Buying a Home Archives - Page 5 of 7

September 9, 2015 by changescapeweb Leave a Comment

The First Time Home buyers Guide to Mortgage

As a first-time home buyer you will have a lot to deal with at first. Since applying for a first time mortgage loan can be a really overwhelming experience. If you want to have your first home to be an easier experience, you will need to be ready for the big day well ahead of time. There are a few questions you need to ask yourself before you move on with the actual purchase of your potential new home and moving in:

How much of a home can you really afford?

It is not quite uncommon to be able to qualify for a larger mortgage than you can really afford, but you would do well to borrow money with caution. Although it may seem like a lucrative opportunity to get a greater home than you can afford now, it will easily turn out as a serious mistake in the long run. Always make sure you have a good safety net in terms of your monthly budget so you won’t suffer financial woes at the end of the year. A mortgage calculator will help you out, but you would still do well to talk to your real estate agent to ensure you are fully aware of what you’re getting into.

How much mortgage can you afford to borrow?

There are quite a few things you need to consider, such as your overall monthly income, your credit history, employment and residence history as well as the size of the down payment. Depending on the circumstances involved, you may be given the opportunity to go beyond your safety margin, so be careful.

What will you need to pay up front?

There are some costs you will need to safely cover before you begin making your regular mortgage payments, such as closing costs, mortgage application fees, down payment and earnest money.
Mortgage application fees will include service fees, which may be flat fees covering 1-2% of the total final price of your property. There will also be credit report, appraisal and underwriting fees that may be added to the closing costs.
Earnest money is essentially the initial deposit that needs to be paid to the seller if the offer is accepted, showing your resolve to buy the property. Sometimes there are multiple bids on a property and the earnest money deposit you place may influence the decision of the seller, so keep that in mind.

Down payment is usually the best way you can get a better mortgage rate in the long run. Down payments can range up to 20% of the total cost of your potential new property, where 15-20% is the ideal range if you want to keep your mortgage low. Paying up front will help lower the interest of your mortgage further down the line.

Closing costs usually range from about 2-4% of the entire loan amount you will need to pay off. Closing costs may sometimes even be a part of the entire mortgage loan amount, meaning you will be paying them off as time goes by and you pay your mortgage the usual way. These may include mortgage application fees, attorney fees, surveys and inspections, insurance and more.

Home ownership expenses

There will be more you need to commit to once you have a home, since other expenses need to be figured into your calculations as well. Mortgage insurance will usually be needed for mortgages with down payments of less than 20%, home insurance, maintenance and utilities as well as property taxes will also need to be considered into your monthly balance. You should take all of these into account when you commit to a home mortgage and you end up moving house successfully.

Saving money and planning ahead

If you want to save up for your new home, then there are some things you can do to make it happen. For example, saving for a higher down payment will mean a much lower set of payment later down the line. Maintaining a reliable income will allow you to improve your standing with lenders. Combining your stated income with your spouse will allow you an additional advantage, as well as paying your bills on time for a good credit score. Limit your monthly budget as well for a better credit score in the long run. What you should be aiming at is a mortgage that is less than 28% of your total income for an optimal result. When all is said and done moving into your new home with a moving company will give you peace of mind, knowing your monthly expenses are under control.

Article provided by Ella A. on behalf of: wandsworthremovals.com

P.S. Real estate is still heating up for the Summer! Homes are selling fast and for the highest prices in years! It is never too late to put your home on the market or for buyers to call me to discuss the Summer & Fall market. Don’t miss out on your Dream Home, interest rates are still below 4%. Call me today for details!

March 10, 2015 by changescapeweb Leave a Comment

Pending Home Sales Rise in January to Highest Level in 18 Months

WASHINGTON (February 27, 2015) — Improved buyer demand at the beginning of 2015 pushed pending home sales in January to their highest level since August 2013, according to the National Association of Realtors®. All major regions except for the Midwest saw gains in activity in January.

The Pending Home Sales Index,* a forward-looking indicator based on contract signings, climbed 1.7 percent to 104.2 in January from an upwardly revised 102.5 in December and is now 8.4 percent above January 2014 (96.1). This marks the fifth consecutive month of year-over-year gains with each month accelerating the previous month’s gain.

Lawrence Yun, NAR chief economist, says for the most part buyers in January were able to overcome tight supply to sign contracts at a pace that highlights the underlying demand that exists in today’s market. “Contract activity is convincingly up compared to a year ago despite comparable inventory levels,” he said. “The difference this year is the positive factors supporting stronger sales, such as slightly improving credit conditions, more jobs and slower price growth.”

Yun also points to more favorable conditions for traditional buyers entering the market. All-cash sales and sales to investors are both down from a year ago¹, creating less competition and some relief for buyers who still face the challenge of limited homes available for sale.

“All indications point to modest sales gains as we head into the spring buying season,” says Yun. “However, the pace will greatly depend on how much upward pressure the impact of low inventory will have on home prices. Appreciation anywhere near double-digits isn’t healthy or sustainable in the current economic environment.”

