Category: Buy a New Home

There are a lot of false presumptions regarding the requirements for purchasing a home. For some, the dream of homeownership remains just that, a dream, due to some common myths. 

While some misconceptions were previously correct, many are no longer relevant today. With the facts, dreams can turn into reality. 

You must have perfect credit

Having great credit does make financing a home easier, and allows for lower interest rates, but those with less than perfect credit can still get financed. Several sites provide credit scores free of charge for those unsure of their score.  

If you have a credit score of at least 580, financing is possible. For those with a score lower, there are steps you can take right now to work on repairing or creating credit, such as paying your bills on time, keeping balances below 30% of available credit, not opening new credit cards or applying for new loans, and working on paying off debt.

A large down payment is required

The mere thought of coming up with a substantial down payment is intimidating for buyers of most income levels. For some, taking years of saving to meet the down payment requirement seems daunting. Since most conventional loans require a down payment, many homebuyers think there is a down payment requirement for all loans, which is not always the case. 

There are ways to purchase a home with zero money down. Homebuyers may be eligible for government-backed loans that require little to no money down, zero or reduced closing costs, and a few additional incentives to homeownership. 

These same government-backed loan programs are very lenient on credit scores and have assisted countless homeowners. 

The process is difficult to understand

Purchasing a home is overwhelming for some, and it is the most significant financial transaction of most people’s lives. Luckily, there is an entire profession ready to assist. Real estate agents discuss the process from start to finish, often providing a detailed buyer’s guide whether you decide to work with them or not.

In working with a real estate agent, you will leverage the wealth of knowledge and network your agent/broker possesses. They know the ins and outs of the process, and will even refer reputable lenders to assist in getting you the financing you need. 

Knowledge is the key to a successful transaction. Getting the facts right and working with real estate professionals is the first step to dispelling myths and becoming a homeowner. 

If you have questions about the home buying process in the Lakeville or Apple Valley area, please reach out to me. Let’s discuss your goals and help make your dream of homeownership a reality.

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What are you looking for in a new home? Is location important to you? Do you prefer a certain style or type of house? What about square footage and lot size? If so, then your research has just begun. But before going any further, have a qualified mortgage lender pre-approve your loan. You’ll be glad that you did!

Why is this step so important? Here are 3 reasons!

Pre-approval clarifies your focus and increases your confidence.

A mortgage pre-approval is a great way to know for sure that you can afford the home before going through all of the time and energy in your search. It’s also important because getting approved isn’t guaranteed, even if you have enough cash on hand or think interest rates are favorable at present.

In order to get accurate results, lenders need detailed information about how much money you’re bringing with you into this transaction and what future expenses look like (such as gas bills, insurance, or other utilities). The more they know upfront, the better able they will be to structure an affordable mortgage plan for your needs.

The process typically takes around 20 minutes from start to finish; it includes filling out some basic personal and employment information, along with answering questions about your monthly expenses and income.

Once pre-approved, generally about 24 hours later, you can start looking for your new home confidently, knowing that you have a mortgage company behind you to provide the financing should one of these properties be right for you. You’ll know how much you can spend, as well as what your approximate monthly mortgage payment will be.

Pre-approval increases your chances of being selected if you’re in a bidding war.

Put yourself in the seller’s shoes – if you have two equal offers coming in for your home, are you going to choose the one that is more solid (with a pre-approval) or an offer where the buyers haven’t yet determined if they qualify for the purchase price? As a real estate agent, I have seen the domino effect of deals falling through when a potential buyer wasn’t pre-approved. It can be heartbreaking for multiple parties, who then may have their future plans derailed when an offer falls apart. In the current market, not having a pre-approval may mean that your offer simply is not even considered.

A word of caution – no real estate deal is final until both parties “sign on the dotted line”. Even with pre-approval. A mortgage can still be denied, such as in the case that buyers go out and take on additional debt (no new cars, boats or credit cards, please!) or experience a sudden job loss or reduction in income.

Pre-approval saves YOU heartache.

By starting the process of a pre-approval, you’ll discover if there are any obstacles in your way, such as poor credit or insufficient income. The best time to start this process is BEFORE you begin your search for the perfect home! It’s better to know now than later, when it could cost more money and ruin your chances in securing the house of your dreams. By discovering any outstanding issues early in the process, you can correct inaccuracies in your credit report, work to resolve any outstanding credit issues, and monitor your debt to income ratio.

A mortgage pre-approval is an inexpensive and quick way of knowing if you can afford a new home, before wasting hours looking at houses that are out of your price range.

By being pre-approved, you can be more confident in the offer you present to a seller, as well as have a knowledge of where your upper limit is, should you end up in a bidding war, or in a situation where you need to have an escalation clause.

I’m here to help.

As your realtor, I can help guide you through this process. Connecting with the right people, the right lender and having a team of people educated in the ins and outs of real estate may make the difference in helping you get into your perfect new home!

