Category: C21 Lady of the Lakes - page 9

In our last installment we talked in depth about buying your first home.  With the excitement that surrounds this time in your life it is easy to overlook some of the most important areas surrounding home ownership.  Below are some questions you will want to ask yourself before committing to buying your first home.  The anticipation of owning a home can make even the most put together individual in a tail spin.

What do you expect for your future?

Although the future is unpredictable you need to think about it.  Envision your future; how will buying your first home be affected or affect this future?  Examine the prospective properties with the following things in mind:

Is there development coming to the area?  New neighborhoods, shopping center and such can affect the traffic and value of the property.  Are these things you can live with?

What are the home values of the surrounding area?  Are they increasing or decreasing?

Will the zoning laws affect your region?

Does the school district have a solid reputation?  Can you see your children attending the neighboring schools?

Anything that may affect your future should be at least considered when buying a new home.  If your job is one in which you see a transfer in your future is it safe to say that you will be able to sell the home without taking a loss or is it wiser to wait.

Where should you look to find a mortgage?

You will find that there are a ton of options when it comes to financing your first home.  It is almost impossible to research all of the options available on your own.  One of the best places to start looking into mortgage options is with a mortgage broker.  An experienced real estate agent will often have a recommendation for you in regards to a broker to work with.   After working within the industry for any length of time, realtors have invaluable connections and insight with mortgage brokers, contractors, home inspectors and more.

Will you need to take on any new debts?

Before you take on a mortgage payment consider how much debt you have now and any new future debts.  Will you need to buy a new car soon? Are you planning on starting a family?  Do you think you will be adopting a four legged companion when you move into your new house?  Do you have a nest egg set aside to handle these expenses without adding to any current debt?  Your debt to income ratio is one aspect of determining the mortgage amount you qualify for.  Not considering future debt could allow you to be qualified for more than you can comfortably take on.

Are the repairs needed in the home inspection?

No matter if you are buying your first home or last, a home inspection is a good idea.  In fact, in order for many mortgage companies to consider lending to you they will want to see a copy of the inspection.  After receiving a report from the inspectors do you need to re-figure your initial offer to take into account expensive repairs?  If the repairs to the home are non-negotiable will you have the funds to make the necessary repairs on the home while making the monthly mortgage payment?  If you will be struggling to make necessary repairs while keeping up with current bills you may want to reconsider purchasing this particular home.

Buying your first home is an experience unlike any other.  To make sure you are truly ready for everything that comes with the process of owning a home it is a good idea to ask yourself some tough questions, like the ones above and in our last installment.  Then and only then will you be sure that this step is one you are ready to take on.

Lady of the Lakes Real Estate is Livingston County’s premiere realtor; out of Pinckney, Michigan helping buyers buy and sellers sell homes that provide a recreational lifestyle including golf courses, lakes and the Huron river chain of lakes, throughout Brighton, Howell, Pinckney and the surrounding area. Find out more at http://www.ladyofthelakes.com.

Are you tired of living in your parent’s basement?  Perhaps the current neighbors sound like a herd of elephants are crashing through your ceiling?  Whatever your reason, buying a new home can be a bit overwhelming.  Below you will find some questions you will want to consider before making the leap into homeownership for the first time.

Can you afford to buy a house right now?

Purchasing a home, especially for the first time requires a great deal of planning.  Without proper preparations you are willingly exposing yourself to unnecessary risks.  When buying a home you need to make sure that you are fully capable of affording all the aspects that come with it.  A good rule of thumb is to spend less than thirty percent of your monthly income on housing expenses.

You will want to remember to calculate the private mortgage insurance (PMI) into this figure.  PMI is charged when your down payment is less than twenty percent.  Certain mortgage options, such as FHA financing allow you to purchase a home with only three and half percent down.  In this case PMI is necessary.  PMI is the insurance that the mortgage company takes on your mortgage to cover the risk associated with small down payments.  To avoid paying the extra expense of PMI you will want to have a down payment of twenty percent or more.

Do you have time to shop for a house?

