Everybody loves talking about mortgages. They’re fun, easy to understand, and a great icebreaker, right?….Wrong. Thanks to their lengthy process, technical jargon, and confusing options, mortgages have a bit of an intimidating reputation—but it doesn’t have to be that way!

If you’re in the process of buying a new home and dreading the mortgage application process, here’s what you need to know to keep things running smoothly. 

Know How Much You Can Spend

If you’re feeling antsy about getting started and want a general idea of how much loan you might qualify for, consider the 28/36 rule, or the Debt-to-Income ratio—AKA what most lenders use to help calculate your mortgage. 

Essentially, the 28/36 rule means that your monthly mortgage payment shouldn’t be more than 28% of your gross income. Additionally, your outstanding debts—like mortgage, car loans, student loans—shouldn’t account for more than 36% of your gross income.

Get Your Finances in Order

Not seeing the numbers you were hoping for after calculating your Debt-to-Income ratio? Then, hopefully, you’ve given yourself a little time to shift things in your favor. Paying off loans, improving your credit score, avoiding big purchases—these will all help you change those numbers. 

Of course, completing those tasks is a little harder to do in practice than in theory, so you may have to take a look at your budget and see where you can cut out some extras—at least temporarily!

What You’ll Need to Apply

In the weeks before you plan on applying for a mortgage, you should start collecting all of the documents you need. Since a lender will be telling you exactly how much money they’re willing to loan, they’ll need a comprehensive understanding of your finances beforehand. Start gathering things like:

• W2s/tax returns
• Photo ID
• Your two most recent pay stubs
• Current and prior addresses
• Asset information (retirement funds, 401(k), stocks and bonds, other investments) 
• Gift letters

Depending on the lender you choose, you may need additional documents, so consider calling in to double-check beforehand. 

Find the Right Mortgage

Once it’s time to start thinking more concretely about applying for a mortgage, you have several options to consider. While all the mortgage options out there could easily fill a whole blog post on their own, here’s a quick rundown to give you a general idea:

• Conventional/Fixed-rate:  The interest rate of a fixed-rate loan won’t change over time, making it a popular choice for its predictability. Conventional loans typically require a 20% down payment or mortgage insurance for smaller down payments.
• Adjustable-rate: The interest rate of adjustable-rate mortgage will fluctuate over time, sometimes lower than fixed-rate, sometimes higher. There is a cap in place so the rate doesn’t get too out of control, but ARMs are typically more popular with those who plan to refinance.
• FHA: If you are struggling to come up with a down payment, you may have options with an FHA mortgage. Provided by the Federal Housing Administration, these loans come with a low down payment requirement and built-in mortgage insurance.
• USDA: Live in a rural area? Then check out your USDA eligibility! A surprising amount of areas qualify for USDA loans, even if you aren’t living in the countryside. Plus, USDA loans don’t require a down payment and offer lower insurance premiums.

These aren’t the only options you’ll have, just the most common. If none of these sound right or you aren’t sure which to choose, just ask your lender!

Choose the Right Lender

When it comes time to decide who to work with, you’ll have to do your research. Each lender is different, meaning they’ll likely offer you different rates, charges, and loan options. 

Luckily, we’ve been working in real estate around the area for years, so we know exactly which lenders are right for which buyers. If you need a few suggestions before you kick off your search, just let us know! 

Still Have Questions?

That’s okay—we get it. Applying for mortgage is confusing and challenging, especially if it’s your first time. If you have any questions about the process, we’re here to help. 

Ready to start looking at a few homes in your price range? We can help with that, too! Check out our specialized search tool to narrow down your options, and give us a call to start seeing a few in person!

If you’re gearing up to sell your home, you’ve probably read tons of articles all about what you should be doing…but what about what you shouldn’t be doing? After all, selling your home is a huge financial decision, and a misstep could mean losing out on your hard-earned profit. 

Don’t let something as easy to fix as not staging or pricing incorrectly throw off the success of your sale! Here are the top five mistakes to avoid when selling your home. 

Setting an Unrealistic Price

It might come as a surprise, but pricing a home is tricky. Not only do you have to take into account what homes around yours have recently sold for (or, in other words, what buyers are willing to pay), but you also need to know how to value any updates and improvements you’ve made. Plus, you want your home to be priced so that it pops up in as many online searches as possible. When it comes to finding that magic number, sellers’ emotions often cloud the ability to accurately price a home. 

So you’ll just use an automatic estimator, and that’ll take care of things, right? Well, only if you’re okay with using outdated data and not taking into account any upgrades you’ve made. The best way to get a price that guarantees you’ll maximize your investment? Enlisting the help of an experienced local agent. 

