Archive for month: January, 2021
First-Time Homebuyer Mistakes to Avoid
Buying your first home is one of the most exciting decisions you’ll make in your life! It comes with a lot of responsibility, but a lot of excitement too. Before you jump in and buy your first home, know the most common first-time homebuyer mistakes people make.
Not Getting Pre-Approved
The pre-approval is like your ticket to homes for sale. Sellers want that piece of paper that says ‘yes, they are approved to get financing.’ Getting pre-approved is easy and it makes sellers much more willing to consider your bid.
What to do: Find a lender and get pre-approved. Get quotes from a few lenders (three is a good number) to find the best offer. CLICK HERE FOR OUR HOME LOAN QUALIFIER
Spending too Much on a Home
It’s tempting to want the very best (and we want that for you too) but buying more than you can afford only creates financial problems. Just because a bank says you qualify for a certain amount doesn’t mean you have to spend that much.
What to do: Before you buy a home, play with the numbers. See how a mortgage payment fits into your budget. Don’t be afraid to borrow less than you qualify for.
Not Leaving Money in your Savings Account
Putting everything you have down on a home leaves you without a cushion. What happens when the A/C breaks or there’s a plumbing leak? When you own a home, you’re responsible for the maintenance and repairs. It’s an eye-opener when that first repair hits.
What to do: Leave some money in your savings account as a buffer, especially if you can’t contribute to your savings for a while after buying a home.
Ruining your Credit before you Close
Lenders pull your credit a couple of times during the loan process. They pull it during the pre-approval process, sometimes again during underwriting (if more than 60 days pass from the pre-approval date) and again before closing. If you hurt your credit score during this time, you could lose your approval.
What to do: Keep your credit as stable as possible. Keep paying your bills on time, don’t apply for new credit, and don’t use your credit cards.
Making Large Deposits in your Bank Account before Closing
Lenders source every deposit on your bank statement. They track where the money originated to ensure you didn’t borrow it. If you suddenly have large deposits on your bank account, it could delay underwriting and even cause you to lose your loan.
What to do: If you have large deposits, wait until they are in your account for at least 2 months before applying for a mortgage. Lenders consider funds in your account for 2 months ‘seasoned’ and they usually don’t source them then.
The more time you spend preparing for your first home purchase, the easier the process goes. Finding a home is the fun part, but qualifying for financing and finalizing the transaction requires careful planning and avoiding the top mistakes first-time homebuyers make.
Jose Guevara
Lead Agent
424-209-7899
support@hometuity.com
Selling Your House As-Is
If you want to sell your home without doing any repairs, you’re looking at an ‘as-is’ sale. While it may seem more convenient at the time, it’s important to know what it means for the buyer and what it does to your chances of selling the home.
What Does it Mean to Sell a Home As-Is?
Before you sell a home as-is, it helps to know what that means. No home is perfect, so not every home is an as-is sale. Common issues that make it an as-is sale include:
- Foundation cracks
- Mold in the home
- Leaky roof
- Termite damage
- Plumbing issues
- Electrical issues
- Title issues
If your home has any of these issues (or other major issues) and you don’t want to fix them, it’s an as-is deal. Here’s what it means for the buyer.
Buyers Want a Deal
Buyers won’t pay the true market value for a home sold as-is. Instead, they want a below market value knowing they will need to make repairs to fix up the home. Many buyers of as-is homes are investors who fix and flip homes, but not always.
Buyers May Have a Harder Time Securing Financing
If a buyer needs financing, they may have trouble getting approved. Most buyers of as-is properties are cash buyers, meaning they don’t have to worry about a lender or loan approval. Sometimes, though, if the issues aren’t ‘serious’ the home may pass an appraisal and traditional lending is still an option.
Buyers Want a Disclosure Report
You must disclose that you’re selling the home as-is in the listing, but that’s not all. They’ll want you to disclose everything that’s wrong with the home before they buy it. This helps them make a decision and protects you from the buyers backing out after signing the contract, especially if they have an inspection contingency on it.
Buyers Will Negotiate
If you want to arm yourself with the right information, have your home inspected before you put it on the market. This does two things:
- Tells you what is wrong with the home before you list it
- Gives you time to get quotes from contractors so you know the accurate price of repairs
When buyers negotiate, you’ll be more informed. You’ll know exactly how much potential repairs would cost so you know which offers are legit and which are lowballing you when you receive offers.
Should you Sell your Home As-Is?
Every seller is different. Think about your reasons for selling your home without repairing it. Are you in a hurry? Do you not have the funds? Do you just not want to be bothered?
I can help you decide if selling your home without repairing it is the right choice. We’ll discuss your options, find out how much your home may cost to improve, if the issues aren’t too extensive, and determine what you might lose if you skip the repairs and sell the home as it stands.
Jose Guevara
Lead Agent
424-209-7899
support@hometuity.com
Most homebuyers realize that they can’t expect a perfect home inspection report when buying a resale home. Cosmetic flaws and minor repairs are easily managed and shouldn’t be deal breakers. That said, there are some issues that are more serious and should give the buyer pause if not addressed adequately.
1. Leaky and Rundown Roofing
Watch for signs of current or past water damage.
2. Poor Drainage
Drainage issues can cause serious damage to the home foundation, siding, and basements.
3. Foundation Issues
Signs of foundation problems can include cracks around doors and windows or uneven floors. Foundation problems can cost thousands of dollars to correct.
4. Plumbing Problems
Major plumbing issues should be considered carefully and further explored.
5. Pest Infestations
Termites and other wood-eating pests can cause extensive damage that can be hard to find and costly to repair.
6. Mold
That “musty” smell could be due to hidden mold and further investigation should be taken as mold can be dangerous to the health of the family. Depending on the type of mold, it can be very difficult to remove entirely.
7. Faulty Heating System
A malfunctioning furnace can be a fire hazard.
8. Electrical Wiring
Faulty wiring can cost thousands of dollars to repair.
9. Structural Damage
Sagging joists, rafters, and door jambs can be evidence of larger issues.
10.Deferred Maintenance
A home in poor condition could be hiding more serious issues due to chronic neglect.
*Homebuyers should be alert to these issues and know the costs to repair before concluding the sale. Home sellers should address these issues before putting the home up for sale to ensure they get the best possible sales price.
Jose Guevara
Lead Agent
424-209-7899
support@hometuity.com