Buying a home takes time and patience.  You will not want to rush through the house-hunting process.  Take plenty of time to define what you want verse what you need in a home.  Work with a real estate agent that is familiar with the location you are hoping to buy.  Using a professional realtor can certainly help with the time strain that comes with looking for a new home.

Experienced agents know the ins and outs of the business.  They have connections throughout the industry and a real understanding about the market.  More often than not, experience allows agents to show you only homes within your specifications, thus not wasting your time one options that are not feasible.

In our next installment, we will look into more questions you need to ask yourself before buying your first home.  There are many aspects that are overlooked especially by first time home buyers.  Asking yourself these few questions can save you a lot of time, money and anguish.  Our next installment on buying your first home we will cover the future, mortgage options, debt and home inspections.

Lady of the Lakes Real Estate is Livingston County’s premiere realtor; out of Pinckney, Michigan helping buyers buy and sellers sell homes that provide a recreational lifestyle including golf courses, lakes and the Huron river chain of lakes, throughout Brighton, Howell, Pinckney and the surrounding area. Find out more at http://www.ladyofthelakes.com.

Are you looking for a new home in the market today?  There are an abundance of homes for sale that are known as handyman specials.  Fixer uppers are homes that are for sale that are in need of repair.  These homes generally cost less compared to other homes in the area.  Many times these homes are quickly purchased by real estate investors.  After purchasing these locations they fix them up and sell the property at a premium.

These handyman specials are a top target for real estate investors because they are cheap.  With the properties needing a variety of repairs they are sole far below the market value.  While many fixer uppers continue to be purchased by investors there are still plenty of them to be snapped up by residential buyers.  This is a great option for buyers looking for an affordable option in homeownership that aren’t afraid to put in the time, money and sweat equity to fix the home up to meet their needs.

The one thing that homeowners looking at fixer uppers must consider is the cost of repairs.  Most handyman specials are sold “as is”.  You must have a fairly accurate estimate of the repairs the home needs before purchasing a fixer upper.  Don’t underestimate the cost of repairs needed.  This is how many buyers get in trouble when purchasing a fixer upper.

If you are seriously considering a fixer upper it is pertinent that you get a proper inspection.  You will want to make sure you hire an inspector that is reputable in handyman specials.  The structure, roof, heating, plumbing and electrical systems are of the utmost importance.  These five areas are the most expensive repair areas in home renovations.  Substantial expense lies within these repairs.  Only take on a home with these issues if the selling price is well below the market value and can be recouped in the long run.  Look into toxicity issues, mold and the sewer system as well.  A licensed inspector that specializes in this type of home is required when seriously looking into a handyman special.

A home that is worthy of being fixed up can end up being a terrific investment.  As the buyer it is important to understand what needs to be repaired and the costs involved.  Figure out what repairs you can handle on your own and those that you will need to hire out.  For a complete list of local homes that are in need of some tender loving care find a realtor in your area.  A reputable real estate agent can even find a diamond in the rough in even the most amazing areas.  Golf courses, recreational properties, lakefronts and more can all be found below market value.  They may just need a little attention to make them the eye catching beauties they once were.

Lady of the Lakes Real Estate is Livingston County’s premiere realtor; out of Pinckney, Michigan helping buyers buy and sellers sell homes that provide a recreational lifestyle including golf courses, lakes and the Huron river chain of lakes, throughout Brighton, Howell, Pinckney and the surrounding area. Find out more at http://www.ladyofthelakes.com.

Set a Budget: Setting a budget and following it is a key concept when buying a home.  No matter what you are qualified for if you don’t feel comfortable with that monthly payment it will cause you undue stress.  Calculate how much you believe you can reasonably afford to spend each month on housing.  This is the most important aspect in buying a home to be successful.  If you are stretched with a payment that is out of your comfort zone homeownership will become a burden rather than an accomplishment.

Include Principal, Interest, Taxes and Insurance In the Budget: If you have been renting you may not be familiar with the fact that your mortgage payment is not alone when it comes to expenses related to your mortgage.  Many lenders will roll the principal, interest, taxes and insurance into your monthly payment.  If you have less than twenty percent down, a PMI expense will be added as well.  Make sure you talk to your lender about these extras as they can almost double your monthly payment.

