Month: July 2019

Buying your first home? Here are three real estate professionals who will play a big role in your leap from renting to owning your own home:

Mortgage loan officer. Before you look at a single home, you should get pre-approved for financing from a reputable mortgage company. Once you’re pre-approved, you can begin your home search. By visiting with a lender first, you’ll know how much home you can reasonably afford and you’ll be able to make legitimate offers on any homes that meet your criteria.

Real estate agent. There’s a reason that nearly 90 percent of home buyers purchase their homes with the help of a real estate agent or broker. (That’s a percentage that has steadily increased from 69 percent in 2001!) An agent can guide you through one of the most important — not to mention largest — purchases of your life. Assistance from an experienced real estate professional is vital.

Home inspector. Many home buyers make offers contingent upon a home inspection. Without a professional home inspection, you may miss issues or problems that potentially could cost you a lot of money. It’s well worth the cost. A home inspector could spend several hours canvassing the property to give you an idea of the home’s condition.

In the market for a home? Here are three tips designed to help you de-stress the home buying process and buy the right home for you and your family:

Look deeper than what you see. You love the way a home is decorated, with its antique furniture, the stylish rugs, the fresh-cut flowers and all those cute knick-knacks. You can picture yourself living there. But remember, all these things won’t be there. You’re not purchasing style. Go beyond what you can see, and make sure you’re taking into account things like the condition of the roof, furnace, water heater and other important components, too.

Ask for a home inspection. A home is a big investment. Yet many home buyers neglect to request a professional home inspection. That cost of an inspection is a fraction of what it could cost to deal with foundation issues, replace a faulty furnace, or make any of several costly home repairs. An inspection is an important reality check when buying a home.

Resist buying big-ticket items. Your credit score matters when buying a home. People with lower credit scores often pay higher mortgage rates. It’s a good idea to avoid any big purchases several months before you embark on the home buying process to avoid lowering your credit score. And once you are under contract to purchase a home, you’ll want to refrain from purchasing any big-ticket items such as furniture or electronics. If you purchase large items on credit or deplete the cash in your savings before you close, it could compromise the lending process. Wait until you move in instead.

Remember, a home is a huge investment. You want the best financing deal on a sound property, so follow these strategies for a smooth experience.

Driving is a privilege, not a right. Sometimes we get lax about certain safety precautions and need a reminder of why they exist in the first place. That said, here are 4 truths about driving we should all take to heart:

1. Distracted driving is selfish (and risky). Do you think it’s considerate of other drivers to multitask? Truth is, your inattention could get somebody hurt. Put the phone down and keep eyes on the road.

2. Putting off a repair will cost you more in the end. The longer you let a problem go unintended, no matter how small, the worse it will get. So keep current with preventative maintenance and inquire about warranty coverage if you suspect you’re eligible.

3. Taking poor care of your car is inconsiderate. Having an unsafe car doesn’t only affect you — it can pose a threat to other drivers on the road. At worst, it can even affect the environment if you have any fluid leakage or emissions issues. Some states have laws on the books imposing fines on such oversights.

4. Your kids are watching, Kids often learn behaviors from their parents, their first teachers. How do you drive? Do you exhibit distracted driving patterns, or are you attentive? Set a good example so your kids will have something to aspire to.

Which one of these habits could you work on this week?

When it comes time to sell your home, you’ll need to decide which types of repairs and improvements you’ll want to make before it’s listed for sale. Should you update your kitchen? Apply fresh paint to the living room? Plant flowers? Clean or replace your worn carpet? Your real estate agent can help you determine which repairs may be the most important in appealing to the most prospective home buyers.

In general, many buyers don’t like buying a home that has a number of small maintenance problems, such as leaky faucets or a hole in a wall that needs to be patched with drywall. A number of repair issues may make prospective buyers wonder what else is wrong with your home. That’s why in many cases, you may want to consider addressing these types of issues when you’re getting your property ready to sell. Many buyers make offers contingent upon an inspection, so you may be asked to fix some maintenance issues anyway.

Larger issues, such as a furnace or roof that needs replacement, can make for a tougher decision. You may get only a portion of the investment in a large repair or renovation back when you actually sell your property. For information on the typical return on investment for renovation projects, check out Remodeling Magazine’s Cost vs. Value report.

And don’t forget: If you’re thinking of work that involves flooring or paint, don’t pick the colors and materials that you like; you’re moving! Make sure your upgrades are neutral and appealing to the greatest number of buyers. Your agent can give you a good idea of what type of flooring, cabinetry, paint and other upgrades are the most popular with home buyers right now.

Ever wonder which things can affect your credit score the most when you’re applying for a mortgage loan? Here are some of the top factors that can dramatically lower anyone’s score:

• You’re 30 days late (or more) paying a bill. You could see a 60- to 110-point drop in your score by being a month late on a financial obligation. Expect more of a drop if you’re 60, 90 or 120 days late.
• You have gone through foreclosure, a short sale or bankruptcy. A typical drop after a foreclosure is 85 to 160 points. A short sale will result in a substantial drop in credit score, too. A bankruptcy could push down your score by 130 to 240 points.
• You’re maxed out. Being close to (or over) the credit limit on all your credit cards can definitely hurt your score.

Everyone’s situation is different, and how long these credit-score drops remain in effect vary. The key to rebuilding your credit is to pay your bills on time and avoid using all of the credit that’s available to you.

Although a “perfect” credit score can be over 800, remember that to get the best deal on your next mortgage, you’ll need a score of around 720 to 780. Want to learn more about your credit score? Read this article.