Nov 4, 2022 | Home Seller Tips
Are you thinking about selling your home? If this is your first time going through the selling process, you may be wondering just how well things are going to go. Selling a home is usually a smooth process – there are thousands sold each day – but issues can arise if you’re not careful. Let’s explore four mistakes that are commonly made by first-time home sellers and how you can avoid them.
Trying To Sell Without Experienced Representation
The first and most significant mistake that some first-time sellers make is to try to go it alone. Selling a house is a major financial and legal transaction and one where experience is crucial in getting things right. Invest in an agent who has a track record of quick, efficient sales and you’re going to have an advantage.
Choosing Emotion Over Reason
Next, you’ll want to avoid letting your emotions control how you react or respond during the selling process. Many homeowners become emotionally attached to their homes, which is fine while you’re living there but can be a problem when you’re selling. It’s important to let logic and reason guide the sale. Don’t let yourself get caught up emotionally or you may make a critical mistake.
Pricing Outside Of A Realistic Range
Asking too much – or too little! – for their home is another common mistake made by first-time home sellers. It’s critical to understand that the local real estate market has a lot of influence on the correct asking price for your home. Current listings and recent sales of similar homes in the area tend to set a price range in the minds of buyers so these will need to be observed. Your real estate agent will be a big help in choosing the right sale price.
Selling At The Wrong Time
The final mistake we’ll cover today is listing your home for sale in the wrong environment. The local real estate market is in a constant state of change due to a variety of factors. The seasons, other local home listings, interest rates, new home construction, local municipal zoning changes and all sorts of other factors can influence your sale. Unless you are under a time constraint, it’s best to let your agent advise you when it’s a good time to list your home.
Selling your first home can be a daunting experience, but with the right frame of mind and professional representation, it will go smoothly. To learn more about the home selling process or to list your home for sale, contact us today. We are happy to assist you.
Nov 3, 2022 | Home Buying Tips
Whether you’re a first-time homebuyer or an experienced real estate investor, if you are planning to borrow funds to buy a home you will want to choose the right mortgage product. In today’s blog post we’ll explore how interest-only mortgages work and why they’re the perfect choice for some homebuyers.
How Interest-Only Mortgages Differ From Conventional Ones
As the name suggests, interest-only mortgages are loans where you are only required to pay off the interest portion of the loan each month for some specific term. The length of these loans can be up to ten years, although five or seven is the most common. Once this period is over, you will have some options. Some choose to refinance their mortgage into a new term; others will make a lump-sum payment to pay off the balance. The most important item of note is that during the interest-only period, no principal is paid off unless you pay a bit extra.
The Pros And Cons Of Interest-Only Mortgages
Interest-only mortgages are a popular choice because of their many upsides. Your monthly payments are almost certainly going to be far lower during the interest-only period. This is because you’re not responsible for paying down the principal of the loan. A lower monthly payment frees up money that you can use for other purposes, such as investing. Also, your entire monthly payment during the interest-only period should be tax deductible, which may contribute to a refund each year.
Note that there are some potential downsides to interest-only mortgages as well. For example, if your mortgage interest rate is adjustable, you can end up paying more in interest than if you had locked in. You also need to stay disciplined financially. Once the interest-only period ends, your monthly payment may increase significantly to cover both interest and principal.
Who Should Consider An Interest-Only Mortgage?
Interest-only mortgages are a good fit for those individuals or families where you are confident that your income is going to grow significantly in five or ten years. Alternatively, if your income is somewhat sporadic and you want the option of paying lower payments in some months and more substantial payments in others. The key point is that these mortgages offer flexibility that other mortgage products do not.
As you can see, interest-only mortgages are an excellent choice in certain circumstances. To learn more about how an interest-only mortgage might be right for you, contact our professional mortgage team today. We are happy to share our experience to find mortgage financing that perfectly suits your needs.
Nov 2, 2022 | Home Buyer Tips
Are you on the hunt for great deals on a local home? If so, you have probably heard about “short sale” homes, although it can take a bit of searching to find one. Let’s take a closer look at real estate short sales to learn how they work and when you might want to take advantage.
What Is A Real Estate Short Sale?
A real estate short sale takes place when a homeowner sells their home for less than they owe on it. This tends to take place in volatile real estate markets where a substantial price increase took place with a rapid price decrease following after.
Whatever the case, the homeowner is now facing a home with less value than their mortgage. They may approach their lender about a short sale, or the lender may force it on them. A short sale can take place even if a homeowner is still making their monthly mortgage payments on time, although that is somewhat rare.
