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  • Week Three – What Does the Buying Process Actually Look Like?

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    Buying a home can seem extremely daunting. Where do you even start? 

    Here is a quick overview of the buying process timeline…

    Find the Right Agent. You never want to start the home search without a knowledgeable real estate agent in your corner. Find someone who knows the market, how to negotiate, and the ins and outs of a transaction. And you’re in luck…you’ve got one right here!

    Get Pre-Approved. Before you start looking for your new home, you want to sit down with a lender and get pre-approved. This will help you determine your price range and set you up for success when making an offer.

    Find Your Home. Once you have a pre-approval, the search is on! Your real estate agent will help you not only search for homes and show them to you but help answer questions and prepare the strongest offer when the time comes.

    Make an Offer. When you find the perfect home for you, your agent should help you review comparable sales, as well as other factors like inspections and repairs, and help you structure an offer and negotiate a price and contract you are happy with.

    Inspection and Appraisal. Once you are under contract on your new home, you will want to have the home inspected, appraised, and review other due diligence documents to insure you are comfortable with the home purchase.

    Finalize Negotiations & Repairs. Final negotiations will be made regarding any inspection, appraisal, or other issues, and the loan will be put through final underwriting.

    Closing Day! Once the loan is approved, you are ready to head to the closing table. Real estate documents and loan documents will need to be signed and money collected before you get those keys in hand.

    And that’s it! You are a homeowner!

  • Week Two – Is It Time for You to Fire Your Landlord?

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    Alright, I’ve gotten you excited about homeownership and all it’s benefits, but it is time for you to finally take the plunge?

    As we talked about before, it is no secret that the benefits of owning a home far outweigh those of renting in the long run. And while those sound absolutely fantastic, does that mean are you really ready to make that commitment? 

    Let’s face it. It isn’t just about the financial commitment. Buying a home is also a very emotional decision. So before you start home shopping, take a few minutes and ask yourself these questions: 

    1. Can I afford to buy a home? Take a look at your big financial picture. Do you have enough money saved up to afford the downpayment, closing costs, and maintenance? How does your DTI (debt to income) look? If you are already living month-to-month because of debt, taking on a new commitment might not be the best option. 
    1. Are you ready to put some roots down? Buying a home is a long-term decision, so you want to make sure you are ready to commit to staying in one place for at least the next few years.
    1. Are you happy with your current job? Lenders want to see stability when you are making such a big purchase, so make sure you are happy where you are.
    1. Do you really want to buy a home? Is this something you really desire, or are you just doing it because everyone else is or tells you to? This is a big decision, and the only thing that matters is how you feel about it.

    If you have answered yes to all these questions, you are ready to go, my friend! Next step is for us to chat about your time frame. 

    And don’t forget to follow along as we talk about the next steps!

  • Week One – Why Should You Buy Rather Than Rent?

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    Are you thinking of taking the plunge into homeownership but not sure if it is the right decision?

    If you have done any research on the matter, it is no secret that the benefits of owning a home far outweigh those of renting in the long run. I could go on and on with all the statistics out there, but let’s just highlight a few of the pros and cons.

    Here are the pros…

    1. Rent increases over time. However, when you buy a home, your mortgage will not increase over the life of the loan, which is typically 30 years. This means you don’t have to worry about rent increases during every renewal.
    2. Interest rates are relatively low right now meaning owning could be more affordable. Home prices may be high, but low interest rates mean that your monthly mortgage payment could actually be lower than your monthly rent.
    3. Every month, a portion of your payment goes towards your principal, helping you build equity in your home. When you are renting, your rent pays your landlords mortgage and helps them build equity.
    4. You have the ability and freedom to customize or renovate your home. No need for those renter friendly hacks, because you are in control.
    5. Real estate tends to increase in value over time, meaning you can build wealth with real estate.

    However, the cons:

    1. Owning is a long-term decision. If you are not ready to commit to one home for at least a few years, renting may be the better option. 
    2. Owning can be more costly upfront because of your downpayment and closing costs. Renting typically only requires a deposit and first and last month’s rent.
    3. Owning is more responsibility. There is no landlord to call if the refrigerator breaks. However, there are programs like home warranties out there that can help with this, but we will talk about that later. 

    If the pros excite you, stick with me as we answer the question…Is it time for YOU to fire your landlord?

  • Heading to an Inspection? Don’t Forget These 3 Items

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    You have got your offer accepted and are on your way to the closing table. Next up is the ever important inspection. 

    Why get a home inspection you may ask? Well, every home whether new or not is bound to have an issue somewhere. Just like people, no home is perfect. But before you sign your name on the dotted line of that deed, you probably want to make sure that home isn’t a lemon. This is why you wan to hire a licensed inspector who will review the home for any major issues. 

