Bucks & Montgomery County Real Estate BlogRecently posted or modified blog posts in the category - Buying a Homehttps://www.bucksproperties.com/blog/Copyright BucksProperties.com2021-08-16T07:40:17-07:00tag:bucksproperties.com,2012-09-20:6760Appraisal Vs Home Inspection: What Are The Difference and Are They Needed?Buying a home can be a huge endeavor, but it is also one of the most rewarding purchases that you will ever make in your life. When you are looking for a home, you have to take into account the neighborhood, the school district, and of course, the price. Before you purchase a home, there are some steps that your lender will ask you to take, and there is also an important process that you do well to invest in as well. An appraisal and an inspection are essential parts of the homebuying process.
It is important to note that there are big differences between these two processes, and the next few paragraphs will shed some light on these differences.
Appraisal vs Home Inspections
If you are looking into buying a new home, then there is no doubt that you have heard of a home appraisal and home inspection. New home buyers do not always know the difference between these two things. A home appraisal is something that the mortgage holder will ask you to get. Since this entity will be giving you the loan for your home, it wants to make sure that the home is valued correctly. This is a process that will take into account the pricing of similar homes nearby. Once the mortgage company is sure about the true value of your home, you can continue on with the loan approval process.
<br />The Inspection
An inspection of the home is something that you want to do. The home inspection is a way to determine what is the health of the home. There can be several issues with a home that go unseen by the human eye. When a professional inspector comes out to the home, he or she is able to see if the home is safe and if there are any serious repairs that need to be done to the home. This inspector will check the condition of the foundation of the home, the roof, the HVAC system, and various other systems in the home. Savvy home buyers know whats the difference between appraisals and home inspections.
Which One is More Important?
In the process of buying a home, you most likely are trying to be efficient and save money. With that in mind, you may wonder which one of the two processes is more important. Since an appraisal determines the value of your home and an inspection determines the health of your home, in reality, they are both important. The mortgage company will most likely require you to get a home inspection, and as an informed buyer, you do well to get an inspection. Covid has sped up the process of buying a home in many states, and they may not require you to get an inspection, but you want to make savvy moves before making such a huge purchase. Buying a home is a huge step in your life, and you do not want to do things wrong. There are helpful <a href="https://www.bucksproperties.com/contact/" target="_blank">real estate companies in Bucks County </a>that can connect you with professionals who will walk you step by step through the home buying process. Your future home is out there, just take your time, and go through all of the right steps before you make the purchase.2021-08-16T07:32:00-07:002021-08-16T07:40:17-07:00Andy Kowalskitag:bucksproperties.com,2012-09-20:6338Questions About Mortgage Loans? Check Out The Most Frequently Asked QuestionsThe home-loan world can appear complex and confusing to first-time homebuyers. Committing to a property and securing a loan are attractive ways to build wealth for your entire family. Don't let the finance world overwhelm you. If you have questions about mortgage loans, take a look at the most frequently asked questions to streamline your financing process.
<br /> 1. What Types of Loans Will Work for Me?
There is no one-size-fits-all loan in the real estate industry. In fact, there are hundreds of different loans that are designed for certain people. Low-income, veteran, and other funding types are available. Simply ask your lender about these programs that might suit your financial position.<br /><br /> Ask about fixed versus adjustable loans too. Fixed loans have a locked-in interest rate that won't change over the decades. Adjustable rates are typically lower in cost, but they will change as the financial world ebbs and flows.
<br /> 2. What Will the Interest Rate Be?
As you shop among <a href="https://www.bucksproperties.com/property-search/results/?searchtype=3" target="_blank">homes for sale in Montgomery County</a>, you'll have a certain price range in mind. You'll be able to afford a more expensive property if the interest rate is low. Ask your lender about your particular rate. Its final value depends on the loan's size, your credit history, and other factors. Ideally, you want the lowest rate possible. Remember that fixed rates will always be slightly higher than adjustable types, but fixed loans remain locked throughout their lifespan.
<br /> 3. What are the Fees Associated With the Loan?
It's impossible to secure a home loan without some fees. Origination, paperwork, and closing fees are typical charges as you close on a property. Your lender should offer you a Good Faith Estimate, which lists all of the fees associated with your loan. Compare and contrast these fees with other lenders you're qualifying at the time. They will differ between companies.
<br /> 4. How Long Does it Take to Fund a Home Loan?
Once you find an appropriate property, funding a loan can take between 45 and 60 days. This time frame does change, however, as the industry becomes busier or slower. To make the funding move at a rapid pace, be ready with any necessary documents. Proof of income, tax returns, and other documents must be sent to the lender, for example.
<br /> 5. Is There a Penalty for Paying it Off Early?
The ultimate goal is to pay down the loan over time. Most people don't necessarily make it to the end of a 30-year mortgage, however. You might sell the home or refinance it, for instance. In these cases, you're paying off the loan before it matures. Some states have a penalty fee associated with an early payoff. Ask about this detail so that you aren't exorbitantly charged in the future if you want to sell or refinance the amount.
<br /><br /> Create a contact for your lender in your cellphone. You don't want to miss any calls during the homebuying process. Staying in touch will only improve your chances of securing and funding a loan in record time. Your dream property can become a reality with your lender's assistance.2021-06-21T06:28:00-07:002021-06-21T06:36:41-07:00Andy Kowalskitag:bucksproperties.com,2012-09-20:6240 The Homebuying Process: Industry Lingo You Must LearnKnowing the lingo of home buying can become an asset. It is similar to learning other languages in that once you know it, it doesn’t seem as daunting as it once did. Below are some of the terms that would be helpful to know when buying a home.
<br /> Escrow
As soon as you have your down payment, you will give it to the escrow office to keep until the sale is near completion. Escrow is the act of the escrow company keeping your money in a special escrow account where it will remain untouched until the time is ready to pass the down payment along to the sellers.
<br /> Closing Costs
This comes towards the end of the homebuying process. When you and the seller have completed nearly all of the other steps for them to sell you their home, there will still be some outstanding debts. They can be paid by either party or the amount is split between you and the sellers. These will total a pre-arranged amount that is generally 2% to 5% of the price you paid for your new home. <br /><br /> Closings costs for <a href="https://www.bucksproperties.com/property-search/results/?searchtype=3" target="_blank">homes for sale in Montgomery County</a> might differ from those in another part of the country. Closing costs, in general, are used to pay fees incurred but not yet paid to a courier service, any application fees, commissions to the Realtors or any other bills for the sale left unpaid to this point.
<br /> Adjustable-Rate Mortgage
This is the more complex interest rate but there are pros and cons. This type of mortgage will allow you to purchase a more expensive home. Your interest rate may be lower than the fixed rate for a few years and save you hundreds of dollars. The downside is that you will be responsible for higher payments when interest rates climb.
<br /> Fixed-Rate Mortgage
This type of interest rate is preferred by many people because it is easier to budget. Your interest will stay the same for the life of the loan. Interest rates may rise and fall but your interest will stay the same regardless. You can count on a certain amount of money going to this expense every month instead of calculating your budget around a variable figure.
<br /> Contingency
A contingency clause is put into the contract in case an event happens outside the scope of the homebuying process. There are several types of contingency clauses. A mortgage contingency allows the buyer an allotted period of time to locate a lender. An inspection contingency puts a time limit for completion of the home inspection. An appraisal contingency says that the home must be appraised at a fair price that will give the buyer a home valued at what they are paying for. <br /><br /> Learning the lingo of the real estate industry will get easier the more time you spend pursuing homes and properties to buy or sell. Your <a href="https://www.bucksproperties.com/contact/" target="_blank">real estate agent</a> may be able to provide you with a list of classes for homebuyers in your area.2021-06-08T06:15:00-07:002021-06-08T06:26:25-07:00Andy Kowalskitag:bucksproperties.com,2012-09-20:6166Buying A Home Sight Unseen: Mistakes To Avoid Most people would never consider purchasing a home without being able to look at it in person. However, in the wake of the pandemic, buying a home sight unseen has become necessary in some cases. Due to mandated lockdown orders, in-person tours and open houses are often not practical or available. Further, many people are fleeing urban areas for less-crowded communities, which often means considering homes hundreds of miles away.<br /><br /> Buying a home sight unseen may not be ideal, but it’s doable as long as you avoid these five common mistakes:
Not Hiring the Right Local Agent – If you’re looking at <a href="https://www.bucksproperties.com/property-search/results/?searchtype=3" target="_blank">homes for sale in Montgomery County</a> but are currently not in the area, hiring an experienced and knowledgeable local agent is a must. They’ll act as your eyes and ears on the ground, checking out properties that may suit your needs and eliminating ones that don’t. Hire someone with a proven local track record, strong sales volume, and plenty of recent references for best results.
