Important Things to Check When Buying a Home

Important Things to Check When Buying a Home

Buying a home is exciting…but it can be overwhelming as well! Through all the excitement and necessary steps towards closing on your new home, you may not be focusing on the little things. Some of these “little” things can cause big problems and cost big money.  Here’s some helpful tips to remember while you’re house hunting.

    • Turn On The Air Conditioner/Heater: As we all know Arizona gets hot! When the triple digits are upon us, you do not want to find out your A/C only blows hot air! Make sure to turn on the A/C to ensure it works properly and blows cold air. Make sure the heater blows warm air as well. Making sure your air conditioner and heater work sufficiently before closing, can save you thousands of dollars.
    • Open The Electrical Box: Locate the homes electrical panel, open it and inspect it for any loose wires. A good electrical box should be labeled properly with no disconnected or loose wires. If you notice loose, disconnected wires or a mess of wires you might find bigger problems. There could be an electrical short or a live wire somewhere within the home.
    • Check All Drains: Checking all drains to ensure there’s no severe blockage along your pipes is beneficial. Not only do little kids like testing out toilets, by seeing how many times their toy will go round before it disappears, trees and roots can cause big problems. Though plumbers are available, you can save yourself time and money by knowing they drain adequately. When checking the kitchen drain, check for a disposal and ensure it works as well.
    • Turn On Faucets: Faucets are not an expensive item to replace, but laying under a sink in a cabinet isn’t much fun! Checking that all faucets work properly saves time and your back!
    • Taste The Water: If you do not plan on adding a reverse osmosis, purifying or water filtering system, you will want to make sure that your water tastes good. Though your city might offer great water, your pipes may add a little extra flavor. If your water is not as refreshing as you hoped, at least you’ll know what added costs will be needed to get that thirst quenching water!
    • Flush The Toilets: Toilets that flush properly, are toilets that are doing their job right!
    • Open All The Windows: You’ll want to make sure the windows open properly and are not stuck or broken. Replacing windows is not cheap or fun!
    • Pull Back The Carpet: Find a corner and pull back a corner of carpet to inspect the floors underneath. Though mold and mildew isn’t a huge problem here in Arizona it’s still a good idea to check for it. You can also find out if hardwood floors are hidden under there.
    • Open Garage Doors: Garage repairs can cost only a few dollars to hundreds of dollars depending on what is wrong. Having to buy batteries for a remote is no big deal, having to spend hundreds for a full replacement is a big deal! Save yourself the trouble by making sure the home’s garage goes up and down with no issues.
    • Talk To Neighbors: It’s always a good idea to briefly meet with neighbors. Not only will you find out if your neighbor is a total grump, you can learn more about the home and area. Though your Realtor knows the area you’re looking at, finding out info about the home and area firsthand is always great idea.

Even though you will most likely want to make small cosmetic changes to your home, it’s always best avoiding costly repairs. By avoiding costly repairs, you’ll have more money in your pocket for that new chandelier that would be absolutely beautiful hanging in the entryway to your new home!

Have any tips you would like to share, please leave us a comment!

What to Do if You are Declined – and How to Get Second Opinion

Denied Loan ApplicationIf you have been declined for a mortgage, you may think that buying that new home is out of reach. However, there are ways to turn a rejection into an approval and to find a more accessible loan. Here are just a few steps you can take to learn about your loan options and get the mortgage that works for you.

Find Out Why The Mortgage Application Was Denied

The first step to getting a second opinion is to find out why your mortgage application was denied. Banks commonly deny mortgages for reasons like a low credit score, a high debt-to-income ratio, or concerns about the applicant’s past and present employment status.

To qualify for a mortgage, most lenders want to see someone with a credit score of 640, a debt-to-income ratio of less than 43 percent after the mortgage is included and at least 30 days in your current position if using wage income to qualify for the loan.

Not All Lenders View An Application The Same Way

A good reason why it is worthwhile to ask for a second opinion about your ability to get a loan is because no two lenders will view an application the same way. For one lender, a credit score of 650 is insufficient for getting a loan – but another lender might be more than happy to offer you a mortgage with a score of 650. To get a second opinion, you may wish to talk to a mortgage broker who will be able to scan a variety of loan programs to find one that works for you.

