Home Automation Conveniences Attract Buyers

June 28, 2018 by

The rise in Millennial homebuyers will inevitably change the items that promote faster and more lucrative home salesThe rise in Millennial home buyers will inevitably change the items that promote faster and more lucrative home sales.

Consider trends over the past decades that have included conveniences such as built-in dishwashers, central air, energy efficient appliances and many others. As mechanical and technological advances move into the mainstream, prospective home buyers seek them out and favor properties that come tech ready.

While Millennial buyers have a vastly different world view than previous generations, Baby Boomers and Gen X homeowners are also enjoying the ease of technology. For many homeowners, automation equals convenience and improved quality of life. That’s why having the latest automation integrated into a home can make it a priority home on the market. These are some of the latest — let’s call them gadgets — that seem to be piquing the interest of today’s home buyers.  

Automation Home Control Devices

The era of clap-on lights and voice-controlled systems has given way to smart technologies. Homes that are integrated with smart technologies are getting a leg up in the market and future-leaning companies are rolling out devices to fill the need.

A company called Nanoleaf is marketing a 12-sided remote that can be programed to automate and control an entire smart home. The Nanoleaf Remote is expected to interface with Apple Homekits to produce amazing home scenes and manage devices throughout the household.

If you saw the movie “Minority Report” starring Tom Cruise, you may remember him interacting with a 3D holographic interface. The new “Talon” smart ring hitting the market is a wearable smart remote that looks similar to the popular Fit Bits. It also interfaces with your home in a futuristic way and can automate most everything. The point is that smart homes are popular and complimentary devices will only make them more so.

Alexa Is The New BFF

Alexa became America’s best friend by providing everything from favorite music to voice-command Google searches. Alexa looks to be everyone’s BFF going forward and more and more home automation technologies are developed to directly connect with the little Echo Dot. iDevices’s new light switches can be brightened or dimmed via Alexa. Consider Alexa-driven automation.

Automated Home Security

In an era when security is frequently on people’s minds, things like motion detectors, security cameras and smart locks are looked upon more favorably when they are integrated into the home and fully automated. Homeowners are not looking to take on home security as an after-work task.

The Ring company, among others, is introducing everything from smart doorbells to outdoor lighting. When fully automated, security can be a huge boon for home sellers.

The Real Estate market remains competitive and seemingly small differences between properties can set them apart. Automation and smart-technology integration can be a game-changer in terms of days on the market and asking price.  

Contact your trusted mortgage professional to get your financing pre-approved so you can be ready to make an offer on your new automated dream home.

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Is It A Good Idea To Buy A Remodeled Home?

June 26, 2018 by

Is It A Good Idea To Buy A Remodeled Home?Are you considering buying a flipped house? Here are some ways to tell if it is a good idea or not.

If you watch popular TV shows like Property Brothers, Flip or Flop and Fixer Upper, you might believe that buying a remodeled home is a great idea. These shows always have happy endings. The process looks fun and easy, and the houses turn out beautiful. However, it is rarely this easy when buying a real-life remodeled home.

There are plenty of flipped houses that turn out to have significant problems. Contractors who do remodels sometimes rush through the job. This can lead to subpar work. While the house might look beautiful initially, problems could start to show up months later.  

A flipped house can be a great deal. However, it pays to do your homework before buying one. Maintain a skeptical eye when touring the home. If you notice any of these things, move on.

Unpermitted Work

If you live in a full-disclosure state like Texas, you are in luck. Sellers are required to disclose to buyers everything that they know about the house. This should make it easy to get a list of the work that the flipper completed.

Even if you don’t live in a state that requires full disclosure, still ask for a list of work. After you have a list of the upgrades, check for permits. Most larger remodeling projects need a permit.

Avoid a remodeled home that has had unpermitted upgrades. There is a chance that it is not up to code. Aside from being a safety risk, unpermitted work can make it harder to get financing or insurance on a home.

A Flipper With A Bad Reputation

Before making an offer on a rehabbed home, ask who did the work. Learn everything you can about the person or company. Are they known for doing high-quality work?  

Flippers that have solid reputations want happy customers. Most want to avoid legal issues later, which could ruin their reputation and damage their business. So, they will usually ensure that the work is up to standard.

Avoid flippers or contractors that are not well known. Many move on to the next town after the job is over and so don’t care if they leave behind unhappy customers as they won’t be around.

