If you are a first-time home buyer, then there’s a lot about the home buying process that you will learn from experience. Hopefully, you’ll do a bit of research on your own as well. However, it’s important that as you try to educate yourself that you don’t fall for some of the more common home buying misconceptions. The following are three of the common home buying myths that you should be aware of:
Myth #1: You don’t need a real estate agent
Many people mistakenly think that a real estate agent is unnecessary. Yes, you can find listings online and you can schedule your own showings. However, a real estate agent can locate newly listed or unlisted houses, schedule showings, provide professional advice, negotiate terms and much more. Going without a real estate agent can end up being a big mistake.
Myth #2: You have to put down a 20 percent down payment
If you can put a 20 percent down payment on a house, that’s great. However, it’s not required. You can offer a smaller down payment, although you will have to pay private mortgage insurance as a result. There are even some programs, such as the FHA and VA programs, that allow you to put as little as 0 to 3.5 percent down.
Myth #3: A 30-year mortgage is your best option
The monthly payments for a 30-year mortgage will be less than a 15-year, which is why it’s so popular. However, you will end up paying more in interest over a longer period of time. If you don’t plan on living there for a long period, a 30-year mortgage won’t make much sense either.
Don’t fall for these three common home buying myths. For more advice concerning the home buying process, be sure to contact us at Randy Lindsay today.
Buying a house is most likely going to be one of the biggest investments you ever make. Because of this, the last thing you want to do is end up with buyer’s remorse once you’ve put pen to paper. To avoid making any common buyer mistakes, look out for the following five things when buying a home:
- The neighborhood – The house itself may be priced fairly, but don’t forget to consider the neighborhood it’s in. If the other houses are in poor shape, then the neighborhood can drag down the value of the property you’re looking at. You’ll want to make sure that the neighborhood is safe to live in as well.
- Plans for the surrounding area – Find out what the future entails for the area surrounding the house. For example, you may think that empty lot across the street is a real eyesore. However, if there are future plans to turn it into a park, you may be more willing to live with it.
- Energy use – All of the appliances and HVAC units may look to be in good working condition, but if they’re older they could be a huge drain on your energy use. Find out how much the monthly energy costs are. You don’t want to end up having to pay an arm and a leg in energy costs – or having to replace appliances and HVAC units.
- Foundation issues – Cracks in the foundation can predict future foundation problems you won’t want to deal with.
- Constant repairs – Look at the history of repairs in a house. If the same things have been repaired multiple times, don’t be surprised if you have to pay for additional repairs in the future.
Look for these red flags when buying a home and contact Randy Lindsay for more professional advice.
As a home buyer, you have a strict budget that you’re hopefully going to stick to no matter what. However, just because you don’t go over budget when buying a home doesn’t mean that you may not be wasting money. The following are a few tips to keep in mind to ensure that you don’t lose money when buying a home:
- Check the deposit terms – To buy a home, you’ll need to provide earnest money. Find out if the deposit is refundable in case something goes wrong with the sale, such as if there are certain circumstances in which it’s not refundable and if there’s a time limit.
- Pay a 20 percent deposit – By paying for at least 20 percent of the home’s cost as a deposit, you’ll ensure that you won’t have to pay for additional private mortgage insurance. If your deposit is below 20 percent, you’ll have to pay private mortgage insurance until you’ve paid off at least 20 percent of the house.
- Negotiate home inspections and appraisals – You’re going to have to get a home inspection and an appraisal in order to secure a loan. If the seller doesn’t include these in the sale, try to negotiate their inclusion. If they won’t budge, don’t agree to an inspection until the seller approves your purchase contract. Don’t do an appraisal until you receive a mortgage pre-approval. Otherwise, you could end up wasting your money.
- Get a home warranty – If you’re buying an older home, things are more likely to go wrong after the inspection, resulting in costly repairs. A home warranty will cover the major systems in your new home.
