Get Ready To Buy a Home by Improving Your Credit Score

As the new year approaches, the idea of buying a home might be on your mind. It’s an exciting goal to set, and it’s never too early to start laying the groundwork. One crucial step to prepare for homeownership is building a solid credit score.

Lenders review your credit to assess your ability to make payments on time, pay back debts, and more. It’s also a factor that helps determine your mortgage rate. An article from CNBC explains:

“When it comes to mortgages, a higher credit score can save you thousands of dollars in the long run. This is because your credit score directly impacts your mortgage rate, which determines the amount of interest you’ll pay over the life of the loan.”

This means your credit score may feel even more important to your homebuying plans right now since mortgage rates are a key factor in affordability, especially today.

According to the Federal Reserve Bank of New York, the median credit score in the U.S. for those taking out a mortgage is 770. But that doesn’t mean your credit score has to be perfect. An article from Business Insider explains generally how your FICO score range can make an impact:

“. . . you don’t need a perfect credit score to buy a house. . . . Aiming to get your credit score in the ‘Good’ range (670 to 739) would be a great start towards qualifying for a mortgage. But if you’re wanting to qualify for the lowest rates, try to get your score within the ‘Very Good’ range (740 to 799).”

Working with a trusted lender is the best way to get more information on how your credit score could factor into your home loan and the mortgage rate. As FICO says:

“While many lenders use credit scores like FICO Scores to help them make lending decisions, each lender has its own strategy, including the level of risk it finds acceptable. There is no single “cutoff score” used by all lenders and there are many additional factors that lenders may use to determine your actual interest rates.”

If you’re looking for ways to improve your score, Experian highlights some things you may want to focus on:

• Your Payment History: Late payments can have a negative impact by dropping your score. Focus on making payments on time and paying any existing late charges quickly.

• Your Debt Amount (relative to your credit limits): When it comes to your available credit amount, the less you’re using, the better. Focus on keeping this number as low as possible.

• Credit Applications: If you’re looking to buy something, don’t apply for additional credit. When you apply for new credit, it could result in a hard inquiry on your credit that drops your score.

A lender will help you navigate the process from start to finish, from assessing which range your score falls in to telling you more about the specifics for each loan type.

Bottom Line

As you set your sights on buying a home in the upcoming year, a focus on boosting your credit score could help you get a better mortgage rate when the time comes. If you want to learn more, connect with a trusted lender.

For the original article visit Keeping Current Matters.

Thinking About Buying a Home? Ask Yourself These Questions

If you’re thinking of buying a home this year, you’re probably paying closer attention than normal to the housing market. And you’re getting your information from a variety of channels: the news, social media, your real estate agent, conversations with friends and loved ones, the list goes on and on. Most likely, home prices and mortgage rates are coming up a lot.

Here are the top two questions you need to ask yourself as you make your decision, including the data that helps cut through the noise.

1. Where Do I Think Home Prices Are Heading?

One reliable place you can turn to for information on home price forecasts is the Home Price Expectations Survey from Fannie Mae – a survey of over one hundred economists, real estate experts, and investment and market strategists.

According to the most recent release, the experts are projecting home prices will continue to rise at least through 2028 (see the graph below):

So, why does this matter to you? While the percent of appreciation may not be as high as it was in recent years, what’s important to focus on is that this survey says we’ll see prices rise, not fall, for at least the next 5 years.

And home prices rising, even at a more moderate pace, is good news not just for the market, but for you too. It means, by buying now, your home will likely grow in value, and you should gain home equity in the years ahead. But, if you wait, based on these forecasts, the home will only cost you more later on. 

2. Where Do I Think Mortgage Rates Are Heading?

Over the past year, mortgage rates spiked up in response to economic uncertainty, inflation, and more. But there’s an encouraging sign for the market and mortgage rates. Inflation is moderating, and here’s why this is such a big deal if you’re looking to buy a home.

When inflation cools, mortgage rates generally fall in response. That’s exactly what we’ve seen in recent weeks. And, now that the Federal Reserve has signaled they’re pausing their Federal Funds Rate increases and may even cut rates in 2024, experts are even more confident we’ll see mortgage rates come down.

Danielle Hale, Chief Economist at Realtor.com, explains:

“. . . mortgage rates will continue to ease in 2024 as inflation improves and Fed rate cuts get closer. . . . a key factor in starting to provide affordability relief to homebuyers.”

As an article from the National Association of Realtors (NAR) says:

“Mortgage rates likely have peaked and are now falling from their recent high of nearly 8%. . . . This likely will improve housing affordability and entice more home buyers to return to the market . . .”

No one can say with absolute certainty where mortgage rates will go from here. But the recent decline and the latest decision from the Federal Reserve to stop their rate increases, signals there’s hope on the horizon. While we may see some volatility here and there, affordability should improve as rates continue to ease.  

Bottom Line

If you’re thinking about buying a home, you need to know what’s expected with home prices and mortgage rates. While no one can say for certain where they’ll go, making sure you have the latest information can help you make an informed decision. Connect with a trusted local real estate agent so you can stay up to date on what’s happening and why this is such good news for you.

For the original article, visit Keeping Current Matters.

Why Now Is Still a Great Time To Sell Your House

If you were worried buyer demand disappeared when mortgage rates went up, the data shows there are plenty of interested buyers still out there. The housing market isn’t as frenzied as it was during the ‘unicorn’ years when buyer demand was through the roof, mortgage rates were historically low, and home values rose like we’ve never seen before. But that doesn’t mean the market is at a standstill.

