Austin Real Estate BlogRecently posted or modified blog posts in the category - Buying a Homehttps://www.douglasresidential.com/blog/Copyright DouglasResidential.com2021-06-08T08:11:27-07:00tag:douglasresidential.com,2012-09-20:9149Considering A Mortgage Loan? Check Out The Most Frequently Asked QuestionsWhether you're looking for <a href="https://www.douglasresidential.com/property-search/results/?searchtype=3" target="_blank">homes for sale in Austin</a>, in another part of Texas, or anywhere else in the nation, take control with the answers to these frequently asked questions. Applying for a home loan can be a daunting task – it's a lot of money, and you're honored that they'll consider you, right?<br /><br /> In fact, the lender needs you as much as you need them, so you should reasonably expect to have a mutually respectful interaction with your lender. The following FAQs can help ensure the success of your loan when you're looking for <a href="https://www.douglasresidential.com/property-search/results/?searchtype=3" target="_blank">homes for sale in Austin</a>, Texas, or anywhere else.
<br /> 1. Which type of mortgage will work best for my needs?
This is one of the most important questions you can ask, and it can save you thousands of dollars on your mortgage. Most lending institutions offer the following types of mortgages: <br /> -Adjustable-rate<br /> -Conventional, fixed-rate<br /> -FHA<br /> -VA<br /> Each of the above has advantages over the other, and your lender should be able to explain them.
<br /> 2. Do you have any special programs that may benefit me?
Periodically, lenders and the government will make special offers available to prospective customers, and one or more may help you.
<br /> 3. How much of a down payment will I need?
Not all types of mortgages will require a 20 percent down payment, but most of them require some amount down.
<br /> 4. What type of documentation will I need?
When you apply for a mortgage, you'll need the following documentation:<br /> -Identification<br /> -Bank accounts<br /> -Assets<br /> -Divorce documents<br />Make sure you are asking the lender if there is any other documentation they might need as well.
<br /> 5. Are your mortgages approved in-house, or do you send them to an underwriter?
It's sometimes easier to get approved from lenders who approve in-house, especially if you have unusual circumstances or if there's a problem.
<br /> 6. What fees do you charge, and how much are they?
Fees vary substantially between lenders. Be sure to shop around for the best prices on fees.
<br /> 7. How much will closing costs be?
Closing costs add substantially to a loan, so you need to know how much money you'll need when you close.
<br /> 8. How much will my monthly mortgage payment cost?
You'll need to know how much house you can afford.
<br /> 9. Do you charge a loan origination fee?
Banks charge origination fees to cover the cost of processing the loan. They may be negotiable but you need to know if that is something they will be charging you or not.
<br /> 10. Do you have a rate lock policy, and if so, how does it work?
Borrowers want to lock in their rate, but the lender may not. Ask the following questions about their rate locks:<br /> -Is there a fee to lock in my rate?<br /> -How long will the lock last?<br /> -Is there a fee to extend the rate lock?<br /> -Will I have the rate lock in writing?
<br /> 11. Is there a prepayment penalty?
Not all states allow prepayment penalties, so be sure to ask your lender if they charge for prepayment of a loan, so you are not surprised if your state is one that allows it.
<br /> 12. How do you calculate interest rate adjustments for an adjustable-rate loan?
Adjustable-rate loans are often better options for those who plan to sell in the near future. Ask your lender the following:<br /> -How often do you adjust rates?<br /> -Will I get a notice when it's going to be adjusted?<br /> -Is there a limit to the amount it can be raised?<br /> -If rates go down, will my rate go down?
<br /> 13. Am I likely to be approved?
If your lender indicates that they think it's unlikely that you'll be approved, you can pursue other avenues, such as trying a different lender.
<br /> 14. Once I've been pre-approved, how can I preserve it?
If you've been pre-approved, then don't make any financial changes – such as buying a car – until your loan has closed.
<br /> 15. Do you have references?
It may seem an odd question, but real estate agents can regale you with many horror stories about mortgage brokers. You should always receive high-quality service from your lender.2021-06-08T08:50:00-07:002021-06-08T08:11:27-07:00Joel Douglastag:douglasresidential.com,2012-09-20:8978Understanding The Homebuying Process Starts With Understanding The LanguageBuying a home can be confusing in many ways. One of the hardest things to understand about purchasing a home is the language. Real estate professionals and people who are familiar with the home buying process often seem to forget that everyone doesn’t speak that language. Here are some real estate terms to become familiar with.
<br /> Fixed-Rate Mortgage vs Adjustable-Rate Mortgage
One mention of anything mortgage-related and your mind is boggled. That is until you decipher the meaning. Fixed-rate means whatever interest rate you initially get on your home loan is the same interest rate you will pay until your home is paid off. <br /><br /> Adjustable-rate means your interest rate will go up or down periodically. It’s easy to see how an adjustable-rate would be better when interest rates are down. Get more information from your real estate broker before deciding. There are pros and cons to either option.
<br /> Private Mortgage Insurance (PMI)
This is primarily for people who use an FHA loan for their down payment or most anyone who puts less than 20% down. This is a guarantee to the lender that if the buyer defaults the loan will be paid off. It also can cover if the home goes into foreclosure or if the buyers get behind in payments.
<br /> Escrow
Your home is in escrow when you have the funds for your down payment, but it’s not time to transfer them to the seller yet. You would give the money to an escrow company for safekeeping until the sale goes through. They will hold the funds in an escrow account for as long as necessary.
<br /> Contingency
<a href="https://www.douglasresidential.com/property-search/results/?searchtype=3" target="_blank">Homes for sale in Austin</a> and throughout Texas as well as most anywhere in the US are similar in that they will often have a contingency clause in the contract. Either side can put this into the paperwork. It tells the other party that if a certain occurrence happens, the contact will be considered altered and possibly voided.