Not Insisting on a Floorplan – All of the photos and videos in the world can’t take the place of a clear, easy-to-read floorplan. Without one, you’ll have no easy way to determine if and how your furniture will fit into a prospective home. If a floorplan isn’t available, ask your agent to obtain measurements of each room so that you can put together a basic outline. Better still, ask them to use a tool like Floorplan.com to quickly generate a functional floorplan so that you can more fully understand the space.
Not Asking Enough Questions – Buying a house sight unseen is not the time to make assumptions about anything regarding the property in question. Just because photos appear to show something, for example, doesn’t mean that what you’re seeing is accurate. Upon deciding to buy a house in another market, start keeping a list of questions to ask. Consider your lifestyle, work-life balance needs, and other factors, and remember – the more questions you ask, the better.
Skipping the Appraisal or Inspection – If you’re buying your new place with a home loan, the bank will require an appraisal. If you’re buying with cash, it’s optional but should still be considered mandatory. After all, without being able to walk through the place yourself, there’s no telling what issues lurk within a home. Having professional appraisers and inspectors look everything over is the best way to understand what you are about to purchase fully.
Not Taking Advantage of Technology – Finally, leading-edge technologies make it easier than ever to tour homes virtually from afar. A preliminary look via Google Street View can give you an idea for a home’s curb appeal, for example, and FaceTime tours let you walk through a home virtually in real-time. Your agent can walk through the home while video chatting with you, answering questions along the way. Many online listings include 3-D tours too, so be sure to keep your eyes peeled for those.
<br /> Buying a new home without seeing it in person first is nerve-wracking but sometimes necessary. By avoiding the mistakes listed above, you’ll have an easier time securing the right home even from hundreds of miles away.2021-06-01T07:19:00-07:002021-06-01T07:23:57-07:00Andy Kowalskitag:bucksproperties.com,2012-09-20:6134Second Home & Vacation Property: Differences To Keep In MindIf you are looking for <a href="https://www.bucksproperties.com/property-search/results/?searchtype=3" target="_blank">homes for sale in Montgomery County</a>, it is important that you understand how to approach the process depending on if you are wanting a second home or an investment property. While many people use the terms investment property, second home, vacation home, and rental property interchangeably, there are some key differences that need to be explored so that you make the most informed purchasing and financing decisions.<br /><br />Second Home: A second home is self-explanatory. While this is not your primary house that you call home, it is a property that you use for time away or other practical purposes. Some people will refer to this as a vacation home. Depending on your needs, you may choose to rent this out to others to generate a bit of extra income when you are not using it. However, its primary purpose is not to put extra money into your bank account each month.<br /><br />Investment Property: Conversely, an investment property is one that you purchase for the purpose of bringing in additional income. Because it is not looked at as a home that you would use for your own lodging needs, the location is inconsequential. The goal of an investment property is to turn a profit. In contrast, a second home has a bigger goal to provide a place to enjoy away from your primary house, making the financial implications less important. With an investment home, you are expected to be a landlord and property manager.<br /><br />Differences in Financing: Before purchasing a second property, you need to understand the differences in mortgage terms. You should expect to see a higher interest rate for a second property compared to your primary home because of the risk associated with adding another payment to your budget. You may also be required to put down a larger down payment than if you were buying a primary home.<br /><br /> There are also differing tax implications when comparing a second home to an investment property. Those purchasing an investment property will be able to deduct some of the expenses that come with operating a business, giving you a bit of an advantage when it comes time to file your taxes. <br /><br /> Some lenders may require that the second home be located a specific distance from your primary house. This will offer proof that you truly are using it as personal property and not as an income generator. Location is not a factor with an investment property.<br /><br />Why Understanding the Difference is Important: Because the financing terms and tax implications are different, it is important that you clearly indicate how you plan on using the property. Being misleading about the status of the property in order to gain more favorable financing is considered mortgage fraud. This is a federal offense, meaning that you could land yourself in serious trouble.2021-05-24T06:49:00-07:002021-05-24T06:59:38-07:00Andy Kowalskitag:bucksproperties.com,2012-09-20:6033What To Know When Buying A Home When Inventory Is Low In Bucks CountyWhen there is a limited number of <a href="https://www.bucksproperties.com/property-search/results/?searchtype=3" target="_blank">homes for sale in Bucks County</a>, buying one can be incredibly stressful and complicated. Low inventory markets are seller’s markets, and bidding wars are par for the course under such circumstances. Even if you find a place you love, someone else could snatch it up before you do. <br /><br /> Keep the following five tips in mind to purchase a home more easily even when inventory levels are low:<br /><br />
Be Prepared to Move Fast – In a seller’s market, contract lengths tend to be shorter than usual. As a result, you’ll probably have to turn around and move quickly after buying a new house, and you should be prepared for what’s to come. Pack up as much of your house as you can as early as possible so that you can vacate the premises faster. Obtain a pre-approval loan from your lender, and have it run through underwriting. That way, you can close fast when the time comes.
Have Your Finances in Order – Show sellers you are serious by having a pre-approval in hand before looking at <a href="https://www.bucksproperties.com/property-search/results/?searchtype=3" target="_blank">homes for sale in Bucks County</a>. Better still, have your lender run your documentation through underwriting as well. Have a solid down payment ready to go, and make sure that your credit situation is good to go. A single glitch in your financial situation could come between you and the perfect home in a low-inventory market.
Make the Best Offer Possible – In low-inventory situations, sellers have the upper hand, and you can be sure that other buyers will come in with offers too. This is no time to play around with low-ball offers. Instead, have your agent prepare the highest and best offer that you can make the first time around. <a href="https://www.bucksproperties.com/contact/" target="_blank">Hire a local agent </a>who has proven experience in the local real estate market to ensure that you deliver the most competitive offer possible.
Be Flexible – As the saying goes, beggars can’t be choosers. In low-inventory real estate markets, buyers have to be open-minded and flexible. Make a list of the things you need and the things you want, and remember that the former is much more important than the latter. Be realistic about the budget you set too, and remember that compromises will be necessary to secure a new home in such a competitive market.
Don’t Look at Homes Near the Top of Your Budget – Finally, avoid potential heartache and hassle by steering clear of homes that are too close to the top of your budget. When inventory levels are low, homes often sell above list price. If you are preapproved for a $300,000 loan, look at homes listed for $285,000 or less to give yourself some wiggle room.
<br /> Inventory levels will likely remain low for the foreseeable future. If you need to buy a home in Bucks County, keep the above tips in mind to get through the process as quickly and efficiently as possible.2021-05-10T07:25:00-07:002021-05-10T07:30:43-07:00Andy Kowalskitag:bucksproperties.com,2012-09-20:5978Best Approaches To Take When Negotiating RepairsThe inspection on your new home is complete and you have a list of needed repairs in your hand. Now you can prioritize them and sit down with the sellers to negotiate which ones they would consider paying for.
<br /> 1. Decide Who Will Make the Changes
Get the names of a few general contractors if you haven’t already. One of the real estate companies in Montgomery County probably has a suggestion, and you can check Yelp. Meet each of them, find out what their experience has been doing the repairs you need, and get estimates. The decision is yours on who you choose.
<br /><br /> 2. Put Yourself in the Seller’s Position
Be gentle when you approach the seller with requests for any type of payment. You are putting out the money to buy the home, but they will have incurred many expenses that you don’t have. Offer a copy of any estimates and ask what they are willing to compromise on. They might suggest a lower price in lieu of contributing to repairs.
<br /><br /> 3. Who Pays the Home Inspector?
It might be easier to figure this out beforehand. If the inspection gets done and no one wants to pay the inspector, there will be problems. This is another cost that can be negotiated with the sellers. You will find that in home inspections, home repairs, as with life in general, you can find a way to negotiate nearly everything.
<br /><br /> 4. Mandatory Repairs vs You’d Like to Have Them Done
The home inspector might find some problems with the home that absolutely must be taken care of before the sale can go through. These would include problems that could be a health risk such as issues with the electrical system and HVAC. Some repairs won’t need negotiation because the seller will need to be responsible for them.
<br /><br /> 5. What You Can Live Without
You might want some repairs to be done that are not urgent. Decide where they fall on your list of priorities and how much you can budge on who pays for it. If the windows are single-paned and you really want double-paned, you can ask the seller to pay part, or you can just pay to replace them yourself. They are not obligated to pay for a repair or replacement just because you want it done.
