SalCal Real Estate Connections' Blog
The right time to purchase a home varies from person to person. Meanwhile, buying a house is one of the biggest decisions an individual may make in his or her lifetime. As such, it is important to weigh your options closely to determine if now if the right time to buy a house.
There are several things you can do to get ready to pursue and buy your dream home. These include:
1. Make a Plan
Think about the steps you'll need to take to go from homebuyer to homeowner. Then, you can craft a plan to put these steps into action.
Also, it often helps to create a list of homebuying criteria. This list will help you narrow your home search and speed up the process of finding your ideal residence.
You should stay flexible as you conduct your home search too. The housing market fluctuates constantly, and if you maintain flexibility, you'll be ready to adjust your homebuying strategy as needed.
2. Get Home Financing
It usually is a good idea to get pre-approved for a mortgage. If you have a mortgage in hand, you'll know exactly how much you can spend on a home.
Banks and credit unions are available to teach you about all of your mortgage options. Thus, meeting with these financial institutions will enable you to learn about different types of home financing and make an informed mortgage selection.
Of course, you should not hesitate to ask home financing questions. Banks and credit unions employ courteous, knowledgeable mortgage specialists who are happy to respond to your queries. Therefore, if you are unsure about which mortgage option is right for you, these mortgage specialists can help you evaluate all of your options.
3. Hire a Real Estate Agent
A real estate agent offers expert guidance throughout the homebuying journey. He or she will help you find your dream home and submit a competitive offer to purchase it. Plus, a real estate agent will negotiate with a seller's agent on your behalf, help you prepare for a home closing and much more.
In addition, a real estate agent can provide plenty of support during your house search. He or she first will help you craft an effective homebuying strategy and search for properties that meet your criteria. Next, a real estate agent will set up house showings and keep you informed about open house events in your preferred cities and towns. And if a seller accepts your offer to purchase his or her home, a real estate agent will help you set up a property inspection and finalize your house purchase.
For those who are ready to purchase a home, it helps to be prepared. If you take advantage of the aforementioned tips, you can enter the real estate market as an informed property buyer. As a result, you may be better equipped than other homebuyers to enjoy a quick, successful property buying experience.
In real estate, cash is power. It’s not exactly the amount of money that you have been approved for by a lender. This type of “cash” is what you can pull directly from your account to buy a property on demand. It can be difficult to compete with cash buyers especially in tight real estate markets. Below, you’ll find some tips to help you match up against any cash offers that you may be competing with when you buy a home.
Make Your Offer Look Attractive As Possible
First, you should always have a pre-approval letter from your lender. This lets sellers know that you’re a qualified buyer. You should also get your lender or realtor (or both) to provide some financial information about you along with your offer. This helps to add to the case that you’re a dependable buyer.
Let Things Move Quickly
If you allow your lender to send an appraiser to the property as quickly as possible, this will give you an advantage in the home buying process. You want to reduce the amount of time that it will take to close on the house. That means you should consider cutting down on both the appraisal and contingency time. You could even consider waiving any contingencies if you feel comfortable.
To speed up the process, even more, you should pre-order an appraisal in advance. You can do this before your offer has even been written. It can be difficult to arrange this, especially with larger scale lenders, but it’s always worth a try. Once the offer is written, the lender can relay to the seller that an appraisal has already been scheduled.
You’ll also want to get the inspection done fairly quickly. You only have a short window of time to get the inspection done. The quicker you get this done, the more serious of a buyer you appear to be. You should have the inspector who you’ll use ready before you even put an offer in on a home in order to expedite this part of the process. Usually, inspectors don’t take terribly long to schedule appointments knowing that their clients have short windows to get inspections done.
Make A Strong Offer
Making a good offer could mean paying extra for a home you love in order to compete with cash offers. Spending more money helps to win. Here’s why: Sellers almost always will give a cash buyer a bit more of a discount since they’ll be getting all of the funds up front. If you love the house and plan to live in it for years to come, the extra money you spend will be well worth it.
Write An Offer Letter
An offer letter adds a bit of a personal touch to the number you put down as a buyer. Here, you can tell the seller who you are and why you love the home. It can be emotional to sell a property, but a seller will feel more comfortable knowing that the home is going to someone who will appreciate it.
Purchasing a house may prove to be a long, complex process, particularly for a first-time buyer. Fortunately, there are several things that you can do to streamline the process of going from homebuyer to homeowner.
Now, let's take a look at three tips to help you enjoy a quick, easy homebuying journey.
1. Narrow Your Search for Your Dream Home
It often helps to enter the real estate market with a checklist of home must-haves and wants. With this checklist, you will be better equipped than ever before to perform a deep evaluation of any house, at any time.
Think about what you want to find in your dream home and include these criteria in your checklist. For instance, if you want to own a house near your office, you can search for houses that are just a few miles from your workplace. Or, if you want to purchase a house with a big backyard, you should look at houses that offer the space that you need.
2. Submit a Competitive Offer
If you find a house that you want to buy, there is no need to wait to submit an offer. However, it is important to differentiate between a "lowball" offer and a competitive one beforehand.
A lowball offer generally fails to account for the state of a house, as well as the current real estate market's conditions. It is likely to fall short of a home seller's expectations, and as a result, lead to an immediate "No."
Conversely, a competitive offer is based on housing market data, along with the condition and age of a house. And if you submit a competitive offer on a residence, you may receive an instant "Yes" from a home seller.