There Are Ways To Find Down Payment And Closing Cost Assistance

Those who have a low credit score or other questionable metrics may be able to qualify for a loan by offering a larger down payment. While a first-time buyer may not have the cash on hand to make a larger payment, there may be programs that provide grants or low-interest loans that can be used as part of your down payment or to help pay closing costs. With this extra money, it may be possible to overcome lender objections and obtain a mortgage.

If your mortgage application has been rejected, it doesn’t mean that you can’t get a mortgage from another lender. If you’re ready to buy a house but just need to clear the mortgage approval hurdle, there are ways to get a leg up. Contact the Preferred Lending Team of Diane Barnes and Polly Brown at The Partners Team.

How to Calm Your Nerves Before Committing to Buy a New Home

buyingWhether this is your first big purchase, or your family is moving to a new location or looking for more space, buying a home has its share of ups and downs.

It’s perfectly normal to feel anxious about whether or not you’ve found the right property. Here are some things you can do to make yourself feel more secure with your decision.

Do The Math

You’ve probably already done this, but it’s okay to go over it a number of times to be sure. Factor in your household income and all the bills you expect to pay every month. Add everything up.

It sounds like a stressful activity, but when you look at the numbers and realize that buying a home is actually doable, it can be a liberating feeling.

When you know for sure you can make it as a homeowner without getting underwater, you will feel more confident.

Meet The Neighbors

If you haven’t had the chance to knock on a couple of doors yet, you should spend some time saying hello to people in the neighborhood.

The more you can get to talking with families that are just like yours, the more you will be able to picture yourself as a member of the community. If you have kids, find out if there are other kids the same age nearby. That will help to ease their anxiety about moving as well.

Ask Your Agent

Don’t feel like you are being overly cautious if you ask your real estate agent your lingering questions. Make sure you’re getting a good price for the area, and make sure you know about any issues with the condition of the property. You should be able to trust that they’re excited for your decision, not just for making the sale.

Familiarize Yourself With The Neighborhood

Take a drive and figure out which stores you’re nearest to, the route you can take to get to work, and which other amenities you might take advantage of. Home buyers often underestimate how important living in a safe neighborhood with plenty of accessible businesses can be. The more you can imagine yourself living at your new address, the better you will feel.

Remember, never sign the papers on a new home unless you feel one hundred percent secure in your buying decision. If you need more answers, pick up the phone and call a real estate agent you can trust and who can walk you through every step of the process. For more information, contact The Partners Team of ReMax Professionals in Sun City AZ

The ‘Must Have’ List: Why Deciding Your Must-Haves Before Viewing Homes

Knowing what you want before you start looking is a big help when house-hunting. Giving the list of ‘must-have’ items to your real estate professional a few days before you begin touring listings is a great idea because they can find homes that meet as many of your criteria as possible.

It also helps on a more personal level, since being organized and knowing what you want will help you quickly identify whether or not homes meet those standards.

Is it a ‘Must-Have’ or a ‘Nice-to-Have’?

The debate between “I need it” and “I want it” is as old as time. Thinking back to childhood, when the desire for a cookie was met with mom’s stern “not before dinner,” some children seem to develop a magical ability for reasoning that voiced a desperate need for cookies before dinner, but mom was never fooled. The same goes for the ‘must-have’ list for your home search.

There are items that you want and certain ‘deal breakers’ that you cannot live without. An absolute ‘must-have’ might be proximity to work or certain schools, whereas desirable features could include a shed or a built-in barbeque pit. Knowing the difference between something you want and something that is absolutely required can save you a lot of time and money.

How to Organize an Effective List

Write down everything your dream home would have, then ask yourself how necessary each item is. Rate them by priority, whether an absolute requirement, something you would definitely prefer, something for which you would consider a compromise, and something that you don’t really care that strongly about. That first group is your ‘must-have’ list. The second is your ‘nice-to-have’ list, which is a great guiding star for choosing between homes that meet all of your ‘must-have’ items.

