Posts for Syndication

If you’re in the market for a new home, perhaps you’ve browsed listings and come across a foreclosure or two that you like. Maybe you’ve even noticed that some of these homes have listing prices that are below the typical market value in your area.

Buying a foreclosed home can be a great investment – but it also comes with its own set of risks and challenges. Here’s what you need to know if you’re thinking about purchasing a foreclosure.

What is a foreclosure?

First, it makes sense to understand exactly what a foreclosure is. A foreclosure is a property that has been repossessed by a lender because of nonpayment. These lenders, typically banks, then sell off the property to recoup their losses.

Pros of buying a foreclosure

One of the biggest reasons that homebuyers purchase foreclosures is the potential to score a great home at a discounted price. Generally, banks are eager to get these properties off their books and are willing to let the home go for a price below comps in the area. Other potential advantages to buying a foreclosure include:

• Potential to get a better house for the price – Since lenders often price foreclosures for a quick sale, buyers may be able to score a larger or nicer house than they otherwise would be able to afford. Foreclosures can be found at every price point, from starter homes to luxury mansions.
• Upgrades can pay off big – If you’re willing to put some sweat equity into your foreclosure, the return you’ll see on the property’s value could be significant.

Cons of buying a foreclosure

While scoring a great house at a low price seems like enough motivation to buy a foreclosure, there are certainly some disadvantages you should consider. These include:

• You may have to pay cash – Some foreclosures are sold at auction to the highest bidder. If you want to guarantee you win the bid, be prepared to pay all cash on the spot.
• You may not get to inspect the house – Most foreclosures are sold as-is, meaning that the buyer absorbs any responsibility for repairs, liens or back payments on utilities. You may not have an opportunity to inspect the home before the purchase, so you will assume the risk for whatever you may find once you get inside.
• You may not qualify for a loan – Some lenders have restrictions on distressed properties, making financing a foreclosure a challenge.
• The property may need serious repair – If the home has been vacant for any period of time, serious issues could have occurred. It’s possible that the property has been vandalized or looted. The previous owner may not have kept up maintenance because of financial hardship. With the utilities shut off, pipes could have frozen, pests could have invaded and cracks may have formed in the walls and foundation, which would then need necessary foundation repair service. If you see a mouse scurry under your sink, you know you’re dealing with a rodent infestation and it’s time to call a home pest control company that offers different types of pest control services or search online for an exterminator near me immediately. It might be unpleasant to deal with, but leaving the issue untreated will only exacerbate the damage.
• If you live near Minnesota and you seek for the top pest control company, you can check them out online now.

Is a foreclosure right for you?

The pros and cons listed above are just some of the issues you should consider when buying a foreclosure. If you’re serious about purchasing a distressed property, make sure to do your research and prepare for a closing process that can be more stressful and complex than a traditional sale.

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If you’re getting ready to move to your new home, you’ve no doubt been advised to research companies that provide moving cleaning and relocation services. While it may seem like a huge inconvenience to spend time vetting movers, there are some out there that are less than honest. Keep a look out for these common moving scams and avoid them at all costs.

Low-ball estimates

If you’ve contacted a moving company and they are willing to give you an estimate without actually inspecting your home, be wary. Most people have more possessions than they realize, and moving companies generally factor in their weight and the amount of space they take up.  You will not get an accurate cost estimate if the moving company does not inspect your belongings themselves.

Also be on the lookout for moving companies who only do a cursory glance at your belongings without asking specific questions about what you intend to take with you and what you’ll leave behind. You may likely get a low quote that doesn’t accurately reflect what you actually have. You may find yourself in a pickle on moving day when the cost rises dramatically. Or worse, the company could hold your belongings hostage until you pay the difference.

Asking for a large deposit

Good moving companies will not request a large deposit up front for their services. Most reputable companies expect payment upon delivery. Those that collect deposits are often the same ones who don’t show up on moving day, or who take much longer to deliver your items to their final destination.