Nationally, demand is still high compared to the last normal years in the housing market and plenty of buyers are making moves right now. Here’s the data to prove it.

Showing Traffic Is Up

The ShowingTime Showing Index is a measure of how frequently buyers are touring homes. The graph below uses that index to show buyer activity over the past eight Octobers:

 In the graph, the ‘unicorn’ years are shown in pink. You can see demand has dipped some since then. That’s in response to higher mortgage rates. But, when you compare 2023 to the blue bars on the left that represent the last normal years in the market (2018-2019), you can tell buyers are still more active than the norm.

But showing traffic isn’t the only way to see buyer demand is still high. The number of offers other sellers are getting and the average days homes are on the market tell the same story.

Sellers Are Still Seeing Multiple Offers

According to the latest data from the National Association of Realtors (NAR), sellers are receiving an average of 2.5 offers on their houses. Let’s look at how that compares to recent years (see graph below):

 It’s true that’s fewer than the number of offers sellers were receiving during the ‘unicorn’ years (shown in pink). But compared to last year, the number is up slightly. And it’s higher than it was in the more normal, pre-‘unicorn’ years in the housing market too.

Homes Priced Right Are Selling Fast

And it’s not just that sellers are still typically getting multiple offers more than the norm, they’re also seeing their homes sell fast. That’s a direct result of strong buyer demand. According to Zillow:

“. . . low inventory levels are spurring surprisingly strong competition . . . demand has remained resilient, and attractive, appropriately priced listings are moving quickly.”

To help showcase that homes for sale are still going quickly, let’s look at data from NAR on the median days on market for this same time of year from 2018 through now (see graph below):

 As the graph shows, this year homes are sitting on the market only slightly longer than they were during the frenzy of the ‘unicorn’ years. And compared to the last normal years in the market, homes are still selling much faster than they did back then. That’s good news for sellers because it means there are eager buyers out there right now.

Bottom Line

You haven't missed your chance to sell at a time when sellers are receiving multiple offers, and homes are selling fast. When you’re ready to sell your house, connect with a local real estate agent to get the ball rolling.

For the original article, visit Keeping Current Matters.

Feel Better in the New Year: 7 Healthy Home Upgrades To Make in 2024

Some home improvements can be hard to justify—like whether or not you need to swap out the guest bath wallpaper for the third time in four years.

But saying a hearty “Yes!” to home upgrades that can boost your family’s health and well-being seems like a no-brainer.

In advance of the approaching new year, we’ve found seven ways to level up to a healthy home in 2024. From the minor to the major, this list has something for every budget.

Here are seven health-related home improvements that can help keep you energized throughout the coming year.

1. Quartz or marble countertops

Photo by Arizona Tile

If your kitchen is due for a change, one of the best healthy home upgrades you can make in 2024 is to install quartz or marble countertops. Yes, they’re premium surfaces, often with higher price tags. But not only are these materials highly durable, low maintenance, and gorgeous to look at, but they can also help keep your family from getting sick.

“In 2024, these surfaces are becoming even more desirable for their antimicrobial properties,” says remodel and real estate expert Mark Buskuhl, of Ninebird Properties. “Both quartz and marble have been found to inhibit the growth of bacteria and viruses on their surface, making them an excellent investment for families with young children or the elderly.”

2. Full-spectrum lightbulbs

The quality of light in our homes affects us more than we realize, especially during the darker days of winter. If you’re looking for an affordable, health-forward home swap this season, consider investing in some full-spectrum lightbulbs. These bulbs are brighter and whiter than typical bulbs.

“Full-spectrum lightbulbs that mimic the sun can be great for those that suffer from seasonal affective disorder or for spaces where you want to be productive—like an office, workshop, or garage,” says Mallory Micetich of Angi.

Get healthy: Looking for a light-filled bonus? You will save on your electric bill by choosing full-spectrum LED bulbs.

3. Sunrise alarm clock

Speaking of quality lighting, sunrise alarm clocks are one of our favorite ways to start the day—and a worthy investment for your next healthy home upgrade.

“A sunrise alarm clock is an excellent tool for improving your sleep habits and promoting a healthier sleep-wake cycle,” says Buskuhl. “These clocks use light simulation to gradually wake you up, mimicking the natural sunrise and helping you feel more energized in the morning.”

Get healthy: Reset your morning routine with the hOmeLabs sunrise alarm clock.

4. Air purifier

Another essential home health upgrade you’ll be happy you made in 2024? A high-quality air purifier to keep those winter allergies at bay.

“If you suffer from frequent allergies, respiratory issues, sinus irritation, or fatigue, an air purifier could be a great investment for your home,” says Micetich. “An air purifier will have a stronger filter than your furnace filter, which will allow it to remove more odors and particles from the air.”

Get healthy: While there are plenty of sizes (and price ranges) to choose from, we like this Levoit air purifier.

5. Water filter

Don’t stop at the filtration of your air! The water we drink plays a huge role in how we feel—and let’s be honest, the better it tastes, the more likely we are to drink enough of it.

Whether you live in a city with treated water or off the grid with hard water, a good filter can help ensure a top-notch taste and quality in your home H2O.

“If you have an older home, have young children, live close to a manufacturing plant, have an older plumbing system, or are susceptible to external issues like a leaky septic system, you may want to consider adding a water filter to your home,” explains Micetich.

Get healthy: Before spending the big bucks on a whole-house filtration system, consider what you need a water filter for. If it’s just for drinking and cooking, an inline system like the Aquasana two-stage filter is an affordable solution.