<br /> 6. The Sellers Aren’t Required to Pay for Any Repairs
You can ask the sellers to split all the repair costs with you or ask them to pay for all of them. You are somewhat at their mercy because they are not obligated to pay for any repairs or to replace anything, even if it means taking the house off the market. So you might be put in the position to decide if you want to pay for all repairs or not get the home. <br /><br /> It can be a confusing business, this homebuying. As you go through the steps and accomplish one after another, you will be closer to being able to call yourself a homeowner.2021-05-03T07:21:00-07:002021-05-03T07:26:00-07:00Andy Kowalskitag:bucksproperties.com,2012-09-20:5796Best Bidding War TacticsAcross the United States, real estate has become a hot commodity since the start of the pandemic. Interest rates are historically low as is inventory. This makes for a perfect situation for sellers, with <a href="https://www.bucksproperties.com/property-search/results/?searchtype=3" target="_blank">homes for sale in Montgomery County</a> typically receiving at least the asking price. In many situations, these actually spark a bidding war. <br /><br /> But how do you win these feuds for homes, especially if you are new to purchasing real estate? Consider these tips to be ready to win the perfect house when you find it.<br /><br />
Be Ready To Move Quickly
Speed is the name of the game in the current market. Homes are frequently listed and within hours have several pending offers. This is part of why working with a <a href="https://www.bucksproperties.com/contact/" target="_blank">well-connected real estate agent</a> is important. They have the heads-up on properties before they are actually listed, and can help you get a sense of whether that home may be the right one so you are ready to make a quick offer.<br /><br />
Get Mortgage Preapproval
It is surprising how few people actually get their mortgage preapproval before starting to look at homes. When you have a preapproval already in place, you are communicating to your agent and the seller that you are ready to make a move on a property, which accelerates the transaction speed for everyone.<br /><br />
Know Your Budget Range
When it comes to bidding wars, it can be very tempting to keep pushing your bid price higher. However, this is very dangerous because you can quickly exceed the limits of your budget. Know your top end, and shop below that, allowing you a little wiggle room to bid up if needed. However, be firm in how far you can go and do not attempt to exceed that limit.<br /><br />
Come With a Larger Down Payment
Most people know that larger down payments positively affect their mortgage terms. However, in a bidding war, it also reinforces your interest and shows a buyer you are able and ready to close a deal right now. Someone with the bare minimum can raise questions if they will get the financing, even if they have a preapproval.<br /><br />
Consider Fewer Contingencies
Contingencies are those things that can break a real estate deal, including the prepurchase inspection or final financing approval. This shows a seller you want the house, and are willing to take a risk to get it. Unfortunately, this also means you could be legally obligated to complete the purchase, even if something happens with your financing or an inspection turns up major issues. Be sure to talk with <a href="https://www.bucksproperties.com/contact/" target="_blank">your real estate agent</a> to determine if this is a good tactic for you.<br /><br />
Think About The Seller
Remember, a seller is a person with needs too. So, just because you are ready to move quickly, your seller may need time to move. If you can offer more flexibility than your competition, you may be able to win the bid, even if your offer is lower.2021-04-19T07:03:00-07:002021-04-19T07:10:08-07:00Andy Kowalskitag:bucksproperties.com,2012-09-20:5744Key Signs You Are Ready For HomeownershipBuying a home is one of the most consequential decisions that you'll make in your life. However, you'll need to be sure that you're ready for the responsibility of being a homeowner before you decide to do so. Let's take a look at a few of the signs that you're ready to own a house beyond the fact that you can afford to make a monthly mortgage payment.
<br /> You Are Ready to Maintain a Property Yourself
When you rent a property, the landlord is responsible for fixing a broken toilet, painting the living room, and taking care of pest issues. However, when you buy a home, you become responsible for its upkeep. Therefore, it's generally in your best interest to continue renting if you're not comfortable fixing a clogged drain, killing a mouse, or undertaking other maintenance projects.
<br /><br /> You Want More Control Over Your Environment
As a homeowner, you can install a new deck in the backyard, put up a fence or take other steps to improve the look and feel of your home. You also have the ability to put in new floors, add insulation to the attic or paint the interior any color that you want. If you are looking to exercise greater control over your living arrangements, it may be a sign that you're ready to buy a home.
<br /><br /> You Don't Want to Pay Someone Else's Mortgage
One of the key drawbacks of renting a home is that you're helping to build a stronger financial future for someone else. However, by purchasing a home, each monthly housing payment that you make helps to build equity in an asset that can be used to strengthen your own financial future.
<br /><br /> You Want a Greater Sense of Stability
One of the primary benefits of owning a home is that you don't have to worry about moving for several years. As a general rule, you'll need to stay in a house for at least three years before it makes financial sense to sell it. If you have a fixed-rate mortgage, your housing payment will remain the same for the life of the loan. This can make it easier to create a long-term budget that you can be confident in.
<br /><br /> You Want To Be a Force for Good in the Community
The presence of vacant lots, rundown properties, or properties that haven't been properly maintained can drag down an entire community. This is because they can become havens for drug users, criminals, and other unsavory characters to who you wouldn't want to live nearby. Over time, businesses will shy away from serving areas that are perceived to be riddled with crime or poverty. Therefore, by taking care of one of the lots in your neighborhood, you can help create a thriving community.2021-04-12T08:12:00-07:002021-04-12T08:16:45-07:00Andy Kowalskitag:bucksproperties.com,2012-09-20:5670Discuss These Questions With Your Partner Before Buying A HomeIf you are interested in buying one of the<a href="https://www.bucksproperties.com/property-search/search-form/" target="_blank"> homes for sale in Montgomery County</a>, then you are in good company. Over the years the amount of couples who are choosing to buy homes in Montgomery County has maintained its consistency. This is because buying a home is a marvelous investment. In fact, your home is your most valuable physical possession because it is the most expensive item that you will buy in your lifetime. If you are purchasing a home with your partner, you do have to ask some important questions before you commit to making the purchase. The following is a list of some important questions that you want to discuss with your partner before you decide to purchase a home together.
<br /><br />1. How Much Debt Do We Have?
It is important that you and your partner have an open discussion about money. Debt can be problematic when it comes to buying a home. Your home should be a blessing, and you don't want it to become a huge burden. If you and your partner have this chat and you realize that one or both of you have crippling debt, then it would be wise to wait to purchase the home until you get your debt under control.
<br />2. How Much Can We Afford?
You and your partner should be able to put at least 20% down as a payment on your home. Apart from that, your mortgage payment should be less than 30% of your total income monthly. You may be able to qualify for a home that is out of your price range, but that does not mean that you should buy the home. You would benefit from talking to your partner so that you can both be on the same page when it comes to the price of the home.
<br />3. What Size Home Do We Want?
Talk with your partner about the size of a home that you desire before you start looking. If you two are not in agreement about the house size, it could be frustrating when you decided to start looking. You both should agree on the number of rooms and size of the home.
<br />3. How Long Do We Want To Live In The Home?
Do you know how long but you both want to be committed to this home? If it is going to be a starter home and you both only want to live in it for a few years, then you need to take that into consideration when it comes to the location and the price of the home. If you are hoping to make your home a long-term investment, then that will also have a huge impact on the location and the size of your home.
<br />Buying A Home Is A Big Deal
Since purchasing a home is the largest purchase that you will make in your life, if you are purchasing with your partner, it is wise to discuss the previous serious questions before taking the leap. Once you can get those questions out of the way, you will be ready to begin your home buying journey.2021-04-05T07:48:00-07:002021-04-05T07:52:35-07:00Andy Kowalskitag:bucksproperties.com,2012-09-20:5460Closing Checklist: 5 Things You HAVE To Do Before Moving InGetting your purchase offer approved by a seller is an important step toward purchasing a home. However, there are still many tasks that must be accomplished before the transaction officially closes. If any of these tasks aren't completed promptly, it could extend the closing timeline or result in the deal falling through.
<br /><br /> Obtain a Mortgage
Even if you have enough money to buy a home with cash, it is generally in your best interest to obtain a mortgage. Doing so allows you to keep more money in the bank where it can be used to pay maintenance costs or other monthly expenses. Typically, you'll obtain the loan after your purchase offer has been accepted, and it can take up to 45 days to receive clearance to close.
<br /> Inspect the Home
You are entitled to perform an inspection up to 24 hours before the home closes. Ideally, the home will be inspected immediately after the seller accepts your offer and again 24 hours before taking possession of the property. This helps to ensure that the property is in adequate condition throughout the transaction period.
<br /> Perform a Title Search
A title search will let you know if any issues might prevent you from taking legal ownership of a home. For instance, a search may reveal the presence of tax, mechanic, or another type of lien against the property. Furthermore, it might reveal that the existing title is a forgery or is signed by someone who doesn't have a legitimate claim to the house.