Determine How Much Cash Is Needed At Closing: Typically your down payment should be between five and twenty percent of the cost of the home.  A down payment of less than twenty percent requires primary mortgage insurance, otherwise known as PMI.  The amount you will need in cash at closing includes your down payment, loan origination fees, title insurance as well as other miscellaneous fees.  Be prepared to have a substantial amount of reserve in your savings as expenses tend to creep up throughout the home buying process.

Research Yearly Utility Rates: Moving to a different climate or larger home can significantly change the monthly payment on your utilities.  The last thing that you want is to get into a home that you can comfortably afford and then learn the heating and cooling expenses knock your budget into chaos. 

Eliminate Debt Prior To Purchase: Try to eliminate as much debt as possible before you start the home buying process.  This will lower your debt to income ratio and give you a better chance at a lower interest rate on your mortgage.  It will also free up cash that is being used on old debt to apply towards your home.

Find Out What Your Credit Score Is: You should know your credit score before beginning to look for a home as well.  There needs to be time to repair any discrepancies as well time to increase your score.  The higher your credit scores the better financial risk you appear to be and thus lenders will be more apt to offer you a lower interest rate within the terms of your mortgage.

Get Prequalified:  A prequalification is something most real estate agents require before they begin showing you homes.  A prequalification is the amount that lenders feel comfortable loaning you.  This will give you a base to begin your search.  The amount you have towards a down payment also factors into the overall amount that you have to spend on a home.

Find A Realtor:  After you have taken all of the above steps you are ready to start looking at homes to purchase.  There are many real estate agents available to show you homes but few are qualified to help you through the entire process.   Work with an agent that understands what your needs are.  They should be familiar with the area you would like to live and be able to offer you stats on the neighborhoods, the schools, crime, recreational options and more.  Don’t just work with anyone.  Find a realtor that is willing to go the extra mile in finding you exactly what you want at the price you can afford.

Lady of the Lakes Real Estate is Livingston County’s premiere realtor; out of Pinckney, Michigan helping buyers buy and sellers sell homes that provide a recreational lifestyle including golf courses, lakes and the Huron river chain of lakes, throughout Brighton, Howell, Pinckney and the surrounding area. Find out more at http://www.ladyofthelakes.com.

In this continuation we continue to define the steps buyers can take to simplify the home buying process.

Look for a new home: This is where you’re your realtor comes into play.  Your realtor will help you narrow down the homes for sale that meet the criteria you set.  They will only have you look at homes within your budget that fit your needs.  If you are looking for a three bedroom home there is no use looking at homes with anything less than that.  These are the types of criteria that you will share with your real estate agent that will allow them to find you a selection of homes to look at.

Make an offer: Once you find your dream home your real estate agent will help you draw up a contract and submit an offer to the homes seller.  They will look at your offer and determine whether they will accept the offer or counter offer.  This process continues until an offer is agreed upon and a contract is drawn up.

Get an inspection:  Every contract should be written with a stipulation that states a final sale is pending the results of a home inspection.  Hire a reputable home inspection company to come in and evaluate the state the home is in.  They will create a checklist and booklet that states clearly what issues the home has.  They will divide the list into categories about repairs that must occur now, that can wait or are optional upgrades that would allow the home to function smoother.  The inspector will give you a better understanding of how old the utilities and appliances are.  This information allows you as a home owner to get a solid understanding of money that will need to be spent on home repairs and a likelihood of when it will be needed.  If the inspector will basically let you know if the home is a solid investment or if it has issues that need to be fixed before the home should be purchased.  If the contract is contingent on the inspection it is then up to you to decide to move forward, the contract needs to be reworked or if the deal is a no go.

Apply for a mortgage/Close on your new home:  The final step of buying a home is applying for a mortgage and closing on your new home.  To find out more information on applying for a mortgage talk with a local mortgage broker or lender.  These professionals will offer guidance in finding the best mortgage rate and home loan option for your exact situation.  After this is done a closing date will be set and you will close on your new home.

