Tag Archives: home

First-Time Homebuyer Advice

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Best advice I would give to first-time homebuyers
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I was once asked: We’re in the process of hopefully purchasing our first home, and I’m a little lost on everything that is going on. What’s the best advice you would give to first-time homebuyers?

Undoubtedly, your primary step in the home buying journey should involve securing your financing. While I acknowledge that this advice may appear biased, considering my involvement in the mortgage business, it’s a reality that the majority of today’s home buyers rely on mortgages, making this part of the process more intricate than before.

Despite the potential complexity, obtaining a mortgage today is not as insurmountable as some may portray. Recognizing your credit situation is pivotal. Lenders don’t demand perfection, but it’s crucial to be aware of your standing. Check your credit report on platforms like Free Credit Report.Com or Creditkarma for free and promptly address any errors, past-due accounts, or public records.

Collection agencies often settle for amounts less than what is reported. However, exercise caution when settling collections older than two years, as it might impact your credit score. Establishing a relationship with a reliable loan officer early on is crucial. Seek someone responsive, trustworthy, and capable of offering clear guidance.

Initiate the preapproval process with your chosen loan officer by submitting essential documents such as pay stubs, W2s, and bank statements. The Automated Underwriting System (AUS) will swiftly provide initial findings. Aim for “Approve/Eligible” or “Accept” results and inquire about a “TBD Approval” for added strength in your offer to sellers.

I hope you find this information helpful. Best of luck on your home-buying journey!

Credit or Debit?

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Once, someone inquired about the benefits of using cash or credit cards, considering my assertion that I maintain a surplus over my expenditures. There are indeed advantages to both options, but some considerations need to be taken into account.

Firstly, it’s essential to recognize the fundamental differences between credit and debit cards. While both offer fraud protection, fraudulent activity on a debit card immediately withdraws money from your account, potentially leading to significant problems. On the other hand, with a credit card, disputing a charge results in an immediate credit to your account.

Personally, I settle all my credit card balances monthly, ensuring that I avoid any interest charges. This approach allows me to enjoy various rewards, such as cash back, discounts, and airline miles, essentially offering a no-cost bonus. Moreover, I utilize Quicken to download and easily monitor all my transactions.

Nevertheless, credit cards can lead to overspending due to the ease of swiping the plastic, which somehow feels less like spending real money. Consequently, when the statement arrives, many individuals opt to pay only the minimum amount, succumbing to the less painful option. Credit card companies capitalize on this aspect of human psychology, earning substantial profits each month. They also make significant income from late fees when people overlook due dates. To avoid this, I ensure that all my cards are set up for automatic minimum payments before the due date, as paying unnecessary late fees is an avoidable and wasteful expense.

I hope this explanation proves helpful!

First Time Homebuyer?

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14 First Time Homebuyer Mistakes to Avoid!

#1. Failing to Budget for a Home Loan

Home ownership is a cheaper alternative to renting in the long run. But in the beginning, it can be much pricier. This is especially true if you intend to get a loan to purchase your dream house.

If you do acquire a loan, remember that you will be making monthly mortgage payments for a number of years.

Therefore, it is important to budget for a home loan, beforehand. You need to determine whether your income can accommodate an extra expense or not.

If you are unable to afford making monthly payments on your home loan, it would be a mistake to try to own a house at this time.

#2. Ignoring Your Credit Score

If you thought that finishing school meant being done with competitive scoring, think again!

Apparently, your creditworthiness can be summarized in just 3 digits. Those three numerals will draw the line between owning a house and renting one.

Even if you have an impeccable sense of financial responsibility right now, your credit past can haunt you.

You could have a hard time getting a home loan if your past record shows problems with payments, or if there’s an error in your credit report.

If you go ahead and apply for a mortgage loan without checking your credit score, you could end up paying a lot more than you expected.

It’s best to perform a credit check beforehand.  This way, you will be allowed to get loans without being obligated to pay hefty amounts in interest.

#3. Disregarding Housing Marketing Trends

Just like other financial markets, the housing market fluctuates from time to time. Sometimes it favors the buyers, and sometimes it favors the sellers.

There are a number of factors that affect housing marketing trends. This includes the ratio between supply and demand, interest rates and the overall condition of the economy.

It’s also imperative that you consider how the housing market changes in your ideal location, as home prices vary from one location to another.

If you disregard housing marketing trends when hunting for a house for sale, you might end up signing for a deal that favors the seller.

#4. Lack of a Preapproved Home Loan

Some people are anxious to shop for a house and want to do it quickly, before they are financially able to afford it.