 

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Owning a home can be very rewarding. You get to make decisions about how you want your property to look and be utilized, instead of having a landlord dictate the terms. On top of that, there are many financial benefits associated with owning a home. Here are five great reasons why buying a home may be beneficial to you financially.

Mortgage Deductions

If you own your home, the mortgage interest deduction can help save you money on your taxes. The purpose of this incentive is to encourage homeownership. While investment properties may not be eligible for this deduction, in 2020 taxpayers could deduct mortgage interest on the first $750,000 of indebtedness, according to the irs.gov website. While it’s advisable to seek the advice of your tax preparation agent when claiming this deduction and determining eligibility, it’s clear to see this has the potential to be a significant savings.

Equity

You may build equity in your own property. With each payment, you’re potentially investing in your future, giving you the option to buy something that is maybe out of reach at the current time. As each month passes by, your ownership of your home increases, and you may eventually find yourself with equity in your property. In some cases, this could be used as collateral for loans and credit cards, should the need arise to borrow money or require additional funding when emergencies arise.

Saving Money Over Renting

It’s possible that owning a home over renting one can help save money each month. The monthly cost to rent an apartment in Lakeville (via Apartments.com) starts at $1400 and up, depending on amenities and location. This contrasts homeownership costs which can range $1200-1350 per month on average as of April 2021. As you can see, not only is your monthly payment less, but you’re also potentially building equity. Keep in mind there are other costs of home ownership that you may not be responsible for when you are a renter.

Consistency and Predictability

Home ownership gives the homeowner a layer of predictability for monthly payments. You know what your payments are going to be each month, and it’s less likely that you’ll get hit with an unexpectedly high rent hike. While some utilities may fluctuate, provided additional home loans aren’t taken, your mortgage payment will be pretty consistent over the lifetime of your loan.

Investment Opportunity

Home ownership continues to be an asset that appreciates. Home ownership can be a great way for families and individuals who are looking for more security in their finances to invest, or those that simply want an investment opportunity. The value of the property will generally increase over time because it’s not likely there is going to be a sudden decrease in demand for housing. With many other investments such as stocks and bonds, the risk factors may fluctuate, but owning a home has proven over time to be a way to gain and ultimately transfer wealth.

In conclusion, home-ownership can be financially beneficial. From tax savings, to consistency in payments, home ownership continues to be an asset that appreciates, and owning a home has proven over time to be a way for people to gain wealth. There are also many other potential benefits such as providing security in finances or being able to invest with less risk than stocks and bonds. Owning a property may not always deliver financial freedom but it does provide you with opportunities!

*This article is for informational purposes only and is not intended to provide investment, tax, or legal advice.

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1. Hire a Professional Lakeville Realtor

Now, more than ever, you need a realtor familiar with the area and well-versed in the market. Browsing on listing websites just won’t cut it. You need a realtor that can learn when houses that fit your specs are going to hit the market. I can set you up with early alerts for homes that are becoming available to give you a jump on the competition and more time to decide on an offer amount.

2. Begin with Your Best Offer

In this market, there is no room to haggle and negotiate over the course of days and weeks. Properties are gone almost as soon as they are listed. I’ll advocate for you, and keep you apprised of what a home is worth, but in a seller’s market, there is rarely room for counteroffers.

3. Be Ready to Bid

Because homes are going fast, it’s important to know what you want and make a move when you see it. If a home fits your needs and most of your wants, be prepared to make an offer. Sellers don’t have to wait. So they won’t.

Make bidding easier by pre-qualifying for a mortgage. Give yourself peace of mind by making a list of your wants and needs and checking them off during a walk-through.

4. Think Creatively

Some sellers are ready to move–they’ve secured another home or they need to relocate for work. These buyers can be motivated to opt for a quicker closing. You can also offer flexible closing terms and if possible, cover your own closing costs.

5. Consider Full Asking Price…Or More

Most sellers are well-informed of how much their home is worth–and guess what? That’s what they expect. A quick full-price offer can satisfy a buyer, and close down other offers if they accept. Depending on the price range, you may have to come out the gate with an offer over asking price. This is a huge benefit during a seller’s market since bidding wars can turn into a real headache and heartbreak for buyers.

If You’re Looking for Homes for Sale In Lakeville, Give Me a Call Now

There’s no need to wait. Just because it’s a seller’s market doesn’t mean you have to delay buying your next home. I specialize in finding the best homes in Lakeville, no matter the market. I can help you navigate this seller’s market and advise you throughout the process. Don’t wait any longer to begin the process of finding your dream home. Give me a call now.

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Buying a home is a big responsibility. It is one that shouldn’t be taken lightly. You need to make sure that you can afford a mortgage, and all of the responsibilities that come with homeownership.

That being said, many people believe that there are certain times when it is better to buy a home. Many believe that winter is one of the best times.

Here are some reasons why you may want to consider buying a home in the new year.

You can see how the house will hold up in the harshest of conditions.