<br /> Buyers might put in a contingency that says if the home they currently own does not sell by a certain date that they will not be held to the contract for the home they are trying to purchase. A seller can stipulate that the buyer has to get insurance on the new property. The seller or the buyer can withdraw if this is not done.
<br /> Closing Costs
It’s almost over when closing costs are paid. Who pays them can determine in large part what the buyers and sellers agree to. When all is complete and money has been transferred from the escrow company to the seller, there is the matter of some unpaid bills. Closing costs usually fall to the buyer, but the seller can pay, or the closing fees can be split. The fee is usually a percentage of the home’s purchase price. It is meant to cover costs incurred such as recording the sale, a credit report, payment to the home inspector if not already paid, legal fees, and other payments that may have accrued since the proposed sale began.
<br /> You will get past this milestone of becoming a homebuyer and come out the other side more knowledgeable and confident. Next time you purchase property you will better understand the foreign langue of homebuying.2021-05-24T08:01:00-07:002021-05-24T07:10:06-07:00Joel Douglastag:douglasresidential.com,2012-09-20:8923Think About Buying A Home Sight Unseen: 5 Mistakes You Must Avoid Purchasing a home without ever touring it is now a common scenario. Whether you live far away or a global pandemic is in play, buying a home sight unseen can be done successfully when you're following certain guidelines. Explore the top 5 mistakes that you should avoid when you're home and shopping from afar. These mistakes can cost dearly in the end.
<br /><br /> 1. Avoiding Conversations With Knowledgeable Professionals
Texas is a good example of an area with plenty of different properties. Each home will have unique circumstances, such as HOA dues or expensive property taxes. Don't avoid conversations with individuals who know the area. Speak to the real estate agent about the home's details. Seek out the HOA president to inquire about dues, rules, and other details. When you have all of the right information, you can make an educated decision on a home purchase from afar.
<br /><br /> 2. Overlooking Inspection Details
Pictures may say a thousand words, but they can also be very deceptive. <a href="https://www.douglasresidential.com/property-search/results/?searchtype=3" target="_blank">Homes for sale in Austin</a> will have varying ages and wear. It's important to look past any images or videos, and focus on the inspection report. Don't overlook the details on the mandatory inspection either. Inspectors can find many hidden issues within a property. You don't want to end up with a purchase that's full of expensive repairs.
<br /><br /> 3. Working With the Wrong Agent
You may have a friend who's a real estate agent in your current city, but you want someone who knows the area where you're purchasing a home. Always pick a professional who knows your potential neighborhood. They'll have inside information on the smallest details, from local parks to low-cost grocery stores. Use this person's knowledge to get an idea of the neighborhood you're interested in.
<br /><br /> 4. Forgetting to Ask About Square Footage
Every home will have an advertised square footage. These dimensions are usually confined to the home's footprint as well as the lot's size. Don't forget to ask about the square footage of each individual room. These values are important because they'll determine which furniture items can fit into the new space. You may be able to narrow down your shopping process with these dimensions alone.
<br /><br /> 5. Relying Solely on Pictures
Aside from pictures and physical inspections by a professional, your potential home can be seen with other strategies found only in the 21st century. Use technology, such as drone footage or Google Maps, to see a property from a different perspective. You might ask your real estate agent to hold a virtual open house with you on a video call. There are plenty of clever ways to look around a home without physically being there. Use the latest tools to protect yourself when contemplating a purchase.<br /><br /> Keep an open mind as you virtually browse and bid on a home. There will always be small details to tackle as you finally move into the property. If you've done your research well, the details will only be minor ones. Your beautiful home is now yours to improve and enjoy.2021-05-17T08:11:00-07:002021-05-17T07:21:16-07:00Joel Douglastag:douglasresidential.com,2012-09-20:8890Key Differences Between A Second Home & Vacation Property If you are interested in buying a second home for any reason other than full-time occupancy then you should ask yourself, will I be purchasing a vacation home or an investment property? In the following article, you will learn how to differentiate the two in order for you to make an educated decision about your second home purchase.
<br />What Is A Vacation Home?
A vacation home is a home that you and your family purchase with the specific idea to use it for recreation. It is a home that you will visit for specific periods of time. Here is an example: perhaps you and your family love to travel to Arizona even though you live in Minnesota. You may choose to buy a vacation home in Arizona in order to visit without the hassle of getting a B&B every time. If you were to purchase a home in a different state or area for vacation purposes, it is considered a vacation home. You are not using this purchase to generate income; it is like a recreational purchase.
<br /><br />What Is An Investment Property?
An investment property is a property that you purchase because you want to make income from its proceeds. You are hoping to generate passive income from this property, and you consider it to be an investment. This is a property where you will have renters, or you may decide to turn this property into an Airbnb. An investment property can be the house next door to your permanent dwelling, or it could be in a different state. Whatever the case may be, this is not a property that you and your family will be living in for any period of time. The sole purpose of this property is to generate income. You may even consider hiring a property management company to take over the management of this home if it is something that you do not want to worry about. The property itself is an investment for you.
<br /><br />Why Know The Difference?
If you are considering the purchase of a second property, you want to know about the difference in the naming system. There are some amazing <a href="https://www.douglasresidential.com/property-search/search-form/" target="_blank">homes for sale in Austin, Texas</a> that you may be interested in looking into. If you are not going to be able to pay for your home in cash, then you need to be able to properly describe your property purchase to potential lenders. Some home loans do require you to live in the same state or live in the home full time. Purchasing a second property, whether it be for vacation or as an investment property, can be a fabulous decision for your family's future. If you are looking to make a second big purchase, make sure that you have the <a href="https://www.douglasresidential.com/contact/" target="_blank">contact information for an experienced realtor</a>, and you are sure to find success in your home purchasing journey.2021-05-10T08:40:00-07:002021-05-10T07:52:19-07:00Joel Douglastag:douglasresidential.com,2012-09-20:8794Tips On Buying A Home When Inventory Is Low In Austin, TXThroughout the U.S., real estate markets are experiencing low inventory levels. The market in Austin, Texas, is no exception, and bidding wars are currently par for the course. Buying a home under these circumstances can be challenging, but it’s doable. Before checking out <a href="https://www.douglasresidential.com/property-search/results/?searchtype=3" target="_blank">homes for sale in Austin</a>, keep these tips in mind:
Set a Realistic Budget – In low-inventory situations, it’s especially crucial to set a realistic budget. Otherwise, you’ll waste precious time looking at homes that are beyond your means. The ideal home will meet all of your needs and most of your wants; in other words, compromise is key. By keeping an open mind and being flexible about nice-to-have features, you’ll find it easier to snag a new home even in a white-hot seller’s market.