Different names

If a company has received complaints to the Better Business Bureau, they will often get around them by changing their name. When researching movers, make sure they answer the phone with the full name of the company. Ask for local references and follow up with them. Get all the names the company does business as and find out their license numbers and if they are properly insured. Research the company online to see if there are any complaints or bad reviews posted.

Hidden fees

Some moving companies inflate the final bill by tacking on hidden fees. Be sure to request an itemized bill and look for charges that weren’t discussed beforehand. You could be billed for living in a two-story house, living on a narrow street that won’t fit the truck, or having to park the truck more than a certain distance from the front door.

Incomplete contracts

If a moving company asks you to sign a blank or partially completed contract that they’ll fill in later, decline and find another company. You want all the details spelled out from the beginning, including the delivery date, price and under what conditions additional fees may be incurred.

While it may seem a little daunting to research and hire a moving company, doing your due diligence will ensure that your move goes as smoothly and quickly as possible. The peace of mind you’ll gain is more than worth the extra time to find the best and most reputable moving company for your budget.

You’ve saved up the money for a down payment and are finally ready to make your dream of owning a home a reality. Congratulations! Buying a house is one of the most exciting – and one of the most stressful – events in your life. If you’ve done your due diligence, you’ve shopped around for a mortgage and secured a great interest rate. But did you know it’s also possible to save money on your closing costs? Here’s how.

Shop around

Lenders are required to provide you with a three-page Loan Estimate that includes your closing costs, which are fees that generally add up to as much as five percent of the purchase price. You can use these estimates to shop around and potentially save yourself thousands of dollars. You can also negotiate to have one lender match the lower closing costs of another.

In addition, a third party provider can perform some of the services required for closing. Take time to research options other than those provided by the lender for services such as pest inspection or title insurance. You’ll often find a lower price elsewhere.

Evaluate and negotiate

Once you’ve received the Loan Estimate, go over it in detail. Ask the lender what each fee covers. This is a good way to discover if the estimate has been padded with unnecessary or redundant fees. At this point, you can negotiate to have some of these fees reduced or removed.

Three days prior to closing, you will receive a Closing Disclosure. Double check to verify that the fees listed on your Loan Estimate match those on the Closing Disclosure or have increased no more than the standard limit of ten percent if you’ve used the lender’s service providers. If they have, the lender is required to reimburse you the difference.

Ask if seller will share costs

Another way to save on your costs at closing is to ask if the seller would be willing to pick up a portion of the fees. While this is unlikely in a tight market and isn’t advisable in a bidding war, if a seller is particularly motivated they may agree. You will need to check with your lender, as some have caps on how much a seller can contribute towards the closing costs. You can either request to have the seller pay for certain services, such as the home inspection, or for a specific dollar amount. Ask your real estate agent what would be the best course of action in your specific situation.

Enlist the help of a pro

Navigating the home buying process can be daunting. That’s why it’s helpful to have a trusted professional at your side. An agent with experience in your local market can help you through the closing process. They’ll take the time to explain the costs so that you understand, and help find ways to save you money in the long run. In the end, you’ll finally have that house you’ve always dreamed of, and at a price that fits well within your budget.

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Buying a home is an emotional, complex and often stressful process. This is doubly so if you’re buying in one of the country’s hottest real estate markets, where there are more buyers than there are houses available. It’s quite likely in these situations that you’ll find yourself in a bidding war with other buyers. If you want to ensure your bid is the winning offer, follow these strategies.

Pay with cash

This won’t be possible for everyone, but if you have the cash, make an all-cash offer. In a particularly hot market, cash will always win out. Sellers prefer buyers who pay cash because the deal will not be dependent on whether or not the buyer can secure financing.

Get preapproved for a mortgage

If paying all cash is not an option, you must get preapproved for a mortgage before making an offer. You’ll get a letter to submit with your offer that shows the seller how much money you qualify to borrow. In a scenario where a seller receives multiple bids, you’ll automatically count yourself out if you are not pre-approved.

Study the market

Before you begin your search in earnest with the intent to make an offer, spend some time researching online listings for the neighborhood. Know what kinds of houses are available, what the inventory is like, and what the prices tend to be.