A Failed Inspection

Beautiful hardwood floors, countertops and shiny new kitchen appliances might make a house look like it was just built. However, most flipped houses hide a dark history. Many remodeled homes have had a substantial lack of maintenance and were in a state of significant disrepair before being flipped.

Some contractors cover up problems rather than do the extensive work needed. Therefore, it pays to have the home inspected. A good home inspector will be more likely to spot things that an average homeowner might miss.

Your trusted mortgage professional can help you get your financing in order and provide you with a pre-approval letter so you are primed and ready to make an offer on the right property for you.

 

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3 Tips For Getting The Most Out Of Your Time House Hunting

June 22, 2018 by

3 Tips For Getting The Most Out Of Your Time House HuntingIn the ideal home-buying scenario, you’d have plenty of time to find the perfect home. However, this is not always possible. Maybe you are relocating for a job and have to buy a house from across the country. If this is the case, you might have to limit the time that you spend house hunting.

Here are some tips to help you make your search as productive as possible. 

#1 Get A Mortgage Pre-Approval 

Before attending open houses and searching for a home, you should get pre-approved for a mortgage. Getting pre-approved for a mortgage will help you identify the exact price range that you should be shopping for. It will also let home sellers know that you are a serious buyer. If you are competing with other buyers, a seller will be more likely to take your offer seriously if they know that you can afford the home. 

Sometimes you’ll hear the terms pre-qualification and pre-approval thrown around interchangeably. However, these two terms are very different. A pre-approval is much more valuable when it comes to buying a home. Although you will have to provide a lot more information for a full pre-approval, this qualification will provide you with a specific loan amount that you are approved for. A pre-qualification is just an estimate of the amount that you can afford based on your income and other factors. It is not as personalized or customized for your specific situation as a pre-approval. 

#2 Find A Good Real Estate Agent 

Find a good real estate agent who is knowledgeable of the area that you want to buy in. Ideally, they have lived in the area for a long time and know the community. A good local agent can bring invaluable knowledge to the table about the city. They should be familiar with the homes in the area. They might even know about homes that aren’t on the market yet but will be soon. This knowledge can be invaluable when you are in a time crunch and want to get the most out of your house hunting time. 

#3 Make A List Of Your Must-have Amenities 

You don’t want to spend time looking at homes that won’t meet your needs. There are probably some things that you’d like to have in a house, as well as things that you must have. So, if you’re in a time crunch, the first thing you should do is make a must-have list. Make a second list of things that you’d like to have but that are not required. Don’t bother looking at homes that lack the qualities on your must-have list. 

First things first, contact your trusted home loan professional and get your pre-approval started today!

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3 Programs That Allow You To Buy A Home With No Money Down In 2018

June 21, 2018 by

3 Programs That Allow You To Buy A Home With No Money Down In 2018Home buyers are typically advised to put at least 20% down for a mortgage. Coming up with that amount can seem almost impossible if you have little to no money left over after paying bills each month.

Fortunately, if you want to buy a house but are worried about coming up with the 20 percent down needed for a downpayment, you still have plenty of options. There are still plenty of programs that allow you to buy a home with a low down payment or even no money down in 2018. 

Here are some of the best programs that designed for homebuyers who don’t have a massive chunk of cash to put down at closing. Maybe one of these options will be the perfect solution to make your dreams come true. 

#1 VA Home Loans 

If you are a veteran, in the National Guard and Reserves or an active-duty service member, then you may qualify for a VA home loan. The VA offers 100 percent financing. So, you don’t need any money down. The VA does not require mortgage insurance. There is a funding fee, which must be paid by the borrower. However, the lender can roll the fee into the loan amount. The funding fee is typically 2.15 percent of the loan amount. 

#2 USDA Loans

The U.S.Department of Agriculture (USDA) offers a zero-down mortgage for low to moderate-income families. This program was created to help rural development. The loans are only available in towns that have populations of 10,000 or less. However, this is quite a large area. In fact, the USDA program covers more than 97 percent of the United States. Many eligible smaller towns are located right outside major cities.

The USDA program was designed for first-time home buyers although there are some exceptions to this rule. USDA loans do not require mortgage insurance. There is an upfront guarantee fee of one percent. The lender can roll this fee into the loan amount. 

#3 FHA Home Loans

The Federal Housing Administration (FHA) provides one of the most popular low down payment mortgage options in the country.  Normally this loan product requires a minimum 3.5% down payment.  However, 100 percent of the down payment money can be a financial gift from a relative or a non-profit organization.  This allows a borrower to get into their home with no money down.