Be Financially Ready – When competition for homes is high, it’s critical to be ready to pounce when you find one you like. Being financially prepared is a must, and it starts with having a down payment ready to go. Get all of the documentation you will need for a loan in order, including your income tax returns, bank statements, and paystubs. Connect with a mortgage lender and obtain a preapproval. Better still, have the preapproval sent through underwriting so that you can close as quickly as possible when the time comes.
Avoid Homes Near the Top of Your Budget – Leave yourself some wiggle room by steering clear of homes for sale that are near the top of your budget. When home inventory levels are tight, homes often sell for at or above list price, so you could end up being bid out of contention. If you have been preapproved for a $400,000 loan, only look at homes that are listed for $385,000 or less to avoid potential headaches – and disappointment.
Put Your Best Offer Forward – If very few homes are listed for sale when you’re looking, you’ll probably face competition from other buyers for the same place. Therefore, it’s extremely important to make a strong offer when the time comes. Hire a competent and experienced<a href="https://www.douglasresidential.com/contact/" target="_blank"> local real estate agent</a> to help you explore <a href="https://www.douglasresidential.com/property-search/results/?searchtype=3" target="_blank">homes for sale in Austin</a>. Their insider knowledge of the local real estate market will give you an important edge during negotiations, increasing the odds of making an offer that gets accepted the first time.
Be Ready to Get Going – Finally, average contract lengths during low inventory periods tend to be shorter than usual, so you should be prepared to pack and move quickly after buying a new place. Clear as many things out of the house as you can before listing it for sale, and have your preapproval run through underwriting so you can close quickly on the new place. Things will be hectic for a minute, but it will all be worth it when you’re settled into your new home.
<br /> Buying a home when inventory levels are low is stressful and challenging. However, by keeping the tips above in mind, you’ll get through the process before you know it.2021-04-26T08:14:00-07:002021-04-26T07:21:06-07:00Joel Douglastag:douglasresidential.com,2012-09-20:8712Tips To Consider When Negotiating RepairsYou have found a house you love, made the offer, and now have your prepurchase inspection report. But what’s next, how do you take that back to the seller and negotiate either the repairs or the terms of your sales contract? <br /><br /> The best <a href="https://www.douglasresidential.com/contact/" target="_blank">real estate companies in Austin</a> will help you navigate these negotiations. However, it is always good to have an idea of what to expect. Here are some tips to help you navigate this sometimes stressful part of real estate negotiation.<br /><br />
Keep In Mind The Seller Is Not Obligated To Make Repairs
The very first thing to check is your attitude toward the process. Understand the seller is not obligated in any way to change the terms of the agreement or to make the repairs. Of course, if you had an inspection contingency as part of the agreement, you can always walk away at this point too. If you love the house and want to see it come to fruition, be sure to avoid the “playing hardball” tactic.<br /><br />
Come From a Place of Gratitude Rather Than Entitlement
One of the best ways to handle negotiations with a seller who is also experiencing stress during the process is to express gratitude. Yes, your home is probably the largest single purchase most of us will make, so it is easy to feel entitled to certain things. Keep in mind the seller likely is not trying to “pull one over” on you, but rather had no idea about most of the repairs needed until they viewed the inspection report.<br /><br />
Try To See The Seller’s POV
When coming to the proverbial negotiating table, keep in mind the seller’s point of view. They are moving, just like you. They have a lot of fees tied up into selling their home in Texas, and may not have the funds needed to make all the repairs needed. The more flexible you are with how to approach the negotiation, the more likely you will end with an acceptable outcome. <br /><br />
Consider Credits Over Repairs
One of the best negotiating tactics is to take “credits” from the seller over having them actually complete the repairs. If you wait for them to make the repairs, you may push your closing date out longer than you care to wait. Also, you and the seller may see quality differently, so it is a question of whom you want overseeing the repairs. With these credits, the repairs are left up to the buyer, but the seller often assumes some of the buyer’s closing costs to allow more cash to make the repairs.<br /><br />
Get a Quote From a Contractor
Before heading into any form of negotiation over repairs, be sure you have a proper quote for repairs. If you have the time, the best method is to seek quotes from three different contractors. You can then take the average of these to the negotiation as expected repair costs. <br /><br />
Decide What’s Important
Finally, decide what’s important for the repairs. No house is perfect, not even brand new ones, so understand you will have repairs to make over time. Look at the list from the inspection and split it into three categories: what is critical and expensive (like foundation or septic work), what is not so critical but may still be expensive, and then the little stuff you could easily do. Depending on what the report shows, use either just the critical or the critical and expensive items as your negotiation leverage.2021-04-19T08:12:00-07:002021-04-19T07:18:51-07:00Joel Douglastag:douglasresidential.com,2012-09-20:8630Best Bidding War TacticsA lack of available inventory means that there will likely be multiple offers on any home that does go on the market. Therefore, you'll need to know how to compete in a crowded market without spending more than you can afford to pay for a home. Let's look at how you can sweeten your offer to a seller without necessarily increasing the final purchase price.