Ignoring Major Repairs (or Making the Wrong Ones)

During the inspection process, your home will be reviewed with a fine-tooth comb. Any things you’ve been avoiding, like leaky faucets, outdated water heaters, or water damage in the ceilings, will be noted and shared with buyers. Additionally, if there are any major necessary repairs that you didn’t disclose ahead of time, you could find yourself in serious legal trouble—or with a cancelled sale on your hands.

Limiting Showings & Failing to Stage

You’re selling your home, but you want to sell it on your terms. You don’t want to have showings every weekend or on short notice, and you don’t want to have to rearrange furniture or remove decor for staging. While changing your home or lifestyle to accommodate buyers might seem like a major hassle, being inflexible is only going to hurt you in the long run.

Buyers are going to want to see your home, sometimes more than once, and it needs to be looking its best if you want to get serious (and competitive) offers. In fact, staged homes have been shown to sell almost 90% faster and for a 20% higher profit than non-staged homes!

Letting Your Emotions Get in the Way

You’ve made a lot of memories in your home, and the space likely holds indescribable value to you. So hearing people walk through the house and point out all of the flaws—then not make an offer—can be draining. A good rule of thumb for selling? Think of the process as a business transaction, and think of yourself as a salesperson, not a homeowner. Creating that divide will not only improve your emotional state, but it’ll also help you see exactly how your home can be better than it is.

Not Hiring an Agent

Thinking of listing For Sale by Owner to avoid agent commission fees? In reality, selling FSBO can actually COST you money in the long run;. according to a 2016 study by the National Association of Realtors®, the average price for a FSBO home was around $185,000—which is $60,000 less than the average price of a home listed by an agent ($245,000). 

Aside from pricing, there’s a lot more that an agent can help you with. They’ll come up with a marketing plan for your home, suggest personalized staging strategies, conduct open houses and showings for you, and guide you through any problems or roadblocks along the way, all of which will take a load of work and stress off of your shoulders. 

Ready to List Your Home?

Feeling a little intimidated by the home-selling process? Don’t worry—we’re here to help! Not only can we give you a few more pointers on what you should and shouldn’t do, but we’ll also be around to guide you through every aspect of the sale, from listing to showings to closing. 

Ready to learn a little more about what it takes to sell for top dollar? Just give our team a call to get started! 

A new home is a big financial investment. Not only will you likely be pouring a lot of your savings into the purchase, but you’ll also be choosing a place to call home for years to come. The last thing you want is to spend all of that time and money only to discover a costly maintenance or structural issue.

Even though you’ll get a professional inspection done, there are certain red flags that you should specifically be looking out for during the first walkthrough. By recognizing these problem areas right away, you can put emphasis on them during the inspection. Save yourself time, money,  and stress, and know these major home-buying warning signs.

Foundational Flaws

It’s not like you can pull the house up from the ground and get a closer look at the foundation, so how do you tell if there are any issues? A few surefire signs of a faulty foundation include sloping floors, swinging and sticking doors, visible cracks above window frames, and cabinets separating from the walls.

Faulty foundations can go on to cause major damage in the home, and like most problems, the longer it goes unrepaired, the worse it will get. Minor cracks will only cost around $500, while major repairs could total up to $10,000. These are expenses you don’t want—and shouldn’t have—to get saddled with, so keep an eye out during the walkthrough and get a professional opinion from the inspection.

Signs of Amateur Repairs

Lots of homeowners choose to DIY repairs for a variety of reasons, from budget issues to scheduling conflicts. If they know what they’re doing (or the project is something relatively simple), then there shouldn’t be any issues. But if they, say, looked up a video tutorial on how to wire electricity to a new outlet—having never done electrical work before—then you might have some problems down the road. 

Even small things that seem unimportant, like light switches wired to the wrong lights, leaky faucets, or shoddy tiling work, can be signs of larger problems elsewhere in the home. If you run into things like this, then you might ask your home inspector to take a deeper look into other areas of the house that have been recently repaired.

Concealed Damage

Speaking of amateur repairs, some problems might seem a little too big (or expensive) to fix. That’s when homeowners might try to cover it up instead of paying for repairs. For example: a fresh coat of paint is to be expected in many homes on the market. But if the paint only covers a small section of the wall or is dotted around the ceiling, that could mean the owner is trying to hide water damage. Depending on how extensive the damage is, it will cost hundreds or thousands of dollars to repair. And if it sneaks past the inspection, it could be on your dime. 

In the same vein, things like candles and air fresheners are also expected during showings. But if you notice that the scents are a little too strong, then the sellers could be trying to cover up mold or mildew odors, smelly pets, or damage from smoking. A home is a huge investment, so don’t be afraid to really look into that dry wall and make sure it’s mold-free.