6. Ergonomic home office chair

One significant aspect of our well-being we often overlook is good posture. If you spend hours every week working from a home office but don’t yet have an ergonomic chair, now’s a great time to consider getting one.

“Investing in an ergonomic office chair is crucial for maintaining good posture and preventing back and neck pain,” says Buskuhl. “A high-quality, adjustable chair can provide proper support for your spine, reducing strain on muscles and joints. It’s a must-have for anyone spending long hours at a desk.”

Get healthy: Shop this collection of ergonomic office chairs to find the perfect one for your space.

7. Desk elliptical

Another great way to stay healthy during those long hours in your home office is with a desk elliptical.

“If you’re looking to improve your health, start with where you spend a lot of time—at your desk,” says Micetich. “You might want to also consider an active chair. This could be anything from an elliptical desk to an exercise ball.”

Micetich also suggests keeping a yoga mat nearby for easy stretching or light weightlifting between meetings.

Get healthy: When it comes to under-the-desk ellipticals, we like this Sunny Health exercise option.

Larissa Runkle (@therealest8writer) is a writer and editor living in Colorado. Her work focuses on unique real estate and design trends.

For the otiginal article visit Realtor.com

How to Spot the Top Problems Home Sellers Try to Hide

Whether you’re a seasoned house hunter or a first-time buyer, the process of purchasing a home has plenty of pitfalls. And while you may assume that sellers are being upfront, it’s not uncommon for them to gloss over some of their home’s shortcomings.

“All homeowners sign a disclosure document about their property so buyers know what they’re getting into; however, it can be very tempting for some to tell white lies or conveniently forget facts,” says Wendy Flynn, owner of Wendy Flynn Realty in College Station, TX. “In fact, a very large number of real estate lawsuits stem from owners misrepresenting their property.”

So, just to be on the safe side, here are some common cover-ups and how you can crack them.

Find a real estate agent

A local real estate agent can answer questions, give guidance, and schedule home tours.

Connect with an agent

Water damage

Water stains aren’t just ugly; they’re also signs of leaks and a breeding ground for mold. And they’re fairly easy for homeowners to hide with strategic decoration or staging, according to Frank Baldassarre, owner of Ace Home Inspections on Staten Island, NY.

“Many sellers try to conceal water intrusion in the basement, for example, with a pile of cardboard boxes or suitcases,” he says. You could always ask the homeowner to move the furniture a few inches and shine a pocket flashlight around. If the home has obvious red flags (an odd odor or visible wall cracks), it’s not unreasonable to request removing a large picture frame to take a peek at what’s behind it.

Another popular tactic for concealing water damage: a coat of fresh paint.

“Always ask the homeowner when they last painted,” says Baldassarre. “If it was a year ago, they’re probably not trying to hide water stains.”

A contaminated backyard

If you’re looking at an older home—specifically, if it was built before 1975—odds are it used to run on oil. Back then, homeowners typically had large oil tanks installed in the basement or underground in the backyard to conserve space and maintain the home’s aesthetic.

“The problem is that oil can contaminate soil, and because it’s incredibly costly to remove, some people try to hide evidence of the tank,” says Baldassarre. “Recently, I arrived to a home inspection early and caught the homeowner sawing off the top of the fill pipe.”

So while walking through a home’s backyard, look for a small fill pipe sticking up from the ground (sometimes covered by patches of grass), a dead giveaway that an oil tank is on the premises. Or double-check by asking the seller if the home was heated with oil in the past.

A shaky foundation

If the paint job in a home looks a little uneven around the door frames or windows, take a closer to look to see if it’s concealing any jagged cracks in the wall, advises Flynn. Those zigzags can signify foundation problems, a costly and potentially dangerous situation for potential buyers.

A weak foundation can prevent cabinets and doors from closing, cause supporting beams to snap from stress, or even result in a poor home appraisal, which can affect your loan and the home’s resale value.

Another clue that the house has a weak foundation: “if you feel as though you’re suddenly walking up or down—even slightly—as you move through the home,” says Flynn.

Problem neighbors

Barking dogs, rocker teens, and blaring horns are all factors that can turn off potential buyers. That’s why some owners try to downplay these situations with well-timed open houses and neighborly negotiations.

“Homeowners have an obligation to disclose what are called ‘neighborhood nuisances,’ but if they don’t, buyers have to rely on their word,” says Carrie Benuska, a real estate professional at John Aaroe Group in Pasadena, CA. “I know people who have asked their neighbors to keep noisy dogs inside during showings or only open their homes during strategic times of the day.”

Even well-intentioned owners may not be candid if they’ve become accustomed to their environment. One workaround, suggests Benuska, is for buyers to take a stroll around the neighborhood at different times of the day to get a more authentic feel for the area. And don’t hesitate to make small talk with the locals, who can offer a more objective view of their surroundings.

Weird temperature changes

Anyone who’s lived in a home with a freezing bathroom or unusually warm bedroom knows that a temperature imbalance can result in avoiding a room altogether. That’s why tapping into your senses is key when viewing your potential new home.

“If you walk into a room and there’s a subtle shift in the atmosphere—maybe the air feels dry or damp—ask the owner what the room feels like throughout the seasons,” says Benuska. “The culprit is usually poor insulation, sometimes as a result of the owner adding a second room or floor to the home.”

Oftentimes, an owner isn’t trying to outright conceal extension work. However, if the construction was done without a permit—“more common than you’d imagine,” says Benuska—you aren’t required to pay for the extra square footage.

By Elise Sole

For the original article visit Realtor.com

Home-Selling Checklist: 12 Things To Do Before Selling Your House

Getting ready to sell your house? Then it’s time to roll up your sleeves and get to work because there are tons of things to do before listing your home!