<br /><br /> Consider Waiving Contingencies
Typically, a purchase offer will be contingent on several factors such as the results of an inspection. However, if there are several offers on a home, agreeing to take the home regardless of its actual condition might be an effective way to push your offer to the top of a seller's list. It's also a good idea to get tentative approval for a mortgage before agreeing to waive a home loan contingency. Otherwise, you could expose yourself to potential legal action if you aren't able to close on the purchase promptly.
<br /><br /> Allow for an Extended Closing Timeline
Typically, a seller wants to be out of his or her home as quickly as possible. However, there are scenarios in which a seller may need several weeks to close on the purchase of a new home. Furthermore, homeowners might want to wait until the end of the school year to move to provide greater stability for their children. By agreeing to wait until a current homeowner is ready to move before taking possession of the property, it may be easier to buy the home without offering more money.
<br /><br /> Be Ready to Move Immediately
There may be situations in which a seller desperately needs to close on the purchase in a matter of days. For instance, that person may have just learned that he or she is starting a new job in a different city, state, or country. In this case, agreeing to take the home as quickly as possible can enhance your odds of becoming its new owner.
<br /><br /> Increase Your Initial Deposit
Typically, you're required to make an initial deposit of 1% of the purchase price when your offer is accepted. However, you may be able to show a seller just how serious you are about buying a property by increasing it to as much as 20%.
<br /> Create a Battle Plan Before Engaging in a Bidding War
No matter how much you love a home, it's important to understand that other properties that meet your needs will eventually become available. Therefore, you must set a price point that you're not willing to exceed before you start engaging in a battle to obtain a given house. Otherwise, you risk making offers based on your emotional desire to win a competition as opposed to making offers based on what makes sense financially.2021-04-05T08:59:00-07:002021-04-05T08:05:30-07:00Joel Douglastag:douglasresidential.com,2012-09-20:8576Excluding Money, Top Signs You're Ready For HomeownershipBeing ready for homeownership involves more than having your finances in order. For many people, renting continues to make sense well into adulthood. However, if you’ve been itching to buy a place of your own, there are ways to tell if you’re genuinely ready that goes far beyond finances.<br /><br /> Are you ready to be a homeowner? You probably are if the following apply to you:<br /><br />
You Crave More Privacy and Control – One of the biggest downsides of renting a home is it usually means being crammed together with others in apartment buildings and the like. Even if you rent a single-family home, the landlord can pop in anytime they like. As a renter, your hands are tied when it comes to customizing the place to your liking too. If these complaints sound familiar, it may be time to look into homeownership.
You’re Eager for More Stability and Security – When you rent a home, you’re at the mercy of the landlord and whoever owns the property. Out of nowhere, you could be forced to move, which can be an unsettling feeling. By purchasing a home, you gain incredible peace of mind, resting easy in the knowledge that your place is truly yours. Buying a home is an investment in your future, and it can help you achieve a more stable lifestyle. If you’re tired of feeling at loose ends because of renting, it’s time to check out <a href="https://www.douglasresidential.com/property-search/results/?searchtype=3" target="_blank">homes for sale in Montgomery County</a>.
You’re Prepared for Upkeep and Maintenance – A major perk of renting is being able to call maintenance when things go awry. As a homeowner, you lose that option, but you gain the ability to take matters into your own hands. Instead of waiting for repairs to be made and hoping they’re done correctly, you can do the work yourself or contract it out to the company of your choice. From planting and maintaining a garden to performing basic upkeep on heating and cooling equipment, being ready to care for a home probably means you’re ready to buy one.
You’re Ready to Put Down Roots – With renting, you have the flexibility to move from area to area quickly. If you feel ready to settle down more permanently, though, it’s probably time to buy a place. At a minimum, try to stay in your new home for at least three years. Stick around for an entire market cycle – seven to 10 years or so – to get the most value from your investment.
You’re Excited to Upgrade Your Surroundings – Finally, if you vicariously live out your remodeling fantasies by watching reality TV, you’re probably ready for homeownership. As a homeowner, you can customize your home to your exact specifications. Whether for aesthetics or functionality, you can perform upgrades that make the place uniquely yours. If the idea of running to the home improvement store regularly is music to your ears, becoming a homeowner is probably the right move.
<br /> If your finances are in order and the things listed above apply to you, take the first step in becoming a homeowner by checking out <a href="https://www.douglasresidential.com/property-search/results/?searchtype=3" target="_blank">homes for sale in Montgomery County today</a>.2021-03-29T10:53:00-07:002021-03-29T10:04:11-07:00Joel Douglastag:douglasresidential.com,2012-09-20:8538Buying A Home With Your Partner? Get Answers To These Questions FirstYou and your partner may be tired of paying rent for a small apartment. It's time to look for a home that you can both share. If you're ready to make the dive into the real-estate world, explore the questions that you should ask now as a couple. The answers can guide you toward the right decision.
<br /><br /> 1. Are You Settled Into a Career?
Buying a home with your partner is never a good idea if a career remains unstable. Hopping from job to job is questionable to lenders as you apply for home loans. Additionally, any new jobs may not be in the immediate area. If either person has the chance at a new career in another city, it's best to hold off on buying a home. People who have stable careers in the same area should consider a home purchase close to those companies.
<br /><br /> 2. Do You Both Have Good Credit Histories?
If even one person has bad credit, a home purchase may not be in the near future. Take a look at your finances. Be honest with each other when it comes to debt, bankruptcy, and other details. Holding back information will only create issues down the road. Both parties need good credit and only a small amount of debt. Lenders consider you as a risky investment if you have too much debt right now.
<br /><br /> 3. Is There Enough Money for a Down Payment?
Pooling your money together for a down payment makes financial sense. Consider your budget when it comes to a home's price. Ideally, you want about 20-percent of the home's cost put down as an initial payment. Ask your lender about loan programs that might require a smaller down payment too. One of you might qualify for these specialized programs.
<br /><br /> 4. What Type of Property is Attractive?
