Buying a first home is often fraught with uncertainty and stress. The home buying process may be made easier and less stressful with these tips for first time home buyers.
1. Don't Stretch Your Budget:
Figure out how much you are able to comfortably afford before looking for a home. A $1000 a month rent payment does not mean you are able to afford the same mortgage payment. Owning a home has increased costs over renting. Taxes, insurance and unforeseen maintenance costs will add up to higher expenses. Consider all of these factors when deciding on a home budget. A mortgage calculator will help determine these costs.
2. Find A Real Estate Broker:
Find a reputable real estate broker. Real estate brokers will help a prospective buyer find the perfect home. Good real estate agents know the local marketplace and whether the house is for sale at a good price. They will be aware of what is available and how much is a fair price for the amenities within the home. Seasoned real estate brokers will help walk the home buyer through the negotiating process to ensure the best possible purchase price.
3. Obtain Mortgage Pre-approval:
Have financing in place before stepping foot into any home. Pre-approval is different from being pre-qualified. Pre-approval means financing up to a set amount is guaranteed by the lender. Pre-approval letters from a mortgage company offer the buyer an advantage in the negotiating point of the home purchase. Potential buyers will be able to show they are serious and have funding in place. This allows them leverage over another potential buyer who does not have mortgage pre-approval.
4. Have A Home Inspection:
Home inspections are a vital part of purchasing a property. A good inspector will look for a variety of issues to help determine if there are any problems within the home. Issues found by an inspector will allow the buyer the ability to renegotiate price. Buyers may walk away from the house if severe issues are discovered and they do not feel capable of dealing with the problems, and the seller isn't willing to fix problems found by the home inspection.
5. Remember Closing Costs:
First time home buyers need to remember closing costs. These fees typically range from two to four percent of the total loan amount. Closing costs depend on how many points the lender is charging for the loan. Buyers can sometimes negotiate closing costs with the seller paying some or all of these fees. Use a closing cost calculator to help determine your closing costs.
6. Save Some Money for Home Repairs:
Sure, putting a big down payment on your new home is a good thing. But have you thought about home repairs? It is not smart to put all of your money into your down payment, or to use the rest to make improvements. Surprises abound for first-time home buyers who may not be aware of all the ways their new home can swallow their money. Gone are the days when many homeowners could dip into their equity to replace a roof or septic system. Be proactive and keep some savings aside for unexpected home repairs, even if the inspection came up clean.
Talk to us about buying your first home. We are experienced in all these areas and can help you make the first home buying experience enjoyable, not a nightmare.
If you are anywhere near the thought of buying a house, you should do it right now. Today.
Rates are crazy low, home prices are crazy low, and supply far exceeds demand. There is no better time. And we're not the only one saying this.
Remember John R. Talbott? He wrote "The Coming Crash in the Housing Market" (2003) and "Sell Now! The End of the Housing Bubble" (2006). Well, guess what he's saying now? Buy, buy, buy! Or refinance, refinance, refinance!
Talbott makes some great points about how current home prices compare to construction and replacement costs and how incomes are currently comparing to rent prices. If you're on the fence about buying or refinancing, reading the complete article may help you make up your mind.
Then call one of our Broker Experts, who can tell you how all this applies to your specific situation.
Anyone who has ever bought a home will tell you, emotion plays a big role in the decision. However, if you don't approach the home buying process logically, you could end up making some major mistakes.
Probably the biggest area most Pensacola home buyers make mistakes with is when it comes to choosing the right mortgage.
The first thing you must do is get a good mortgage broker. There are many lenders available for a mortgage if you have decent credit, and it can be very confusing if you are going it alone. A mortgage broker has experience and connections to find you the very best rate available. The value of the home you are purchasing is only part of the cost, and even a small difference in mortgage rates can make a huge difference in savings.
Get pre-qualified for your home loan. There's nothing worse than finding your dream house, only to realize you can't afford it. Before you look for a house, get pre-qualified, or better yet, get pre-approved. Have all the pertinent information, such as, employment history, credit history and outstanding debts available, because your mortgage broker is going to need them. The best mortgage lender will then be able to tell you exactly how much you will qualify for.
Keep an eye on the economic market. Buying a home when the market is lean like it is now is a very smart move, if you can afford it. Home values rise and fall with the economy, so if you buy a home when the economy is low, chances are very good the home will increase in value and you'll realize that appreciation later on.
There are many more important home buying tips, and we have them on this site. Just click the home buying tips link under our categories section to find more important home buying tips.
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Aggressive Home Selling Strategies
Selling a house in an extremely competitive market is possible, especially if a seller is prepared to take action to help facilitate attracting a buyer. In a housing market where 'for sale' signs are springing up like mushrooms after a downpour, it's not enough to hire a real estate agent who only puts a sign in the yard, enters the information about the home on the local multiple listing service (MLS), and waits for a potential buyer to find the home.
In a buyer's market, it is imperative that sellers be more cognizant of the choices and actions they take prior to putting the home on the market. In some instances, it may even be wiser to keep the home off the market until they are fully prepared to offer it for sale. Potential buyers may not reappear to see your freshly painted entryway. How should you prepare yourself for this competitive market?