The PHSI in the Northeast inched 0.1 percent to 84.9 in January, and is now 6.9 percent above a year ago. In the Midwest the index decreased 0.7 percent to 99.3 in January, but is 4.2 percent above January 2014.

Pending home sales experienced the largest increase in the South, up 3.2 percent to an index of 121.9 in January (highest since April 2010) and are 9.7 percent above last January. The index in the West rose 2.2 percent in January to 96.4 and is 11.4 percent above a year ago.

Total existing-homes sales in 2015 are forecast to be around 5.26 million, an increase of 6.4 percent from 2014. The national median existing-home price for all of this year is expected to increase near 5 percent. In 2014, existing-home sales declined 2.9 percent and prices rose 5.7 percent.

For more info: https://www.realtor.org/news-releases/2015/02/pending-home-sales-rise-in-january-to-highest-level-in-18-months

Real estate is already booming for the New Year! Last year was the busiest real estate market that we have had in years. It is never too early to get your home ready for the market or for buyers to call me to discuss the Spring market. Don’t miss out on lower home prices & interest rates below 4%. Call me for details today! 314-691-1320

June 9, 2014 by smeranda Leave a Comment

6 Home Buying Hang-ups and What Agents can do for Their Clients to Help Them Avoid These Common Missteps.

1. Missing out on the perfect place.

Hundreds of new homes hit the market every day, and buyers who are not using all of the house hunting tools available, could let their dream home slip by unnoticed —or worse, someone else might snatch it up before they even know that it’s for sale. One of the toughest lessons for a first-time (and, yes, even a second-time) buyer is that in this market, passive house hunting simply will not cut it. No matter what agents do—and no matter how many e-mails they send showcasing a just listed property that agents would love to show their clients—if the buyer doesn’t make house hunting a top priority, it’s going to be a painful process.

What Agents Can Do: As soon as you secure your newest buyer clients, set up a time to discuss your house hunting strategy. Ask them what their preferred method of contact is when there is a home that just can’t wait to be seen. Setting up such a strategy will let buyers stress less and think more about window treatments than missing their window of opportunity.

2. Choosing the wrong lender.

Few things are more frustrating (for buyers and agents alike!) than finding the perfect property only to find out that the loan isn’t coming through.

What Agents Can Do: It’s best for clients to use the preferred lenders because they’ll get great rates, the VIP treatment, and if there’s a problem they’ll find out on the front end. Remind clients that preferred lenders earn their preferred status only after they’ve consistently delivered loan closings. Provide them with a list of preferred lenders, and provide clients with educational materials to help them get their loan situation in order before they hit on their must-have property.

3. Fixating on price per square foot.

Buyers who search by price per square foot may be prime for some major disappointment.

What Agents Can Do: Be sure to reiterate to clients that if they are using this as part of their search criteria, they might want to think again. Measurements, as agents know, are not guaranteed to be accurate, and improper measurements can place appropriately priced homes outside of a client’s search parameters.

4. Desperation.

When prices are on the rise, buyers get antsy and sellers get greedy. Too often buyers have been outbid on numerous properties and get discouraged. As a result, they are placing ridiculously high offers on properties that just aren’t worth it, just to get into a home this minute.

What Agents Can Do: Tell buyers to avoid the temptation and work with them to build up a backup plan. Suggest neighborhood or areas that may actually have the right home at the right price that the buyer potentially crossed-off the list due to superficial reasons. You don’t have to commit to changing your home search, and you’re not tied into anything. If all else fails, recommend short-term or corporate rentals options, so they’ll have a soft place to land while they wait for their dream home to appear on the market.

5. Foregoing inspections.

In a perfect world, sellers would disclose every single issue to the prospective buyers. Since that’s not the case, inspections are a great idea; yet one that clients skip too often.

What Agents Can Do: Inspections identify red flags and can address the general state of a property. Plus, they can provide leverage when it comes time to negotiate. Discuss these issues in details with your clients, and remind them of how much neglecting inspections may cost them in the long run.

6. Buying a “project.

The unwritten rule of renovating states that it will take more time and money than expected. So it’s important for buyers to know their threshold for renovations before buying a fixer-upper.

What Agents Can Do: Be prepared to share referrals to general contractors and specialty tradesmen. It doesn’t hurt to schedule a showing with one of these pros in tow either. It’s better for clients to know what they’re getting into before they find themselves in over their head. Plus, a happy new homeowner is the source of a great recommendation and referral clients for years to come.

P.S. Spring has sprung and it has been the busiest Spring in years! Now is the time for sellers to be getting their homes ready for the Spring market & for buyers to start looking for their new homes. This will be another great real estate year! Don’t miss out on lower home prices & good interest rates. Contact me for details today!

October 17, 2012 by changescapeweb Leave a Comment

Common mistakes that first time home buyers make in St. Charles and St. Louis Counties

There are common mistakes that first time home buyers make when purchasing a home in St. Charles or St. Louis counties, and the list below outlines the top 5 that I’ve seen over the years.