If you have already started talking to sellers before having a hard talk with home loan lenders, you are making a mistake. In fact, not many sellers will want to work with you if you promise them a certain amount and then can’t fulfill that promise.

To avoid any disappointments, it’s wise to have your home loan pre-approved first, then go ahead and look for a house to buy.

#5. Overlooking the Home Resale Value

Another huge mistake you can make when buying a house is not considering the fact that you may need to resell the house you intend to buy.

There are lots of unexpected changes that can occur, such as job transfers, financial problems, or falling in love with another bigger or prettier house.

When this happens, you might find the need to sell your house, obviously at a profit. You should never overlook the resale value of the home you intend to purchase.

What you need to do is to ask yourself several questions such as: Will it be easy to sell this house? Will buyers be interested in buying it? Will this house fetch me a good amount if I decide to buy another one? Is it situated in a preferred neighborhood?

#6. Trusting an Unprepared Agent, not getting a Good One

Involving an agent is highly recommended in the home buying process.

There are pros and cons to dealing with real estate agents. A real estate agent can take a huge burden off your shoulders when it comes to looking for the right house.

An unprepared agent can cost you money and set the deal back.

Also, if you talk to the seller’s agent, he will be representing the seller and he may not be truthful about the negative aspects of the house.

If you trust this kind of agent blindly, you may have regrets later on. Make sure your agent is prepared and well versed.

#7. Settling on a Verbal Agreement

Double crosses are bound to happen when agreements are made verbally. It would be difficult for you to prove in court that a promise was made or a handshake was made.

Therefore, it’s best that you and the seller get everything down in writing to avoid future miscommunications.

This way, you will have something to present in court should the seller fail to keep their word.

#8. Disregarding Hidden Costs

This is another common mistake that many first-time homebuyers often make.

If you neglect to prepare for hidden fees, you might be in for a big surprise. Closing costs are a good example of hidden fees, which usually include a number of fees that cover final housekeeping matters.

Before signing the homebuyer’s agreement, it would be wise on your part to determine what hidden fees are there.

#9. Ignoring Professional Home Inspection

You will be making a costly mistake if you rely on the seller to inform you about the house problems you should expect.

Before you make any payment towards the purchase of the house, it’s imperative that you first hire a professional home inspector to ascertain that the house is in good condition.

#10. Following your “Love-at-First-Sight” Gut

Not everyone or everything that you fall in love with at first sight ends up being your one true love. A house may appear to be everything you ever dreamed of, but it might not live up to your expectations.

Before following a dream house blindly, be sure to check it out thoroughly. Make sure it has all the right qualities that make it a perfect home for you and your loved ones.

#11. Being Indecisive

As unwise as it is to rush into making a purchase, it is equally dumb to take too long without making up your mind. If you take too long to make a decision, another home buyer will take advantage of your indecisiveness and buy your dream house.

Since market trends change from time to time, you could also find out that the house you took too long to buy has a new (and higher) price tag attached to it.

#12. Relying on Online Services Only

Now that many services are obtainable at the click of the mouse, most people have become too dependent on them. It’s true that loans can be obtained online and houses can be bought online as well. But failure to establish personal touch with lenders or home sellers could present a huge and costly misunderstanding in future.

#13. Forgetting the Costs Associated with Owning a Home

Just like a car, a home requires money to maintain. The pain of parting with your hard-earned cash will not end on the day you finish your last mortgage payment.

You have to brace yourself for other costs for maintaining a safe, secure, and environmentally friendly home. You have to also be ready to meet certain costs such as association fees, insurance, taxes, utilities, maintenance and major/minor repairs.

#14. Entering into Multiple Agreements

While it’s a smart thing to compare different houses before buying, you might end up biting off a lot more than you can chew.

This is especially true if you meet up with sellers and make offers or promises that you don’t intend to honor.

Before entering into any agreement with a seller or an agent, it’s imperative you ensure that you are ready to honor your end of the deal.

If you can avoid the above mentioned mistakes that are commonly made by first-time buyers, you will be more like a pro homebuyer instead of a rookie.

Avoiding these mistakes can help you make the right choices when it comes to finding a home you and your family can take pride in. Keeping in mind the resale value will also help you avoid problems moving on in the future. 

Be a pro!

Commonly Overlooked Spring Cleaning Hiding Places

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Spring Cleaning

Do you wish cleaning were as simple as Snow White wielding a broom and whistling while she works?