Initially, you may be concerned with a home's decor and amenities. Put those concerns aside because you need to concentrate on long-term decisions. Ask yourselves if the home should be large or small, such as supporting a future family. Would you like to be close to schools, the beach, or other locations? Buying a home means that you'll be living in this area for many years. Pose these questions to each other so that you can narrow down your search.
<br /><br /> 5. What Happens if You Part Ways?
You may both love the <a href="https://www.douglasresidential.com/property-search/results/?searchtype=3" target="_blank">homes for sale in Montgomery County</a>, but mindsets change over time. Your relationship may not work out as you first thought. Before you commit to a property, consider a legal agreement. Both parties should have their own attorneys who can draw up fair documents regarding property division or sales. You may never use these documents, but they protect each person in the event of a breakup.
<br /><br /> Be sure to communicate with your lender if you want to pull out of a potential sale. You aren't committed to any home purchase until you sign the closing documents. Continue to ask those hard questions so that a calm, home life is possible.2021-03-22T08:37:00-07:002021-03-22T07:46:13-07:00Joel Douglastag:douglasresidential.com,2012-09-20:8503Is It Time To Move Out? 4 Ways To Know You're ReadyAt some point in your life, you will decide it is time to move out of your current living situation. You could be living with your parents or a roommate and you feel you are ready to have your own space. Maybe you just got a higher-paying job and feel that you can afford a place of your own. You have life goals, career aspirations, and your own life to focus on, so wanting to move to pursue those dreams is a desire that many people share. Deciding to move can also be an emotional experience, especially if you are attached to whoever you are currently living with and are comfortable where you are. Here are four ways to know you are ready to move out.
<br /><br /> You Make Enough Money
Most people who live with their parents or roommates do so because they can’t afford the hefty expense of living on their own. They like the financial freedom they get from splitting the bills with other people, as it frees up more money to spend leisurely. If you are considering moving out, you will want to ensure that you can financially do so while still having some money in your savings for emergencies or fun activities. If you are currently living paycheck to paycheck, you don’t want to stretch your finances even further by moving into your place.
<br /> You know How to Spend Your Funds Responsibly
There is a significant difference between earning enough money to live on your own and having enough money for all your expenses. If you engage in several potentially expensive spending habits, you must consider whether you can afford to live independently. Are there any changes you can make to your spending? Are there any subscriptions you can cancel or reduce? Use a money management spreadsheet or phone application to help you evaluate your finances and spending habits. If you have healthy spending habits and know how to ensure you can pay your bills, you may be ready to move out.
<br /> You Know How to Sustain Your Home
Part of living on your own is completing all the chores and basic maintenance needed to keep the home in good shape. When living with roommates, this task is often shared among everyone so that the project is not so daunting. Living by yourself, however, puts this entire task on you to complete. If you have the time, energy, and funds to maintain a home of your own, then you may be ready to get a place of your own.
<br /> You Have Emotional Stability
There is also an emotional component to moving out and living on your own. Your roommates or parents may provide you comfort and companionship in your current living situation. If you move out, you may feel a disconnect from these individuals and must be able to handle not having them around as much. You must also be comfortable making decisions on your own rather than having your roommates or parents provide their input. You must be confident in your ability to problem solve in your new home and not rely on others to make these decisions for you.
<br /><br /> If you can check these four points off your list of reasons to move out, you are on your way to living on your own. Just make sure you have thoroughly considered the benefits and the risks to ensure you are making the right decision.2021-03-15T08:01:00-07:002021-03-15T07:05:12-07:00Joel Douglastag:douglasresidential.com,2012-09-20:8474Top 5 Things You MUST Know When Buying A HomeYou've found the house of your dreams, and you want to grab it before it's gone. It's in a good school district, you can get to work in ten minutes, and the gourmet kitchen is to die for. What more do you want? For starters, you need lender approval, a good-sized down payment, and some expert advice.
<br />Top 5 Things You MUST Know When Buying A Home
1. Hire a team of professionals.
An <a href="https://www.douglasresidential.com/contact/" target="_blank">experienced real estate agent</a> will help you figure out what you can afford and how much you should offer. The agent can also put you in touch with a lender, guide you through the inspection and appraisal, and assist with paperwork. Now is the time to ask questions about closing costs, interest rates, and anything else you don't understand. You'll want an agent who knows the ropes, but you also need someone with who you can work with.
<br />2. Do your homework.
You can tell a lot about a house by the way it looks, but it's easy to get carried away with the antique pine floors and forget the attic. If you pay for a pre-inspection, you'll have a head start, and you can ask for repairs or price adjustments when you make an offer. Ask questions like these: How old are the appliances? Does the HVAC need to be replaced? Does the sale include a home warranty? An older home may be charming, but it also costs more to maintain.
3. Prepare for surprises.
Some sales go without a hitch, but most come with a few surprises. What if the inspector finds a crack in the foundation or radon in the cellar? What if the appraisal comes back lower than the offer? Talk about it with your agent, and find out what your options are. Whether it's moving on to another house, negotiating with the seller, or coming up with an out-of-pocket payment, you need expert advice to make a good decision.
4. Plan for the transition.
Contracts and leases rarely allow for a seamless transition. Maybe you'll be able to move directly from your apartment into your new home, but you might have to pay for both while you move. Sometimes, it's necessary to rent a temporary place to stay when you move out of the old place but can't move into the new one yet. Budget for unexpected expenses - the sofa that's too big for the living room, the unexpected paint job in the bathroom, or extra hours for the movers.
