active living, including bike paths, parks, walkability and public transit, have residents with better health and well-being outcomes."
While factors such as the quality of school districts and low crime rates are often foremost in the minds of house hunters, there's also a lot to be said for communities that offer public recreational facilities, educational programs, cultural events, and services that promote health, safety, and a clean environment.
Advantages that can help make one community more desirable and family friendly than another can range from free outdoor concerts and public tennis courts to the availability of farmers' markets and clean, updated playgrounds. Other features which can positively impact the quality of life in a community include well-maintained roads and bridges, the availability of dog parks, community parades, and programs to encourage the proper disposal of drugs, electronics, household chemicals, and recyclable products.
At the neighborhood level, quality of life is often measured by factors like noise, the condition of nearby properties, the overall safety and security of the area, and the amount of street traffic. Clean air, mature trees, and friendly neighbors can also contribute to a wholesome living environment that can be enjoyed for generations.
While there are many advantages to designing your own home or buying new construction, one might need to make short-term sacrifices when it comes to things like noise, neighborhood aesthetics, and other temporary inconveniences. Your real estate agent or home builder can probably fill you in on things like construction timetables and project completion dates.
If you're in the market for a new home, it's always a good idea to clarify in your own mind what you and your family needs to feel comfortable, happy, and secure. Creating a priority list of needs, desires, and preferences not only helps you stay focused in your real estate search, but also increases the probability that you'll be satisfied with your new home on a long-term basis.
If you’re a first-time buyer, odds are you’ve never seen or heard much about mortgage applications. However, for something as important as buying a home, it pays off to go into the process knowing what to expect.
Mortgage applications aren’t all that complicated in and of themselves. Most of the time, your chosen lender will walk you through the process and answer any questions that arise. However, complications do arise when it comes time to provide documentation on things like your income.
To make things easier for your first application, I’ve put together this list of frequently asked questions that first-time buyers often have about their mortgage application process.
Will applying for a mortgage hurt my credit score?
Mortgage lenders will run a credit inquiry to help determine your lending eligibility. There are two types of credit inquiries: hard and soft. A soft inquiry is a quick credit check that doesn’t affect your credit score. A hard inquiry, on the other hand, does. This means your score will be lowered slightly for a few months and then will bounce back.
Mortgage lenders run both types of inquiries. For quick, pre-qualifications, lenders typically run a soft inquiry. Then, as you progress through the approval process, they’re run a detailed credit report (hard inquiry).
What information should I have available?
Lenders will ask you for various documents. The most common things they will ask for include proof of income in the form of W-2 forms from the previous year and your most recent pay stub. They will also require a record of your other debts, including student loans, auto loans, credit card debt, and any other outstanding debt that you owe. Finally, they will ask for an inventory of your assets. This could include investments, properties, auto titles, and more.
What if I don’t work a conventional job?
People who are self-employed or have unconventional income can still qualify for a loan and will still be required to show proof of income. Lenders may ask for Form 1099 records, tax returns, or any other record or proof of income you have available.
How long does it take to complete an application?
Mortgage applications can be completed as quickly as you gather the required documentation. However, there’s more to getting approved for a mortgage than filling out an application. There will be time needed to process the application, and underwrite your mortgage. This entire process typically takes between 30 and 45 days.
Is it safe to apply for a mortgage online?
Most lenders allow you to start the application process online and their online portals are typically secure. Make sure you check your browser window to ensure that the connection to the site is secured, and you should have nothing to worry about.
Keep in mind that most online applications are designed to get you prequalified and on your way to getting a mortgage. So, if you want to avoid getting calls from the lender, you might not want to enter any data until you know you’re interested in borrowing at this time.