<br /> Review Your Loan Documents Again
It's a good idea to review your home loan documents carefully to better understand your rights and responsibilities as a borrower. You should receive a HUD-1 statement that lists the penalties that might apply in the event of a late or missed payment. That statement should also list the amount of each payment, the interest rate, and how many payments will be made over the course of the loan. Your lender should be able to answer any questions that you have about your mortgage or about the HUD-1 document itself.
<br /> Have the Home Professionally Cleaned
The current owner of the house is generally not required to scrub the carpets, refinish the floors or remove items from the home. Therefore, it may be worthwhile to have the home professionally cleaned to ensure that it's in adequate living condition from the day that you move in.
<br /> Generally speaking, you are responsible for any problems with a property after legally taking possession of it. Furthermore, you are liable for complying with the terms of your mortgage after signing loan documents. Therefore, you must take time to ensure that any problems with the property or mortgage are taken care of before the sale is finalized.2021-03-15T06:49:00-07:002021-03-15T06:54:15-07:00Andy Kowalskitag:bucksproperties.com,2012-09-20:5419Home Inspections: 11 Questions To Ask Before, During, & AfterBuying your home is likely the biggest purchase you'll make in your lifetime, so it's vital to ensure that you won't wake up to unpleasant surprises after closing. The best way to avoid them is to have a home inspection from a reputable company before you finalize your purchase. The following 11 questions can help you get the most benefit from your home inspection.
Before The Inspection
Selecting the inspection company is as important as the inspection itself. Make sure that you can accompany the inspector, and ask the following questions so that you can choose the best.
1. Do You Have A Track Record?
The answer to this question will let you know how long they've been in business, and you may be able to speak to some former clients.
2. What Do You Charge And What Does The Fee Cover?
Home inspections average between 300 and 600 dollars. The price depends on the location of the house, the size, and the age of the homes. Be cautious of using the least expensive inspector because you may get an inferior inspection.
3. How Long Will It Take?
Home inspections are usually performed during regular business hours, so you'll want to ensure that you schedule enough time. You don't want your inspection to be rushed. If your inspector says a large home will take only an hour or a two-bedroom apartment will take half the day, it might indicate that the inspector is less competent than they should be.
During The Inspection
4. What Does That Mean?
Your inspector should be happy to explain any issues that they find as well as explain their significance. Although some problems can be minor, such as a leaky faucet, problems such as a leaky water heater or a cracked foundation can cause major issues.
5. I'm A New Homeowner. How Do I Maintain This?
Your inspector should be happy to explain how to maintain your home, especially if you have a boiler or an HVAC unit, or another type of device that isn't standard in all homes.
6. Do You Have Major Concerns About This Property?
In addition to your written report, your inspector can provide you with a broad overview of the property that includes both the benefits and the issues that may need immediate attention. Don't be afraid to ask questions.
7. What's The Significance Of...
If you notice an issue during your home inspection, make sure to ask your inspector about it and whether it's significant or not. Although your inspector will probably have noticed it already, it can help you learn more about your house. Many inspectors will ask if you have any specific concerns before starting the inspection.
After The Inspection
A home inspection report is rather extensive, so before you delve into that hefty report, ask the inspector the following:
8. What Does This Mean?
Even though you attended the inspection – hopefully – there may be terms in the report that you don't understand. Don't be afraid to ask questions.
9. Does Anything In This Report Concern You?
Probably, the issues reflected in the report will be minor, but your inspector can clarify those that may incur a substantial cost in the future.
10. Should I Call An Expert To Check Out This Issue?
Your inspector can point out any issues that should be fixed by the seller or what you can expect if you're paying for it.
11. Is There Anything That Will Need Immediate Attention After I Move In?
Be sure to pay attention to the items on the report and take care of them after moving in. Prompt attention to them can forestall headaches after you move in.2021-03-08T08:41:00-07:002021-03-08T08:45:00-07:00Andy Kowalskitag:bucksproperties.com,2012-09-20:5254Buying Checklist: 7 Ways To Prepare To Buy Your First HouseThe time has come for you to buy your first home. You have a good job. You think your income is enough to add a mortgage to your monthly bills. Take a look at these seven tips to see if you are as prepared as you need to be.<br /><br /> 1. Check your credit score<br /><br /> One of the first steps you need to take when buying a home is to check your credit rating. This will tell your lender how you've done in the past with paying your bills, other credit lines you might have out, and generally how you handle your money. Requirements change periodically about what scores are acceptable when borrowing from banks and other types of loans you will qualify for.<br /><br /> 2. Decide what type of loan is best for you<br /><br /> Your repayment will differ depending on what type of loan you get. Borrowing from a family member when you're buying a home could be tricky. Make sure to put the details in writing. An FHA loan could be best for you. The down payment will be a lower percentage of the total home loan if you get an FHA loan. Make sure you check interest rates for all lenders you are considering. <br /><br /> 3. Clean up your credit<br /><br /> You will know your problem areas after you check your credit report. Buckle down on your expenses and frivolous expenditures so you can get caught up on bills. Pay off anything you can, and don’t start any new credit for the time being. You will look more responsible to lenders the more orderly your credit is. It is better to take a little longer and clean up your credit on your own than to sign up with a company that offers to fix it for you. <br /><br /> 4. Save up<br /><br /> Saving up is one of the toughest parts of buying a home. You can start saving after you get bills paid off or at least paid down. Decide if you are saving for the down payment or if you want to pay cash for your home. A loan won’t be necessary if you choose to pay cash, but the saving time will be longer. You can always pay off your loan sooner than the 15 or 30-year term if you want to.<br /><br /> 5. Get pre-approved<br /><br /> One headache you can get rid of fast is to get pre-approved. You will find out how much you can spend on a new home based on your income and other expenditures. Now comes the fun part – finding the right home for you.<br /><br /> 6. Find your new home<br /><br /> You now know what your limit is. Decide where you want to live. Drive around your neighborhood or the neighborhood where you want to make your new life. Check out open houses and make appointments with Realtors to see prospective properties. <br /><br /> 7. Make an offer<br /><br /> You’ve saved enough and you’re ready to make an offer.<a href="https://www.bucksproperties.com/contact/" target="_blank"> Your Realtor </a>will guide you through the process. There will probably be some back and forth between you and the sellers. You might have to see more than one home. You and the sellers will come to a compromise if the home is the right one for you.2021-02-15T07:39:00-07:002021-02-15T07:46:02-07:00Andy Kowalskitag:bucksproperties.com,2012-09-20:5135How To Buy A Home In Your 20's And The Reasons You Should Really Consider ItBecoming a homeowner is always an exciting event in your life. Nevertheless, it can also be a huge source of stress. For this reason, many people postpone it. In our opinion, this could be a huge mistake. In fact, we recommend people buy a home soon as possible. Here are a few ways that you can prepare.<br /><br />
Preparing to Buy for the First Time Home Buyer
<br /> Are you unfamiliar with the housing industry? If that is the case, then do not despair. You've got time to familiarize yourself with everything that you need to know. Meanwhile, you need to improve your financial situation. Otherwise, it will be difficult for you to secure financing.<br /><br /><br />Consolidating Debt:<br /> First, consider consolidating all of your debt. If you are still in your 20s, chances are you've got some student loans. In that case, try to optimize your debt. Speak to a financial advisor if you need more advice on how to do this.<br /><br /><br />Improving Your Credit Score:<br /> As you are consolidating debts, take a look at your credit score. Typically, you would like this to be as high as possible. However, with FHA loans, it is possible for you to get financing with scores as low as 600. In some instances, you could even qualify for federal financing with scores that are even lower.<br /><br /><br />Shopping Within Your Means:<br /> While you compare financing opportunities, you should begin to look at different properties. We suggest looking at things that are within your means. For instance, suppose you are approved for $300,000. See if you can find something for half of that amount. That way, the mortgage payments will be more than bearable.<br /><br /><br />
Why You Should Get Started As Soon As Possible
