Mortgage Pre-Approval - one of the MOST important steps in your Home Search!

Buying a house is a very exciting time for anyone and most potential homebuyers want to jump right in and start looking at houses. However, getting pre-approved for a mortgage is one of the most crucial points in beginning your home search. It is natural to want to start looking at houses immediately, but getting pre-approved first will make the process much more streamlined for everyone involved. Here are 5 reasons why you should get pre-approved before house hunting.

Saves time for everyone.

It doesn’t make sense to look at houses when you don’t know what your price range is or whether you’ll even be approved. Looking at homes takes time and while it may be fun for you, it is also work for your real estate professional. Having a pre-approval before house hunting will allow you to look at homes that you can afford and save everyone’s precious time.

You know what your budget is.

As a homebuyer you want to begin looking at homes you can afford. There is nothing worse than falling in love with a home that is outside your price range. Getting a pre-approval before house hunting will give you a realistic expectation as to what you can afford. With that number you can decide on what compromises you are willing to make to stay within that price range. This will help you to manage your expectations and emotions during your house hunt.

You will be taken more seriously.

Having a pre-approval in hand will make you look much more on top of things during the home buying process. Many realtors won’t begin showing homes until they see your pre-approval letter and know what price range of homes they should be showing you. Additionally, when it comes time to make an offer on a house, you will be taken more seriously in the eyes of a seller if you have a pre-approval letter to present. In fact, your offer may be more attractive to others because the sellers will know that you’ve already secured a mortgage loan.

It is much less risky.

If you enter into a sales contract without a pre-approval you are creating many risks for yourself. First, getting a mortgage pre-approval may take time and it may push back your closing if you don’t already have one. Secondly, if you fail to get a pre-approval after entering into a sales contract you may end up making hasty decisions or decisions based on emotions and timelines that you may later regret. Neither are risks you want to take when buying a home.

Helps expedite the closing process.

Having a pre-approval before entering into a sales contract will make the process much more streamlined. You will already have a point of contact with your lender and will most likely have a list of documentation that you’ll need to provide. You won’t have to go through the entire underwriting process and it will help you to close on your mortgage in time.

Remember these 5 reasons of why you should get pre-approved before house hunting. It saves everyone time and will help you to avoid any heartache and headache in the real estate market.

I know some very experienced and knowledgeable Mortgage Brokers who can provide valuable advice and guidance - just contact me and I'll hook you up!

5 Reasons "Bargain Hunting" for a Home Might Not Work

It's natural to want to save money when you're making a purchase as large as a home. You want to buy the best home in the best neighborhood at the best price, and you may think the only way to accomplish your goals is to look for bargains. So instead of hiring a real estate agent, you scour the market for FSBOs, power of sales, or homes that have been on the Internet too long.
While you're bargain-hunting, here are five things you should keep in mind:

Lowballing sellers doesn't work.
They don't waste time with low-ball offers that they find insulting. Just as you want the home you buy to appreciate in value, sellers purchased their homes as investments, too. They want to net as much as possible, because they took a financial risk and had the foresight to buy the home they chose.

This sense of entitlement -- that homes should only be sold at a profit - may cause them to overprice their homes or be less willing to negotiate. You'll feel the same way when it comes time for you to sell your home, so make your offer reasonably and respectfully. Show the comparables that led you to make the offer. Be open to compromise.

Other buyers are getting professional help.
Ninety percent of buyers use a real estate agent while you're spinning your wheels driving around neighborhoods and calling For Sale By Owners (FSBO)  sellers who aren't home to take your call. Soon, you'll notice that the homes you're watching are going under contract with other buyers.

True bargains are rare.
Sometimes a distressed home will impact the prices of the other homes because they typically sell at a discount of 17 percent, according to the National Association of Realtors. The other sellers may discount their homes somewhat, but if they're not in distress, don't expect them to negotiate as if they are.  A power of sale could take months to close and involves many risks and pitfalls. And while a typical home sale is usually dependent on the buyer firming up and deciding to finalize the agreement, power of sales are always within the control of the seller and have many scenarios which are out of the buyer's hands.