Selling a home, after all, entails a whole lot more than just planting a “For Sale” sign on your front lawn or uploading a few random photos of your place—especially if you’re angling for the most cash. (And, honestly, who isn’t?) That’s why we put together the ultimate checklist for selling a house.

Things to do before selling your house

So before you put your house on the market, peruse this checklist for selling a house of what to do. Some of these tips are surprisingly easy, while others might require a bit more elbow grease. But they’re bound to pay off once buyers start oohing and ahhing over your place—and hopefully ponying up a great offer.

1. Find a great real estate agent

Think you can sell your home yourself, and pocket the cash you would otherwise pay a real estate agent?

It can be tempting, especially in a hot market, but resist the urge, says Jon Sterling, a real estate consultant with Keller Williams Realty in San Francisco. He’s found that a “for sale by owner” transaction is almost always a disaster, leading you to sacrifice both money and time. That’s why one of the most important things to do before selling your house is find a great real estate agent.

That said, don’t just blindly hire the real estate agent who most recently sent you a flyer or the one your uncle’s friend’s co-worker’s cousin used. Do some research to find a real estate agent who is knowledgeable about your specific market, and then interview her to make sure she’s a good fit.

Your real estate agent should be someone you feel comfortable working with, whom you trust to sell your house for top dollar. Don’t be afraid to talk to a few real estate agents before picking one.

2. Consider your curb appeal

Yes, for better or worse, buyers do tend to judge a book by its cover. You want to make sure potential buyers’ first impression of your home is a good one—and inspires them to stop by the open house or schedule a tour—so they can see more.

By investing some effort in relatively easy fixes, like planting colorful flowers and repainting your front door, the outside of your house can beckon prospective buyers to come on in.

If you’re not sure how to improve your home’s curb appeal, ask your real estate agent for advice on how others in your area have improved the exterior before selling their houses.

3. Declutter living areas

Less is definitely more when it comes to getting your house ready to show, notes Boris Sharapan Fabrikant, a real estate broker with Triplemint.

Do a clean sweep of counters, windowsills, tables, and all other visible areas, and then tackle behind closed doors: closets, drawers, and cupboards—since virtually nothing is off-limits for curious buyers.

If the house is overflowing with stuff, buyers might worry that the house won’t have ample space for their own belongings. They won’t sign up to pay a mortgage if they think they’ll also have to rent a storage space.

Take your excess stuff and donate it, or pack it up to be stored off-site. Not only will clearing clutter help your house look more appealing to buyers, it will also help you once you’ve accepted an offer and it’s time to move into a new home. Moving out will be easier if some of your stuff is already be packed.

4. Depersonalize your space

The next step on your checklist for selling a house? Sellers should remove any distractions so the buyers can visualize themselves and their family living in the property, says Kipton Cronkite, a real estate agent with Douglas Elliman in New York.

He says sellers should remove personal items and family photos, as well as bold artwork and furniture that might make the home less appealing to the general public. The goal is to create a blank canvas on which buyers can project their own visions of living there, and loving it.

5. Repaint walls to neutral tones

You might love that orange accent wall, but if it’s your potential buyer’s least favorite color, that could be a turnoff, warns Sharapan Fabrikant.

“You’re pretty safe with a neutral color because it’s rare that someone hates it, but the other benefit is that a light color allows [buyers] to envision what the walls would look like with the color of their choice,” he points out.

It’s the seller’s job to help buyers picture themselves in the house. If they don’t feel at home, they’ll probably look at other real estate options.

6. Touch up any scuff marks

Even if you’re not doing a full-on repainting project, pay special attention to scrubbing and then touching up baseboards, walls, and doors to make the house sparkle and look cared-for.

Selling almost any home can be tricky, but selling a home with lots of little problems and small repair needs can be downright difficult. When buyers walk into an open house, or go on a home tour, they want to fall in love with the house, not add a bunch of small repairs to their to-do list.

In order to impress buyers (and sell your house quickly), fix up your house before putting it on the market.

With a home that is fixed up and move-in ready, you will probably see more interest, and may even see multiple offers.

7. Fix any loose handles

It’s a small thing, sure, but you’d be surprised by the negative effect a loose handle or missing lightbulb can have on a buyer, notes Sharapan Fabrikant.

“It can make them stop and think ‘What else is broken here?’” he explains.

For a buyer, submitting an offer, and later committing to a mortgage, is a big deal. When you’re selling your home, you don’t want to give any buyers doubt that your house will make a great home.

8. Add some plants

When staging your house, remember that green is good: Plants create a bright and more welcoming environment. You might also want to consider a bouquet of flowers or bowl of fruit on the kitchen counter or dining table.

Some plants and natural elements will impress buyers by bringing some extra color and life to your decor.

9. Conduct a smell test

Foul odors, even slight ones, can be a deal breaker, and the problem is that you might not even notice them, says Sharapan Fabrikant.

He recommends inviting an unbiased third party in to try to detect any pet smells or lingering odors from your kitchen.

If the smells are pervasive, prepare to do some deep cleaning as many buyers are on to seller’s “masking techniques” such as candles or plug-in room deodorizers. Plus, covering up odors with a stronger scent might backfire if the buyer doesn’t like the smell of lavender or artificial citrus.

10. Clean, clean, clean

Once you’re done cleaning your house, clean some more. Even if you’re not worried about what buyers will think of your home’s scent, you want your property to look spotless.

Think of it this way: You’ll probably have professional photos taken of your house when it looks its best. Naturally, you’ll want your house to always look like it does in those pictures.