    While not all buyers attend their own inspection, it is usually wise to at least be there for the final 30 minutes. This allows the inspector to review their findings with you in person and answer any questions you have – something that isn’t always easily done after the fact. AND when you head out, don’t forget these 3 things. 

    Notebook

    What did he say about that switch again?

    Undoubtedly, the inspector will be spitting facts and maintenance tips at you faster than the speed of light. I don’t know about you, but my brain just can’t keep up sometimes. Make sure you have a notebook (and pen) to take notes. For instance:

    1. Future Maintenance Items
    2. Potential Issues
    3. Helpful Tips

    Measuring Tape

    Is your king bed going to fit in that room? 

    You probably weren’t too concerned about measurements when you first went to look at the house, but now you have some time to take those measurements for your future furniture and projects.

    Cell Phone

    How many light fixtures were hanging over the counter? 

    After 5 years living in a house, you know it like the back of your hand, but with all the excitement, you probably weren’t able to take it all in. Now is your chance to get all the photos that the MLS didn’t provide!

  • 5 Questions to Ask Your Lender

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    Before you start your home search, you will want to sit down with a lender, get your finances in order, determine how much you can afford, and get a pre-approval. However, if you have never bought a home, this step may seem daunting because you have no idea what half this stuff means. So here are 5 questions to ask your lender to make sure you understand the process and are getting a mortgage you are happy with. 

    What type of mortgage do you recommend?

    Conventional? VA? FHA? What is the difference? While a FHA loan will usually allow you to put less money down and offer a slightly lower interest rate, a conventional loan won’t require private mortgage insurance, potentially making it a better option. Differences such as these are why it is so important to talk with your lender about the difference of each mortgage they recommend – including the benefits and drawbacks – to determine which one is best for you.

    What will my downpayment be?

    Of course, you need to know how much money this is going to cost you up front. However, it is also important to understand how much flexibility you have with that, particularly in a competitive market that sees multiple offers.

    What is my interest rate and APR?

    This number tells you how much a mortgage will cost you over the life of the loan. The higher the interest rate, the money money you are paying to borrow. While applying for a loan, it may be wise to shop for the best interest rate.

    How long can I lock my interest rate in for?

    Once your interest rate is locked in the time starts ticking. If you lock your interest rate in, make sure you know how long you have before the lock expires to ensure you do not have to pay a rate lock extension fee.

    What will my closing costs be?

    While not all closing costs are directly related to the lender – such as title fees and recording fees – a large portion of your closing costs as a buyer will be dictated by the lender. This will vary from lender to lender, so while shopping, make sure you consider.

  • 4 Ways to Make Your “Home Office” Work for You

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    Working from home is the new normal for many Americans, but many of us weren’t thinking we were going to need a home office when we bought our current home. We have resigned to using the kitchen table, the coffee table, or our nightstand for our current office space. But regardless of whether you have a designated space at home or not, you can make this space work for you. 

    Commit 

    You may not have a room with four walls and a door to call your office these days, but you need to commit to a space for your home office. Designating a spot will help you stay in your routine and keep your mindset focused. 

    Declutter

    If your home office is at the same kitchen table where everyone leaves their junk, it’s going to make it difficult to stay organized. Now that you have committed to your space, make sure it is decluttered and dedicated to work.

    Check that Background

    If Zoom calls have become apart of your daily routine, then you need to take a second and check the background of your new home office. Do you have a pile of unfolded laundry sitting on the bed or maybe a shelf of empty wine bottles? Keep those areas clear so you are already if you need to hop on a call. 

    Set the Mood

    Working from home can make it difficult to stay on task, so set the mood to help you stay focused. Make sure you have lots of natural light shining in, put on that hype music in the background, and light that candle that they don’t allow you to have at the office!

  • Thinking about Buying? Here’s How to Find your Dream Home

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    Househunters on HGTV certainly makes it seem easy, don’t they? They tell their real estate agent what they are looking for in a home. Their agent finds them three properties that fit those needs. After three showings, they are under contract on their dream home. But reality is far from that simple. 

    Finding your dream home can take weeks and sometimes even months, depending on market conditions. However, there are a few things you can do to help yourself leading up to the buying that will making finding your next home easier. 

    Know your finances. 

    Before starting out on the search, it is imperative to get your finances in order, especially in a competitive market. You will want to determine what you can afford and how much wiggle room you have in that budget. Before you meet with your real estate agent, ask yourself:

    1. Am I pre-approved for a mortgage by a lender?
    2. What is my budget?
    3. Have I saved up enough for the downpayment and home maintenance and/or repairs?
    4. Am I able and/or will to do renovations or do I need a turnkey home? 

