Real estate blog entries tagged with home buying by Bob Elliot, 20+ Yrs Industry Experience (eXp Realty)

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home buying: What Does Contingent Mean on a House Sale - 09/26/23 08:35 AM

In the context of a house sale, "contingent" typically means that the sale of the house is dependent on certain conditions being met. These conditions could include things like the buyer securing financing, the completion of a home inspection, or the sale of the buyer's current home.
For example, if a buyer makes an offer on a house and the offer is accepted by the seller, the sale may be contingent on the buyer obtaining financing within a specified period of time. If the buyer is unable to obtain financing, the sale may fall through.
Another common contingency is a home inspection. If … (4 comments)

home buying: Understanding the Differences Between Prequalified & Preapproved - 09/19/23 08:21 AM

Are you in the market for a new home? If you are going to rely on mortgage financing to cover some of the purchase cost, you will need to start the application process as soon as possible. However, what if you just need to know how much you will be able to borrow so you can start finding homes in your price range?
Let's take a quick look at the difference between being 'prequalified' and 'preapproved' for mortgage financing.
The Process Starts With Prequalification
The first step in obtaining mortgage financing is to speak with a mortgage professional to get prequalified. After sharing some … (5 comments)

home buying: Does Your Homeowner's Insurance Policy Cover Storm Damage? - 09/11/23 08:24 AM

If you own a home, you must make sure it is properly protected. Hazards can change throughout the year, and one of the biggest threats during the spring is the arrival of frequent thunderstorms. If your home is damaged by a severe storm, it might be covered by your homeowner's insurance policy. You need to take a closer look at your policy to see if you have the right coverage.
An Overview Of Home Insurance
An insurance policy is supposed to protect you against potentially severe financial consequences. For example, if your home is damaged, the repair bills could be tens of thousands … (2 comments)

home buying: What Are The Pros And Cons Of 'No-Deposit' Mortgage Deals For FTHBs? - 08/28/23 10:23 AM

"No-deposit" mortgage deals for first-time buyers refer to mortgage options that allow buyers to purchase a home without having to put down a deposit or a down payment. Here are the pros and cons of such deals:
Pros:
Lower upfront costs: The most significant advantage of a no-deposit mortgage is that it eliminates the need for a substantial upfront deposit. This can be beneficial for first-time buyers who may struggle to save a large sum of money for a deposit. It allows them to enter the property market sooner.
Increased affordability: With a no-deposit mortgage, first-time buyers can purchase a home with a smaller … (1 comments)

home buying: Avoiding Becoming House Poor: A Path to Financial Security & Balance - 08/18/23 04:36 PM

As the housing market continues to evolve, it becomes increasingly crucial for aspiring homeowners to tread carefully and avoid falling into the trap of being house poor. The dream of owning a home should not come at the expense of financial stability and overall well-being. Here are some essential tips to steer clear of this precarious situation:
Setting a Sensible Budget:
Before even considering purchasing a house, it's imperative to create a comprehensive budget that includes all your income, expenses, and financial goals. Be honest with yourself about what you can afford, considering not only the mortgage but also property taxes, insurance, utilities, … (2 comments)

home buying: Financial Considerations When Buying a Home - 07/25/23 05:28 PM

Purchasing a home is one of the most significant financial decisions many individuals make in their lifetime. It involves a substantial investment of money and requires careful consideration to ensure long-term financial stability. To navigate the complexities of the home-buying process, it's essential to be well-informed about the various financial considerations involved. In this blog post, we will explore key factors to consider when buying a home to help you make informed decisions and achieve financial success.
Establishing a Realistic Budget:
Before diving into the home-buying process, it's crucial to establish a realistic budget based on your financial situation. Consider factors such as … (3 comments)

home buying: What is a Home Warranty? - 07/24/23 08:36 AM

A home warranty is a type of service contract that provides coverage for repairs or replacements of major systems and appliances in a home. It typically covers items such as heating and cooling systems, electrical systems, plumbing, water heaters, and kitchen appliances.
Home warranties are purchased by homeowners to protect against unexpected expenses for repairs or replacements that may occur due to normal wear and tear.
When a covered item breaks down, the homeowner can contact the home warranty company, which will send a qualified technician to diagnose and repair the issue. If the item cannot be repaired, the home warranty company will … (3 comments)

