#homebuying101

[realtorjamier]

Do’s And Don'ts When Financing Your Home

Maybe you’ve experienced this before, or maybe you haven’t, but the closer you get to closing on a home, the more your excitement builds. Because of that, every second until you take your first step into your new home can feel like an eternity.

To our fellow go-getters, we empathize with this problem. Check out our simple guidelines that can help you take charge of the situation and ensure your home closing goes as smoothly as possible. 

The Do’s 

Set and stick to a realistic budget

Have all your required documentation in place

Prepare to verify your income and assets

Communicate if your down payment is a gift

Continue to pay all your bills on time

Make sure that your earnest money check comes from funds withdrawn under your own bank account

Start shopping for homeowner’s insurance

Communicate with your loan officer 

The Don’ts

Change jobs, quit your job, or become self-employed

Buy or trade in a vehicle 

Increase debt/balances or miss payments 

Spend money you have set aside 

Omit debts or liabilities from your loan application 

Make large purchases (ex., buying new furniture or appliances) 

Acquire new loans, credit cards, or lines of credit

Change bank accounts

Co-sign any loan

Use cash for your down payment or earnest money

Wire closing funds (until you have more information from your mortgage provider)

While these guidelines are a good start, they’re not absolute. For more on what you can (and shouldn’t) do in the lead-up to closing on your home, don’t forget your loan officer is there to help – they can answer any questions you have on the do’s and don’ts of homebuying.  

Our friends at Atlantic Coast Mortgage will help you navigate and understand the lending process and the loan opportunities available specifically to you and your situation. Still have questions? Contact an ACM loan officer today and start your buying journey in the right direction.

[denisejohnson5678]

UNDER CONTRACT! 👏 Patience pays off! My buyers knew just what they wanted, and learned more about what they wanted the more houses they explored. 🏡 I am thrilled they found just the right one for them, and I can’t wait to see all that they do with the massive back yard! 🪴 Listed by Pilar Powell | Keller Williams One . #greensborohomes #realestatetalk #letsfindyourdreamhome #buyandsellrealestate #realestatelistings #propertygoals #sellrealestate #listingagents #homelisting #selleragent #housesales #buysellinvest #homebuying101 #buyhomes #realestatelisting #sellingrealestate #sellahome #sellinghouses #buyrealestate #isellhomes #sellingahome #residentialrealestate #investmentproperties #investinrealestate #homeseller #houseoftheday #propertyinvestor #realestateinvestors #buyingahome #realestateagent (at Greensboro, North Carolina) https://www.instagram.com/p/CpxOAENuGoN/?igshid=NGJjMDIxMWI=

[yourbetteragentgilbert]

When you own your own home, the monthly payments you make go towards growing your own personal equity. Let’s talk about how to stop funding your landlord’s wealth, and start building your own. #realestatetips #homebuyertips #homesellertips #homeownershipgoals #cheaprealtor #homebuying101 #firsttimehomebuyer #mortgage (at San Diego, California) https://www.instagram.com/p/CnqxtLOuPhK/?igshid=NGJjMDIxMWI=

[villa-home-inspections]

Order your next home inspection online easily. Check availability and book in minutes. www.inspectaproperty.com #homebuyer #homebuyingtips #homebuyingprocess #homebuying101 #homebuyingguide #firsttimehomebuyer #firsttimehomebuyertips #mortgage #mortgagebroker #mortgagerates #appraisal #lender #homeimprovement #housemovers #mortgageapplication #movingday #kellerwilliams #century21 #coldwellbanker #compass #remax (at Los Angeles, California) https://www.instagram.com/p/Ck_8cNTPrFS/?igshid=NGJjMDIxMWI=

[gameofhomesfl]

Talk about dedication. #realtor #dedication #commitment #workhard #excellence #flrealtor #florida #floridarealtor #floridacheck #homebuyingtips #homebuying101 #homebuyingprocess #homebuying #iserveflorida #floridarealtors #centralflorida #nar #nationalassociationofrealtors #realestate #realestateinvesting #realestateagent #daltonwade #daltonwaderealestate #daltonwadeinc #LENOVOJUSTBEYOU #10MillionAdoptions  #whitegloveservice (at Ocala, Florida) https://www.instagram.com/p/Cdghs2wJgXV/?igshid=NGJjMDIxMWI=

[28northgroup]

5 Ways to Write a Winning Offer in Today’s Real Estate Market

Our nation is in the midst of a serious housing crunch. Last year, a lack of inventory and soaring prices left many would-be homebuyers feeling pinched. But now, with interest rates climbing, many of them are also feeling desperate to lock in a mortgage—which has only added fuel to the fire.1

Fortunately, if you’re a buyer struggling to find a home, we have some good news. While it’s true that higher mortgage rates can decrease your purchasing budget, there are additional ways to compete in a hot market.