Submit the first and best offer

In a tight market, it pays to be aggressive. When you find a house you like, be the first to make an offer. Not only that, but make sure your offer is the best. If the seller has listed the home at an appropriate price, be prepared to offer what they are asking.

Include an escalation clause

If you’re willing to go higher with your offer, consider including an escalation clause. This gives you the option to increase your offer should another buyer bid more than you. It also signals to the seller that you are serious about your offer. However, you should know what your price ceiling is, and stick to it. Otherwise you run the risk of the appraisal coming in for less than your offer, which could affect your ability to secure a loan.

Limit contingencies

Contingencies let a buyer out of a contract if certain issues aren’t addressed. Sometimes buyers want to include a contingency that the sale only goes through if their own house sells first, or if certain items are repaired. If you know a house is going to net multiple offers, you must limit the number of contingencies if you hope to win a bidding war. Sellers will generally choose offers with the fewest contingencies.

Get personal

Do you really love the home? Can you imagine your kids enjoying that backyard tree house, or see your dog loving the enormous backyard? Then write a letter to the seller explaining your reasons for wanting the house. Appealing to a seller’s emotions can be incredibly persuasive, and you may be rewarded with the winning bid.

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As we head into 2017, you may be thinking that this is the year to finally put your house on the market. And when you do, you’ll want it to sell quickly for the best possible price. Here are our suggestions for what you need to do to get your home ready to sell.

Detach emotionally

Selling your home can be fraught with emotions, especially if you associate it with some of your cherished family memories. But if you want to be successful, you’ll need to detach. Consciously decide to let go of your emotional attachment to the home, and think of it as a business transaction. Take the time you need to say goodbye, but then imagine a new family moving in so that you can look forward without regret.

Spruce up the exterior

Today’s buyers have a never-ending supply of online resources to research before contacting an agent. Browsing photos of listings is easier than ever, and first impressions count. Make your home a stand out from the get-go by spending a weekend sprucing up the exterior. Clean up the yard, add some color with flowers and take photos when the light outside best accentuates the positive aspects of your home.

Rent a storage unit

In today’s market, most agents will tell you that staging is key for a quick sale and will help net you the best offers. In order to make your home look it’s best, you’re going to need to de-clutter and de-personalize every room. Now is the time to take down all your family photos, empty out the closets and remove bulky furniture. Renting a storage unit early gives you a place to keep all your belongings until your official move-out date. It also gives you a head start on packing, which is never a bad idea.

Make needed repairs

Do you have a door handle that keeps falling off? A window that just won’t budge? Have you been covering up a hole in the wall with a strategically placed framed photo? You need to tackle these types of repairs before putting your home on the market. Not sure which repairs to do? Walk through your house and imagine you are a buyer. What things would stick out to you as potential problems? You should also address any larger issues that may come to light during a home inspection, such as problems with the air conditioning or heating systems.

Do a deep clean

There isn’t a single buyer out there who will be turned on by pet odors or lingering cooking smells. Once you’ve moved your belongings to storage, do a deep clean of your entire home. Make sure to tackle any strong odors, and clean every nook and cranny. Remember, buyers will be opening every closet and cabinet door, so you can’t hide anything. If you can afford it, hire a professional cleaning service to get the job done right. It’s a small investment that could have a big payoff in the end.

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If you’re buying or selling a home, you’ll probably come across some terms that you’ve never heard before, or don’t completely understand. Being confused about the terminology can make an already complex process that much more stressful. By educating yourself before you dive into the market, you’ll gain peace of mind and might even save some money. Here are the most common real estate terms or concepts you should know.

Appraisal

If you’re purchasing a home with a loan, the lender will require an appraisal. This is an evaluation of all aspects of your home to determine its value, including its size and condition on both the interior and the exterior.

Adjustable Rate Mortgage

When shopping for a mortgage, you may decide to apply for an adjustable rate mortgage. These types of loans have a variable interest rate and are generally extended for 5, 7 or 10 years. They may also have a cap on how high the rate can grow.