The process of buying a home is one that can be quite simple with a bit of knowledge on how the process works and the wisdom to hire experts when needed.  Real estate agents, home inspectors and mortgage brokers all help to simplify your home ownership quest.

Lady of the Lakes Real Estate is Livingston County’s premiere realtor; out of Pinckney, Michigan helping buyers buy and sellers sell homes that provide a recreational lifestyle including golf courses, lakes and the Huron river chain of lakes, throughout Brighton, Howell, Pinckney and the surrounding area.  More information can be found at http://www.ladyofthelakes.com.

The idea of buying your first home can be overwhelming for some.  Working with a professional realtor can help alleviate many of the stressors that can make buying a home a process that is intimidating.  To simplify the process even further follow the checklist below.

Complete a credit check: You need to have solid credit to apply for and receive a mortgage.  This is why the first step in the process of home ownership is completing a credit check.  This will allow you to correct any errors that exist with your credit report.  A low credit score means a higher interest rate on your mortgage.  If your score is incredibly low and you have several late or missing payments take time to correct these issues before looking into purchasing a home.

Set a budget with mortgage preapproval: Setting a budget is simple especially when you look into getting pre-approved.  A pre-approval will give you an idea of exactly how much the mortgage lenders feel comfortable in lending to you.  This is the amount they feel you will be able to pay back to them in monthly payments including interest.  A rule of thumb in general is that your home that cost between two and a half to three times your yearly salaries.  Most lenders will not allow you to spend more than thirty six percent of your gross monthly income.

Gather cash savings: It is preferable to have a down payment of twenty percent when buying a home.  This will account for your closing costs as well as your down payment.  Twenty percent allows you to avoid paying private mortgage insurance.  Different loan options have different regulations.  It is crucial to have as much cash on hand as possible when buying a home to have a substantial down payment as well as money for closing costs and fees as well as additional expenses that occur with moving into a new home.

Find a local real estate agent: This is perhaps one of the most critical requirements to finding and purchasing a home.  A local real estate agent that specializes in finding homes for clients with specialized circumstances is most favorable.  If you are a new home buyer find a realtor that specializes in new home purchases.  If you are looking for a home on a lake or golf course find a realtor that finding homes to fit a recreational lifestyle.

There is more to come in our next installment on simplifying the homeownership process.

Lady of the Lakes Real Estate is Livingston County’s premiere realtor; out of Pinckney, Michigan helping buyers buy and sellers sell homes that provide a recreational lifestyle including golf courses, lakes and the Huron river chain of lakes, throughout Brighton, Howell, Pinckney and the surrounding area.  More information can be found at http://www.ladyofthelakes.com.

If you are a first time home buyer with a family there are chances you are a bit anxious to begin the process of finding a home to call your own.  Buying your first home when you are single and unattached is different than buying a home when you are married with a family to consider.  There are other people’s needs and desires to take into account and therefore more to think about.

One of the first things to bear in mind is the cost of a new home, not just the payment but the increase in expenses overall.  You will want to determine what you can afford; in order to do this you will want to get pre-approved for a mortgage loan.  The amount that you are pre-approved for is just an estimate of what a lender is willing to lend to you and not to be used as a bench mark on the amount you need to spend on your first home.  Use the amount as a guideline.  Be willing to look at homes under and slightly above your pre-approval amount.  This can be used as a solid negotiation tool if you find a home slightly above your price point in getting the seller to negotiate a lower asking price.

After you have been pre-approved it is time to look into finding a real estate agent to work with.  An experienced, full time agent will help you find a home that meets the needs of your family within your price point.  A realtor will have foresight and connections into homes that are currently on the market and also those that are soon to be coming available.  This can be helpful to you as a buyer with a family because they can put you ahead of other buyers in the chase to find a home within a certain location.  Location will be everything to you as a buyer with a family.  Whether it is a certain school district or distance to and from work you will be more specific on a location over first time home buyers without a family.