5. Get organized for closing.
Closing is the day you'll get the keys to your new home, so find out exactly what to bring with you. Usually, this includes things link a cashier's check for closing costs, proof of homeowner's insurance, and specific types of identification. You may also need specific documents or verification for legal purposes. Every real estate deal is different, and the market changes often. <a href="https://www.douglasresidential.com/contact/" target="_blank">Find an agent you trust</a>, and make your home-buying choice a wise one.2021-03-08T09:59:00-07:002021-03-08T09:07:49-07:00Joel Douglastag:douglasresidential.com,2012-09-20:8440How To Not Let Real Estate Contingencies Ruin Your TransactionIt isn't uncommon for home purchase contracts to have contingencies included in them. For instance, you might ask for the right to back out of the deal if you can't get a mortgage or if an inspection uncovers serious problems with the home. It may also be possible to cancel a purchase contract if an appraiser determines that the property is worth less than its list price. Let's take a closer look at these common real estate contingencies and how you can prevent them from scuttling a transaction.
<br /><br /> What to Know About the Mortgage Contingency
As a general rule, a buyer has 17 days after a purchase offer is accepted to obtain a mortgage. If you are buying a property, you can protect yourself by getting tentative loan approval before submitting the offer. If you are the seller, you can protect yourself by requiring that anyone who submits an offer includes proof of such approval with their proposal. It's important to note that the deadline to obtain a mortgage can be extended if all parties to the transaction agree to do so.
<br /><br /> What to Know About the Inspection Contingency
It is never a good idea to skip the inspection when buying a home. This is because it can reveal the presence of water damage, a pest infestation, or other problems that you didn't notice when you first looked at the house. Furthermore, you can learn critical details about the home such as the age of heating or cooling components or if any of the home's major components are under warranty.
A seller may be able to protect him or herself against this contingency by insisting that the inspection not be used as an excuse to cancel the transaction. In such a scenario, the buyer would still have the right to conduct a thorough inspection. However, he or she would not have the right to back out of the deal regardless of what was uncovered. It may also be possible for the seller to allow the buyer to back out of the deal without recouping his or her earnest deposit.
<br /><br /> What to Know About the Appraisal Contingency
If you intend to finance the purchase of a home with an FHA, VA, or USDA loan, your lender will likely want to conduct an appraisal. This helps to ensure that the loan proceeds are being used for a legitimate purpose. Generally speaking, buyers have no say in whether or not a lender will conduct such an appraisal. However, you can protect yourself by having a home appraised before making an offer. Sellers can protect themselves from such a contingency by only accepting offers from buyers who plan to obtain traditional loans.
<br /> If you have any questions about real estate contingencies, it may be a good idea to speak with your <a href="https://www.douglasresidential.com/contact/" target="_blank">agent</a>. A legal professional may also be able to provide more insight into your rights and responsibilities when buying or selling a home.2021-03-01T10:38:00-07:002021-03-01T09:48:57-07:00Joel Douglastag:douglasresidential.com,2012-09-20:82946 Questions You Need Answered Before & After You Close On A HomeBuying a new home can always be overwhelming, especially if it is your first time doing so. Luckily, there are plenty of professionals involved in the process to help you along the way. Unfortunately, it's not always obvious what questions you should ask them.<br /><br /> This guide is here to help by giving you six questions you need to get answered before and after you close on a home and why you need them answered. These are questions that need to be answered by either the realtors, the homeowners, the inspectors, and even some by doing your own research.<br /><br />Why is the seller moving?<br /><br /> When many first-time buyers are narrowing down on homes they like, they tend to forget to ask why the seller is moving. While the answer they have will likely be mundane and harmless, it can help you decide if the house is right for you. If they are moving somewhere larger for their family, you should consider if the house will still be big enough for you within a couple of years. Whatever their reason, decide if the same situation with the home is acceptable to you.<br /><br />Are there any major issues with the property and how much would it cost to fix them?<br /><br /> It is important to check with the home inspector about any major issues that currently exist or may become a problem soon after moving in. If the home is going to need a new roof shortly after moving in, you should consider that when it comes to your offer. If the home needs major work on the HVAC, that is something you need to be aware of before purchasing.<br /><br />Is there anything that I must do before I move into the property?<br /><br /> While the previous question was more about issues that involve comfort and quality of life, this question is more about safety. It's vital to find out what kind of things must be done before moving into the property due to safety and health reasons. These can be things like electrical, plumbing, and other issues. Often, you can negotiate to have sellers pay for these mandatory repairs.<br /><br />What does the past insurance-claim history look like?<br /><br /> You need to look at past insurance claims to see if there were any major issues with the house in the past. The claims history may show that certain, unexpected problems with the house keep persisting.<br /><br />How is the neighborhood?<br /><br /> The neighborhood is almost as important as the house itself. It's important to do thorough research on the neighborhood to make sure it is safe. You also want to be aware of any issues with the neighborhood that can affect the value of your home in the future.<br /><br />What can I do to improve the value of the home?<br /><br /> After moving in, several things can be done to increase the value of your home. It's good to figure out which improvements still need to be done to increase the home's value for a minimal cost.2021-02-08T09:36:00-07:002021-02-08T08:44:01-07:00Joel Douglastag:douglasresidential.com,2012-09-20:82585 Things You Shouldn't Do When Buying & Selling At The Same TimeIt isn't uncommon for property owners to buy new homes before selling the ones that they currently live in. However, this may present a series of challenges that might jeopardize your ability to acquire new property in a timely and affordable manner. Let's take a look at some of the mistakes that you'll want to avoid making while attempting to buy and sell a home at the same time. <br /><br /> Make Sure That Your Home Is Ready To Be Sold Quickly<br /><br /> You'll want to repair the roof, paint the living room, and get rid of excess clutter before putting your home on the market. It is also a good idea to take quality photos of the home that can be used for an online listing. Ideally, you will hire a real estate agent who can provide more insight into how you can attract buyers as soon as your home is listed for sale.