It seems no matter how thorough a housekeeper you are, there are a number of spots that tend to get bypassed during your spring-cleaning tirade, only to grow in grime if ignored. What? You’re one of those people who supposedly leaves no stone unturned as you move through your spring cleaning tasks like a whirling dervish? Realtor.com suggested these areas of your home we can bet you’ll forget to clean this spring as well as what to do about it.

Tile floors and/or countertops have grout that can harbor germs and mold, and a mere swipe of a nubby-sided sponge or a thorough mop job may not cut it. The grout will eventually start to stain, meaning an even bigger cleaning job down the road. Cleaning experts advise wiping the grout with vinegar, then scrubbing it with baking soda and a brush. Yes. On your hands and knees, if need be. Also effective are borax or olive oil-based Castile soap. For in-your-face moldy grout, spray on 3% hydrogen peroxide diluted by half in water and let it steep for 45 minutes, then rinse.

We’re not trying to go existentialist on you, but just because you can’t see dirt doesn’t mean it doesn’t exist. Picture yourself as a tiny drone buzzing close to the ceiling, photographing anything above your sightline, and you’ll be able to picture where a primo dust collection is taking place. We’re talking door and trim tops, upper kitchen cabinets not attached to the ceiling, stately bookcases as well (as the tops of each book), and on and on. And just think about how anything that started out as dust in your kitchen is now mixed with sticky kitchen grease. It’s the stuff about which obsessive types have nightmares.  How to head off those nightmares? Use a damp cloth to wipe door frames and bookshelves. For greasy gunk, try rubbing dish detergent on, leaving it for a moment, then wiping it off. If that doesn’t cut it, level up to Goo Gone Kitchen Degreaser. And don’t forget light fixtures and ceiling fans that trap bugs and attract dust bunnies.

“Look down” is not just a musical phrase out of a song in Les Mis. Try casting your eyes down into your garbage disposal using a small flashlight to aid your view. But first, prepare your stomach for it. Beside general disgust, you’ll take note of the serious grease buildup that has the potential to seriously back up your sink drains. Attack this by running hot water, turning on the disposal, pouring a tablespoon of dish soap down there, and letting the water run for 15 to 30 seconds. Then turn off the disposal and let the water run until this orifice is bubble-less. Use an angled brush (if you can find one) to scrub the underside of the drain flaps with hot water and dish soap.

Okay, toilets are just naturally disgusting merely by the nature of and reason for their existence, and your toilet brush and holder can make their own horror movies. We know thousands of fastidious people simply give up on the idea of cleaning these things in favor of buying new ones and, of course, that is an option as long as you budget for it. But you can also prevent some germ build-up on your existing implements by spraying down the brush with disinfectant after each use. Use your toilet seat to clamp it down and let it dry awhile, dripping over the bowl. Oh, and spraying warm water mixed with a few capfuls of bleach is also a good remedy. Just be very careful with the bleach.

Drapery is a passive collector of dust, pet hair, odors, and other air gunk. Start with vacuuming them, then determine if they are washable. You can rent a steamer for the really heavy stuff, but the very idea of cleaning a house full of drapery may have you running to a professional.

Oh, and don’t forget the electronics — phones, keyboards, computers, entertainment electronics, etc. All fall into the category of things your grimy fingers touch every day and some heat up, making them dust magnets. Keyboards collect food crumbs (you know how this happens, so don’t pretend you don’t). After carefully flopping your keyboard over to dislodge the crumbs, use a toothpick or Q-tip to dislodge anything stuck in the crevices and swipe the rest with a cotton ball soaked (but not dripping from) in a tiny bit of rubbing alcohol.

Did you know that research shows that cell phones are dirtier than toilet seats? For your phone, grab a dewy-soft microfiber cleaning cloth and spray it with a 50/50 combination of distilled water and vinegar or distilled water and isopropyl alcohol. Wipe down your phone thoroughly without getting it too wet.

Chimneys are serious business and chimney fires are more common than most would think. Don’t want to get up on your own roof risking life and limb to sweep your own chimney? Then call a handy professional for the task, because doing it wrong can have serious consequences. Experts recommend once a year for this at a minimum for optimum fireplace safety.

Have you decided that no amount of spring cleaning is going to make you happy with the house you are currently in?  Maybe now is the time to sell!  Spring is an excellent time to get a home on the market, however, before you do that, Contact Us. We can help you get pre-approved for a mortgage and determine how much house you can buy this next time around.  Rainbow Mortgage, Inc. is a broker so we have access to many different lenders and their loan programs which translates into more options for you!

Source: TBWS