While the most frequent first time buyer mistakes are not earth shattering, they can cause a lot of unnecessary stress, frustration, and heartache

1.TAKING ADVICE FROM FRIENDS AND FAMILY

Every real estate transaction is unique due to the fact that buyers and sellers have varying personalities, circumstances, income, equity positions, debt ratios, credit scores, etc… In addition, the real estate industry and real estate market are constantly undergoing changes, and what was true a year ago, or even yesterday, could be completely different in today’s economic and lending climate. St. Charles & St. Louis county loan officers and real estate agents that are working in the business every day, have a depth of knowledge, and real time experience with regards to appraisals, market values, seller concessions, and more, which your friends and family do not. Although it’s natural to be nervous and tempted to rely on friends and family, as a first time buyer, it’s important that you trust what your St. Charles & St. Louis county real estate agent and/or home loan agent tells you. And, although it’s wise to get a second opinion in many cases, it should always come from another real estate industry professional, who has the FULL details or your purchase and financial profile.

2. BUYING THE MOST EXPENSIVE HOME THEY QUALIFY FOR IN ST. CHARLES OR ST. LOUIS COUNTY

Becoming a St. Charles & St. Louis county homeowner is very exciting for a first time buyer, but it can become a financial burden, if you’re not prepared for the additional costs of homeownership. This is one topic that is perfect to discuss with friends and family, and an area where they can be a great source of advice.

When choosing your first home in St. Charles or St. Louis county, consider all of the expenses you will incur, in addition to your monthly mortgage, and be realistic about how much you will have left over for food, gasoline, and even entertainment. The last thing you want to do is to become a prisoner in your own home, even if it is beautiful and everything you’ve ever dreamed of.

3. MAKING LOW OFFERS ON HOMES IN ST. CHARLES & ST. LOUIS COUNTY

As a first time buyer, you may be reluctant to offer full price, or above asking price, on a home that you want to purchase in St. Charles & St. Louis counties. You may also think that your real estate agent is simply trying to make a quick sale, if they urge you to do so. However, the St. Charles & St. Louis county real estate market is moving quickly right now, and desirable properties typically have multiple offers submitted on them due to the severe lack of inventory. With homes in St. Charles & St. Louis counties selling almost as soon as the sign goes up, and prices pushing up slightly, you’re setting yourself up for heartbreak and wasting your time, if you’re not offering a fair amount of money for the property. This is especially true when it comes to standard real estate sales in St. Charles & St. Louis counties, since the owner is not desperate to sell.

4. NOT MAKING AN OFFER WHEN THEY FIND THE RIGHT HOME IN ST. CHARLES & ST. LOUIS COUNTIES

So often first time home buyers are hesitant to place an offer on a home, if they’ve just begun their St. Charles & St. Louis county home search. The problem is that there are many other buyers that have been searching for months already, and the home you love may very well be pending by the time you circle back to it. Yes, it’s important to see what’s out there, and know that you’re making the right decision, but you should try to do this as quickly as possible, if you find a home in St. Charles or St. Louis county that you like and suits your needs.

5. LOOKING FOR A HOME LIKE THEIR PARENTS

It’s important to remember that most people do not buy their dream home right out of the gate. Your parents, or other family members and friends, probably started out in a much smaller house, or even a condo in St. Charles or St. Louis county. Most likely, they paid down their mortgage over the years, and then traded up to a larger St. Charles or St. Louis county home, when the time was right. As a first time buyer, it may be difficult to lower your expectations a bit, but by not doing so, you may miss out on a great home and the incredibly low interest rates and prices available today in St. Charles & St. Louis counties.

If you are a first time home buyer thinking about buying a home in St. Charles or St. Louis Counties, working with a Real Estate expert than knows the St. Charles and St. Louis County market can really help you. Sandra Meranda specializes in the St. Charles and St. Louis county home markets. Contact me for help with finding or selling your home.

May 12, 2012 by changescapeweb Leave a Comment

Buying a St. Charles Home Won’t Get Much Cheaper

This is a fantastic time to buy a home, and the market is great in St. Charles. There is a lot of activity in the St. Charles housing market, and there has never been a better time to buy a home in St. Charles County!

CNN Money posted a good article that explains why now is the time to buy a new home:

Home prices are down 34% nationally since 2006. Mortgage rates at historic lows. Owning a home has never been more affordable.
Home prices are expected to flatten out by the third quarter and start climbing by next year. In fact, in some markets home prices have already started to increase.
Foreclosures are starting to decrease according to key indicators like the percentage of mortgage loans 90 days or more late.
Home Buying is much cheaper than renting.
Mortgage rates aren’t expected to stay below 4% by the end of the year.

A top real estate agent can help you make an informed decisions about how to buy a home in St. Charles. My team specializes in St. Charles County and St. Louis County.

The busy Spring real estate season is here! This is the time of year for buying and selling real estate in St. Charles. There are large numbers of homes at below-market prices & the Interest rates are hovering below 4% !! The home sale numbers have been increasing every month since June of 2011. It is never too early to start getting your home for Spring also. Contact me for details today!

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