    Know your needs. 

    You may have the idea of what the perfect home is already in your mind, but make sure that picture is realistic. Consider your current lifestyle and what you want in the future, and then sit down and make a list of must haves as well as wants before you start shopping. Ask yourself questions like:

    1. How many bedrooms do I need?
    2. Will I need more in the near future?
    3. Do I need space for an office? 
    4. Is a garage and yard necessary? 
    5. Are stairs doable?

    Choose a location. 

    You have heard the phrase “Location, Location, Location,” and it could not be more important when it comes to buying a home. You can change the color of the walls and even the location of the walls themselves, but you cannot change the location of the house. So consider this very carefully before setting your home search up.

    1. How close do I need to be for work? 
    2. How close do I want to be to the city? 
    3. Am I okay traveling 30 minutes to the grocery store? 
    4. How close am I willing to be to neighbors?
    5. Is there enough activities going on around me (or too many)?
    6. How are the schools?

    Talk to Your Realtor 

    Once you have your finances in order and a good idea of what you want in your dream home, you are ready to get your search started. Meet with your real estate agent and share with them your finances (at least what is critical for the home search), your needs/wants, and your desired location. Being upfront with your agent will make it much easier for them to help you find your dream home. We may be miracle workers, but we can’t read minds just yet!

  • How Should I Decorate if I am Selling During the Holidays?

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    If you are like me, you probably love to decorate for the holidays. However, if you are selling during the holidays, some decor can seem cluttered.

    If you are wanting to decorate while selling, it is best to keep the decor as neutral and simple as possible. So here a few easy and inexpensive tips to help bring the beauty of the season to your home while seamlessly fitting in with your current home design. 

    White Pumpkins, White Trees, and Snowflakes – White or other monochrome accents are a neutral item that can pair with any home décor. You can usually find these accents anywhere, or you can always head over to your local dollar store and find cheap nicknacks to spray paint over. They are perfect addition to shelves or mantles without being too gaudy.

    Fall leaves and Pinecones – You usually don’t see many of these in home design until the fall and winter holidays roll around, but red, orange, and yellow definitely don’t go with the rest of my house. So back to the dollar store we go! You can pick up leave picks and pinecones at the dollar store (or even your local craft store) for just a few dollars. Grab a can of spray paint that matches your current home colors, or continue on with the neutral tones, for the leaves and switch them out to pinecones once December hits.

    Sprigs of Pine – Wrapping your mantle in garland can be so beautiful during the holiday season, but it can be a little much for potential buyers. Instead, opt for sprigs of pine throughout the home.

  • Winter Maintenance Tips

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    Winter is right around the corner, so now is the time to get your home ready. Here are some things you should be doing this time of year.

    Switch your ceiling fan rotation. Having your ceiling fans moving in a clockwise direction will create an updraft that forces hot air to circulate throughout the room rather than being trapped in the rafters. 

    Seal your windows and doors. Take the time to caulk around windows and doors and apply weather stripping whenever necessary. This will help ensure your home is protected not only from water getting in but also cold air seeping into your home. 

    Have your chimney inspected. Having your chimney inspected and swept before your first fire reduces your risk of fire and carbon monoxide poisoning. 

    Trim your trees. Make sure you have any dead branches or limbs that hang close to your home and power lines removed so that they don’t break off and cause damage under the weight of snow and ice. 

    Check for leaks. Disconnect exterior hoses, drain all spigots, and engage the shut-off valve within your home for the exterior to prevent broker water pipes. 

    Service your furnace. Make sure that all components are properly cleaned and working effectively. No one wants to have their furnace go out in the dead of winter. 

  • What Should I Do Now if I Want to Buy Next Year?

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    If you are planning to buy in 2022, now is the time to start preparing. Whether you are 3 months out or a year out, you can begin getting things in place for purchasing your new home. Here are some things to think about: 