Contact your trusted mortgage professional to find out about these programs or others that might be right for you.

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House Hunting When You Are In A Time Crunch

June 20, 2018 by

House Hunting When You Are In A Time CrunchIn an ideal world, you’d have plenty of time to find the perfect home. However, that does not always happen. Maybe you are relocating because of a job transfer. Fortunately, it doesn’t have to take months to find the perfect home. You can speed up the process of buying a home utilizing some tried and true tips. 

Here are some of the best ways to speed up the house buying process. 

Find An Experienced Real Estate Agent 

An experienced agent likely has an extensive network and many connections. They might know what properties are coming on the market before anyone else does. They can also help you assemble a great team of real estate professionals such as a mortgage banker and real estate attorney. 

Get A Mortgage Pre-Approval 

Obtaining a home loan is a long process that requires a lot of paperwork. You can speed up the process by getting pre-approved before looking for homes. You’ll need to gather some paperwork for pre-approval including bank statements, tax returns and information about your debt. Have all of these things ready when you talk with the mortgage loan officer.

Having a pre-approval letter also demonstrates to sellers that you are serious about buying. They might be more likely to respond quickly to your offer if they feel that the deal will go through. 

Make A List Of Things That You Must Have 

If you are in a hurry to buy a home, you don’t want to waste time looking at houses that won’t meet your needs. So, before doing any online research, make a list of things of your must-have amenities. Zeroing on the things that you must have will help keep you focused on properties that are right for you. 

Search Areas That Have A lot of Inventory 

Don’t waste time looking at communities that don’t have much inventory. The real estate market will be a lot more competitive. Instead, try choosing areas that meet your needs as far as easy access to your work, quality of the school and so forth. Make sure that they have plenty of inventory available. You might have to hunt in surrounding neighborhoods to find something quickly. 

Be Available to Act Quickly 

If you want to close quickly, you must be available to act as soon as an offer is accepted. It is essential to be available anytime to get in touch with your agent, respond to counter-offers and answer questions. Provide your agent with multiple ways to reach you — by phone, email or text. 

Contact your trusted mortgage professional today to help you with a pre-approval for your new home purchase. This is one of the most important and timely steps you can take to ensure a smooth transaction when you are ready to put in an offer on your new home.

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How To Manage Investment Property While Working Full-Time

June 19, 2018 by

How To Manage Investment Property While Working Full-TimeIn 2017, upwards of 75 percent of independent rental property owners in the U.S. reportedly worked another job on top of being a landlord. That means the overwhelming majority of landlords are attempting to juggle more than they can handle at times.

There are organizational and strategic concepts that can maximize efficiency and profitability.

Consider the following tips that bring property management tasks under three basic headings: organization, automation and outsourcing.  

Organization Matters

One of the things that tends to overwhelm landlords is thinking about the rental properties as an extension of home ownership. The rental seems like it involves many of the same tasks such as maintenance and repair.

By rethinking rentals in terms of a small business, the way these and other tasks are approached can become radically different. If this were a Mom and Pop store or a corporation, the necessary resources would be brought in to handle niche labor. Organize all of the tasks that the rental unit(s) require under categories that may include the following.

  • Rental Advertising
  • Applicant Interviews
  • Background Checks
  • Legal Documents (leases)
  • Maintenance and Repairs
  • Rent Collection and Bill Paying

Accounting

With a defined set of tasks organized under specific headings, it becomes much easier to visualize the breadth of work involved and what supporting resources would be needed.

Automation Matters

Industries across the globe are moving to automation as a way to increase productivity and lower costs. There’s no reason landlords working other jobs cannot do the same.

While fixing a burst pipe may not be a good candidate for automation, there are numerous tasks property owners undertake that no longer require valuable time.

  • Advertising: Consider a process where an online advertisement is pre-written and posted when a lease expires.
  • Rental Payments: Consider automatic withdrawal from tenant accounts or having them direct deposit.
  • Bill Payment: Consider auto pay for every possible facet of the property, including utilities, taxes, insurance, mortgage and others.
  • Maintenance and Repair: Consider an online form for tenants to fill out that provides real-time notification.

These and other tools can streamline the amount of time required to manage a rental property without incurring significant expense.

Outsourcing Matters

People who work regular jobs and also manage rental properties are entrepreneurs by nature. That go-getter personality leads many to take on more tasks than there is time in the day. That’s why outsourcing is so important.