Roofs in Disrepair

Remember those spots of fresh paint? If you notice those in a house, then there’s a pretty good chance that the water is coming from the roof. Other major signs of a damaged roof include curling or missing shingles, signs of buckling, discoloration or stains, and leaning or loose chimneys and gutters. 

While a home inspector will likely check the roof, if you notice any of the above signs, you may want to ask for an extra in-depth look. After all, roof repairs can cost anywhere from $200 to several thousand dollars, so even though the roof is out of sight, always keep it in mind. 

Need Some Help Searching?

Buying a home is a huge investment, and you want to make sure you’re spending your money wisely. If you’re feeling overwhelmed by the walk through process, don’t worry—we’re here to help. Not only can we point out any issues we see with the home right away, but we can also recommend top inspectors and help with negotiations for repairs.

Explore a few more of the home-buying resources we have to offer, and give us a call when you’re ready to see a few homes!

Millennials get a lot of flack, but they’re an important part of the real estate market. In fact, they make up the largest generational percentage of home buyers right now!

So, if you’re planning on selling your home soon, it’s important to keep the average millennial home buyer in mind. This generation is unlike any that’s come before it, and the way they buy everything (from laundry detergent to life insurance) is unique.

When it comes to catching the eye of the discerning millennial home buyer, here’s what you need to do:

Create a Strong Internet Presence

It goes without saying that millennials rely on the Internet for, well, everything. This isn’t unusual: the Internet makes every kind of shopping easier and more accessible.

As such, giving your home an effective online presence is key. It needs to be easy to find via the most popular home-buying networks, and it has to look great no matter the screen size. After all, more home buyers than ever before are using their smartphones to find their dream home.

Don’t Underestimate the Importance of Professional Listing Photos

Because millennials rely on the Internet to search homes for sale, your home’s photos have to stand out in a big way. After all, with the right photographer even the smallest home can look like a palace.

So, don’t skimp on this expense! Great photos could be the difference between a home selling within hours, and a home languishing on the market for months.

Show How Your Home Will Improve their Lifestyle

Millennials are looking for homes that will improve their lifestyles and be close to wherever they need to be during the week. As you market your home online, be sure you’re highlighting both its features and location in your listing description.

Tell an exciting story of how much better their life will be once they buy your home! Craft your listing description to carefully touch on all the best parts of your home and its surroundings, and let buyers know exactly why they need to buy it.

Know What Millennials are Looking for in a Home

So, what are millennials looking for anyway? Market research finds that millennial buyers are attracted to affordable homes with eco-friendly and smart features. If your home has any green features or environmentally friendly add-ons, you’ll definitely want to highlight them.

In addition, if you’ve outfitted your home to accommodate any smart features that use technology—like a Nest thermostat or other Smart Home appliances—be sure to mention that in your listing description and social media promotion.

Use a Pro to Market Your Home

The easiest way to market your home to millennials? Work with a real estate specialist who understands this unique market—and how to best target real estate’s next generation of buyers.

Give us a call today for more information about selling your home to millennials!

Repainting the walls, updating the kitchen and bathroom, replacing the hot water heater—there are ways to increase your home’s value that stand the test of time. But as the market and the priorities of buyers change, there are newer, more popular ways to get a high return on your investment!

Smart home technology is becoming a bigger factor for buyers, and it’s not hard to see why. Things like smart appliances, high-efficiency lighting, and programmable thermostats aren’t only convenient, but they also save you money on utility bills! Lucky for sellers, smart home technology is pretty affordable compared to other value-boosting projects and can increase your home’s resale value by a few percentage points.

Whether you’re selling your home soon and looking to get top dollar or just curious about your options, take a look at our guide to the top smart home technology to install in 2019.

Smart Appliances

Pretty much every appliance in your home has a “smart” option—refrigerators, washers and dryers, faucets, ovens, you name it. Smart fridges can self-adjust the temperature and create grocery lists, smart ovens allow you to check how much time is left from your phone and preprogam recipes, and smart washers will run during the most cost-effective time of day.

As far as what to install, you don’t have to replace every appliance with a smart version, but think of what’s most practical. Since kitchens and bathrooms are priorities for buyers, consider replacing the fridge, oven, or faucets.

Smart Security System & Locks

Installing a smart security system is one of the most popular smart improvements you can make. According to T3 Sixty’s recent survey of buyers interested in smart home technology, the largest amount of interest was shown for smart security systems.

The security includes anything from cameras that upload footage to a virtual database to locks enabled by wifi. Some companies, like Nest, Ring, and SimpliSafe, offer bundle packages with alarms, cameras, and smart doorbells. Since security is such a high priority for buyers, these systems will likely show one of the highest returns on your investment.