Yes, a high offer price gets attention. But most sellers consider a variety of factors when evaluating an offer. With that in mind, here are five tactics you can utilize to sweeten your proposal and outshine your competition.

We can help you weigh the risks and benefits of each tactic and craft a compelling offer designed to get you your dream home—without giving away the farm.

1.  Demonstrate Solid Financing

The reality is, no one gets paid if a home sale falls through. That’s why sellers (and their listing agents) favor offers with a high probability of closing.

Sellers particularly love all-cash offers because there’s no chance of financing issues cropping up at the last moment. But don’t despair if you can’t pay cash for your home. According to the National Association of Realtors, only about 1 in 4 home purchases are all-cash deals, which means the vast majority are financed with a mortgage.2

If sellers are assured that financing will come through, buying with a mortgage doesn’t have to be a big disadvantage. The most important step you can take as a buyer is to get preapproved before you start looking for homes. A preapproval letter shows sellers that you are serious about buying and that you will be able to make good on your offer.

It’s also important to consider the reputation of your lender. While sellers may not know or care about a lender’s reputation, their agents often do. Some lenders are much easier to work with than others, especially if you are pursuing certain types of mortgages like FHA or VA loans.3 If so, you’ll want a lender who specializes in these types of mortgages. If you’re unsure who to choose, we are happy to refer you to reputable lenders known for their ease of doing business.

2.  Put Down a Sizeable Deposit

Buyers can show sellers that they’re serious about their offer and have “skin in the game” by putting down a large earnest money deposit.

Earnest money is a deposit held in escrow by a title company or the seller’s broker or lawyer.  If the purchase goes through, it is applied to the down payment and closing costs—if the sale falls through, the buyer may lose some or all of that deposit.

While an earnest money deposit is typically around 1-2% of the sale price, offering a higher deposit can help demonstrate to the buyer that you are serious about the property.4 However, this strategy can also be risky. We can help you determine an appropriate deposit to offer based on your specific circumstances.

3.  Ask for Few (or No) Contingencies

Most real estate offers include contingencies, which are clauses that allow one or both parties to back out of the agreement if certain conditions are not met. These contingencies appear in the purchase agreement and must be accepted by both the buyer and seller to be legally binding.5

Common contingencies include:

Financing: A financing contingency gives the buyer a window of time in which to secure a mortgage. If they are unable to do so, they can withdraw from the purchase and the seller can move on to other buyers.

Inspection: An inspection contingency gives the buyer the opportunity to have the home professionally inspected for issues with the structure, wiring, plumbing, etc. Typically, the seller may choose whether or not to remediate those issues; if they do not, the buyer may withdraw from the contract.

Appraisal: Most lenders will not offer a mortgage on a home that costs more than it's worth. An appraisal contingency gives the buyer an opportunity to get the home professionally assessed to ensure that its value is at or above the sales price. If an appraisal comes in low, the seller may be asked to renegotiate the contract.

Sale of a prior home: Some buyers cannot afford to purchase a new home until they sell their previous one. If the buyer is unable to sell their current home within a specified window of time, this contingency enables them to withdraw from the contract without penalty.

Since contingencies reduce the likelihood that a sale will go through, they generally make an offer less desirable to the seller. The more contingencies that are included, the weaker the offer becomes. Therefore, buyers in a competitive market often volunteer to waive certain contingencies.

However, it’s very important to make this decision carefully and recognize the risks of doing so. For example, a buyer who chooses to waive a home inspection contingency may find out too late that the home requires extensive renovations, and a buyer who waives the appraisal may risk their mortgage falling through. If you back out of a home purchase without the protection of a contingency, you could lose your earnest money deposit.6 We can help you assess the risks and benefits involved.