Stick With The Pros When Buying A Short Sale
Without question, if you are considering buying a short sale home you will want to work with an experienced real estate agent. Short sales take place due to a variety of circumstances, few of which are positive. You will want a real estate professional who knows the ins-and-outs of the short sale process and will protect your interests. They can also help you understand what happens with the outstanding debt on the property.
Mistakes To Avoid When Buying A Short Sale Home
Unfortunately, there is no shortage of stories about short sale buyers who made a poor decision when trying to score a great deal. First, ensure that all of the necessary research is done on the home, its title and any liens against it. A home inspection is also critical as there may be structural or other issues which led to the decline in value. Finally, be sure to leave enough time for the closing process as it can take longer than with a traditional home purchase.
As you can see, short sales have their pros and cons. If you are the one selling the home, you have likely been forced into a short sale due to your circumstances. If you are the one buying the home, you may be able to swing a great deal on it. Again, due to the circumstances. Regardless, understanding how short sales work is a good idea. To learn more about local real estate short sales, give us a call today and we’ll be happy to help.
Nov 2, 2022 | Home Buyer Tips
Are you on the hunt for great deals on a local home? If so, you have probably heard about “short sale” homes, although it can take a bit of searching to find one. Let’s take a closer look at real estate short sales to learn how they work and when you might want to take advantage.
What Is A Real Estate Short Sale?
A real estate short sale takes place when a homeowner sells their home for less than they owe on it. This tends to take place in volatile real estate markets where a substantial price increase took place with a rapid price decrease following after.
Whatever the case, the homeowner is now facing a home with less value than their mortgage. They may approach their lender about a short sale, or the lender may force it on them. A short sale can take place even if a homeowner is still making their monthly mortgage payments on time, although that is somewhat rare.
Stick With The Pros When Buying A Short Sale
Without question, if you are considering buying a short sale home you will want to work with an experienced real estate agent. Short sales take place due to a variety of circumstances, few of which are positive. You will want a real estate professional who knows the ins-and-outs of the short sale process and will protect your interests. They can also help you understand what happens with the outstanding debt on the property.
Mistakes To Avoid When Buying A Short Sale Home
Unfortunately, there is no shortage of stories about short sale buyers who made a poor decision when trying to score a great deal. First, ensure that all of the necessary research is done on the home, its title and any liens against it. A home inspection is also critical as there may be structural or other issues which led to the decline in value. Finally, be sure to leave enough time for the closing process as it can take longer than with a traditional home purchase.
As you can see, short sales have their pros and cons. If you are the one selling the home, you have likely been forced into a short sale due to your circumstances. If you are the one buying the home, you may be able to swing a great deal on it. Again, due to the circumstances. Regardless, understanding how short sales work is a good idea. To learn more about local real estate short sales, give us a call today and we’ll be happy to help.
Nov 1, 2022 | Credit Scoring
With the new year right around the corner, that leaves you with precious little time to get your finances in order. Let’s explore a few tips that will help you get a jump on improving your credit score before the end of the year.
Grab A Fresh Copy
The first step is to order a fresh copy of your credit report from one of the major agencies. The Fair Credit Reporting Act allows you to access a free copy of your credit report once every 12 months. So, if you have not ordered a copy recently, it is time to do so. You can access this free service through AnnualCreditReport.com, which is a website recommended by the Federal Trade Commission.
Clean Up Anything Outstanding
Now that you have a copy of your credit report, it’s time to go through it, line-by-line. You should recognize every current and outstanding account in the report. Any balances owing should be in order and reflect how much you owe. It’s critical that you flag any mistakes or old debts that you have already paid in full. If you come across anything that shouldn’t be on your credit report, call the reporting agency to let them know. If necessary, they will assist you with challenging the issue.
Pay Down Those High-Interest Debts
The final tip is to prioritize your outstanding debts so that you can pay them off more efficiently. The essential debt payments are your mandatory minimums, which you need to pay to avoid being sent to a collection agency. From there, try to pay off your debts with the highest interest rates first. Getting these paid off faster means that over time, you’re spending less on interest payments. Moreover, you can use that extra cash to pay your debts down further.
The above are just a few of the action steps that you can take today to start improving your credit score. When you’re ready to discuss a mortgage for your new home, give our team a call. We will be happy to advise you on the mortgage offer that suits your needs, budget, and credit.