Outsourcing things like accounting or legal services are no-brainers because they require specialized knowledge. But other tasks such as applications, background checks and maintenance may be good things to put on someone else’s plate as well.

As noted in the beginning of this article, if a small business mindset were applied, many of these tasks would be assigned to a designated resource. Consider operating rental units in this fashion by running a cost analysis and outsourcing. Roll in the labor costs that make sense and take some time to binge watch a Netflix series while your investment turns a profit.

Contact your trusted mortgage professional to make sure that you have the most competitive financing on your investment property or to get pre-qualified if you’re ready to get started on this new real estate venture!

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Is Buying A Short Sale Right For You?

June 15, 2018 by

Is Buying A Short Sale Right For YouIf you have been looking for a new home, and you find one offered under a short sale, this may be to your advantage. While some buyers are wary about buying a home that needs to be sold with the approval of the lender, it’s a great way to get a bargain on a home that you love.

A short sale may be a perfect way to buy a home, as long as you are able to wait until the offer is approved.

The Basics Of A Short Sale

A short sale occurs when the homeowner is facing a foreclosure and trying to avoid it. The true owner of the property, is the lender who provided the money to purchase the home. The borrower owes more on the home than it is worth, and many stop making mortgage payments. Instead of allowing the home to sit there and go to a foreclosure, the lender tries to cut their losses through the process of a short sale.

Additionally, there may be other liens on the home that have to be satisfied by the sale of the property. Anyone that holds a lien on the property has to negotiate the money they are willing to accept for the deal to be finalized.

Why A Short Sale Benefits The Buyer

When you make an offer on a home that is selling under a short sale, you can usually offer less than what the home is worth. The homeowner is eager to sell the home. The homeowner will want to accept an offer fast to get the process started and avoid a foreclosure.

While you may have to wait longer for a short sale to go through than a traditional sale, the savings on the price of the home are usually worth it. Lien holders understand that a short sale is usually the best option to get most of their money, so they are anxious to settle the deal fast.

A short sale is right for you if you aren’t trying to buy a home fast. When you are a savvy buyer, you can make an offer less than the asking price, but you’ll have to wait for all lien holders to accept it. If your current living situation provides you with the opportunity to wait, a short sale will give you more house for your money.

Contact your trusted mortgage professional to secure your financing pre-approval, a necessity prior to negotiating this type of transaction. 

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Fix and Flip: Forget What You See on Television

June 13, 2018 by

Fix and Flip Forget What You See on TelevisionThe drama of home and garden TV shows may be fun to watch, but no matter what you think, reality shows are not at all like real life. If you think it’s easy to buy a house that needs updating and turn it quickly for substantial profit, you might want to think again. 

That doesn’t necessarily mean, though, that you should shy away from the idea of buying a “fixer-upper” — just that you should approach such a home purchase with eyes wide open.

Here are some valuable tips:

  • Buying a house that needs cosmetic updates can make financial sense, particularly if you’re handy with a paintbrush, or don’t mind tackling DIY projects in your spare time. The willingness to make a house your home through ongoing TLC can be rewarding in terms of both dollars and good sense, if the structure is sound and all systems are in working condition.
  • Modern appliances, updated lighting and water-saving plumbing fixtures and faucets — even new carpeting and tile — are all items that can be replaced over time as your budget allows. But if the existing home systems aren’t in working order, you may be in for big surprises that can be hard to handle.
  • Buy a house that needs a new roof, major structural work, new HVAC or major kitchen renovation only if you can roll the work into a home improvement loan and, preferably, complete the rehab before you move in. If a house isn’t habitable, it’s really not a bargain!
  • Always pay for a home inspection prior to making an offer. While an independent inspection is not a guarantee that all systems are “go,” it should allow you to plan the next move. The best strategy might be to walk away and look for another well-priced property.
  • Remember that homes are priced under market for a reason. Sometimes the reason has nothing to do with physical problems and everything to do with the seller. Older homes in stable neighborhoods often represent great deals for sellers and buyers alike!

The best way to find a great deal, though, is to work with a professional realtor who is familiar not only with the local market, but who can advise you about real estate trends, financing options and the best ways to realize an appropriate return on your investment.

If you have dreams of becoming the next HGTV phenomenon, take the words of Chip and Joanna to heart: Their book confirms that they worked long hours, faced plenty of discouragement and experienced a fair amount of luck. In fact, as they note, their “overnight success” took many years!

After all, owning your own home, even if it does require some fixing, is still the American Dream!