4. Offer a Flexible Closing Date and/or Leaseback Option

When it comes to selling a house, money isn’t everything. People sell their homes for a wide variety of reasons, and flexible terms that work with their personal situations can sometimes make all the difference. For example, if a seller is in the process of planning a significant move, they may prefer a longer closing timeline that gives them time to find housing in their new location.

Similarly, short-term leaseback options, in which the sale is completed but the seller retains the right to rent the home for a specified period of time, can be compelling.7 These arrangements enable the seller to use the money from the sale of their home to purchase their next house. A leaseback agreement also makes it possible for them to avoid moving twice when their next home is not yet ready to occupy.

Flexible closing dates and leaseback options can provide a powerful advantage for first-time homebuyers. If you have a month-to-month or easily transferable lease, for example, you may be able to offer a more flexible timeline than a buyer who is simultaneously selling their existing home.

Of course, the value of these terms depends on the seller’s situation. We can reach out to the listing agent to find out the seller’s preferred terms, and then collaborate with you to write a compelling offer that works for both parties.

5. Work With a Skilled Buyer’s Agent

In this ultra-competitive real estate market, one of the greatest advantages you can give yourself is to work with a skilled and trustworthy real estate professional. We will make sure you fully understand the process and help you submit an appealing offer without taking on too much risk.

Plus, we know how to write offers that are designed to win over both the seller and their listing agent. The truth is, listing agents play a huge role in helping sellers evaluate offers, and they want to work with skilled buyer’s agents who are professional, communicative, and courteous.

Once your offer is accepted, we’ll also handle any further negotiations and coordinate all the paperwork and other details involved in your home purchase. The best part is, you’ll have a knowledgeable, licensed advocate on your side who is watching out for your best interests every step of the way.

Helping You Get to the Right Offer

In many cases, a competitive offer doesn’t need to be all-cash, contingency-free, or significantly above asking price. But if you’re serious about buying a home in today’s market, it’s important to consider what you can do to sweeten the deal.

If you’re a buyer, we can help you compete in today’s market without getting steamrolled. And if you’re a seller, we can help you evaluate offers by taking all the relevant factors into account. Contact us today to schedule a free consultation.

Sources:

National Association of Realtors -https://www.nar.realtor/newsroom/pending-home-sales-dwindle-4-1-in-february

National Association of Realtors -https://www.nar.realtor/newsroom/existing-home-sales-fade-7-2-in-february

Forbes -https://www.forbes.com/advisor/mortgages/housing-crisis-tips/

Realtor.com -https://www.realtor.com/advice/finance/earnest-money-deposit-mistakes-buyers-make/

Bankrate -https://www.bankrate.com/real-estate/contingency-clause/

Home Buying Institute -http://www.homebuyinginstitute.com/mortgage/risks-of-waiving-a-contingency/

7. Realtor.com -https://www.realtor.com/advice/sell/what-is-a-rent-back-agreement

[stevesellshomes]

Home Buying 101 South Carolina Real Estate Buyers Guide

[novyknowschicago]

Day 2: "Curious about the home buying process? Over the next few days, we'll break down each step and share insider tips to help you navigate the market like a pro! From getting pre-approved for a mortgage to making an offer and closing the deal, I'll be your trusted advisor every step of the way. With years of experience in the Chicago real estate market, I've built strong relationships with lenders, inspectors, and other professionals to ensure a smooth and seamless transaction for my clients. Whether you're a first-time home buyer or a seasoned investor, you can count on me to provide expert guidance and personalized service tailored to your unique needs. Let's turn your dream of homeownership into a reality! #HomeBuying101 #TeleQuestRealty #NovyKnowsChicago"

[paulsmarj]

Starting your house hunt? Here's a roadmap to success: 1. Define your dream home but be ready to compromise. 2. Location is key - make it a top priority. 3. Secure mortgage pre-approval to know your budget. 4. Agents are allies - don't go it alone. Embark on the journey to your dream home with confidence and excitement. Ready to find your perfect place? Let's connect and turn dreams into reality! #homebuying101 #househuntingtips #propertysearch #realestateknowledge #yourfuturehomeawaits http://dlvr.it/T2Xk6M

[realtorjamier]

Why it’s (Almost) Never a Bad Time to Buy a Home

If you’ve put your homebuying plans on hold because of rising rates and prices, think again. It could still be a great time for you to buy. Here’s why:

While inflation is not something any of us want, there may be some upside for homebuyers, as it tends to reduce competition for homes. Additionally, equity earned by homeownership has always been a good “hedge” against inflation.