When selling your home, it’s important to keep everything tidy for buyers, and you never know when a buyer is going to want to schedule a last-minute tour. Remember to take special care with the bathroom, making sure the tile, counters, shower, and floors shine.

11. Hide valuables

From art to jewelry, keep your treasures are out of sight, either locked up or stored off-site, recommends Kronkite.

You can’t trust everyone who comes into your house, even when you’re trying to sell it. Sometimes things disappear during an open house, and there’s little the seller can do to get those things back. Take care to hide your valuables or move them to a safe space away from your home.

12. Consider staging

Does your house scream 1985? Nothing invigorates a house like some new furnishings or a perfectly chosen mirror. The key is getting your home staged by a professional.

Home stagers will evaluate the current condition and belongings in your house and determine what elements might raise the bar. They might recommend you buy or rent some items, or they might just reorganize your knickknacks and bookshelves in a whole new (that is, better) way.

Stagers know the real estate market, and what sells, so it’s important to take their advice and not take offense when they make big changes. Their job is to help drum up interest from potential buyers, which is always good news to the seller.

Cathie Ericson writes about real estate, finance, and health. She lives in Portland, OR.

TwitterFollow @CathieEricson.

For the original article visit Realtor.com

Home Appraisals 101: 5 Things Appraisers Wish Sellers Knew

Home appraisals are a piece of the selling process where you may have to let go of the reins. Lenders often require the use of their own, FHA-approved home appraiser. That means you get zero say in who’s determining the financial value of the home you’ve lived in, loved, and sunk your savings into.

Here are some things sellers can do—straight from the home appraisers’ mouths—to navigate the process of home appraisals.

Keep in mind that home appraisers aren’t magicians

The appraiser won’t know what your home is worth the second they walk in the door because home appraisals aren’t magic.

“People think we know the value of the property as soon as we see it,” says Michael Coyle, the founder of The Coyle Group in Lafayette Hill, PA.

That’s simply not the case. A good understanding of the home appraisal process will go a long way toward comprehending how your home’s value is determined.

First, a home appraiser will pull comparable listings (called “comps”) from the nearby area. These are homes similar in style, location, and square footage sold within the past few years. Then, they will come by your house to determine its condition and quality, as well as any other factors that would affect the cost of the home, and use that information — along with the comps — to make an accurate assessment.

This usually takes at least a few days — and definitely more than a few hours.

Prep your space — and its occupants for the home appraisals

No, the home appraiser isn’t coming by to judge the cleanliness of your homestead — but it’s still good form to declutter, dust, and mop beforehand to show your home in its best light, according to appraiser Adam Wiener, the founder of Aladdin Appraisal in Auburndale, MA.

Home appraisals won’t typically devalue your home because it’s messy—but a neat, organized home might help you.

“Even if they’re not consciously aware of it, the appraiser might value (a messy home) a little lower,” Wiener says.

Also, make sure the occupants of your home are prepared for the appraiser’s arrival, including teenagers who tend to stay holed up in their rooms.

“And make sure everyone’s clothed,” Coyle adds. “Sometimes, they forget to tell the teenager.”

Get your paperwork in order before home appraisals

Before any and all home appraisals, gather all the information you have about the house and send it over. Most appraisers will ask for this upfront, either directly or through the lender or broker.

Coyle recommends having on hand a list of major improvements as well as detailed info about the age and condition of the roof, HVAC systems, and major appliances. For any DIY projects, make sure you have the original permits.

“My favorite customers are the ones who have all the information ready for me,” he says.

There’s nothing worse than an appraiser pulling comps for a 1,200-square-foot 1920s Cape Cod–style house, only to realize on the day of appraisal that your primary bedroom addition adds an additional 500 square feet.

When that happens “none of my comps are any good and my values are off,” Wiener says.

And that means more work—and more time before a final assessment can be reached.

So go the full-disclosure route.

“Hand it to them on a silver platter: Here’s my neat, gorgeous house, shown in its best light and all the things that are awesome about it,” Wiener says.

Don’t put too much stock in home improvements

We’re sure your brand-new kitchen is stunning but don’t be surprised if it doesn’t proportionally raise your home’s market value when it comes to the home appraisals.

Home appraisers stress moderation in assuming how much your shiny, brand-new kitchen will add directly to the worth of your house. If you spent $50,000, you’re likely to see only a fraction of that returned in value. That goes double for a new pool, which “does not bring as much value as people think,” Coyle says. (This might vary if you live in a hot climate where pools are near expected.)

As for your finished basement: Sorry, but that’s even less help. Most home appraisers use ANSI standards for measuring the square footage of a home, which excludes any rooms below grade. That doesn’t mean your basement has no value, but it doesn’t technically add space.

If you’re thinking about adding a feature to your home before you have it appraised, ask your real estate agent if it’s worth the cost. Here’s how to find a real estate agent in your area.

Don’t engage in listing ‘puffery’

Before listing, make sure you and your agent take a realistic look at what your home actually offers. Are you including the basement square footage in the total? Are you hoping no one will notice your roof isn’t new? Preparing yourself ahead of time with a pragmatic estimate will ease the appraisal process.

And above all else, make sure not to fudge the numbers.

“There’s an epidemic of puffery,” Wiener says.

This is particularly rampant in areas where the assessor’s information isn’t accessible online. When you know potential buyers have to actually, gasp, go in person to look up the sketches, it might be a lot more tempting to pad some square footage here and there.

After all, who will notice?