    1. Your Credit Score. Your credit score will play a huge role in how much you can afford when it comes to purchasing a home. While you can’t improve your credit score overnight, there are somethings that you can do to increase it (or at least make sure it does not decrease) in the coming months. Make sure that all your current credit bills are paid on time. Refrain from any large purchase on credit. Keep your current credit card balances as low as possible. 
    2. When saving to purchase your new home, there are a few things to consider outside of just the down payment. Usually, you will have the cost of the inspection, the appraisal, closing costs, and repair and maintenance costs. I suggest saving for the following: 5% – 20% of the purchase price for your down payment, 2% of the purchase price for closing costs, at least $1,000 for the inspection and the appraisal, and at least $2,500 in savings for potential repair and maintenance costs.
    3. Get your Financial Documents in Order. Lenders require more documentation than they used to, so it is something I always suggest getting in order before applying. The documents a lender will require vary depending on the situation, but the following are a good rule of thumb. 
    • Tax returns
    • Pay stubs, W-2s, or other proof of income
    • Bank statements and other assets
    • Credit history
    • Gift letters, if using funds that were gifted
    • Photo ID
    • Rental history, if you don’t already own a home
    • No Big Purchases.  During the loan process, your lender is going to be looking at your Debit to Income as well as funds that you have on hand to pay for the down payment, closing costs, and future payments. Big purchases can affect these numbers because 1) if they are bought using credit, your Debit to Income with change and 2) if they are bought with cash, your fund on hand will be affect. It is wise when purchasing a home to hold off on large purchases like new furniture, a new tv, or a car until after you have bought your new home. 

    Your Job.  In regards to your loan, your lender is going to look at your ability to pay back the loan. They want to see stability in your job, usually requiring tax returns for two years. If you are looking to buy in the near future, you don’t want to be looking for and starting a new job at the same time. However, an exception is usually if it is a job in the same field or a promotion. 

  • The Best Garbage Disposal Cleaning Hack

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    Do you ever get that funky smell coming from your garbage disposal? It seems like no matter how much hot water you run down the drain, you just can’t get rid of it. Well, I have just the solution for you!

    If you have seen the viral video on TikTok (almost 10 million views), then you know what I am talking about. But if you haven’t listen up…

    1. Fill your garbage disposal with about two cups of baking soda. Let it sit for 30 minutes.
    2. Next, pour white distilled vinegar down the drain a few times, until it stops bubbling.
    3. Finally, empty a pot of boiling water into the sink to rinse down the drain.

    Voila! Now you never have to worry about your garbage disposal smelling of old food again!

  • What Documents will my Lender Need?

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    The first step in the homebuying process is to get yourself pre-approved with a lender. This will ensure you are ready to make an offer on a home when you find the right one!

    A Pre-Approval is a statement from a lender showing that they have reviewed your credit score and financials and are pre-approving you to buy a home up to a certain dollar point. A pre-approval lets you know how much you can afford when it comes to buying a home, meaning you will not be shopping above your price range. It also gives the seller confidence that you are well qualified.

    In order to get a pre-approval, your lender will need to review your financial picture and will require some documents to do so. Before you sit down with a Lender, make sure you have these documents ready to go…

    • Social Security Number for all borrowers who will be listed on the loan
    • Proof of Employment
    • Proof of Income (usually your two most recent pay stubs)
    • Bank Account Statements
    • Your W-2 Statements for the last two years
    • Your Tax Returns for the last two years
    • Self-Employment Documents
    • Place of Residence (typically for the last 5 years)
    • Gift Letters (if someone is gifting you funds for the down payment)
    • Your Credit History & Score (this will be pulled by the lender from the credit bureaus)

    Once you have your pre-approval in hand, you are ready to start home-shopping!

  • What is a CMA and Why is it Important?

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    A CMA is a Comparative Market Analysis. This is a tool that real estate agents use to help determine an appropriate value for your home. A real estate agent prepares a CMA for a seller who is consider selling so that the seller has an idea of a price at which their home would likely sell.

    When preparing a CMA an agent will look at similar homes in your area that have recently sold, are currently listed, or were withdrawn from the market without selling to determine what your home may sell for in today’s market.

    Your agent will likely use properties that have similar:

    • Size
    • Bedroom Count
    • Bathroom Count
    • Location
    • Style
    • Etc

    They will consider what makes your home unique from other properties including features, upgrades, location, etc as well as qualities that may make it less desirable when compared to other homes.

    All this information is used to properly price your home when listed. Pricing is key when listing, and we want to insure it is done well off the bat. Pricing your home too high could lead to extended time on the market and lower offers.

    This is why a CMA is a crucial step in the selling process as a well-priced home will attract more buyers and sell quicker.

  • How Can I Make Sure I Make the Most Money for My Home?

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    If you are considering taking advantage of this seller’s market, you have probably wondered how much you can get for your home. If you’ve gone a step further, you have already talked to an agent and received a free valuation on your house so you have an idea of what your list price would be. But now comes the question, how do I guarantee the best possible sale price for my home? While there are no guarantees in real estate, there are some things that you can do to put yourself in the best position to make the most when selling your home. 

    1. Hire a Real Estate Agent.

    The first and most important thing that you can do to help maximize your profit on your home is not go at it alone. While selling your home yourself may look more profitable at first hand – I mean, you don’t need to pay those dang commission, right? – it could actually hurt you in the long run. There are many reasons for this, but let’s go over a few. 