Smart Lighting

You know those lights that turn on when you clap? This is the next level. Not only can smart lighting be controlled via apps, but it can also be set to trigger under certain conditions, like when you walk by or when you leave for work. Forget to switch the lights off before leaving? No problem—you can just turn them off from your phone!

It’s recommended to buy a starter pack, since those come with light bulbs and other supplies you’ll need for setup. Once that’s all installed, most systems are compatible with smart speakers like the Amazon Alexa and Google Assistant.

Smart Thermostats

Buying a home is a big investment, so if you can show potential buyers how your home can help save them money, it’s going to make your property that much more desirable. According to studies conducted by major smart thermostat providers like Ecobee and Nest, homeowners saved 23% in heating and cooling costs (Ecobee) and around $150 annually (Nest). You can even estimate what the savings in your home might look like with an energy calculator!

The most popular smart home thermostats are Ecobee and Nest, which will run you around $200 – $300. If you’re interested in a budget option that will still look flashy to buyers, check out Honeywell. Of course, each system offers different features, so be sure to do a little research beforehand.

Smart Blinds

Smart blinds are a little more of a cosmetic perk for buyers, but they do have their money-saving benefits. You can set the shades to open or close based on peak sunlight times or the temperature of your home, which saves a few extra dollars on heating and cooling here and there. They also add an extra layer of security and convenience to the home, both of which are big selling points for today’s buyers.

Depending on the model you get, you can control your smart shades through an app, a smart hub, or even just your voice. You can even coordinate them with other smart features in your home, like the lighting or smoke detectors!

Check out options like the Serena smart shade by Lutron, the Pella Insynctive line, or Ikea’s upcoming August line.

Getting Ready to List Your Home?

While smart home technology might be one of the most popular ways to up your home’s value right now, there are plenty of other options. Give us a call, and we’ll be more than happy to walk through your home and recommend a few value-boosting improvements!

Already ready to list? Let us know, and we’ll help you find the best listing price for your home—with all of your recent upgrades taken into account.

So, you bought a house. First of all, congratulations! The search is over, no more weekends filled with open houses and showings, and you can finally breathe a sigh of relief. Phew.

But your work isn’t quite done yet. Once you buy a house, there are a few things that need to happen before and after move-in day. Check out our list of to-dos, and get prepared for what comes after closing—trust us, your future self will thank you.

Do a Deep Clean

When you first buy your home, there won’t be any heavy dressers blocking off corners, couches and beds to clean under, or stacks of boxes covered in cobwebs in the attic. Your house will never be this empty again—well, until you sell it, that is—so take advantage of the wide-open space.

Whether you want to hire professional cleaners or DIY, you should pour some serious TLC into your new house. Dust, vacuum, mop, scrub, polish—look up a few cleaning checklists for inspiration—and put in some elbow grease.

Change Your Address

This process will be a little tedious, but it has to be done. First, you should fill out a change of address form from your post office, so any mail sent to your old address will get forwarded to your new one—although these days you can even complete the process online!

Next, get in touch with credit card companies, your cell phone provider, and anyone else who will need to continue sending you bills. Big fan of online shopping? The last thing you want is for your package to get dropped off at your old house, so be sure to update your Amazon info, as well.

Set Up Utilities & Security

Running water, electricity, internet…all things you probably want working when you move in, right? If you already have a provider, you’ll need to communicate the change address to them, stop service to your old address, and set up a date for service to continue at your new address.

While you’re getting things installed, you should also consider setting up a security system. These days you’ll have plenty of affordable and high-tech options, so be sure to browse what’s available. At the very least, consider changing your locks, since old copies of the keys from the past owners could still be floating around.

Keep Your Documents Organized

Once you’ve closed on your home, you’re going to have a lot of important documents to keep track of, and moving is going throw everything into chaos (although hopefully organized chaos) for a bit. As soon as you’ve closed and before you move in, collect all of the documents you used for your mortgage loan, as well as any copies of closing papers.

You never know when you might need some of them again, so invest in a secure storage system to keep them organized and around at all times.

Say Hi to the Neighbors

Even if you’re a little shy, it’s a good idea to introduce yourself to the neighbors once you move in. After all, close neighbors can help with anything from lending you an extra cup of sugar to watching your pets while you’re out of town.

You don’t have to organize a mixer or bake cookies for everyone, but just saying hello while you’re out and about can go a long way in establishing those important relationships.

Ready to Buy Your Dream Home?

Now that you know what to do after you’ve closed, let’s get started with your home search! From guiding you around the area to helping you navigate your mortgage options, our team is here to help you reach your real estate goals—and answer all of your questions along the way.

If you’re ready to get started or have a few questions, just give us a call today!