Here’s who: Your appraiser—who’s happy to go to the office and pull 20 or 30 comps. And they won’t be fooled.

Jamie Wiebe writes about home design and real estate for realtor.com. She has previously written for House Beautiful, Elle Decor, Real Simple, Veranda, and more.

For the original article, visit Realtor.com

ON THE HOUSE: 10 WAYS TO SAVE MONEY ON BUYING A HOME TODAY

How can first-time homebuyers save money when mortgage rates are at 20-year highs and home prices are rising again?

There’s no doubt that buying a home today is expensive. Mortgage rates are above 7%, home prices have begun climbing again, and bidding wars are back.

But for first-time buyers who are determined to become homeowners, there are a few ways to cut costs and lower mortgage payments. Some require a bit of creative thinking; others may take some perseverance.

Below are 10 tips to save money when purchasing a home in today’s crazily expensive market.

1. Improve your credit score and pay down old debt

Paying off old debt might not seem like a way to save money, but hear me out. Lenders are less worried about borrowers defaulting on their loans if they have a proven track record of paying off their debt on time.

So borrowers with higher credit scores can usually snag lower mortgage rates and fewer fees on their loans.

This is where the savings can add up. Upfront fees on a loan can total thousands of dollars at closing—and higher mortgage rates have the potential to add tens of thousands of dollars over the life of a 30-year loan.

Plus, those with less debt can often qualify for larger loans.

2. Shop around for a mortgage

Make lenders compete for your business. Many buyers think they’re stuck with the lender that wrote them their loan pre-approval letter. Or they believe all lenders charge the same amount. That’s simply not true.

You can save tens of thousands of dollars over the life of your loan by making lenders compete over your business. With fewer borrowers seeking loans due to the higher mortgage rates, lenders may be more amenable to giving you a break.

And if you get a better offer from one lender but would prefer to use another, you can always see if your mortgage company of choice will match the better offer. This is how I snagged a lower mortgage rate, without buying points, and had fees waived when I bought a home two years ago.

3. Consider a FHA loan

Federal Housing Administration loans have long been popular with first-time buyers who can’t make large down payments. Borrowers can put down as little as 3.5% of the purchase price of their home with these loans. Plus, they can often get lower mortgage rates than those making a 20% down payment with a conventional loan.

However, there are a few downsides to this loan. Borrowers typically have to pay private mortgage insurance on their loans every month until they reach 20% equity in their home.

In addition, homes purchased with these loans must go through a thorough inspection and may require the seller to make repairs before the loan is approved. There are also limits on how much buyers can borrow. Plus, borrowers typically must have at least a 580 credit score to qualify for putting just 3.5% down.

4. Snag a VA or USDA loan

You can buy a home with 0% down—if you can qualify for one of these loans.

Activity-duty military personnel, veterans, their spouses, and those purchasing homes in rural areas can often qualify for a Veterans Affairs or U.S. Department of Agriculture mortgage where buyers don’t have to put anything down.

Bonus: These loans often come with lower mortgage rates, and VA loans typically don’t require private mortgage insurance.

5. Choose a 15-year mortgage

Choosing a 15-year mortgage can save you quite a bit of money over the long term, but buyers should anticipate higher monthly payments over the short term.

Mortgage rates are generally much lower on these loans than for a 30-year fixed-rate mortgage. You also pay the home off in half of the time. But since you’re paying it off earlier, your monthly payments can be much larger.

6. Buy mortgage points

Purchasing mortgage points from your lender can cost you more upfront when you take out a loan. But it can lower your mortgage payments permanently, saving you quite a bit of money each month.

Typically, points are sold in 0.25% increments. They generally cost about 1% of the full amount of the mortgage. So to bring your mortgage rate down by a quarter of a percentage, you would pay $4,500 on a $450,000 loan.

Make sure you plan on staying in your home for a while before purchasing points. It might not make much financial sense if you plan to sell in just a few years.

7. Shop for new construction

Look beyond the sticker price when considering buying new construction. Even if the purchase price is higher than a similarly sized home on the resale market, buyers might wind up with lower monthly mortgage payments than if they had purchased an older residence.

Many builders are buying mortgage rates down either permanently or through temporary 3-2-1 or 2-1 buy-downs. The larger, national builders often have lending arms that make it easier to provide those mortgage savings to buyers. Even smaller builders might offer similar incentives to attract buyers.

In addition, new construction isn’t as costly as many buyers believe. Many of the larger builders today are striving to put up smaller, more affordable homes. That’s helped to narrow the gap in prices.

In July, there was only a $30,000 difference between the median price of a typical new home, at $436,700, and an existing one, at $406,700, according to government and National Association of Realtors® data.

8. Seek out down payment assistance programs

This is one of my favorite tips because everyone loves free money! There are more than 2,000 down payment assistance programs available across the country for all first-time and even repeat buyers who qualify.

These programs provide assistance to buyers based on their annual incomes, professions, military service, racial backgrounds, disabilities, and where they are looking for homes, among other qualifications.

(Buyers can see what they might be eligible for here.)

9. Look at the homes that no one wants

Most buyers want a cute, turnkey home with a nicely landscaped yard. But they might be missing the potential of an attractively priced fixer-upper or a home that’s been sitting on the market for a while with a discounted price tag.

Homes become stigmatized in the minds of some buyers if they’re on the market for long periods or if deals fall through. But that might not be the fault of the seller or indicate something wrong with the property. It might be the buyer who was under contract couldn’t secure financing or changed their plans.

Other homes may not seem attractive in photos or in person, but they might just need a coat of paint and some minor cosmetic work to clean up nicely. And with all that money you’re saving on the purchase price, you might be able to turn these properties into some really special homes.