Here is a brief rundown of a must-do list to get your house noticed and sold:
The Right Agent - Rushing into choosing a real estate agent could be your first mistake in a competitive market. You must begin by interviewing several agents in order to choose the best one available for your individual circumstance, especially in such a competitive housing market.
Begin by asking some standard questions to find out what marketing plans are offered, what Internet presence can be expected, a list of past clients as references, and what type of administrative and communication systems are in place.
The real estate agent who understands the market, who is not interested in appeasing your over-priced value on your house, and who can explain what it means to sell a house in a buyer's market is the agent for you.
Choose the agent who gives you the straight talk while keeping a good rapport with you, and you will have a successful relationship and sale.
Repairs – It's time to prepare the home for sale. Aggressive sellers will hire a 
home inspection company to conduct what is termed a "pre-inspection" of the house. This pre-inspection will identify potential defects in the home that will eventually show up through a buyer's inspection, possibly terminating any offers on the table. By discovering defects and making the corrections well before a buyer has an opportunity to back out, the home will get a second and third showing, resulting in more offers.
When a pre-inspection is conducted, it is best to inform potential buyers of it by leaving a copy of the inspection report at the home as well as have it posted on the multiple listing service. Don't forget to do those little repairs, too. It's not just about whether the furnace works; buyers notice things like broken light switches and squeaky doors. It may seem trivial, but each one starts a fingernails-on-the-blackboard response in a buyer which can result in losing a follow-up showing.
Curb Appeal – In addition to making repairs to the actual home, taking a look at 
the landscaping and entry is another key to selling a home in a buyer's market. Landscaping and your front door has a tremendous impact on the first impression a buyer will get when they first see the home.
You may be thinking that buyers are fickle, and they may very well be. But, regardless of whether you think something like a few flowers and a fresh coat of paint is trivial, your buyer may not. Having a potential buyer come back for a second look because they felt welcomed by the first impression they got at your front step can make the difference between selling and sold.
Photos of your home will be posted on the Internet, printed on flyers, and used in other publications if you have an aggressive agent. Simple things like potted plants, trimmed shrubbery, and neat entries make a difference.
Photographs aren't very forgiving. You can't make up for that peeling paint or pile of dead leaves with a clever description of your home or even cinnamon rolls baking in the oven. Pictures are not forgiving, so be sure your landscaping and entry are meticulous, even if you have to postpone your listing until you get it done.
Staging – Take a look at your home from a buyer's perspective. This is hard to do 
because you have an emotional attachment to your home. But, consider coming into your home for the first time as a new owner. You may have furniture that perfectly matches your green walls, but not everyone does. You may have the perfect kids' rooms for your toddlers, but not everyone has toddlers. Invest in neutral tone paint and cover up all those lovely colors.
You also need to take a look at replacing carpeting, putting away all your knick-knacks, rearranging your furniture, and even storing most of your items to clear the way for a buyer's imagination.
Many sellers benefit from hiring a home staging professional. These experts are trained to see the potential, and for understanding how difficult it is to de-personalize your home while it's on the market. A home staging expert is trained to see homes through the buyer's eye and will present the home so the buyer actually looks at the qualities and features of the home, rather than be distracted by the stuff the owner either loves or has become immune to.
When selling a home in a buyer's market saturated with a large inventory of homes for sale, it is imperative sellers take proactive steps prior to putting a for sale sign in the yard. Interview and hire the best real estate agent, review and repair any defects of the home, and properly stage the home so you will maximize the interest each time you show your home.
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Buying a New House? A Checklist of Items You'll Need
Last month, we looked at a list of "must do" things to consider first before starting to look for a new home. This month, we look at a list of "must-haves" when moving into your first house.
Locks and Keys
All locks should be changed in your new home. This is a good safety tip for moving into any new place, whether it's a home, apartment or a condo. You won't have to worry about who has a key to your home when you change the locks.
First Aid Kit
Accidents happen, especially around the house. Whether someone in your home gets hurt while using a tool, or just experiences a clumsy mishap, it's nice to have a first aid kit close at hand. Your first aid kit should include band aids, scissors, non-latex gloves, tape, gauze, first aid instruction booklet, aspirin, and a thermometer. You might want to include more items, but this is a good collection of basics.
Smoke Alarm
A smoke alarm should be on every level of the house and close to bedrooms where people are sleeping. Remember to check the batteries regularly. It's a good idea to make a habit of checking the batteries when you change your clocks in the spring (forward) and fall (back). Remember that smoke alarms don't last forever, and need to be replaced. Many recommend doing this at least every 10 years, if not before.
Fire Extinguisher
It's important to put fire extinguishers in places where there could be a chance of a fire, like the kitchen or the garage. Remember, fire extinguishers generally require servicing and inspecting by a fire protection service company at least annually.
Tools
When you live in an apartment or a condo, if something breaks there's a person to call to come and fix the problem. Now that you are a home owner, you're that person! So you're going to need some basic tools. Some handy tools to have in the house are a hammer, nails, drill, drill bits, staple gun, tape measure, saw, screw drivers (flathead and Phillips), wrench, pliers, WD-40, and safety glasses.