You may be happier buying now. Homeownership offers a sense of belonging and security that everyone in your family will appreciate. You’ll also avoid future rent increases while reaping attractive tax benefits, which you can always discuss with your tax advisor.+

Attempting to time the real estate market is tough. The 2020 arrival of COVID-19 was a big reminder that nobody can predict tomorrow’s markets. So, if you’re waiting for interest rates or home prices to fall before buying, you may end up waiting longer than needed. The result could mean missing out on the economic and personal benefits of homeownership.*

The great news is that you have options, which is why we recommend reaching out to our partners at Atlantic Coast Mortgage to discuss how they can help you make your next move – your best move.

If you’re interested in learning how Atlantic Coast Mortgage can help you finance your dream home – reach out today!

*Source: themortgagereports.com | +Atlantic Coast Mortgage, LLC does not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors before engaging in any transaction. | Not all applicants will qualify. Consult your loan officer for details on home financing options for your specific financial situation.

[realestateprosfl]

Nothing is written in stone, not even your credit score. If you think your credit score needs a boost before applying for a mortgage, these tips can help.

#househuntingtips #homebuyertips #homebuying101 #orlandorealestate #mortgagetips #newhome #firsttimebuyer #floridarealestate

[swastikproperties22]

Expert Tips for Finding Your Dream Home. #HomeBuying #RealEstateTips #DreamHome #PropertySearch #HouseHunting #SwastikProperties #HomeBuyersGuide #RealEstateAdvice #HouseHunters #ExpertAdvice #HomeOwnership #PropertyInvestment #RealEstateJourney #HomeBuyingProcess #HomeSearch #HomeSweetHome #RealEstateExperts #HomeBuyerTips #RealEstateMarket #HomeBuying101

[denisejohnson5678]

November Market snapshot - take a peek 👀 at what the Greensboro area market 📈 looked like last year versus this year. The market is slowing down a bit, but sales prices continue to appreciate! If I can help with any of your real estate questions, don't hesitate to reach out! 📲 Send me a message on Messenger or give me a call! 📞 #greensborohomes #realestatetipsandtricks #greensbororealtor #homebuyingtip #realestatetalk #realestateinvestingtips #realestateadvisors #realestatetip #realtorcommunity #listingagents #realtorofinstagram #realestateeducation #realestatecoaching #homesellingtips #realestatetraining #homebuying101 #realestateadvisor #yourfavoriterealtor #sellingyourhome #realestatetipsoftheday #realestatetipsandadvice #realestateprofessional #realtortips #realtorsofig #housingmarket #realestateadvice #realestatetips https://www.instagram.com/p/ClphBRrufKM/?igshid=NGJjMDIxMWI=

[yourbetteragentgilbert]

Let’s make 2023 the year you buy your first home! Let me know how I can help. #newhome #newhomebuyer #homebuyertips #homebuying #homebuyingtips #homebuying101 #sellhouse #firsttimehomebuyer #homeownershipgoals #realestatetips #mortgage (at San Diego, California) https://www.instagram.com/p/CnqxlNPOorq/?igshid=NGJjMDIxMWI=

[thefejerangroup]

Wondering How Much You Need To Save for a Down Payment?

If you’re getting ready to buy your first home, you’re likely focused on saving up for everything that purchase involves. One cost that’s likely top of mind is your down payment. But don’t let a common misconception about how much you need to save make the process harder than it could be.

#RealEstateTips #RealEstateUpdate #RealEstateMarket #RealEstate #RealEstateLife #RealEstateMortgage #RealEstateDownPayment #HousingMarket #HousingDownPayment #HomeBuying #HomeBuyingTips #HomeBuyingProcess #HomeBuying101 #RealEstateHome #TFBG #TheFejeranBoyettGroup #DownPayment #DownPaymentTips