Just be sure to hire a home inspector and have a chat with a remodeler before you put in an offer so you understand the scale of the work that’s needed and how much it’s going to cost you.

10. Negotiate with sellers

Even in today’s competitive market, buyers can attempt to negotiate with sellers. Nothing ventured, nothing gained.

Now, this probably won’t work for well-priced homes oozing curb appeal in the most desirable neighborhoods. But sellers of homes that have been sitting on the market for a while, homes that need some work, or homes in less desirable locations mightº be willing to make a deal.

Some common things today’s buyers are asking for are for sellers to contribute to their closing costs, make pricey repairs, and temporarily buy down their mortgage rates for the first two or three years of their mortgage.

For this and related articles, please visit Realtor.com

The Perfect Home Could Be the One You Perfect After Buying

There’s no denying mortgage rates and home prices are higher now than they were last year and that’s impacting what you can afford. At the same time, there are still fewer homes available for sale than the norm. These are two of the biggest hurdles buyers are facing today. But there are ways to overcome these things and still make your dream of homeownership a reality.

As you set out to make a purchase this season, you’ll want to be strategic. This includes taking a close look at your wish list and considering what features you really need in your next home versus which ones are nice-to-have. This will help you avoid overextending your budget or limiting your pool of options too much because you’re searching for that perfect home.

Danielle Hale, Chief Economist at Realtor.com, explains:

“The key to making a good decision in this challenging housing market is to be laser focused on what you need now and in the years ahead, . . . Another key point is to avoid stretching your budget, as tempting as it may be . . .”

To help identify what you truly need, make a list of all the features you’ll want to see. From there, work to break those features into categories. Here’s a great way to organize your list:

• Must-Haves – If a house doesn’t have these features, it won’t work for you and your lifestyle (examples: distance from work or loved ones, number of bedrooms/bathrooms, etc.).

• Nice-To-Haves – These are features you’d love to have but can live without. Nice-to-haves aren’t dealbreakers, but if you find a home that hits all the must-haves and some of these, it’s a contender (examples: a second home office, a garage, etc.).

• Dream State – This is where you can really think big. Again, these aren’t features you’ll need, but if you find a home in your budget that has all the must-haves, most of the nice-to-haves, and any of these, it’s a clear winner (examples: a pool, multiple walk-in closets, etc.).

If you’re only willing to tour homes that have all of your dream features, you may be cutting down your options too much and making it harder on yourself (and your budget) than necessary.

While you’d love to have granite countertops or a pool in the backyard, those are both things you could potentially add after you move. Instead, it may be best to focus on finding the things that you can’t change (like location or a certain number of rooms). Then, you can upgrade or add some of the other features or finishes you want later on.

Sometimes the perfect home is the one you perfect after buying it.

Once you’ve categorized your list in a way that works for you, discuss your top priorities with your real estate agent. They’ll be able to help you refine the list further, coach you through the best way to stick to it, and find a home in your area that meets your top needs.

Bottom Line

With the current affordability challenges and limited housing supply, you’ll want to be strategic so you can find a home that meets your needs while staying within your budget. Connect with a real estate agent who can help make that possible.

To see the original article, visit Keeping Current Matters

10 THINGS MOST HOMEBUYERS GET WRONG ABOUT GETTING A MORTGAGE TODAY

While buying a home has always been a challenging milestone, today’s high interest rates have made this dream even harder to achieve.

Over the past two years, interest rates on home loans have nearly doubled from the 3% range to around 7% today. This tacks many hundreds extra onto the monthly expense of housing, stretching some homebuyers’ budgets to the breaking point. And while there are ways to lower those costs, navigating the home loan process is extremely complicated—particularly for first-time homebuyers.

“It’s very important for first-timers to do research and understand all their options before they start looking for a home,” says Cara Ameer, a real estate agent with Coldwell Banker who is licensed in California and Florida. “Doing your due diligence can help you avoid some of the most common rookie mistakes, so you come out not only with the home of your dreams, but also a mortgage you can afford.”

Here are some common blunders homebuyers make when attempting to secure a mortgage.

1. Focusing too much on the interest rate

Probably the most common mistake homebuyers make is simply assuming that the lower the interest rate, the better the deal. But what they might not realize is that to get an ultralow rate, there are often hidden fees—and those fees could mean they ultimately end up paying more.

“Many lenders, especially in more recent years, have started to charge hidden points in an effort to advertise a much lower mortgage rate to potential applicants,” warns Jason Gelios, author of “Think Like a Realtor” and a real estate agent with Community Choice Realty in South East Michigan.

“It’s great to have the most attractive rate, but if the lender has you paying junk fees to obtain that rate, it might not make sense,” he adds.

Mortgage points are a fee that lenders can charge to applicants to lower their interest rate through the life of the loan. This process is also known as “buying down the rate,” and the fee is paid to the lender as its own fee.

In other words, “buying down the rate” or “buying points” are just a fancy way of saying you’re paying more fees upfront to get a lower interest rate.

As a result, it’s important for mortgage seekers to ask for an estimate of all fees included in their mortgage offer, and not just the interest rate.

2. Assuming you need a 20% down payment

“There’s a common but detrimental misconception that’s causing some potential first-time owners to delay starting the homebuying process, and that is the belief that it still takes 20% down to buy,” says Cindy Allen, veteran real estate agent and founder of DFWMoves in Southlake, TX.

In reality, according to a new study from Self Financial, the average down payment needed in the U.S. for first-time buyers is $12,274 (around 6%), in addition to $1,983 in closing costs.