Another point to consider when buying a home with a family is that you must have the home inspected.  When you have a family your home needs to be virtually move-in ready.  Minor updates and aesthetic items can be overlooked but when it comes to major structural damage or repairs above and beyond normal maintenance you may want to consider moving on in your quest to find the perfect home.

Buying your first home with your family in tow may not be the easiest of all situations but will for certainly be worthwhile and rewarding.  Take time find a reputable real estate agent that will help you find a solid home well within your budget in a location that works well for your entire family.

Lady of the Lakes Real Estate is Livingston County’s premiere realtor; out of Pinckney, Michigan helping buyers buy and sellers sell homes that provide a recreational lifestyle including golf courses, lakes and the Huron river chain of lakes, throughout Brighton, Howell, Pinckney and the surrounding area.  More information can be found at http://www.ladyofthelakes.com.

As first time home buyer it is important you follow the tips below in order to prepare to find and purchase a home you can afford. The purchase of a home is the biggest financial commitment most of us will ever make. In order to make a solid decision it is crucial that you have a detailed understanding of the market. This will help you to make an educated decision as well as help you save money and avoid any unnecessary frustrations.

The home buying process is one that can be enjoyable and relatively free of stress. Buying your first home is exiting and the process is thrilling. It is especially pleasant when you understand the real estate process and have an agent working with you that has a lot of experience with first time home buyers.

Before you can start looking or purchase a home you need to have an understanding of how much you can afford. The biggest mistake first time home buyers make is not taking into consideration the true cost of owning a home. The cost of owning a home doesn’t end with the mortgage payment. You need to consider the additional mortgage fees, taxes, insurance and utility fee increases to determine an actual amount of money that will be needed per month to own your new home. A new home buyer can quickly deplete their savings when not taking into consideration these extras.

Another priority for first time home buyers is to calculate the required down payment amount. Long gone are the days of no money down home loans. Mortgage lenders require ten to twenty percent of the purchase price down on a home. Without this you will end up paying a substantial fee monthly for mortgage insurance.

In order to get the best possible interest rate on your home loan you need to have a sufficient credit rating. If your credit rating is less than perfect take a year to clean it up and get your financial house in order before looking deeper into buying a home. To obtain the lowest mortgage interest rate your financial house must be in order. A high credit score, a decent down payment and an affordable home will ensure you don’t take on a payment that you can’t afford.

Most real estate agents will not show you house until you have been pre approved. Without pre approval most sellers won’t take the time to even consider your offer. A quick way to determine how much you can afford is multiply your total household income by three. For instance, if you make fifty thousand dollars a year your home should cost no more than one hundred and fifty thousand dollars. With a minimum down payment of ten percent you should consider having at least fifteen thousand dollars saved.

Being prepared as a first time home is key. With a bit of industry knowledge, help from an experienced real estate agent and a bit of luck you are only a few steps away from owning your first home.

Lady of the Lakes Real Estate is Livingston County’s premiere realtor; out of Pinckney, Michigan helping buyers buy and sellers sell homes that provide a recreational lifestyle including golf courses, lakes and the Huron river chain of lakes, throughout Brighton, Howell, Pinckney and the surrounding area. Find us at http://www.ladyofthelakes.com.

• Be aware of the three major causes of sellers stress:  Selling your home is never easy.  You are emotionally attached, not necessarily to the home itself but to the memories that took place in it.  To minimize stress it is best to work with an experienced seller’s agent.  A real estate agent that is used to working with homeowners looking to sell has experience in the process and understands the needs of the seller.  This all benefits you as the seller.  The three highest areas of stress when selling your home includes during the appraisal process, home inspections, showings and open houses.

• Be prepared to repair:  Instead of waiting until your home is days away from being listed for sale take time to repair the things in your home that are not suitable to buyers.  This process can take anywhere from six to nine months.  Preparing ahead of time allows you to hire a reputable handyman to come in and service the areas within the home that need to be fixed before your home goes on the market.  Waiting until the last minute only causes more stress and tension between you and the person making the repairs.  Compile a list of things that need to be done and within what time frame in order to minimize down time.  Make note of all of the recent updates for home buyers to access when looking into purchasing your home.