Fixed Rate Mortgage

As opposed to an adjustable rate mortgage, a fixed rate mortgage has a predetermined interest rate. The life of the loan is typically 15 or 30 years.

Closing

Closing is the last step of a real estate transaction when paperwork is signed and the title is transferred from the seller to the buyer.

Contingency

When drawing up a contract for a real estate transaction, there may be certain provisions that need to be met in order for the sale to go through. These provisions are called contingencies, and a home may be listed as “contingent” until these requirements are met.

Down Payment

A down payment is the money a buyer pays upfront to secure the purchase of the home. In most cases, the down payment is 20 percent of the purchase price, though this can change depending on the type of mortgage you secure.

Earnest Money

Earnest money is the cash that is deposited when an offer is made on a home. If the sale goes through, the earnest money is often used towards the down payment. If the buyer backs out of the deal for reasons not stated in the contingency, the earnest money goes to the seller.

Escrow

A property is in escrow once the buyer and seller enter into an agreement and the earnest money is paid. A neutral third party then holds that money until all requirements are fulfilled.

Pre-approval

Before you begin looking for a home in earnest, you should secure a pre-approval from a lender for your mortgage. This is typically a letter from a bank stating how much they will lend to you.

Title

The title is the rights to a property, and often refers to the document that shows evidence of ownership. During the buying/selling process, a title company will conduct research to determine if the title is clear. If there are no outstanding claims on the title, it is then transferred during the closing process.

Underwriting

When a lender researches a borrower to determine whether or not to extend credit, this is called underwriting. This determination is made by examining the buyer’s credit scores, income, credit history and debt.

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If you’re considering buying or selling a home in 2017, it’s advisable to know what to expect as you dive into the market. Here’s a look at what some experts are predicting for the coming year.

Mortgage rates are expected to rise

2016 saw record-low mortgage rates, but they started to climb after the election. Many experts predict that rates will continue to climb by up to half a percent over the course of 2017. If you’re looking to buy, now is the best time to pull the trigger to lock in the lowest rates you’ll see for awhile.

Home prices should see moderate gains

Home prices grew an estimated 4.9 percent in 2016, but that growth will likely slow in the coming year. Realtor.com predicts that home prices will slow in 2017, with gains of 3.9 percent year-over-year. They expect cities like Akron, Ohio; Greensboro-High Point, North Carolina; and Baltimore-Columbia-Towson, Maryland, to see some of the biggest gains.

Midwestern cities will attract more millennial buyers

Realtor.com also expects more millennials to buy their first homes in 2017. Midwestern cities will likely benefit the most from this uptick. Homes in the largest midwestern cities will attract these younger buyers due to their affordability. Some of the cities expected to get a boost from millennials include Des Moines, Iowa; Omaha, Nebraska; Minneapolis, Minnesota; Columbus, Ohio; and Madison, Wisconsin.

Inventory will likely drop

2017 will continue to be a seller’s market, with inventory predicted to drop even further than 2016 levels. The construction of single-family homes hasn’t fully recovered since the recession, contributing to dwindling inventory in many of the country’s largest markets. We then also had a problem on a job in the UK, where we did not have any concrete for the job that we needed to do. But then having searched for a ready-mix concrete supplier near me I found an amazing supplier who supplied us with the best concrete that we’ve ever used, so just shows that you can easily get what you need by searching.

New home prices will increase

Zillow anticipates that the cost of a new home could rise in 2017 due to higher labor costs. The country could see a shortage of construction labor due to tighter immigration policies under a Trump administration, which could force builders to raise wages for construction workers. These costs would likely be passed on to consumers in the price of the home.

“Surban” becomes the new mixed-use

Mixed-use developments have become more popular in recent years, but they’ll soon be displaced by the “surban” community. These are developments that blend the best of both urban and suburban lifestyles. The idea is that these communities allow their residents to walk to work and enjoy easy access to amenities like shopping and entertainment. They are designed to be inclusive and affordable and have strong public schools. The demand for manufacturing equipment such as a CNC plasma system is also expected to rise.