<br /><br /> Use the Same Agent for Both Transactions<br /><br /> Using the same agent for both transactions can make it easier to complete both of them in a timely and straightforward manner. This is because the person representing you knows what your needs are and how to address them. Furthermore, it provides the other parties involved in these deals with a single person to call if they have any questions. Having one point of contact can minimize the risk of a communication error scuttling either transaction. <br /><br /> What Happens If You Can't Close on Both Transactions Simultaneously? <br /><br /> It's a good idea to assume that you won't be able to sell your current home on the same day that you take possession of your next property. In such a scenario, you would be responsible for paying maintenance, mortgage, and other costs for two homes over a period of several days, weeks, or months. <br /><br /> Will You Be Allowed to Carry Two Mortgages Simultaneously?<br /><br /> In most cases, banks won't lend to borrowers who have a debt-to-income ratio of more than 36% after taking a mortgage payment into account. Therefore, failing to sell your house before buying your next one may jeopardize your chances of getting financing. This may be true even if the lender knows that you aren't planning on keeping both homes over the long-term. <br /><br /> Don't Schedule a Closing for Friday Afternoon <br /><br /> Scheduling a closing on a Friday can be a bad idea because it can be several days before you see the proceeds from the sale in your bank account. Furthermore, many banks won't process transactions completed after 3 p.m. until the next business day. Therefore, try to close the first leg of the deal on a Monday morning if you want to close the other leg of the deal in the same week.2021-01-31T19:42:00-07:002021-01-31T18:47:44-07:00Joel Douglastag:douglasresidential.com,2012-09-20:8227Exactly What You Should Do Before Closing On Your HomeThere are many steps that must be completed before officially taking possession of your new home. For instance, you must get a mortgage, have the home inspected and make sure that there are no issues with the title to the property. Let's take a look at how you can accomplish these tasks in a timely and efficient manner. <br /><br /> Tips for Obtaining Mortgage Approval<br /><br /> Ideally, you will get tentative loan approval prior to submitting an offer to purchase a home. This will let you know that there is a good chance of getting the money needed to finance the acquisition. It may be best to work with a mortgage broker to get a home loan as brokers are more likely to be able to get you approved for both traditional and government-backed mortgages. <br /><br /> Finally, be sure to gather pay stubs, bank statements, and other documents that a lender may need access to when evaluating your application. In most cases, you should expect the mortgage approval process to take between 15 and 45 days to complete.<br /><br /> When Should You Have an Inspection Done?<br /><br /> It is a good idea to have your new home inspected no more than a few days after your purchase offer is accepted. Typically, the offer will stipulate that an inspection must take place no more than 15 days after it is accepted. The sooner that this is done, the more time that you'll have to make a plan to fix any serious issues that the property might have. <br /><br /> Your Attorney Might Be Able to Perform a Title Search<br /><br /> The real estate law professional who is helping with the closing process will likely be able to do a title search on your behalf. It will likely be able to determine if there are any liens on the property or other issues that could jeopardize your ability to take legal ownership of the home. <br /><br /> For instance, it may reveal that the title document is a forgery or was signed by a minor. It may also reveal that the current owner's relative has a claim to the house that no one knew about before it was put on the market. <br /><br /> The Closing Meeting Can Take 30 to 60 Minutes to Complete<br /><br /> On the scheduled closing day, you will meet with your attorney, the seller, and the seller's attorney to sign closing documents. During the closing meeting, you will be asked to sign multiple mortgage documents as well as a copy of the deed to the home. Anyone else who will be on the mortgage or deed will need to sign these documents as well. After all the required paperwork is signed, you will be given the keys to your new house.2021-01-25T10:29:00-07:002021-01-25T09:32:34-07:00Joel Douglastag:douglasresidential.com,2012-09-20:8133Why You Should Get Pre-Approved Before You Start Looking At HomesIdeally, you should know if you have the financial means to purchase a home before you make an offer to buy it. One of the ways that you can determine if this is the case is to get preapproval from a lender. While getting preapproved doesn't mean that you're guaranteed to get a loan, it can help to define the parameters of your housing search.<br /><br /> Why You Should Get Pre-Approved for a Home Loan<br /><br /> One of the primary advantages of getting pre-approved is that you know how much a lender is likely willing to let you borrow. Knowing how much you can borrow can help to expedite your property search because you won't waste time looking at homes outside of your price range. <br /><br /> Depending on your credit score, income, or employment history, you won't qualify for a loan at all. Although this generally isn't the response a prospective homeowner wants to hear from a bank or credit union, it can help you take proactive steps to make yourself a more attractive borrower in the future. A lender will likely provide more information about why your request was denied and what you can do to overcome your current issues. <br /><br /> Tentative Approval Might Be Necessary to Submit an Offer<br /><br /> Another one of the key advantages of getting pre-approved is that it allows you to make offers on a wider range of available properties. In some cases, sellers won't allow prospective buyers to submit a proposal without proof of tentative loan approval. This signals to the seller that you have a good chance of obtaining financing in a timely manner, which increases the chances that the transaction will go through.<br /><br /> Why You Should Get Pre-Approved By Multiple Lenders<br /><br /> It's always a good idea to shop around when looking for a home loan. This is because each lender that you talk with will have its own criteria for determining your interest rate and other loan terms. Getting preapproved by various lenders allows you to better understand your options as it relates to obtaining a mortgage that offers the most favorable terms. <br /><br /> It's important to note that your credit score may go down by a few points because a lender will need to conduct a soft inquiry on your credit report. However, your score should rebound within months of the inquiry, and typically, you'll only be dinged once for all soft credit pulls conducted within a period of 14 days. <br /><br /> A home is generally the most expensive item a person will acquire in his or her lifetime. Therefore, it is important that you do whatever it takes to get loan terms that fit your needs and budget. Doing so can prevent you from becoming house poor or losing your home to foreclosure. 2021-01-08T15:48:00-07:002021-01-08T14:50:32-07:00Joel Douglastag:douglasresidential.com,2012-09-20:6681Is Getting a Home Mortgage Still Too Difficult?<img src="https://assets.site-static.com/userfiles/1863/image/getting-a-home-mortgage.jpg" alt="Is Getting a Home Mortgage Still Too Difficult?" title="Is Getting a Home Mortgage Still Too Difficult?" height="410" width="750" />
Potential homebuyers are always cautioned to be aware of mortgage lending standards and the difficulty they might face when trying to obtain a mortgage. Credit availability is expanding, making it easier to get a mortgage now than it was a year ago. The market is still tight however, and homebuyers should be prepared to shop around until they find a lender who is offering something that will meet the needs of their family.