home buying: What to Do When the Home Appraisal Falls Short - 07/17/23 09:56 AM

When buying or selling a property, one crucial step in the process is obtaining an appraisal to determine its value. Appraisals provide an objective assessment of a property's worth, influencing important decisions such as mortgage approvals, negotiations, and even insurance premiums.
However, there are instances when the appraisal falls short, causing challenges and uncertainties for both buyers and sellers. In this blog post, we will explore what to do when faced with an insufficient property appraisal and provide some practical steps to navigate this situation.
Understand the Appraisal Process:
Appraisals are typically conducted by licensed professionals who evaluate various factors, such as the … (2 comments)

home buying: What's Ahead For Mortgage Rates This Week - July 17, 2023 - 07/17/23 09:52 AM

Last week’s economic reporting included readings on month-to-month and year-over-year inflation and consumer sentiment. Weekly readings on mortgage rates and jobless claims were also published.
Month-to-Month Inflation Rises as Year-Over-Year Inflation Slows
The Consumer Price Index for June rose 0.20 percent in June as compared to May’s reading of 0.10 percent growth and expectations of 0.30 percent month-to-month growth. The core CPI reading, which excludes volatile food and fuel sectors, fell to 0.20 percent growth in June as compared to May’s month-to-month reading of 0.40 percent growth.
The year-over-year reading for the Consumer Price Index in June slowed to 3.00 percent growth as compared … (1 comments)

home buying: How Long Does It Take to Get a Mortgage Approval? - 07/12/23 11:15 AM

When you're in the process of buying a home, one of the most important steps is obtaining a mortgage approval. This approval signifies that a lender is willing to offer you a loan to finance your dream home. The timeline for getting a mortgage approval can vary depending on several factors.
Initial Preparations:
Before you start the mortgage approval process, it's crucial to gather all the necessary documentation. This typically includes proof of income, employment history, bank statements, tax returns, and details about your assets and liabilities.
Application Submission:
Once you have your documents ready, you'll need to submit a mortgage application to the lender. … (2 comments)

home buying: The Impact of Your Employment History on Mortgage Approval - 07/12/23 10:56 AM

When it comes to applying for a mortgage, lenders take various factors into account to determine your eligibility. One crucial aspect they consider is your employment history. Your employment history provides lenders with valuable insights into your financial stability, income consistency, and ability to repay the loan.
Lenders evaluate your income consistency to ensure that you have a reliable source of funds to cover your mortgage payments. They typically request pay stubs, W-2 forms, and tax returns to verify your income. If you have been in the same job or industry for a considerable period and have a consistent or increasing income, … (1 comments)

home buying: What's Ahead For Mortgage Rates This Week - July 10, 2023 - 07/10/23 06:22 AM

Last week’s scheduled economic reporting included readings on construction spending, June’s FOMC meeting minutes, and reports on jobs and the national unemployment rate. Weekly readings on mortgage rates and jobless claims were also released.
Construction Spending Increased in May
The Commerce Department reported spending for construction rose to 0.90 percent in May as compared to a month-to-month increase of 0.40 percent posted in April. The year-over-year reading showed $1.93 trillion in construction spending in May. April’s data was revised downward from the original reading of 1.20 percent growth to 0.40 percent growth in construction spending.
Readings for construction spending include all phases of … (2 comments)

home buying: How To Beat High Inflation with a Home Purchase - 07/07/23 08:53 AM

Inflation can erode the value of your savings over time, and one way to hedge against inflation is by investing in assets that appreciate in value over time. Real estate is often considered a good hedge against inflation, as property values tend to rise in line with inflation.
Here are some ways a home purchase can help beat high inflation:
Lock in a low-interest rate mortgage: High inflation often leads to higher interest rates, but if you lock in a low-interest rate mortgage when inflation is low, you can benefit from lower mortgage payments even if interest rates rise in the future. This … (5 comments)