Unless you are fortunate enough to have cash on hand, one of the most crucial steps before realizing most real estate dreams is to get pre-approved for mortgage financing. Contact your trusted mortgage professional to find out how much of a dream property you can be ready to invest in!

 

 

 

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Buying A Foreclosure: 5 Things To Know

June 12, 2018 by

Buying A Foreclosure 5 Things To KnowBuying a property out of foreclosure can be a very smart move, financially. But it can also be complicated, expensive, and stressful.

Here are 5 things to keep in mind before you take a first step in that direction:

Cash Or Preapproval Required

Buying a house that has been returned to the lender through foreclosure means dealing with bureaucracy rather than with a motivated seller. Large lenders are notorious for taking their time to approve a contract, even if the offer is for the exact amount specified.

Then there’s the paperwork, which can seem endless. Most lenders require that prospective buyers have cash on hand, or a pre-authorized loan in place in order to even submit an offer. 

There’s Little Room For Negotiation

Although in certain circumstances there may be an opportunity for some discussion about the price, that is not the norm in a foreclosure. The minimum price is usually written in stone, even during an on-site property auction, and the only direction is up! The days of buying foreclosures for a song are long past, if indeed they ever really existed. 

As-Is Condition Means Just That

Some buyers specialize in foreclosures while other investors run the other direction. There are pros and cons, of course, to every transaction. Sage advice is to always pay the fee for a property inspection on a foreclosed property, even if you have experience. A third-party evaluation is especially valuable if the home has been vacant for an extended period of time, if the utilities have been turned off, or if there are extensive visible defects.

Foreclosures can be like icebergs: What you see may be nothing compared to what lies below the surface. Also, with the findings in writing, always confirm that your loan commitment and insurance quotes will be honored in spite of the existing condition.

The Need For An Experienced REALTOR

Navigating the landscape of property foreclosures is a specialty field, and caution is the name of the game. As a prospective buyer of a pre-foreclosure, a short-sale or a foreclosed home, an experienced REALTOR is your best resource. A real estate professional will help you deal with all timelines and requirements, and has the knowledge and expertise to recommend lenders, inspectors, insurance agents and contractors to help you make a decision.

Always Consider Future Value

Although the initial price might be right, there are additional variables at play in every real estate transaction. What can you expect in terms of appreciation over the short term? What is the long-term outlook for the neighborhood? Will needed repairs and improvements add to the home’s value, or simply bring its condition up to standard? Do you plan to live in the home, or is it strictly for resale?

Contact your trusted mortgage professional to get your pre-approval today!

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Long-Distance House Hunting Tips

June 8, 2018 by

Long-Distance House Hunting TipsIt pays to start with a solid strategy when you have to house hunt from afar.

Hunting for a house is stressful enough even if you are moving to another part of town. However, when you are searching for a house from afar, it can make the task of finding the right home for your needs seem almost impossible. 

Fortunately, in today’s high-tech world, you have an array of tools available right at your fingertips that can make it easy to find the perfect house for your needs. So, even if you are looking for a home thousands of miles away, you can do so quickly and with minimal fuss.

Partner With The Right Real Estate Agent 

The first thing that you should do when looking for a house in an area that you are unfamiliar with is to find a local agent. Find someone who has the expertise of the local market and buying process. The information that you garner from choosing a local agent can be invaluable. They know the market intimately.

Additionally, a local agent knows the community as they likely live there as well. They know which schools and neighborhoods are best. They can get to know what you are looking for in an area and help you find the right community for your particular needs. They might also have information on local gems that are not yet showing up on online listings.  

Do Your Research 

After you find a home or two that you are interested in, thoroughly research the area. Search for information about local schools, churches, shopping centers and more. You want to make sure that the neighborhood will meet your needs. Research crime rates in the area.

Also, determine how long your commute from work to home will be each day. Even if you don’t have children, research local school rankings. The rating and quality of local schools is paramount when it comes to the resale value of your home.

Visit In Person 

There is just no amount of research that can substitute for an in-person visit to a potential home. If you are planning to hunt for a house from a distance, be prepared for the travel. Make sure that you have the money and time to visit. It is best to prepare for longer house-hunting trips so that you can take your time when walking through each showing.

Also, make it a point to pay a visit to local restaurants, parks, and businesses to get a feel for the local community. 

Whether you are buying local or at a distance, one of the most important things to do first is to get a pre-approval in order. Contact your trusted mortgage professional today to get the ball rolling.

 

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