Some Suggestions for a Great List

Location, location, location – The top of any good ‘must-have’ list should be location. No matter what else is changed in a home, the location will always remain a constant. Decide what you want to be close to or far away from and make sure the grounds and neighborhood are all acceptable.

Bedrooms and bathrooms – Does everyone need their own room? Do you need a guest room? Could everyone share one bathroom? Ask yourself what you need at a minimum to facilitate everyone in your home.

Energy-efficient windows and good insulation – It may seem technical, but an energy efficient home can save you a lot of money in the long run. Don’t let money seep through a poorly insulated home.

Space for pets – Not everyone has pets, but for those who do it is a good idea to think of them in your ‘must-have’ list. After all, your new home is going to be Fido’s new home too! A fenced yard or a dog run might be a good idea, but also consider whether the space would allow you to add your own later.

Myths About Buying Your Home That Just Aren’t True

first-time-homebuyersIt can be pretty intimidating to dip your toes into the realm of home ownership, especially if you’re a first-time home-buyer. To make things worse, there are a number of myths floating around out there surrounding the home buying process.

Such misconceptions have many kept many would-be homeowners from realizing the personal and financial rewards of owning a property. To clear things up, here are 4 myths about buying your first home that simply aren’t true.

Myth #1 – It’s Cheaper To Rent Instead Of Own

If you buy a property that is within your budget and your mortgage terms allow you to make comfortable monthly payments, the cost of rent can often be higher than mortgage payments.

Sure, there are other expenses associated with owning a property that you wouldn’t be responsible for if you were renting, but one thing that many people forget is the fact that renting does not allow you to build equity.

The ability to build equity into a property that you own is like paying into a savings account – if you buy a home for $200,000, and pay down your mortgage to $175,000 in 5 years, you’ll have $25,000 in home equity that can be tapped into later if you need a lump sum of cash to pay for other large expenses. If you sell your property down the line, any equity that the property has accumulated will provide you with more profit from the sale of the home.

Myth #2 – Whatever Shows Up On The Inspection Report Is The Seller’s Responsibility

Most offers on a home usually come with a home inspection condition that makes the offer contingent on the acceptance of a home inspection report by the buyer. Many buyers, however, are under the impression that sellers are responsible for any issues that show up on the inspection report.

Although the seller is required to make certain major repairs as stipulated by the lender, everything is still negotiable. A buyer may ask the seller to fix a minor crack in the basement wall or repair any scuff marks on the hardwood flooring, but the seller can essentially refuse, leaving the buyer with the decision of whether or not to continue with the offer anyway.

Myth #3 – The Perfect Home Is Out There – I Just Have To Wait For It

Buyers have a tendency to focus too much on all the little things that may be wrong about a house rather than on the majority of the things that are right. Homes are much like people – they aren’t perfect. Even brand new homes might have a few minor flaws.

The goal of a house hunt is to find the perfectly acceptable home – one that may have a couple of quirks that you can either live with or fix, but is otherwise ideal. An experienced buyer’s agent can help you identify issues that are deal-breakers, and help keep some perspective by separating irritating details from the big picture.

Myth #4 – I Don’t Need A Real Estate Agent To Buy A House

Without the proper team behind you – especially if you’re a first-time home-buyer – you could potentially find yourself in a compromised position. Many buyers don’t take the time necessary to shop for an agent who can best represent them in their purchase.

Think about it this way – would you perform surgery on yourself? Do you feel comfortable filing your own income taxes, or do you opt to use the services of an accountant? Being represented by a licensed real estate agent will give you the benefit of professional skills and knowledge, including the ability to find financing and close the deal with your best interests put first.

It’s always in your best interests to have an experienced, knowledgeable agent representing you in a home purchase. With such a major investment on the line, you want to have someone who can help you complete a purchase leaving no stone unturned, and ultimately saving you money – and a lot of headaches.

A professional real estate agent will be able to sort the myths from the reality and make your first home-buying experience a positive one. Contact us today for more information on how you can become the proud owner of your first home!