Yard Tools
Now that you have a home, you also get a lawn to take care of! That means you're going to need a few tools to tackle yard work. Items include, but are not limited to: lawn mower, shovel, rake, weed eater, push broom, watering can, wheelbarrow, garden hose, lawn sprinkler, edger, blower, and pruners. If you love doing yard work you might need a few more things, but this list is good for those of you who aren't a big fan of doing yard work. These items will help you get the chore done quicker.
Snow Blower
If you're in an area where it snows, you'll be happy to have a snow blower when the first foot of snow falls. And don't wait around for the first snowfall to get this important tool, either. It's a good idea to have snow shovels as well. Always have two on hand, that way you can always have a shovel for a helpful friend.
Cleaning Supplies
Hopefully you have these things already, but here is a good list of items every home should have to make house work easier: a vacuum, broom, wet mop, dust mop, dust cloths, furniture polish, dust pan, toilet brush, plunger, window cleaner, sponges, scrub brush, rags, towels, and a bucket.
This list should help you stock your home with essentials that will help making living in your new place a little easier!
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Transitioning Your Home to Autumn
The days are getting shorter, the weather is getting cooler and the air has an aroma that makes you think of apple cider. Autumn is in full effect in many areas already, and soon will be everywhere. Your home should reflect the coziness the change in season brings.
Not sure how to transition from the cool shades of summer to the warm hues of fall? While there are many items available to make your home inviting, these things for fall home décor will make your place look warm and cozy for your guests as they come to visit.
Candles: Choose candle scents that reflect the season – cinnamon, apple pie, marshmallow, fireside, pumpkin, candy corn, etc. If you have children or pets and don't want to risk an open flame, there are battery-operated ones that are usually accompanied by a timer you can preset for automatic ambiance. Some are vanilla or spice-scented and offer a safe, yet still charming glow.
Artificial Fruit & Vegetables: Search for faux apples, pears, gourds, squash and more at your local craft store. Place them prominently in a wide bowl or basket as a cornucopia, or simply add a couple of pieces on your kitchen windowsill or end tables to add touches of harvest to your home. You can even find them glittered or beaded for a more elegant look – near soft light they sparkle beautifully.
Corn: It's not just for corn mazes or corn on the cob – it can be a great element for decorating! Tie a bunch together with some raffia and place outside on a bale of hay, or inside, attach them to a wreath or place them in a bowl for a traditional symbol of harvest.
Leaves: A main staple of fall décor is the unique variety of colors and shapes of leaves. Individual silk leaves can be scattered on tables, leaf garlands can be strung across a staircase bannister and a leaf wreath can serve as the focal point of a mantel when hung on a wreath stand. Leaf-themed dinnerware, trays and decorative plates can be found in your local department store, that you can enjoy using all the way through Thanksgiving. If you have young children, you could grab a few leaves outside and they can sponge them on paper for artwork you can frame or hang on the fridge!
Flowers: Hardy mums accompanied by some ornamental cabbage and kale are great for a pop of color outdoors because they can withstand cooler temperatures. Purple Mexican bush sage has purple and white blooms and can reach four feet tall, flowering in September and continuing until frost occurs. If you want to make a container or window box, incorporate variegated ivy, fountain or black mondo grass, mums and a few pumpkins for a spicy seasonal look. Speaking of pumpkins…
Pumpkins: Like leaves, pumpkins are the ultimate symbol of autumn. They are 
easy to find and in various price ranges. Visit your local farmer's market or grocer for medium and large pumpkins. Visit a nearby cider mill for extra large pumpkins, mini pumpkins and special gourds. Place them on the porch, nestled between the landscaping around your home, or bring a few indoors. Leave them plain until it's closer to Halloween and then you can turn them into jack-o-lanterns!
Pillows: Add some throw pillows with embellishments to your couch or cozy chair. Square, round or oblong pillows with metallic threads, ruffles or sequins can make for a nice display. But don't limit yourself to accent pieces in common rooms – body pillows made of micro-suede can be a warmer alternative to the cotton pillowcase it's currently nestled in for a good night's rest in your own bedroom.
Table Linens: Whether you have a dining table or server, table linens in fall colors like orange, red, gold and bronze can add elegance to wood furniture. Tablecloths, runners, napkins and placemats can often be found in coordinating sets, complete with napkin rings that tie it all together for a more formal occasion. Dig out those autumn dishes you have hidden in the cabinet and add some tinted wine glasses to wow your guests!
Wood: Bring the outdoors in with distressed wood pieces like log vases or birch-themed pedestals to display candles or flowers. You can incorporate twigs, branches and berry stems for an organic look. For your front or backyard space, take wooden barrels or crates and fill them with leaves, pumpkins and hay for an effortless acknowledgement of the change in season.
Any of these ideas for fall décor will take you straight through the last Thursday of November, when you'll give thanks and start thinking about your next decorating session which includes snow and ornaments.
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