• Prepare to be fair:  Having your home appraised is one of the most difficult events in selling a home.  Not every repair that was done on the home will recoup its value in the asking price of your home.  Some repairs or upgrades done to the home will only be for you and will not cause an increase in the asking price.  Being prepared for the appraisal process will alleviate a great deal of stress for you as the seller.  The memories you made in the home are not valuable to anyone else.  The home is being valued on what it is in comparison to other homes available on the market with similar offerings.  That is it.  The process should not be taken personally as that will only add stress. 

• Prepare your home:   Preparing your home for sale is one of the most cleansing experiences and should be thought of as just that.  Take the stress out of preparing by organizing and eliminating unnecessary furniture, knick-knacks and clutter.  Create a routine that allows you to prepare your home for showings without really doing anything out of the ordinary new normal routine.  In the morning before you leave for the day take time to make beds, put dishes in the dishwasher and do one complete load of laundry.  Then you will be prepared in the evening when the realtor schedules a viewing or if someone wants to see your house during the day.  Minor preparations, spending ten to fifteen minutes in the morning and at night can keep you from being stress during unexpected showings.

• Keep all things in perspective:  Don’t worry if the house doesn’t smell like fresh baked goods or if pillows aren’t all fluffed perfectly.  Buyers that are really interested in buying your home are not going take those things into account as much as they will that the house looks well kept and is clutter free.  

Lady of the Lakes Real Estate is Livingston County’s premiere realtor; out of Pinckney, Michigan helping buyers buy and sellers sell homes that provide a recreational lifestyle including golf courses, lakes and the Huron river chain of lakes, throughout Brighton, Howell, Pinckney and the surrounding area.  More information can be found at http://www.ladyofthelakes.com.

• Determine what you can afford:  When you are looking for a home to buy one of the best rules of thumb is to consider a home that is only two to three times your annual household income.  This allows you to stay within a comfortable range with your house payment, insurance and household bills.  If your lifestyle is one in which you like to travel or spend a bit more money on other toys consider this as well.  Don’t strap yourself into a house payment that does not allow you to continue enjoying the activities you desire.

• Find a mortgage broker or lender to work with and get pre-approved: In order to really start looking for the home of your dreams you must find a mortgage broker or lender to work with.  They will help guide you through the entire process from cleaning up your credit, preapproval, mortgage terms and the final mortgage application process.

• Figure out what mortgage is right for you: How long is it practical for you to pay on a home loan.  There are different mortgage terms for different needs.  Some people choose a less expensive home because to them having a home paid off in fifteen years is ideal.  Others prefer a smaller payment so they spread theirs out thirty years.  Also consider a fixed or variable rate depending on how confident you are with mortgage interest rates.

• Consider a financial dry run:  Before you actually decide to purchase a home do financial dry runs.  Take what is equivalent to the amount of your new payment, insurance and utilities and sock it away in a savings account.  Be sure you can do this for at least six months without dipping into it to ensure you can swing the extra payments. 

• Decide must haves verse what would be nice to have:  You may not be able to find everything your dreams desire in one house.  Make a list of the items you can’t live without, the deal breakers verse this feature it would be nice to have. 

• Find a real estate agent and start house hunting: Finding a reputable, local real estate agent that specializes in the type of home you are looking for will help in your search to find the perfect home.  If you are looking for recreational living find a real estate agent that specializes in waterfront property, homes on golf courses or homes for sale near recreational adventures. 

• Put in an offer, review your contract, and sign the papers: The final step in stress free home buying is to put in an offer, have it accepted, review the contract, sign the papers and move in.  With the right real estate agent and mortgage broker or lender working with you the process of buying a new home should be as simple as the steps listed above. 

Lady of the Lakes Real Estate is Livingston County’s premiere realtor; out of Pinckney, Michigan helping buyers buy and sellers sell homes that provide a recreational lifestyle including golf courses, lakes and the Huron river chain of lakes, throughout Brighton, Howell, Pinckney and the surrounding area.  More information can be found at http://www.ladyofthelakes.com.