Winter brings a lot of harsh conditions: snow, sleet, ice, and cold temperatures, especially in our Lakeville and Apple Valley area! When visiting homes during this time, you will be able to see if the roof is strong enough to deal with the snowfall. Leaks will be easily seen as the snow melts off of the roof.

As cold as it is, you will be able to see how efficient the heating system is. If the home seems drafty even with the heat going, you may have to replace the heating system or there may be other issues that need to be taken care of.

Home inspections during the winter can also be very informative. A good home inspector will notice things that most people wouldn’t, so it is important to hire a good inspector to go through the home.

You may be able to get a better deal on a home in the winter.

Many people reduce the cost of their home during the winter. In fact, home prices in January are usually the lowest that they will ever be! Many people reduce the price of their home by several thousand dollars in order to get them sold throughout the winter.

Add in the fact that there is less competition and you will surely be able to find the perfect home at the right price for you!

Not many people want to move in the winter months, so you shouldn’t have to worry about competing for homes. During the summer months, you may find your contract competing with several other ones, meaning that you may have to pay more in order to get that particular home. Since there are fewer people searching for homes in January, you shouldn’t have to go into a bidding war when you finally find the right home.

In fact, many consider January to be a buyer’s market.

Though many believe that spring is a seller’s market, January seems to be a buyer’s market. So, what does this mean for you? A buyer’s market means that you should be able to buy the perfect home for a good price.

When we use the term buyer’s market, we mean that you will be able to negotiate to your advantage. Since many sellers become desperate to sell their homes, they are more likely to work with the buyers to get it done. This leads to better deals and more affordable homes for buyers.

No matter what time of year it is, the best time to buy a home is when you are financially ready to! You need to have a good down payment and know what you can afford to spend each month on a mortgage. It helps to get pre-approved before you start looking so that you make sure that you find a home that you can afford. However, if you are close to being ready, you may want to try to buy a home in January, when the prices are lower and you will be able to negotiate better to get the home that you want, at a price that you can afford.

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If you’ve recently been involved in a home search, you’re probably familiar with the term “move-in ready.” It’s used to convey to homebuyers that the home they’re looking at doesn’t need any work. You can get the keys and make yourself at home.

But in hot markets where the supply of homes for sale can’t keep up with homebuyer demand, it’s rare to find homes that are perfect. Sellers who know they’re in a seller’s market don’t make as many concessions when it comes to a home’s condition. So even if you’re not buying a true fixer-upper, there might be some work to do on a newly purchased home.

If you’ve recently bought a home that needs a little work, or simply want to establish your personal touches, here are five projects to finish before moving in.

Paint

There are two primary categories of projects you’ll want to get done before moving into a home: those that will make day to day living easier and more enjoyable, and those that are best done while the house is still vacant. Painting can be a home project that falls into both categories.

Maybe the walls don’t really need paint, but you don’t love the color. Remember that when you live there, you’ll stare at that color every day. If you want to change it to something brighter, more soothing, or better suited to your furniture, painting before any of your belongings are in the way makes perfect sense.

 Flooring

Hard-surface flooring, instead of carpeting, is a trend in today’s homes. Tearing out carpeting, to install new flooring, is so much easier when a home is empty. There’s no furniture to move or cover while the new floor is going in, and there will be more room to work.

With the recent advancements in luxury vinyl products, realistic-looking tiles and planks, you can put in a new floor with minimal expense. These snap-together materials aren’t very difficult to install yourself.

Lighting

It might not be the first thing you think of, but lighting can make a huge difference in a home’s day-in and day-out livability.

A dreary, dimly lit home can put a damper on your mood, and outdated light fixtures can make even newer homes feel old. Modern fixtures can make a home feel less dated, and moving up to brighter LED bulbs, or adding new lights in a room or two, can really brighten things up.

Outdoor spaces

One of the perks of living in a home rather than a multi-family building is having your own yard. If you enjoy relaxing in the sun, grilling your meals, or playing ball with your kids, you’ll want the outdoor spaces of your home to accommodate your activities.

Depending on the time of year, it can be a real drag to move into a home that doesn’t have a deck, patio, porch, or fenced-in spot for your dog. Tackling home projects that create functional outdoor space before you move in, will mean you’ll be able to enjoy the outside of your home from day one.

Mechanicals

In most home sale processes, there will be a home inspection that should uncover any faults with a home’s mechanical systems, (furnace, air conditioner, hot water tank, appliances, etc…). Even if you waived a home inspection contingency in the purchase agreement, it’s still a good idea to have those items inspected.

If mechanical appliances are older but currently working, or have been inadequately maintained, it can be a good idea to get them tuned up or replaced, before you move in. Nothing’s worse than waking up in the middle of the night without heat or hot water. Be proactive.

The bottom line

Even “move-in” ready homes will sometimes require a little work, and if you want to take advantage of an empty home and make sure it fits your taste from the start, there are some things best done before moving day.

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