The west will see the biggest gains

While overall the country will see gains, western states are predicted to see the biggest increases in prices and sales. Home prices in western cities will likely increase to 5.8 percent, while homes sales are expected to increase 4.7 percent.

Growing families could benefit the most in 2017

For those buyers who want to trade-up into a larger home, 2017 may be your golden opportunity.  Prices for smaller homes have outpaced their larger counterparts, and more inventory is available on the higher end of the housing spectrum. When selling, choose the best offer over a speedy sale. That extra cash will stretch further on your new home.

If you have a wooden dock that you use for your boat, moisture can really do a number on it over the years. If moisture is allowed to penetrate deep down into the wood, it’ll eventually start to cause it to rot away so it’s best to learn more about dock builders in your area before it happens.

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Realtor.com has predicted that 2017 will be a hot year for millennials in the real estate market. Millennials are beginning to reach those milestones in life that drive people to buy a home – specifically, getting married and having kids. If you’re a young adult preparing to buy your first home, here are five tips designed to help you make the process easier.

Set a budget

When shopping for a home, you need to have a realistic idea of what you can afford. Keep in mind that your monthly mortgage payment, which includes your taxes and insurance, should not exceed 25 percent of your monthly take-home pay. Take a look at this online calculator that can help you compute what your price range should be.

Don’t be afraid to ask for advice

Buying a home is a complex and stressful process – ask anyone who has done it before. In fact, you absolutely should talk about the home buying process with those who have gone before you. Talk to your parents and other family members who are homeowners about what to expect from the time you start your search up until closing day – and beyond. They may not be hip to the latest social media trends, but they can certainly tell you a thing or two about what it’s really like to buy and own your own home.

Consider more affordable markets

New York and California will always be a draw for young people, but if you want to buy a house in those places you should expect to pay a hefty premium for the privilege. If you’re looking for quality of life paired with a much lower cost of living, look to the Midwest. According to Realtor.com, many millennials will opt to buy homes in larger Midwestern markets near universities. Check out Madison, Wisconsin; Columbus, Ohio; Minneapolis, Minnesota; Omaha, Nebraska; or Des Moines, Iowa – markets that are expected to thrive. Who knows, you could not only become a homeowner, but also a trendsetter.

Have faith

Don’t assume that just because you’re in your 20s, you can’t afford to buy a home. Even if you have student loan debt and haven’t been able to sock much away in savings, there are options. Look into FHA (Federal Housing Authority) loans, which allow you to buy with as little as five percent down. If you’ve been smart about handling your finances, homeownership is within your reach.

Work with a trusted professional

The Internet has made it easier than ever to search for homes and learn about how to buy a home. But that virtual experience can only go so far in the real world. When it comes time to actually begin looking at houses, negotiating an offer, and dealing with escrow, you will want a trusted real estate professional at your side. They have the experience and knowledge to help you navigate the process, and could end up saving you thousands of dollars in the long run. After all, buying a home is one of the biggest financial decisions you’ll make in your lifetime. But it’s also one of the most rewarding, and your new home will become the place where you begin to build the foundation of your adult life.

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When you’re making a big purchase, like a car or a new computer, you tend to shop around for the best deal, right? While you may not realize it, you should do the same for a mortgage. After all, a home is likely the most expensive thing you will ever buy. Shopping around for a mortgage could save you thousands of dollars, yet nearly half of all homebuyers don’t compare lenders.

If you’re getting ready to search for a home and find an Alabama based lender, here’s what you’ll need to know in order to get the best deal on a mortgage.

Check your credit

Your ability to qualify for a home loan and get a good interest rate will be largely determined by your credit score. Before shopping around for a lender, you should check your credit score so you aren’t going into the process uninformed. You should also order a copy of your credit report and check it for accuracy. If there are any mistakes, have them corrected before you apply for the loan.