<br /> Plenty of people are interested in becoming homeowners. Nevertheless, they decide to postpone it. Why is that? Typically, it's because they do not fully understand the benefits of homeownership. Instead, they see it as a source of stress.<br /><br /><br />Compound Interest:<br /> If you become a homeowner early, the benefits will compound faster. Ultimately, homeownership is the fastest path to wealth in the modern economy. Rarely do people become wealthy through one source of income. It's normally amassed through property ownership.<br /><br /><br />The Sooner You Start, the Better Your Results:<br /> When you first start making mortgage payments, most of it goes towards interest. After you pay off the mortgage, you do not have to make a payment at all. In effect, your monthly expenses will be forever lower. On the other hand, as a renter, your expenses will never reduce. Most of the time, they will only ever increase.<br /><br /><br />Historically Low-Interest Rates:<br /> Today, homeownership is more affordable than ever. Thanks to historically low-interest rates, you can get financing easier than previous generations. Therefore, becoming a homeowner might not be as difficult as you imagine.2021-01-31T17:02:00-07:002021-01-31T17:07:12-07:00Andy Kowalskitag:bucksproperties.com,2012-09-20:47065 Features That Homebuyers Are Guaranteed To Want More of in 2021 Whether you are looking to purchase a home or sell a home, it is always a good idea to stay up-to-date on the industry's most in-demand features. This year consumer demands have seen some changes from tradition. No worries, it is all relatively straightforward once you see it written down.<br /><br />
This Year’s Most In-Demand Home Features
When you walk into a home, what is the first thing that your eyes land on? Everyone will answer this question differently. However, there are answers to this question that seem to pop up more frequently than others. The following five items have been the most popular so far for this year. This trend will likely continue to grow and strengthen into 2021.<br /><br />
Home Office Spaces
It is no wonder that people are beginning to look into homes with friendly office spaces more than they were in the past. Today more people work from home than at any point in the history of the world.<br /><br /> Thanks to the internet and the global health pandemic outside, more people are working from home than ever. It has provided sufficient pressure for millions of employees to switch to a work from home lifestyle. <br /><br /> As these workers integrate into the new lifestyle, many of them have found that it is more difficult for them to remain concentrated. <br /><br /> The best possible solution would be an isolated and secluded home office space with plenty of room and natural lighting. It should be in an area of the home that encourages motivation and concentration.<br /><br />
Open Floor Plans In The Kitchen
People love to have large kitchen spaces now. It is a lot less fun to be cooking when you are in a cramped kitchen. Suppose you have the option between two similarly priced properties, but one has a much larger kitchen.<br /><br /> In that case, it will probably be the more popular option. You can keep that in mind as you are shopping for a new home, or if you decide to make a new upgrade to your existing one.<br /><br />
Solar Panels On The Roof
Energy efficiency and the environment go hand-in-hand today. Now solar’s panels have become one of the most quickly growing segments of our energy production industry. <br /><br /> They are efficient enough and affordable enough for many homeowners to have them installed in their homes. <br /><br /> Suppose you can get a home with a powerful solar panel array. In that case, you will never need to worry about paying another electricity bill again. This could potentially save you thousands of dollars throughout your time in the home.<br /><br />
Enough Bedrooms For Everyone
People have large families today, and more than ever before, everyone wants to have their bedroom. Today we are seeing more multigenerational families as well. Sometimes it is more affordable for everyone to pitch in and purchase a larger home together. <br /><br />
Smart Home Technology
Today, our smartphones allow us to do more things than we may have thought possible in the past. If you were to go back in time and show someone one of the devices that we carry with us in our pockets every day today, they would think that it was magic. <br /><br /> Well, it is not magic. However, if you want to see the true potential, you must see an integrated smart home with smartphone integrated functionality.<br /><br />
Location
The number one factor in the desirability of a home will always be its location. If a home is located somewhere, that is undesirable to live. It will always be challenging to find interested buyers. <br /><br />
Energy Efficient Appliances
Suppose you want to avoid paying much on your electric bill in addition to the solar panel array on the roof. In that case, you should try to opt for a place that has energy-efficient appliances as well.<br /><br /> Appliances are the single most considerable drain on the electricity in your home every day. Having energy-efficient appliances is a great way to minimize your monthly electric bill.<br /><br />
Final Thoughts About The Most In-Demand Home Features Of 2021
<br /> Homebuyers' tastes change over time, but many of these trends seem to be cementing themselves for quite a while. <br /><br /> Understanding on a deep level what these trends will allow you and your realtor to navigate the real estate market in your local area adeptly. It is better to get started now so you can learn as much as possible.2020-11-30T07:04:00-07:002020-11-30T07:10:26-07:00Andy Kowalskitag:bucksproperties.com,2012-09-20:4632Is It Better To Buy A New Home or Refinance?Owning a home continues to be one of the best ways that someone can build long-term wealth. When you do own a home, it is natural to think about whether you will want to stay in your home for an extended period of time. With mortgage interest rates so incredibly low today, it could be a good opportunity to purchase a new home. At the same time, it could also be a good time to refinance your mortgage. There are several factors to take into consideration when trying to determine if you should purchase a new home or refinance your existing property. <br /><br />Is a Move Necessary<br /> One important factor to consider when you are deciding whether to refinance or buy a new property is if a move is necessary. If you are happy in your existing home, have plenty of space, and do not want to move to a new community, it could make sense to stay in your existing property while refinancing a home. However, there are plenty of situations when buying a home could make sense instead. If you need more space, want to move to a new city, or are looking to downsize, you should consider buying a home instead of refinancing your mortgage. <br /><br />Costs Associated with Options<br /> While mortgage interest rates are incredibly low and you should try to take advantage of them, you should consider the costs of both options whether you are buying or refinancing a home. If you want to sell and buy a new property, you are going to incur a lot of costs associated with paying for closing costs, hiring movers, and even closing your mortgage. Even if you are going to refinance your existing loan, you are still going to have expenses associated with your refinance including paying for a new appraisal or paying points and closing costs. <br /><br />Cash-Out Refinance<br /> Another option that you should consider is to get a cash-out to refinance. Most mortgage lenders today will offer you the opportunity to refinance your mortgage and take equity out of your home as long as your loan remains below 80% of your appraised value. A cash-out refinance can make a lot of sense as it will give you the opportunity to borrow money for the long term at a very low-interest rate. You can then use these cash-out proceeds to complete home renovations, pay off higher-interest rate debt, or even invest in the stock market. While your loan balance may go up, the lower interest rates could still result in a lower monthly payment. <br /><br />Difference in Interest Rates<br /> Another factor to think about when you are going to purchase or refinance is whether there is a difference in interest rates. While interest rates can fluctuate on a daily basis, they are often more affordable when you are looking to purchase a new home versus completing a refinance. This could make a purchase a more affordable option in the long-term. However, the interest rates can also fluctuate based on whether or not you are going to take out a jumbo mortgage. If a new home purchase pushes your mortgage amount to a point where you will have a jumbo loan, the interest rate could go up a lot. The jumbo mortgage level can vary based on where you live, so it is important to know if your loan would be considered jumbo. <br /><br /> Mortgage interest rates today are extremely low and something that all property owners should try to take advantage of. If you would like to take advantage of these low mortgage rates, you could do so by either refinancing your current mortgage or by selling your home and buying a new one with a low-interest mortgage. There are several factors that should be taken into consideration when you are trying to decide between purchasing or refinancing a home.2020-11-14T08:59:00-07:002020-11-14T09:01:55-07:00Andy Kowalskitag:bucksproperties.com,2012-09-20:45955 Reasons You Should Buy a Home In Pennsylvania The wonderful state of Pennsylvania is filled with mountains, rivers, history, beautiful landscapes, affordable homes, excellent educational choices, and more. This state is perfect for individuals in any stage of life, whether looking to retire, start a family, or interested in beginning a new life in a different state. Below, we will discuss five key reasons to buy a home in Pennsylvania.
1. Pennsylvania has many affordable living options.
The state of Pennsylvania is ranked 32nd for affordability and cost of living. It provides a very low cost of living for its residents compared to other states throughout the United States. The following are a few of the cheapest areas to reside in Pennsylvania: Turtle Creek, Munhall, Schuylkill Haven, Pottsville, West Mifflin, Greenville, Oil City, Brentwood, Bradford, and more.
2. Pennsylvania is known to have great educational choices.
The state of Pennsylvania is ranked 8th for its educational opportunities. This state is known to have several of the best K-12 school systems, colleges, and universities in the United States. The public-school system is well-funded, and the majority of the students perform above average. The top-rated public-school districts in Pennsylvania include Tredyffrin-Easttown School District, Radnor Township School District, Mt. Lebanon School District, Lower Merion School District, Wallingford-Swarthmore School District, North Allegheny School District, Upper St. Clair School District, Central Bucks County School District, and more. In addition, some of the best colleges and universities also call Pennsylvania home, such as the University of Pennsylvania, Carnegie Mellon University, Villanova University, Lehigh University, Swarthmore College, Pennsylvania State University, the University of Pittsburgh, Drexel University, Temple University, and more.