home buying: What to Look For During Your Home Inspection - 07/03/23 10:21 AM

Buying a new home is an exciting and significant milestone in anyone's life. However, it's essential to approach the homebuying process with caution and thoroughness to ensure that you're making a sound investment. One crucial step in the homebuying journey is the home inspection. A home inspection is a comprehensive evaluation of a property's condition, aiming to uncover any potential issues or concerns that could affect its value or safety. Below are some tips to remember when navigating a home inspection.
Roof and Exterior:
The roof is your home's first line of defense against the elements, so it's crucial to examine it closely. … (4 comments)

home buying: How to Calculate Mortgage Payments - 06/26/23 06:22 AM

Calculating mortgage payments involves several variables, including the loan amount, the interest rate, and the loan term. Here are the steps to calculate mortgage payments:
Determine the loan amount: This is the amount you will borrow to purchase the property. For example, if you plan to buy a house for $300,000 and you plan to put down a 20% down payment ($60,000), your loan amount will be $240,000.
Determine the interest rate: The interest rate is the cost of borrowing the money. It is expressed as a percentage. For example, if the interest rate is 4%, you will pay 4% of the loan … (2 comments)

home buying: How Do You Make A Household Budget - 06/16/23 06:51 AM

Creating a household budget can be a helpful way to track your spending and ensure you are meeting your financial goals. You will need to examine your fixed expenses that are the same each month, such as rent or car payments and your variable expenses that change each month, such as groceries or entertainment. Dealing with debt can be challenging but incorporating it into your budgeting strategy can help you regain control of your finances. Here are some steps you can take to effectively manage your debt while budgeting:
Assess your debt: Begin by gathering all your debt information, including outstanding … (3 comments)

home buying: Buying in a New Community - 06/12/23 07:04 AM

One of the stresses of moving to a new area is giving up the familiarity that you have with your old neighbors and starting from scratch. Whether you've just moved to a different locale or you're planning to relocate in the near future, there are some easy ways that you can make a home of your new neighborhood right from the start.
Stand Up and Smile
While there are neighborhoods where people are definitely friendlier than others, by making your presence positively known you can make an instant impression on those that live around you. When you're walking around the neighborhood, make sure … (2 comments)

home buying: What You Need To Know About Your Home Appraisal and Mortgage - 06/07/23 08:07 AM

When buying a home, there are certain steps a buyer should go through before the home sale is official. First the buyer makes the offer, then the offer is accepted.
Next the buyer schedules the inspection and home appraisal. Finally, everyone is ready for closing.
It’s easy to overlook the impact of some of these steps, but when it comes to a mortgage, the home appraisal is actually quite important. Banks want to see that they are lending money for an investment that is worthwhile, so that appraisal is a crucial step to getting financing. Here is what buyers need to know … (1 comments)

home buying: Basic Interest Rates Difference Between Fixed and Variable - 05/26/23 08:08 AM

Home loans are available in an assortment of lending packages, but the big difference that consumers need to pay attention to at a minimum is how the interest charge is calculated. Interest is the margin that represents the profit and risk offset for a lender financing a consumer's home purchase.
With loans lasting over 30 to 40 years now, the amount of money that can be made can be two or three times the purchase value of the home involved. So it's calculation method is important for the borrower.
A Fixed Rate
A fixed rated is one where the home loan interest rate … (1 comments)

home buying: Running A Quick Financial Health Check Before Applying For A Mortgage - 05/26/23 07:49 AM

Getting a mortgage is a significant financial decision, and it is crucial to ensure that you are financially prepared before applying for one. Conducting a quick financial health check before applying for a mortgage can help you determine your financial standing and your ability to afford a mortgage payment.
Here are some reasons why you should consider conducting a quick financial health check before applying for a mortgage:
Check your credit score: Your credit score is an important factor that lenders consider when deciding whether to approve your mortgage application. Check your credit score to see where you stand and take steps … (1 comments)

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