Tag: mortgage

Good House Hunting Habits

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Wonder where to start when thinking about house hunting? A variety of factors go into making a focused checklist as you prepare to buy.

Down Payment

Saving for your down payment should be your top priority. Depending on the type of loan you acquire, you’ll receive a few different down payment percentage options. A Mortgage Reports article states that some lenders require as little as 3.5% of the home’s value, or less, as a down payment to get your loan approved. Meet with a loan officer to establish some numbers so you know how much down payment you’ll need to get the most favorable loan terms.

Know What You Want

Take time to establish key features you prefer in a home. Do you prefer a ranch? What about a two-car garage? How important are green features, both inside and out? Creating a list of must-have items will allow you to target homes you’ll want to visit and spend less time visiting homes that may not make you happy in the long run.

Get Pre-Approved

Sellers often choose buyers with a bank pre-approval over those without one. This gives you an advantage over other prospects and shows the seller that you are a solid buyer. This pre-approval also helps you narrow your search to your budget, so you don’t get too distracted with a house that you won’t be able to afford. This step will really help you save time in the long run.

Earnest Money

Did you know that earnest money is not the same as the down payment? Earnest money is a fee  usually between 1-2% of the total home price and is used to show good faith during the home offer process. Buyers treat it like a small credit which eventually comes back to you as the house sale ultimately closes.

Closing Costs

Alas, final fees can add up at the end of your home-hunting journey as you approach closing. These payments are made to the various parties like attorneys and real estate agents and range from 2-5% of the loan amount and include fees for appraisals and title insurance.

Get connected with your Mel Foster Co. agent today to begin your search. There is less competition in the winter months, making now a good time to start your search.

Find more buying tips for homeowners.

Understanding The Cost Of Homeownership

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You’re thinking about becoming a homeowner for the first time. What steps do you take in preparation, and what are some homeownership costs? 

Start With A Plan

Start by creating a realistic budget. Jot down your current expenses like car loans, monthly credit card payments and grocery expenses. But what new costs will you need to account for? 

  • Property taxes – Search local tax records on like properties to get an idea of the cost.
  • Homeowner’s insurance – A Mel Foster insurance agent can provide an estimate.
  • Utilities – Credit counseling agencies claim that owners spend 5-10% of their annual income on utilities, including electric, water, gas, garbage, cable and streaming.

Prepare So You’ll Be Ready

Take steps that will simplify the buying process when the time is right to begin your search.

  • Find a Mel Foster Co. agent and communicate what you’re looking for.
  • Continue to set money aside, so you have a down payment.
  • Check your credit score and work to improve it. 
  • Get pre-approved for a mortgage so financing won’t hold up a sale down the road.

Financial Assistance Programs Are Available

First-time buyers often have access to state programs, tax breaks and federally backed loans that can be approved even if you don’t have the minimum down payment. For example, take time to search DPA (Down Payment Assistance) loan options that can help cover the upfront costs of a down payment. Government-sponsored and private programs can help you pay closing costs, which often represent 3-6% of the total loan amount.

Find more tips for homeowners.

When is the Right Time to Sell?

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Timing Right?

Some homeowners feel their current house isn’t their forever home. Here are a few signs it may be time to start your search for something new.

  1. Your Home Doesn’t Fit Your Needs

If your family is growing, or you’ve recently become an empty nester, it’s probably time to start searching for a new home. Consider location, size, and layout when finding your next home.

  1. It’s a Seller’s Market

You can always count on the real estate market to provide shifting trends. Fortunately right now it’s a seller’s market and most homes are selling quickly. There is currently more demand for homes than the market can meet. If you’re on the fence it might be time to strike while the irons are hot.

  1. Your Interest Rate is High

Currently interest rates on mortgage loans are historically low. If you’re paying a mortgage with a high interest rate, it’s time to start searching for new opportunities. You can consider refinancing or maybe this is the push you need to find a different home. You’ll want to act quickly, as interest rates are expected to increase throughout 2018.

  1. Your Mortgage is Completely Paid

If your mortgage is completely paid off when you sell your home, you can reap the financial rewards of making years of payments. If you’re looking to downsize significantly, consider a smaller home that requires less upkeep. It’ll save you time and money if the home doesn’t require constant care.

Follow these tips to start preparing to sell.


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