    For starters, pricing your home is so important to getting the highest sales price (We will talk about this later.), however, many homeowners do not know how to accurate valuate their home. Inexperience valuating comparable sales leads to a lower list price than necessary or too high a list price making the property sit. 

    Agents have access to the MLS meaning your home will be in front of the eyes of buyers who are preapproved, actively looking, and ready to make an offer on your home, and it also means you don’t have to weed through and vet them yourself. 

    Homeowners also enter the selling process with a lot of emotions. It is to be expected because for many homeowners, your home is a private, sacred place. Your agent can help you make the best decisions because they are not emotionally invested in the home in the same way that you are. 

    Statistics show time and time again that homes listed with a real estate agent sell for more money than though listed for sale by owner. So if you are looking for the biggest payout, go ahead and get someone in your corner!

    2. Don’t Skip Home Maintenance.

    This may seem counterintuitive, and yes, I am asking you to spend a little bit of time and money. But the same saying in business applies here, “You have to spend money to make money.” 

    Unless they are looking for a property to invest into, most buyers are looking for homes with problems. In fact, avoiding plumbing, electrical, and other maintenance problems is the number one reason those that buy new construction do so, and buyers, in my experience, tend to overestimate the cost of such maintenance issues. It also causes them to look at the home with even more of a magnifying glass thinking, “If they overlooked taking care of this, what else did they miss?”

    Have you neglected to change out any filters? Have a leak you’ve been putting off? Have caulk that is in dire need of a refresh? Take a weekend before you list your house and tackle some of these issues. 

    3. Do Not Overprice Your Home.

    Again, to many sellers, this piece of advice seems counterintuitive, but it is SO. INCREDIBLY. IMPORTANT.

    The most common reasoning behind sellers wanting to price their home higher is that they hope they can then negotiate down to a price that is still higher than the listing price their agent suggests. However, in reality, the opposite typically happens. Buyers see that the house is overpriced and refrain from putting in an offer. The home sits on the market, typically with a few price drops, before finally receiving a low offer. At this point the sellers are exhausted and ready to sell, and they settle for the lower offer which is usually lower than the initial suggested price. 

    Thoughtfully consider the listing price your agent suggests, and depending on the market, consider even pricing slightly below it. This will spark buyers’ interest from the get go, and hopefully create multiple offers and maybe even a bidding war.

  • What Should You Do Prior to Getting a Pre-Approval?

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    The first step in the home buying process is to meet with a lender and get yourself pre-approved. A Pre-Approval is a statement from a lender showing that they have reviewed your credit score and financials and are pre-approving you to buy a home up to a certain dollar point. It not only lets you know how much you can afford when it comes to buying a home, but it also gives the seller confidence that you are well qualified when you find the right home and make an offer. So let’s talk about what you should be doing in order to get that pre-approval letter in your hand.

    Prepare Your Credit

    Your Credit Score will be a huge factor in what you can afford when it comes to your new home. If your credit score is high, congratulations, you are in great shape! However, if your credit score could use a little help, it’s best to clean it up as much as possible prior to sitting down with a lender. Double check there are no collection issues, and consult with a credit counselor if you need help. A minimum credit score of 580 is required for an FHA loan with 3.5% down. A lower credit score will require a down payment of at least 10%.

    Find a Lender

    Next on the list is to find an amazing Lender as this is key to a successful purchase. While your bank may be your go to, don’t be afraid to shop around rates. During the mortgage process, a few credit pulls to shop rates should not affect your credit score negatively. Also, keep in mind, local lenders and in-house underwriting make it easier and faster if issues arise during the process.

    Gather Your Documents

    While you might be able to receive a pre-qualification on the phone with a lender in just a few minutes, a pre-approval is what you are really after. This will require you to provide some documentation to your lender. Considering having these items with you: 

    • Social Security Number for all borrowers who will be listed on the loan 
    • Proof of Employment
    • Proof of Income (usually your two most recent pay stubs)
    • Your W-2 Statements and Tax Returns for the last two years 
    • Self-Employment Documents
    • Bank Account Statements 
    • Place of Residence (typically for the last five years)
    • Gift Letters (if someone is gifting you funds for the down payment)
    • Your Credit History and Score (to be pulled by the Lender)

    Your lender may require further documentation for clarification. This certainly is not unusual.

    Get Preapproved and Start Shopping

    Once you have your pre-approval letter in hand, you will be ready to start shopping for your new home. But don’t wait until this moment to call me. Let’s start chatting now, and I can even help you through the process of getting pre-approved!