“Fannie Mae has had a 3% down, first-time homebuyer mortgage for years now, which competes with FHA’s 3.5% down,” says Yifan Zhang, CEO of the host-to-own homebuying program Loftium. “The only difference is that home prices have risen so much recently that these programs are probably more popular now.”

However, keep in mind that you will have to pay private mortgage insurance if you put less than 20% down, which increases your monthly payments.

3. Assuming you can get a loan instantly

Many borrowers assume that in today’s instant-gratification culture, they can get a mortgage in days or even minutes. Not so.

“Even the mortgage lenders with splashy apps and websites still may need a phone call, manual document collection, or other time-consuming steps,” says Zhang.

In fact, many home tours might be off-limits until you’ve been vetted by a lender.

“Buyers may not be able to even see a home without providing a copy of their pre-approval letter just to schedule an appointment,” says Ameer. “Many listing agents are requiring that, no matter the price range. This is no longer just for high-end properties.”

4. Thinking pre-qualification means you’re approved for the loan

While getting pre-qualified for a loan is a good first step, it does not mean you’re guaranteed the money. Pre-approval is better because it means lenders have reviewed your finances.

In the past, pre-approval was typically enough to pass muster. In today’s ultracompetitive market, however, you might want to get fully approved from the get-go before you make an offer.

“Full approval means the buyer has been underwritten prior to making an offer—they have submitted all of their required documents, the lender has reviewed it and been able to vet them to basically say they are solid and just need to get an accepted offer on a property for the loan to go through,” says Ameer.

Being fully approved also allows buyers to close the deal in a much shorter time—two to three weeks in most cases.

This can give buyers the edge, as Ameer points out, “given today’s tight market with low inventory. Listing agents are going to recommend their seller ask for shorter time periods for loan approval.”

5. Not considering first-time homebuyer programs

Newbies who feel overwhelmed by the financial barriers to homeownership might be pleasantly surprised to learn that there are first-time homebuyer programs to help them get over the hump.

“You can find programs that offer help with closing costs and down payments, lower interest rates, and even tax credits to free up some of your savings,” says Allen. “And if you’re a first responder or educator, active-duty military or veteran, there are often special programs available for you, too.”

For example, Allen says just this past January she was involved in a $352,000 transaction where the buyers were granted over $6,000 toward closing costs and escrow through a first-time buyer program. They were then able to use the $6,000 they saved as additional down payment funds.

6. Failing to check your credit score

You really need to check your credit score prior to talking to mortgage lenders because ultimately, this number—which represents how well you’ve paid off past debts—will affect the interest rate you’re offered.

“Not tackling easy options for improving your credit score before taking out a mortgage is a big mistake for first-time homebuyers,” says Zhang. “Today, there are tons of credit improvement tools you can use to quickly and easily tackle your credit. Even just paying off a credit card can bump you into a higher credit category and save you hundreds each month on your mortgage.”

At the very least, make sure you know what your score is by checking it with CreditKarma.com or one of the top three ratings bureaus: TransUnion, Experian, and Equifax.

7. Picking the wrong type of loan

Are you better off going with an FHA, VA, or USDA loan or some other type entirely? Don’t know what these acronyms mean? There are many types of mortgages available, each with its own pros and cons based on your own personal circumstances.

“Know your loan options because an inexperienced loan representative may not know all the available programs or may not present all the possibilities,” says attorney Bruce Ailion, a real estate agent with Re/Max Town & Country, Atlanta. “Learn about the types of loans before talking with a professional to know the right questions to ask.”

8. Underestimating fees beyond the down payment

The down payment is not the only cost you’ll have when buying a home and securing a mortgage.

“People talk about the down payment required but rarely talk about the ancillary costs required for purchasing a home like closing costs, title, appraisal, and first-year homeowners insurance upfront,” says Nicole Rueth, senior vice president and producing branch manager, The Rueth Team of Fairway Independent Mortgage Corp. “It’s a mistake not to factor these in, because they can add up to an additional $5,000 to $12,000 down.”

9. Not preparing for the possibility of a low appraisal

Before lenders front the money for a house, they will have an independent home appraiser estimate its value. Many first-time buyers don’t realize that with listing prices so high, it’s entirely possible that their appraisal will come in lower, which means the lender will loan only that much.

“Given the rapidly rising asking prices and multiple-offer scenarios going on, it is quite possible that a property may not appraise at the agreed upon contract sales price. But a bank is only going to base their loan amount off of the appraised price, not what a buyer and seller agreed to pay,” says Ameer. “Buyers may not be able to come up with the cash to cover the difference between the appraised value and the contract sales price, so only offer what you know you can cover out of pocket should that happen.”

10. Not shopping around for the right lender

Not all lenders are created equal and work the same way. That’s why you really should shop around and find someone you trust who will pick up the phone when you call.

“In today’s market, it is imperative that you work with someone reputable who is reachable by cellphone seven days a week, because various questions and scenarios will come up as you embark on your property search and you may need some guidance that is crucial to having the winning offer,” says Ameer. “These situations often happen outside of typical office hours.”

This is one reason real estate agents typically prefer to use local lenders because they are accessible and reliable.

“Local lenders have a proven track record to maintain and value not just the client but the Realtor relationships they work hard to create,” says Kim Jungles, a loan officer with Atlantic Coast Mortgage in Ashburn, VA. “Online lenders for the most part are very difficult to speak with, let alone be available to write a pre-approval letter after 5 p.m. on Friday.”

For this and similar articles, please visit Realtor.com