Cody Rohland's Blog
26 Pratt Farm Pl, Pembroke, MA 02359
There’s a lot of things to think about before buying a home--some financial, others personal. Most people tend to focus on one or the other. However, both are instrumental in choosing the right house and buying at the right time.
In this article, we’re going to talk about some of the ways you can determine if you’re ready for homeownership. We’ll discuss things like credit scores and down payments, but also important life factors like your career and future plans.
Getting your finances in order
There are a few simple things you can do right now that will help you understand if you’re financially secure enough to start looking at houses. First, you’ll want to look up your credit score.
Lenders strongly consider your credit when determining how much risk is involved in lending to you. A higher credit score can not only get you approved for a mortgage, it can lower your interest rate and make you eligible to borrow without having to pay private mortgage insurance.
The amount of money this saves seems trivial in the short term, but over the lifespan of your loan it can save you tens of thousands of dollars. So, read a free credit report and if your credit is lower than 700 start finding ways to improve your credit.
In the meantime, you’ll want to save for a down payment. While it’s possible to buy a home with a small or no down payment, it can come back to haunt you in the form of interest as you pay off your loan. Furthermore, many lenders won’t pre-approve you unless you make a down payment of a minimum amount (often 20% of the loan).
If you have a high credit score and you’ve saved for a down payment, another thing to check off your list would be proving your stable income. This can be difficult for the self-employed, contract workers, or people who have recently changed jobs.
Lenders want to see that you have a stable income history to ensure that you’ll be able to pay your mortgage each month. If you recently changed jobs or are in between jobs, it could be to your benefit to wait 3-6 months before getting pre-approved. In that time, you can continue to raise your credit and save for a down payment, further increasing your chances of getting a low-interest loan.
Preparing for homeownership
While the financial aspects of homeownership are important, so are the personal aspects. You’ll want to consider several life factors before buying a home.
First, think about your longterm goals. Do you want to live in the same area for the next 10 to 30 years? Will your career bring you to different regions or will you attend school somewhere else? These questions will help you decide if it’s a good time to buy or a better investment to save money while renting.
If you have a family (or plan on having one soon), you’ll also have to find a way to balance all of your living needs.
Finally, ask yourself if you have time for homeownership. Many people who are used to renting aren’t aware of the amount of time and money it takes to maintain a home. You’ll have more bills, you’ll have to mow your own lawn, and you’ll be responsible for maintenance of your home.
If you’re looking for a bargain on a home, there are ways that you can tell a seller is ready to give you a great price.
The Vocabulary Is Right
Sellers who really want to get rid of their property will never say it directly on a listing. Yet, there’s so many different keywords that can help you to distinguish which sellers are in a rush to sell. These words can be found in the listing and include:
- Motivated seller
- Priced to sell
- Needs TLC
- Bonus offers for closing within a certain timeframe
These keywords and phrases signal that a seller truly is “motivated.”
Your Agent Gets The Inside Scoop
Sometimes, a seller’s agent will tell a buyer’s agent outright that their client is looking to sell in a hurry. This can help you and your agent to work together to make a good offer and get a good deal on the home.
A Home Has Gone On And Off The Market
If a home has been on and off the market for some time, it’s a good bet that you’ll be able to get a good deal on the home. If a buyer backs out, it can really put the seller in a bind. If this has happened several times over a period of time, you may have a good shot at getting a good bargain on a home. Your realtor will be able to research the property history and help you find out exactly what happened to the home in the past. This way, you’ll know what you’re getting into with the property and if you have a good shot at making a deal.
Choose The Right Season
At certain times of the year, such as winter where there are fewer listings, sellers are generally more motivated. There’s less competition along with less buyers. Anyone who is looking during these times may be able to get a better deal on a home they love because of the low supply and demand.
A Really Good List Price
If the listing price for a home is a real bargain to begin with, you may have a motivated seller on the other side of the listing. A seller who needs to make a quick sale will often put the home on the market at a great price right from the start. This is all in hopes that the home will fly off of the market.
A low price can also be a bit of a red flag. The seller may have listed the home at a bargain price in hopes of a bidding war between buyers. If you don’t want to get into the competition of trying to outbid another buyer, you may want to avoid homes listed at seemingly too-good-to-be-true prices.
If you’re looking for a hidden bargain on a home, you can see that there are ways that you can find it pretty easily. Happy house hunting!
35 Valley St, Pembroke, MA 02359
Ready to sell your house? Ultimately, you should conduct a home appraisal before you add your residence to the housing market, and for good reason.
A home appraisal enables you to better understand what your home is worth. Plus, an expert home appraiser will be able to offer comprehensive insights into your house's strengths and weaknesses so you can prioritize assorted home improvement projects accordingly.
Preparing your home for an appraisal may prove to be exceedingly valuable. If you allocate time and resources to get your house ready for an appraisal, you can increase your chances of getting favorable results during the appraisal itself.
What does it take to prep your house for an appraisal? Here are three tips to ensure you can do just that.
1. Consider a Home Appraiser's Perspective.
A home appraiser has an eye for detail, one that helps this professional understand whether a house is a viable long-term investment. Meanwhile, a home seller who steps into a property appraiser's shoes may be better equipped than others to enhance his or her residence.
For example, a home seller should evaluate a house's interior and exterior prior to an appraisal. And if you notice chipped paint on a home's walls, cracked shingles on a home's exterior or other cosmetic issues, you should address these problems immediately.
Even minor cosmetic issues can negatively affect a home's value. However, a home seller who goes above and beyond the call of duty to correct these problems may be able to improve his or her house's appearance before a home appraisal.
2. Conduct Plenty of Housing Market Research.
How does your residence stack up against the competition? Learn about the local housing market, and you can find out what you'll need to do to differentiate your residence from similar properties.
An home seller should learn about the prices of recently sold residences as well as homes that are currently available. That way, you can set realistic expectations for your home appraisal.
3. Collaborate with a Real Estate Agent.
A home appraisal can be a stressful experience, especially for a first-time home seller. Lucky for you, real estate agents are available to help you streamline the home appraisal process.
Typically, a real estate agent will guide you along the home selling process. He or she can connect you with qualified home appraisers in your area and ensure you can find a home appraiser who will provide honest, unbiased feedback about your residence.
A real estate agent also will help you maximize the value of your house. This housing market professional will ensure you can set a fair price for your residence and market your home to the right groups of homebuyers. He or she will even set up home showings and open houses and negotiate with homebuyers on your behalf to further simplify the home selling process.
When it comes to getting a home appraisal, there is no need to worry. Use the aforementioned tips, and you can plan ahead for a home appraisal.