Mortgage lending companies have high standards so it is important to make sure you and anyone else who will be included on the mortgage have their credit in check. The mortgage market is strict because lenders do not want to be put in a situation where they are forced to repurchase loans that are not paid on. They also do not want to end up in a litigation situation due to loan issues.
What Has Happened to the Number of Mortgages?
Due to the strict nature and requirements of the lending companies, the number of mortgages given out has significantly dropped. A report by the Housing Financial Policy Center at the Urban Institute showed that about 6.3 million fewer mortgages were given out between 2009 and 2015. The reasons behind this statistic are strict regulations and policies. These mortgages would have been granted if the lending standards where more reasonable.
Mortgage companies rely on calculations to determine if a home buyer will become delinquent on their payment. They will not give you a loan if you are too much of a risk for them. Credit history has a huge impact on this decision since lenders can see how often you pay back your debts. The history they receive is extensive. This view into your financial past causes lenders to take less risk when lending to you for your mortgage.
The Effect on the Economy
The housing market is recovering at a slower pace than it should since less potential homebuyers are being offered loans. While the market is still recovering with positive trends, fewer buyers can create a strain on other economic factors like home goods or construction jobs. Bottom Line
After the housing market boom and bust, mortgage lenders became stricter in their lending standards. It is not impossible to get a mortgage loan, but it can still be difficult for potential home buyers. Stay on top of your credit and make sure you and anyone else who is applying are in a good financial position so you can be approved for a loan. It is important to research different companies and their requirements to ensure success in getting a mortgage.2020-01-20T08:59:00-07:002020-01-20T09:02:08-07:00Joel Douglastag:douglasresidential.com,2012-09-20:6679Common Things to Look Out for Before Buying Your Dream Home<img src="https://assets.site-static.com/userfiles/1863/image/3-questions-to-ask-before-buying-your-dream-home.jpg" alt="Common Things to Look Out for Before Buying Your Dream Home" title="Common Things to Look Out for Before Buying Your Dream Home" height="410" width="750" />
It is easy to become overwhelmed when you enter the home buying market. Friends, family, colleagues, and even acquaintances will give you their opinions if you are a first time home buyer. While most of them are looking out for your best interest, they are not fully aware of what is happening in the housing market.
It is important for you to be prepared and have your own questions ready. No matter what other opinions you are getting, you are the one buying the home and your comfort level will help make your final decision. Here are three important questions to ask before you purchase a home.
1. Why am I Buying a Home?
Regardless of the finances, it is important to think about what made you want to buy a home in the first place. Usually the reasons don’t have to do with money. Instead, home buyers are focused on how the house will impact their family in the future. A study done by the Joint Center for House Studies at Harvard found there are four reasons people buy a home. Those reasons include schools for your children, a safe environment, more room for your family to grow, and control of your own space.
These factors are the most common reasons people look to buy a new home. When you ask yourself why you are looking to purchase a home, do any of those factors come up? Spend time with your spouse or family members who are involved in this decision and determine why you want a home in the first place. Creating this list will help when searching for a home and can help your real estate agent find the best home for your needs.
2. What is the Trend with Home Values?
Our current economy and housing market is strong. That means home values and mortgage rates are increasing. If you are looking to purchase a home but want to stay within a budget, it may be in your best interest to move quickly. It is forecasted for these trends to continue in an upward motion, causing home values to continue to increase.
3. What About Current Mortgage Rates?
The ticket price is not the only thing you should be concerned with when purchasing a home. Mortgage rates are always changing and can have a huge impact on your monthly payments. Current trends show mortgage rates are rising. This is something to consider if you are debating the right time to purchase a home, since the rates may be even higher down the road.
Bottom Line
You and your family are the only ones who can determine the right time to purchase your dream home. It is important to decide exactly why you want a new home for your family and decide on a budget that will be comfortable moving forward. This budget may affect the amount of time you have to search for a home, since home prices and mortgage rates are increasing. 2020-01-20T08:59:00-07:002020-01-20T09:02:15-07:00Joel Douglastag:douglasresidential.com,2012-09-20:6678Will Increasing Mortgage Rates Impact Home Prices?<img src="https://assets.site-static.com/userfiles/1863/image/mortgage-rate-projections.jpg" alt="Will Increasing Mortgage Rates Impact Home Prices? " title="Will Increasing Mortgage Rates Impact Home Prices? " height="410" width="750" />
There has been some discussion recently on home prices in relation to mortgage rates. Some believe if there is a rapid rise of mortgage rates, home prices should decrease. Logically it makes the most sense for the price of the house to drop when interest rates are rising, but this is not always the case.
This theory of home prices decreasing is typically discussed by future home buyers. As a buyer you would like to think if you are paying higher rates on your mortgage, you should be able to see a decrease in cost somewhere else. Unfortunately, these rates are rising because the economy is in better shape. As the economy succeeds, incomes rise, rates go up, as well as the price of the home.
A recent study by the John Burns Real Estate Consulting found mortgage rates have very little impact on the cost of the home. The housing market and price increases are affected by things like job growth in the area and rising wages. Coincidentally, these same factors are causing the rise in the mortgage rates since people can afford to take out more.
Bottom Line
As the economy progresses and strengthens, mortgage rates and home prices will fluctuate. It is a misconception as rates increase, home prices will decrease. Advances in the economy have shown that rates and home prices are more likely to increase together.2020-01-20T08:59:00-07:002020-01-20T09:02:11-07:00Joel Douglas