3. Conduct an In-Depth Home Inspection
After you and a home seller agree to terms, you will want to conduct a comprehensive home inspection. This will enable you to fully examine a house's interior and exterior and identify any potential home problems before you finalize your purchase.
When it comes to buying a home, there is no need to forego a home inspection. In fact, if you bypass a home inspection, you risk encountering costly, time-intensive home problems in the near future.
To hire an expert home inspector, perform a search of the available inspectors in your city or town. Then, meet with several home inspectors, ask for client referrals and allocate the necessary time and resources to perform an in-depth assessment. Because if you hire the right home inspector, you can get the support that you need to make an informed home purchase.
Lastly, if you need help finding a home inspector or completing other homebuying tasks, it usually is a good idea to employ a real estate agent. This housing market professional will learn about your homebuying goals and tailor your home search accordingly. As a result, working with a real estate agent will increase the likelihood that you can enjoy a quick, easy homebuying journey.
Creating an offer to purchase a home may require several minutes, hours or days – it all depends on the buyer. Fortunately, there are many things you can do to accelerate the process of putting together a homebuying proposal that will get a seller's attention. These include:
1. Study the Housing Market Closely
When it comes to preparing an offer to purchase a house, there is no need to leave anything to chance. If you analyze the real estate market closely, you can gain the housing sector insights you need to craft a competitive homebuying proposal.
Take a look at the prices of recently sold houses in your area, along with how long these residences were available before they sold. With this information in hand, you can determine whether the current housing market favors buyers or sellers and craft your offer to purchase accordingly.
Analyze a house's age and condition as well. By doing so, you can account for the state of a house as you put together an offer to purchase.
2. Maintain Flexibility
Although you may be in a hurry to acquire your dream residence, a seller may need time to find a new place to live. As such, you should maintain flexibility as you craft your offer to purchase and be ready to accommodate a seller's requests.
Ultimately, it is important for a home sale agreement to meet the needs of both a buyer and seller. If you consider the seller's perspective as you create an offer to purchase, you may be better equipped than ever before to craft a homebuying proposal that works well for both you and a seller.
3. Collaborate with a Real Estate Agent
Let's face it – creating an offer to purchase a house can be challenging, particularly for a buyer who is putting together a homebuying proposal for the first time. Lucky for you, real estate agents are available nationwide who can help you craft a competitive offer to purchase in no time at all.
A real estate agent is happy to provide you with homebuying insights you may struggle to obtain elsewhere. He or she can offer recommendations and suggestions as you prepare a homebuying proposal. Plus, a real estate agent can help you submit an offer to purchase and negotiate with a seller's agent on your behalf.
Let's not forget about the support a real estate agent provides after you submit an offer to purchase, either. If your homebuying proposal is approved, a real estate agent will help you finalize your house purchase. Or, if your offer to purchase is rejected, a real estate agent will help you reenter the housing market so you can discover your dream house. In the event a seller counters your offer to purchase, a real estate agent can help you determine the best course of action, too.
Ready to submit an offer to purchase your ideal residence? Use the aforementioned tips, and you should have no trouble submitting a competitive homebuying proposal and acquiring your dream house.
The US government has been helping Americans achieve their goal of homeownership for decades. Through programs offered by the Federal Housing Authority, the USDA, and the Department of Veterans Affairs, millions of Americans have been able to afford a home who would have otherwise struggled.
The focus of today’s post is one such service: loans offered through the USDA Rural Development program.
If you’re hoping to buy a home in the near future but are worried about being able to save up enough for a down payment or build your credit score in time, USDA loans could be a viable option.
Let’s take a look at some of the common questions people have about USDA loans:
Do I have to live in the middle of nowhere to get a USDA loan?
The short answer is “no.” rural development loan eligibility for your area is laid out on a map provided by the USDA. Most of the suburbs outside of major cities, as well as nearly all rural areas, are covered by the rural development program.
Can I qualify for a USDA loan if I’ve previously owned a home?
Yes. You may be eligible for a loan as long as you’re not the current owner of a home that was purchased through the rural development program. So, for example, if you own a home financed through the USDA and wanted to buy a second home and rent out the first one, you wouldn’t be able to finance your second home through the USDA.
How does the USDA loan guarantee work?
When you buy a home, a lender asks you to make a down payment. If you don’t have a down payment, the government (USDA, VA, or FHA) insures the down payment on your home rather than you paying it up front.
Will I have to pay mortgage insurance?
Unlike other subsidized loans, rural development loans require a “guarantee fee” rather than PMI (private mortgage insurance). The guarantee fee is 1% the total mortgage amount and this can typically be financed into the loan (so you don’t have to pay up front). In addition to the guarantee fee, USDA loans also charge an annual premium for the lifetime of a loan.
What are the qualifications for a USDA loan?
To find full eligibility information, complete the survey on the USDA’s eligibility website to find out if you qualify. However, the general qualifications are:
Buying a home in a qualifying area
24 months of income history
A credit score of 640 or higher for streamlined processing
Income high enough so that your monthly payments do not exceed 29% of your monthly earnings
What is the direct loan program?
The USDA really offers multiple urban development loans. The guarantee program, for which most single families utilize, and the direct loan program. Direct loans are designed for families who have the greatest need. You can also find out if you’re eligible for a direct loan by filling out the questionnaire on their website.