Follow these tips to avoid wasting money when buying a new home. For more advice on buying real estate, be sure to contact us at Randy Lindsay today.
If you are planning on moving to York County, then you probably can’t wait to get started on your home search. However, before you begin looking at property in York County, you should be sure to get a pre-approved mortgage.
The Importance of a Pre-Approved Mortgage
Looking for a new home takes time. Odds are, you’ll spend more than a few hours searching through listings online before taking the time to visit the properties that have piqued your interest. You may end up visiting dozens of different houses before you find one that meets your specific wants and needs. As you can imagine, this entire process could take months – you don’t want to rush into buying a home after all.
Unfortunately, if you don’t have a pre-approved mortgage, then you could run into a very big problem once you’ve found the house of your dreams. Once you’ve found that home, you’ll need to apply for a mortgage. What if the loan you qualify for isn’t enough to cover the cost of that house? Or worse yet, what if you’re completely denied? Then you’ve wasted a huge amount of your time.
By obtaining pre-approved financing, you’ll know exactly what you can afford, which means you won’t waste your time looking at homes that are outside of your price range. Additionally, a mortgage pre-approval can help give you an advantage over other buyers. If you have competition for a house, a seller is more likely to accept a bid from a buyer that has been pre-approved for a mortgage than one that has not. This is because a mortgage pre-approval is proof that the buyer can afford their bid.
For more information about obtaining a mortgage pre-approval, or for information about moving to York County in general, contact Randy Lindsay today.
If you are planning on buying a home, then odds are you’re going to need to take out a mortgage loan in order to do so. However, a lender is going to take a close look at your financial history to see whether they believe that you are responsible or capable of paying your mortgage payments on time and in full. If you’ve ever been evicted from a home, this could pose a potential problem.
A lender is not going to look favorably on anyone that has been evicted in their past. It typically means that rent was not paid for a substantial amount of time and that the landlord had to kick you out as a result. However, there are two different types of evictions.
In some cases, an eviction is meant only to get you out of the house. You may be able to speak with your landlord and come to some sort of agreement before they begin the eviction process. You may want to ask for a letter explaining why you were evicted as well. In a case like this, your eviction may not hurt your ability to secure a loan quite as much.
However, if you were sued as well because of unpaid rent, then this going to have a much bigger impact on your ability to get a loan. It shows lenders that you were unable to keep up with payments, which means you are a financial risk for them to lend to. If a landlord wins the judgment against you, then you’re going to have serious trouble securing a loan.
An eviction can hurt your chances of securing a loan. However, a lot depends on the circumstances as well as other financial factors. For more advice on buying a home, contact Randy Lindsay today.
Being newly married is an incredibly exciting period of time in the life of any couple. If you’re newly married, you may decide to buy a home together. While the prospect of buying a home together can be thrilling, it can be a little more complicated than you might expect. The following are a few tips for newly married couples living in Metro Charlotte that are buying a new home together:
- Figure out your financial situation – Figure out what your combined financial situation is. This includes determining what debts each person has. Determining each person’s financial standing is incredibly important when it comes to co-managing your money and identifying if you can afford to buy a home and what your budget is.
- Identify your financial goals – In order to figure out what your budget is, you’ll want to identify what your financial goals are as a couple. Do you want to put away money every month for retirement? Do you plan on having kids? Do you want to pay off existing debt?
- Check your credit scores – You’ll want to qualify for as low of a mortgage rate as possible, and to do this, you’ll need high credit scores. If one of you has a low credit score, you may want to work on improving that person’s credit before applying for a mortgage.
- Get pre-approved for a mortgage – By getting a mortgage pre-approval, you’ll know how much you can afford which will help prevent you from wasting time and energy looking at homes that are too expensive.
These are just a few tips that newly married couples should keep in mind if they decide to buy a home together. For more advice concerning the home buying process or for information on living in Metro Charlotte, contact us at Randy Lindsay today.