3. There are many job opportunities in Pennsylvania.
Pennsylvania has been rated 6th for being one of the best states to find work. It possesses a thriving agricultural and industrial workforce. In the last ten years, the cities of Philadelphia and Pittsburgh have increased in popularity and have gained population for their growing startup and entrepreneurial work scenes. Some of the top industries that individuals can find work in Pennsylvania are agriculture, manufacturing, mining, healthcare and life science, energy, financial and business service, information technology, cybersecurity, and more. A few of the top-rated employers within this state are Walmart, the City of Philadelphia, the University of Pennsylvania, the U.S. Postal Service, Giant Food Stores, the Department of Defense, Penn State, UPS, the School Districts of Philadelphia, and more.
4. The location is great.
Pennsylvania is a Northeastern state in which individuals can reside and still be able to easily navigate to several major cities within the United States. It contains the second-largest city on the East coast, which is Philadelphia. It also is in close proximity to other large cities, such as New York City, Washington D.C., Baltimore, and Boston. In addition, the state is home to the Pocono Mountains and very close to the New Jersey beaches.
5. Pennsylvania is one of the few states that possess sale tax exceptions.
The sales tax rate in Pennsylvania is currently 6 percent. This percentage is usually combined with local tax rates, which can increase the number to around 8 percent. This might sound like a high sales tax rate compared to other states' sales tax rates. However, Pennsylvania is one of the few states in the United States that does not tax certain items, such as clothing, food, tattoos, books, cosmetic products, farming products, craft supplies, paper goods, baby products, medications, shoes, sports equipment, amusement parks, parking lots, and so much more. By not taxing many items and products, it ultimately balances out the high sales tax rate.2020-11-08T17:56:00-07:002020-11-14T08:56:47-07:00Andy Kowalskitag:bucksproperties.com,2012-09-20:43488 Reasons You Should Buy A Home To Build Equity and Stop RentingThose that are looking to move into a new home will need to choose between renting or owning their property. While there are some advantages that come with renting a property in some situations, owning a property often provides owners with many long-term benefits. There are 8 reasons to buy a home to build equity and receive other benefits as well that should be taken into consideration. <br /><br />Start Building Equity<br /> One of the reasons why you should stop renting and purchase a home is because you can start building equity. When you pay rent, all of your payments will go to your landlord. When you own your home, you can start building your personal equity. Each month, a portion of your housing payment will go towards paying down your mortgage. Further, property values tend to increase over time. Due to this, you will slowly build personal equity and net worth by simply owning your property. <br /><br />Receive Tax Deductions<br /> Another financial advantage that comes with owning a home is that you can receive tax deductions. There are several forms of deductions that you can receive, which include being able to write off your mortgage interest costs and real estate tax expenses. This can help to reduce your state and federal tax liability in some situations. There are no similar tax benefits for renters. <br /><br />Stable Place to Live<br /> Owning a property is also a good idea because it will give you a stable place to live. When renting a home, you will only have the right to live there for the term of the lease. Once that is over, you may be forced to move. If you are looking for a stable place to call home, owning a property is ideal as you can live in the same place for as long as you want. <br /><br />Ability to Make it Your Own<br /> Another advantage of buying your home instead of renting is that you can make it your own. If you rent a home, you are going to have very little control over the design of the property. Making even minor changes to the property will require your landlord’s approval. If you choose to own your property, you will be free to renovate, paint, or redesign your home in any way that you want. This can help you personalize your residence and make it feel more like home. <br /><br />Stable Housing Expense<br /> If you are going to rent a home, you should expect that your monthly rent price will continue to go up each year. Landlords tend to follow the market rental rates, which will at least go up by a few percent each year. This compares to your housing expenses that tend to be much more flat. While insurance and real estate taxes may increase, those with a fixed-rate mortgage will enjoy the same payment for up to 30 years. When accounting for inflation, this effectively makes the payment more affordable each year. <br /><br />Pride of Ownership<br /> Finally, owning a home is a big achievement that you can be proud of. When you own your home, you are going to feel great about yourself and where you live. This will result in you putting more effort and time into caring for your home and making it look great. This will then result in even higher increases in property values. <br /><br />Access to Affordable Debt<br /> Having a home also provides you with access to more affordable debt. Mortgage interest rates are at historically low levels. If you have equity in your home, you could qualify for a cash-out mortgage or open up a home equity line of credit. You can then use these loan proceeds for any purpose that you wish including home renovations, consolidate debt, or build a personal emergency cash fund. <br /><br />Fewer Expenses Associated with Moving<br /> If you own a property, you are far more likely to stay in your home one year after the next. Those that rent will end up spending a lot more money on annual moving costs, furniture and decorations, and other related expenses. Over time, this will give you a lot of extra money that could be invested back into your house if you choose to purchase your home. <br /><br /> There are many different options to consider when looking to move into a new home. While renting is a good option for some people, owning a property is almost always a better long-term option. There are eight reasons in particular why you should stop renting and instead purchase your next home.2020-10-05T06:44:00-07:002020-10-12T05:29:29-07:00Andy Kowalskitag:bucksproperties.com,2012-09-20:43125 Mistakes You MUST Avoid when Buying and Selling At The Same Time<img src="https://assets.site-static.com/userfiles/1959/image/e86616af.png" width="800" height="419" />
Purchasing or selling a home can be a very stressful task to undertake. While each one of these tasks individually come with their own challenges, many people end up having to go through both processes at the same time. If you are buying and selling at the same time, figuring out how to coordinate the processes can be daunting and hard to accomplish. When you are going through this process, there are 5 mistakes you must avoid that can make it a much better experience and process for you.<br /><br />Not Planning for Lower Sales Price<br /> One mistake that a lot of people make when they are selling a home is not being able to plan for a lower sales price. If you are going to sell a home and then buy it, there is a good chance that you will need to roll your old equity into your new home. Due to this, there is a good chance that you will depend on receiving a certain sales price. While this is inevitable, you do need to make sure that you have some cushion. This way you will know that you will have the equity you need to make your purchase even if your sale does not yield the price that you want. <br /><br />Not Accounting for Moving Time<br /> Selling and buying at the same time will also come with a move that all needs to take place on the same day. Due to the risk that your purchase or sale could be delayed, you should not start loading up the moving truck until you have signed the dotted line. Those that do not do this run the risk that they could pay for a mover and then have to move all of their items back into their original home. Instead, you should negotiate a buffer in which you have at least 24 hours to move your items out after you close. <br /><br />Not Negotiating<br /> When looking to purchase a home, many people expect that sellers will be willing to negotiate and offer concessions. However, sellers often are not willing to compromise on the other end. If you want to be able to sell your home, you need to be more than willing to work with the property buyers. While you have to concede to some credits, price reductions or other expectations, it will ensure that you are able to close the sale. Not being willing to negotiate in good faith could lead to the buyer walking away and you losing both parts of the sale. <br /><br />Closing at the Wrong Time or on Wrong Day<br /> If you need to execute the sale of your home and then buy a new one, having plenty of time in the day is very important. Due to this, you need to make sure you schedule the closings to allow you to execute both at the same time. This means that you should schedule the first closing for as early in the day as possible. Also, you should try to schedule the closing for earlier in the week. If you schedule it for a Friday and only the sale occurs, you could find yourself without a home to live in for the weekend. This could make the moving process more challenging. <br /><br />Not Being Pre-Approved<br /> Those that are selling and buying have been through the home buying process before. However, many second or even third time buyers still make some beginner mistakes. One common mistake that is made is a buyer not receiving pre-approval. With a pre-approval letter in hand, it will make you far more marketable to potential sellers. Without it, your entire purchase process could be delayed and you may find yourself with a contract to sell your home but not to buy one.<br /><br /> While buying and selling a home will always be a stressful and challenging situation, there are ways that you can make it go more smoothly. With the support of an experienced realtor, you can find a great place to live while also getting a good sales price for your home. They can also help you to navigate all of the process that come with buying and selling at the same time.2020-09-28T08:30:00-07:002020-10-05T06:43:53-07:00Andy Kowalskitag:bucksproperties.com,2012-09-20:4226Why You Must Get Pre-Approved Before Buying A Home<img src="https://assets.site-static.com/userfiles/1959/image/821931_Andy_Kowalski_FB_091520.png" width="800" height="419" />
If you have recently received a letter that said you are prequalified for a mortgage and started to shop for a home, you may have jumped the gun. There is a pretty big difference between prequalification and preapproval. A prequalification means that they took your credit profile. <br /><br /> Based on your credit profile, they thought that you fit the characteristics of someone that might qualify. <br /><br /> A pre-approval letter means that a lender has told you that they will give you this much money for a property.<br /><br />
The Importance Of A Preapproval
When you are shopping with a preapproval, everything will be easier during the homebuying process. You do not need to contend with a mortgage lender while also trying to find a place to live. <br /><br /> Once you know that you can get financing, you will know the kinds of areas that are even on the list of possibilities for you. <br /><br /> If you have a rather limited budget and you may have fewer choices to consider, then you first thought.<br /><br />
You Will Know What Your Budget Is
<br /> Once you get a preapproval, the lender will know you what amount they will approve you for. <br /><br /> Now, this does not mean that you need to find a home and purchase one for the full amount that they offered; this is just a maximum amount that they will give you. <br /><br /> You can use this information to shop for places that you actually can buy if you decide that you like them. You will know as you evaluate each property that you look at, you can afford it.