Ask around

So, which lenders should you approach? Don’t just rely on those who are looking to make a deal with you for a recommendation, such as your agent (though they can be a good source of information). Ask around, especially family, friends or colleagues who own homes. They can give you an honest appraisal of their mortgage lender and whether or not they would recommend them. Don’t forget that institutions other than banks can be sources for a mortgage as well, such as a credit union or labor union.

Research costs

Once you’ve decided which lenders you’d like to compare, you should contact them for information about the costs associated with the loan. These can include:

• Rates – Ask about current mortgage interest rates, and whether the rate is adjustable or fixed. Also ask about the APR (annual percentage rate).
• Points – Ask about points, which are the fees paid to the lender and are linked to the rate. You can ask for points to be quoted in monetary values so you understand what the cost will be.
• Fees – Find out what fees will be incurred with the processing of your loan, including broker fees, underwriting fees and closing costs.
• Down payment requirements – If less than 20 percent of the purchase price is paid upfront, you may need to purchase Private Mortgage Insurance (PMI). Ask what the cost of the PMI will be, and how it will affect your monthly payments.

Negotiate

Just like many other business transactions, the fees associated with a mortgage are negotiable. If you find that one lender is willing to lower their fees or offers cash back at closing, you can use that information as a bargaining point with another lender.

Get pre-approved

Once you’ve compiled all your information and met with several lenders, you can choose which lender gives you the best deal and has the best reputation. Once you’ve decided, be sure to ask for a pre-approval letter. Getting pre-approved for you mortgage will signal to sellers that you are a serious buyer, and your offer is more likely to be accepted.

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What’s your New Year’s resolution this year? Instead of making the same pact year after year to lose weight or eat healthy, why not make a resolution that sticks? If you’re a homeowner, consider making a commitment that can really save you money and improve your quality of life in the long run. Here are some of our suggestions for New Year’s resolutions for homeowners.

Get ahead on your mortgage

Have you ever thought about how much money you could save – and how much more quickly you could pay off your loan – if you were to put extra money towards your mortgage? If you were to make one extra mortgage payment a year, you could literally save yourself tens of thousands of dollars and shorten the amount of time you’re on the hook for those payments.

Challenge your property tax assessment

Has your home declined in value in recent years? Then you could be saving money on your property taxes. Be sure to review your property tax bill and note the assessed value of your home. If you feel the value is excessive, you can appeal. Visit your tax assessor’s website to find out how the process works in your area.

Review your homeowner’s insurance

Did you know that you might qualify for discounts on your homeowner’s insurance? If you’ve made any major repairs or improvements, you could be entitled to a discount. Contact your insurance company to make sure they have the most up-to-date information about your property. And if they won’t budge on the premium, consider shopping around for a new policy.

Audit your energy usage

Depending on where you live, you may qualify for a free energy audit. In some states, a nonprofit will come to your house free of charge to assess your energy usage and make recommendations about how you can save money. If that option is not available, you can hire a professional energy auditor. Even simple lifestyle changes, like switching to LED light bulbs or getting a programmable thermostat, can make a big difference in your monthly bill.

Tackle home improvement projects

Has your home’s to-do list gotten a mile long? There’s no time like the present to start tackling some of those home improvement projects you’ve been putting off. Some of the projects that are worth doing include:

• Sealing drafty windows
• Silencing squeaky floors
• Adding an alarm system
• Installing motion-detecting lights on the exterior
• Calling air conditioning repair service
• Weather-stripping doors
• Cleaning out your dryer’s lint trap
• Call a furnace installation in the Fox Valley company to change the furnace filter
• Planting a vegetable garden
• Installing rain barrels to catch and save rain water
• Buying a compost bin and composting kitchen scraps and yard waste
• Creating a housecleaning schedule, and assigning chores to every family member

Take time to enjoy your home

It can be easy to get sidetracked by all the things you’d like to do for your home, but remember to set aside time to actually enjoy your space. Plan a party, invite friends over for a movie night, or simply sit on the porch and watch the sunset. You deserve to enjoy the home you’ve worked hard to own and maintain.

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