If a home has been on the market for a long time without a price reduction, there's usually a good reason. You have an unmotivated, unrealistic, or upside-down seller, any of which could waste your time without resulting in a purchase. Move on to a deal that you can actually make.

The home needs work.
Sometimes a home will be marketed "as is," which suggests that it needs a lot of work. Or, a home may be well maintained, but it's so out of date it looks like a vintage sit-com set. You could be looking at a money pit.

Are you willing to perform the work or pay someone else to do the work? Before you buy, get a home inspection and then get bids from contractors who can help you bring the home up to today's standards. If the purchase price and repairs come to approximately the same price as an updated home in the same area, then go for it.

It's not a bargain if it doesn't suit your needs.
A home is a good buy only if it suits your family's needs for space, features, comfort, and function. If you buy a home without enough bedrooms or baths, you'll pay more in transaction costs to sell the home and buy another that's more suitable. Choose wisely in the first place because it takes time to build equity. Your home should meet your needs for a long time.

Contact me today for a Free Home Value report or to chat about current market conditions!

Curb Appeal - First Impressions DO Count!

   

First impressions count — not just for your friends, relatives, and the UPS guy, but for yourself. Whether it’s on an urban stoop or a Victorian front porch, your front door and the area leading up to it should extend a warm welcome to all comers — and needn’t cost a bundle.

Here’s what you can do to make welcoming happen on the cheap.

1. Clear the way for curb appeal. The path to your front door should be at least 3 feet wide so people can walk shoulder-to-shoulder, with an unobstructed view and no stumbling hazards. So get out those loppers and cut back any overhanging branches or encroaching shrubs.

2. Light the route. Landscape lighting makes it easy to get around at night. Solar-powered LED lights you can just stick in the ground, requiring no wiring, are suprisingly inexpensive. We found 8 packs for under $60 online. 

3. Go glossy. Borrow inspiration from London’s lovely row houses, whose owners assert their individuality by painting their doors in high-gloss colors. The reflective sheen of a royal blue, deep green, crimson, or whatever color you like will ensure your house stands out from the pack.

4. Pretty up the view. A door with lots of glass is a plus for letting light into the front hall — but if you also want privacy and a bit of decor, check out decorative window film. It’s removable and re-positionable, and comes in innumerable styles and motifs. Pricing depends on size and design; many available for under $30.

A way to get the look of stained glass without doing custom work or buying a whole new door: Mount a decorative panel on the inside of the door behind an existing glass insert, $92 for an Arts and Crafts-style panel 20-inches-high by 11-inches-wide.

5. Replace door hardware. While you’re at it, polish up the handle on the big front door. Or better yet, replace it with a shiny new brass lockset with a secure deadbolt. Available for about $60.

6. Please knock. Doorbells may be the norm, but a hefty knocker is a classic that will never run out of battery life, and another opportunity to express yourself (whatever your favorite animal or insect is, there’s a door-knocker in its image).

7. Ever-greenery. Boxwoods are always tidy-looking, the definition of easy upkeep. A pair on either side of the door is traditional, but a singleton is good, too. About $25 at garden centers. In colder weather, make sure pots are frost-proof (polyethylene urns and boxes mimic terracotta and wood to perfection).

8. Numbers game. Is your house number clearly visible? That’s of prime importance if you want your guests to arrive and your pizza to be hot. 

Stick-on vinyl numbers in a variety of fonts make it easy, starting at about $4 per digit.

9. Foot traffic. A hardworking mat for wiping muddy feet is a must. A thick coir mat can be had at the hardware store for less than $20. Even fancier varieties can be found well under $50.

10. Go for the glow. Fumbling for keys in the dark isn’t fun. Consider doubling up on porch lights with a pair of lanterns, one on each side of the door, for symmetry and twice the illumination. Many mounted lights are available well under $100.

11. Snail mail. Mailboxes run the gamut from kitschy roadside novelties masquerading as dogs, fish, or what-have-you to sober black lockboxes mounted alongside the front door. Whichever way you go, make sure yours is standing or hanging straight, with a secure closure, and no dings or dents. The mail carrier will thank you.

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