It is Easier To Pick Your Neighborhood
<br /> Finding a nice neighborhood is often a lot easier if you know what your budget is. Sometimes you might think that a particular neighborhood is out of your price range but be mistaken. <br /><br /> You would be surprised at the neighborhoods' quality that most people can afford to live in today. <br /><br /> It seems that we have much prosperity if evidenced by homeownership growth rates if anything.
Sellers Will Take You More Seriously
<br /> As you negotiate with a potential home seller, they will evaluate you as a potential home buyer. Most people do not like to waste their time with buyers who are not severe. <br /><br /> They are looking for someone who is serious and is ready to buy their home ASAP. If you have a preapproval letter to show them they know you can afford to buy the place, you decide to do so. <br /><br /> They will be far more likely to negotiate with you and haggle for a good deal.
Buying A Home Will Be Much Faster
<br /> One of the lengthiest parts of the mortgage process is getting the preapproval. <br /><br /> If you find a home that you love, you will want to buy it. When you have a preapproval letter, you can get started right away and begin scheduling your closing date. <br /><br /> People who fail to receive a preapproval letter will wait an excruciatingly long time for a mortgage application to be processed. <br /><br /> Depending on certain factors, this can take as many as three months. Getting a preapproval is a lot better for both the buyer and the seller. <br /><br /> Otherwise, everyone involved may end up wasting much time if the preapproval letter never arrives.
You Know Exactly What You Can Afford
<br /> The world's absolute worst feeling is scheduling a closing date on a property and getting excited for no reason. Suppose you had decided on a closing date for the property and are getting your preapproval letter.<br /><br /> You might wait a long time, confident that you will qualify; however, it will potentially be a rejection letter once the letter arrives in the mail. <br /><br /> In that case, what would you do and how would you feel? Chances are, it would not be an enjoyable experience. <br /><br /> Suppose you were to receive a denial letter. In that case, it will be a lot less heartbreaking if you have not already set your mind on a specific property. <br /><br /> There is no point in getting your hopes up before you get your preapproval.<br /><br />
Final Thoughts About The Importance Of Getting A Preapproval Before Buying A Home
<br /> Getting a preapproval is easier today than it has ever been. Mortgage lenders help finance homes more easily today, thanks to the Federal Reserve's monetary policy.<br /><br /> Mortgage rates are lower than they have ever been, so homeownership is more attainable for many people than ever before.<br /><br /> All you need to provide is some necessary information that your mortgage broker will be happy to share with you. <br /><br /> Thanks to strict banking regulations today, consumers are far more informed when they signed the dotted line today.<br /><br />2020-09-14T05:17:00-07:002020-09-19T20:05:58-07:00Andy Kowalskitag:bucksproperties.com,2012-09-20:41465 Things To Know When Buying a Home<img src="https://assets.site-static.com/userfiles/1959/image/38cdea5e.png" width="800" height="419" />
Purchasing a house isn’t as simple as just identifying the house you want to buy, telling the owner you want to buy, and then paying for the house. The process of purchasing a house is complex because it involves a lot. You may need approval from a lender, check out the mortgage rates, decide on which home you can afford, and hit the road searching for such a house.<br /><br /> Have you found the home to buy? Here are five things you need to know when buying a house.<br /><br /><br />1. Selecting the Right Real Estate Agent<br /><br /> Of course, when purchasing a house, you’ll need the services of a real estate agent. But before you settle on an agent, you need to shop around so you can get the best agent. Such an agent should have experience in your local market to ensure everything is done as required by law and that you get a home at a reasonable price.<br /><br /> Find out how many clients the agent has helped to buy homes and whether or not they were satisfied with the service. You must also ensure the agent is a buyer’s agent as opposed to a seller’s agent.<br /><br /> Last, the charges and the terms of the contract should be fair. This is not to say that newly registered real estate agents can’t do a great job. However, dealing with someone who has been in the market for several years makes things easier. You can only resort to a newbie if you can’t get a seasoned real estate agent.<br /><br /><br />2. Understand the Process of Buying a Home<br /><br /> Unless you have bought or sold many homes, you may not be familiar with what goes on in the real estate industry. At worst, you may be duped by unscrupulous agents or sellers. So even before you hire an agent, you also need to research to help you understand the process of purchasing a house.<br /><br /> You may want to know how to get affordable homes, how much deposit is required, what a mortgage is, and what terms will be favorable to you, etc. You also need to learn all the legal requirements surrounding the home buying process, and what would happen if you back out of the process before the deal is closed.<br /><br /> Once you’ve done your research, you can then approach a Realtor for further clarification and guidance. Have a set of questions ready before you visit a Realtor’s office.<br /><br /><br />3. What’s the Age of the Roof, Water Heater, and HVAC Of The House?<br /><br /> You might be carried away by how the crown molding, ceiling, and other features in the house are dazzling, but you have to find out the tiny details about them. Things like plumbing, electrical system, roof, water heater, and HVAC system suffer from wear and tear with time. Knowing the age of these fixtures can help you gauge whether the price quoted is worth it.<br /><br /><br />4. Organize for a Home Inspection<br /><br /> It would help if you hired a home inspector to check the condition of the house before you proceed with the deal. The fixtures mentioned above aren't the only ones to be assessed in a home. A home inspector will move from room to room, checking the condition of every fixture in the house and then also check everything outside the house.<br /> A thorough house inspection may reveal several issues that can guide you on whether to proceed with the deal or end it midway.<br /><br /><br />5. Search for the Best Mortgage<br /><br /> Do not be in a hurry to settle on one lender. There are many lenders out there with different terms. So you need to shop around for the best lender. Depending on whether or not you are in employment, you need to choose a lender that suits your condition. You can start with the pre-approval stage to know what amount you can qualify for to help you decide which home you can buy.<br /><br /><br />Is it Worth Buying a Home?<br /><br /> The honest answer is in the affirmative. Purchasing a new home is the best thing you can ever do. But why? When paying rent, it's like you’re throwing money away every month, because the money you pay will never be recovered.<br /><br /> Renting has some benefits, but they don't outweigh the benefits of owning a home.<br /> The interest you pay on the mortgage of a period of several years may appear prohibitive, but is incomparable to the rent you pay monthly. Besides, after you are done paying the mortgage, you’ll forget about paying rent for the rest of your life. Owning a home may also allow you to access loans that you can use for personal development.<br /><br /><br />Wrapping it Up<br /><br /> When purchasing a home, do not consider the price of the home only. You also need to consider the expenses you’ll incur while in the process of buying the home and other unforeseen expenses you may incur just after moving in. Also, take a loan that you know you can repay comfortably, so you don’t turn yourself into a poor homeowner. Remember that paying a huge deposit will lead to lower monthly installments.2020-08-24T05:23:00-07:002020-08-30T14:33:16-07:00Andy Kowalskitag:bucksproperties.com,2012-09-20:39347 Reasons Why You Should Stop Renting and Buy A Home in Montgomery County<img src="https://assets.site-static.com/userfiles/1959/image/746778_AndyKowalski7ReasonsWhyYouShouldStopRentingBuyAHomeinMontgomeryCounty_FB_063020.png" width="800" height="419" />
Living in the Montgomery County area can be a great experience for anyone. In this area, there are plenty of job opportunities as well as exciting recreational activities to take advantage of. While many people in this area do rent their homes, buying could be a much better option for someone to consider. There are seven reasons why you should consider owning a home instead of renting your property here. <br /><br />Build Long-Term Equity<br /> A primary benefit that comes when you purchase a home is you will earn long-term financial benefits. Property owners can see their personal equity increase in several different ways. To start, when you pay a mortgage on a monthly basis, you will slowly be paying down the balance. This will increase the amount of equity that you have in your property. Further, property values tend to go up over time, which will provide you with even more personal equity in the future when you go to sell your home. <br /><br />Take Advantage of Low-Interest Rates<br /> Today is a great time to purchase a home because you will be able to take advantage of low-interest rates. The interest rate that you will pay on a mortgage will have a dramatic impact on your total monthly payment. With interest rates near all-time lows, you can have a very affordable monthly payment. It will also provide you with the opportunity to continue to pay a higher amount, but pay off your home even faster.<br /><br />Hedge Against Inflation<br /> One challenge that can come with paying rent to a landlord each year is that your payment will continue to go up. While a three to five percent rise from one year to the next may not seem like much, it does add up quickly over time. At a five percent annual increase, your rent payment will be 22% higher within just four years. While this may be comparable to other rising costs, you have the ability to hedge against inflation when you purchase a home. While tax and insurance costs tend to rise over time, your mortgage payment will stay for the entire term of the loan if you have a fixed-rate mortgage. When accounting for inflation, this makes your home payment more affordable each year. <br /><br />Have a Stable and Consistent Place to Live<br /> If you are a renter, you always run the risk that you may not be able to renew your lease when the term is over. This could be due to the fact that the rent has gotten too expensive or the landlord simply decides that they no longer want to lease out your home. This instability can be stressful for someone that wants to be able to put down roots. If you decide to purchase your home, you will have full control over if and when you move. This stability could benefit you and your family for a long time. <br /><br />Make Home Your Own<br /> When you purchase a property, you are also going to be able to make the property into what you want. All people have their own unique style and tastes and will likely want to decorate and design their homes accordingly. If you are a property owner, you will have full control over the design of your property. This will also allow you to make major renovations as the years go by. When you are a renter, you are going to have far less control. In many cases, even painting a room will require that you get approval. <br /><br />Tax Advantages<br /> Property ownership also comes with a variety of tax advantages. When you spend a certain amount on interest and real estate taxes each year, the expenses could exceed your standard deduction. This will allow you to itemize your deductions, which opens up the opportunity to other deductions as well. Ultimately, this could help to lower both your state and federal income tax bill. <br /><br />Future Income Potential<br /> Most of the time, when someone decides on buying a home, they will intend to live in it as their primary residence. However, as the years go by, you may decide that you want to move to a different town or need more space. While you could sell your property and take your money out of it, another option would be to rent it out. When you purchase a home and do this, it will give you the ability to earn some passive income and continue to build equity in your home. <br /><br /> Ultimately, owning a property provides someone with a variety of short-term and long-term benefits. In the Montgomery County, PA area, property owners will be able to benefit as well.2020-07-11T05:08:00-07:002020-07-12T06:48:00-07:00Andy Kowalskitag:bucksproperties.com,2012-09-20:3410Is Getting a Home Mortgage Still Too Difficult?<img src="https://assets.site-static.com/userfiles/1959/image/getting-a-home-mortgage.jpg" alt="Is Getting a Home Mortgage Still Too Difficult?" title="Is Getting a Home Mortgage Still Too Difficult?" height="410" width="750" />
Potential homebuyers are always cautioned to be aware of mortgage lending standards and the difficulty they might face when trying to obtain a mortgage. Credit availability is expanding, making it easier to get a mortgage now than it was a year ago. The market is still tight however, and homebuyers should be prepared to shop around until they find a lender who is offering something that will meet the needs of their family.
Mortgage lending companies have high standards so it is important to make sure you and anyone else who will be included on the mortgage have their credit in check. The mortgage market is strict because lenders do not want to be put in a situation where they are forced to repurchase loans that are not paid on. They also do not want to end up in a litigation situation due to loan issues.
What Has Happened to the Number of Mortgages?
Due to the strict nature and requirements of the lending companies, the number of mortgages given out has significantly dropped. A report by the Housing Financial Policy Center at the Urban Institute showed that about 6.3 million fewer mortgages were given out between 2009 and 2015. The reasons behind this statistic are strict regulations and policies. These mortgages would have been granted if the lending standards where more reasonable.
Mortgage companies rely on calculations to determine if a home buyer will become delinquent on their payment. They will not give you a loan if you are too much of a risk for them. Credit history has a huge impact on this decision since lenders can see how often you pay back your debts. The history they receive is extensive. This view into your financial past causes lenders to take less risk when lending to you for your mortgage.
The Effect on the Economy
The housing market is recovering at a slower pace than it should since less potential homebuyers are being offered loans. While the market is still recovering with positive trends, fewer buyers can create a strain on other economic factors like home goods or construction jobs. Bottom Line
After the housing market boom and bust, mortgage lenders became stricter in their lending standards. It is not impossible to get a mortgage loan, but it can still be difficult for potential home buyers. Stay on top of your credit and make sure you and anyone else who is applying are in a good financial position so you can be approved for a loan. It is important to research different companies and their requirements to ensure success in getting a mortgage.2020-03-10T09:38:00-07:002020-03-10T09:40:00-07:00Andy Kowalskitag:bucksproperties.com,2012-09-20:3408Common Things to Look Out for Before Buying Your Dream Home<img src="https://assets.site-static.com/userfiles/1959/image/3-questions-to-ask-before-buying-your-dream-home.jpg" alt="Common Things to Look Out for Before Buying Your Dream Home" title="Common Things to Look Out for Before Buying Your Dream Home" height="410" width="750" />
It is easy to become overwhelmed when you enter the home buying market. Friends, family, colleagues, and even acquaintances will give you their opinions if you are a first time home buyer. While most of them are looking out for your best interest, they are not fully aware of what is happening in the housing market.
It is important for you to be prepared and have your own questions ready. No matter what other opinions you are getting, you are the one buying the home and your comfort level will help make your final decision. Here are three important questions to ask before you purchase a home.
1. Why am I Buying a Home?
Regardless of the finances, it is important to think about what made you want to buy a home in the first place. Usually the reasons don’t have to do with money. Instead, home buyers are focused on how the house will impact their family in the future. A study done by the Joint Center for House Studies at Harvard found there are four reasons people buy a home. Those reasons include schools for your children, a safe environment, more room for your family to grow, and control of your own space.
These factors are the most common reasons people look to buy a new home. When you ask yourself why you are looking to purchase a home, do any of those factors come up? Spend time with your spouse or family members who are involved in this decision and determine why you want a home in the first place. Creating this list will help when searching for a home and can help your real estate agent find the best home for your needs.
2. What is the Trend with Home Values?
Our current economy and housing market is strong. That means home values and mortgage rates are increasing. If you are looking to purchase a home but want to stay within a budget, it may be in your best interest to move quickly. It is forecasted for these trends to continue in an upward motion, causing home values to continue to increase.
3. What About Current Mortgage Rates?
The ticket price is not the only thing you should be concerned with when purchasing a home. Mortgage rates are always changing and can have a huge impact on your monthly payments. Current trends show mortgage rates are rising. This is something to consider if you are debating the right time to purchase a home, since the rates may be even higher down the road.
Bottom Line
You and your family are the only ones who can determine the right time to purchase your dream home. It is important to decide exactly why you want a new home for your family and decide on a budget that will be comfortable moving forward. This budget may affect the amount of time you have to search for a home, since home prices and mortgage rates are increasing. 2020-03-10T09:38:00-07:002020-03-10T09:40:08-07:00Andy Kowalskitag:bucksproperties.com,2012-09-20:3407Will Increasing Mortgage Rates Impact Home Prices?<img src="https://assets.site-static.com/userfiles/1959/image/mortgage-rate-projections.jpg" alt="Will Increasing Mortgage Rates Impact Home Prices? " title="Will Increasing Mortgage Rates Impact Home Prices? " height="410" width="750" />
There has been some discussion recently on home prices in relation to mortgage rates. Some believe if there is a rapid rise of mortgage rates, home prices should decrease. Logically it makes the most sense for the price of the house to drop when interest rates are rising, but this is not always the case.
This theory of home prices decreasing is typically discussed by future home buyers. As a buyer you would like to think if you are paying higher rates on your mortgage, you should be able to see a decrease in cost somewhere else. Unfortunately, these rates are rising because the economy is in better shape. As the economy succeeds, incomes rise, rates go up, as well as the price of the home.
A recent study by the John Burns Real Estate Consulting found mortgage rates have very little impact on the cost of the home. The housing market and price increases are affected by things like job growth in the area and rising wages. Coincidentally, these same factors are causing the rise in the mortgage rates since people can afford to take out more.
Bottom Line
As the economy progresses and strengthens, mortgage rates and home prices will fluctuate. It is a misconception as rates increase, home prices will decrease. Advances in the economy have shown that rates and home prices are more likely to increase together.2020-03-10T09:38:00-07:002020-03-10T09:40:04-07:00Andy Kowalski