Posted by Paul Sian on Thursday, August 03, 2017 at 7:00 AMBy Paul Sian / August 3, 2017Comment
7 Smarts Things To Do Prior To Buying A Home
Owning a home is a long term commitment that takes proper planning and preparation in order to make sure homeownership is successful over the long term. The preparation period prior to purchasing a home is not short. Instead the preparation time can be many months or more in order to ensure that homebuyers are in the best situation possible to apply for a mortgage to buy a home. The tips in this article will help homebuyers navigate through the preparation phase so that they can get the best possible mortgage now and not worry about having to seek better terms or better interest rates later on down the line.
1. Pay Down Debt
Paying down debt is something everyone should be doing regardless of whether or not they want to buy a home. More importantly though future homebuyers can greatly benefit by paying down debt by being able to get better interest rates as well as better terms for mortgages. If a homebuyer has too high of a debt to income ratio then the amount the homebuyer will be pre-approved for will be lower than if they had fewer or no debts. At a certain point of debt to income ratio the homebuyer may not be able to qualify for a mortgage at all.
Posted by Paul Sian on Thursday, July 20, 2017 at 7:00 AMBy Paul Sian / July 20, 20172 Comments
Buying A Home With A Septic System
Depending on the area where you are looking for a home you may find a home that has a septic system rather than a sewer line connection. Homes in some neighborhoods where the sewer lines have not been run instead have a septic tank which holds the waste water from the home. The holding tank has a number of different components but what it does is allow the waste from a home to decompose over time and work its way back into the ground in a harmless state. Some may say that a septic system is greener than a traditional sewer system since the homes waste goes into the immediate environment where it can be utilized immediately by the vegetation in your yard. With a sewer system the treatment of the waste happens at one central location which means many miles of piping to send the sewage to the right place. On the other hand improperly maintained septic systems can lead to backups and contaminated local land that can be costly to cleanup and damaging to the environment.
Inspecting A Septic System
Most home inspectors do not have the expertise to inspect septic systems. As a result depending on the age of the septic system and the condition of the land around the septic system it may be wise to have a separate inspection scheduled of the septic system. Septic systems that are not functioning properly can cause waste water to leak into the surround yard causing flooding issues as well as making the area not pleasant to be around due to bad odors. Poorly operating septic systems can also result in waste water backing up into the house causing further problems. Due to the expense associated with septic...
Posted by Paul Sian on Thursday, July 13, 2017 at 7:00 AMBy Paul Sian / July 13, 2017Comment
Where Can I Find Homes For Sale In My Market?
With all the homes available for sale in different markets homebuyers may not be sure where to find the most up to date information on homes available in their market. Unfortunately there is no one website where homebuyers can find a list of all homes currently available for sale. Homes listed for sale that have Realtors helping sell the home can be found on local real estate websites (through the local Multiple Listing Service or MLS) as well as on some of the national websites like Realtor.com, Zillow, Trulia and more. Additionally homes will also be found on national real estate brokerage websites like United Real Estate, Coldwell Banker, RE/MAX, and more. Often times the national brokerage websites will redirect homebuyers to local area websites to make sure homebuyers connect with local agents when shopping for their home.
Posted by Paul Sian on Thursday, June 22, 2017 at 7:00 AMBy Paul Sian / June 22, 20171 Comment
Tips For Buying A Home Sight Unseen
Whether you are an investor looking to buy investment property in another state or a homebuyer who needs to buy a home in an area where you are moving to but won’t be able to see the home until you move in there are ways for it to be done. Especially in this digital age where homes can be viewed online and signatures can be done digitally from the comfort of one’s home or office a home can just as easily be purchased without visiting it in person. There are some initial steps homebuyers need to take prior to buying a home without seeing it in person and this article will explore those steps in detail.
Especially for a Realtor who claims experience in investment property a great question to ask them is if they own any investment property and what types if they do. While a Realtor does not have to currently own investment property to understand how to help a client buy or sell the property...
Posted by Paul Sian on Thursday, June 15, 2017 at 7:00 AMBy Paul Sian / June 15, 2017Comment
How Do I Appeal A Real Estate Appraisal For A Home I Want To buy?
When buying a home with a mortgage or refinancing an existing mortgage on a home an appraisal is usually required in order to determine the value of the home. The home value is used as part of financing a home under a mortgage whereby the mortgage lender wants to ensure that the value of the home will cover the mortgage in the event of default. If the value of the home cannot cover the amount of the loan most mortgage lenders will deny the loan.
Different types of mortgage loans will have different value requirements for a home. For instance the traditional mortgage where 80% of the value of the home is lent to the homebuyer the home must appraise for the full purchase price where borrowers need to put down 20% of their own cash in addition to the 80% from the lender. For example a homebuyer is wanting to buy a home and makes an offer at $500,000.00 dollars where they will borrow $400,000.00 (80% of the value of the home) and put down $100,000.00 (20% of the value of the home) cash from their own savings. If the home appraises at $500,000.00 or more the loan will be made to the homebuyer. If the loan appraises at less than $500,000.00 then the lender will deny the loan absent changes to the offer price of the home.
Where the home value is appraised lower than the offer price there are a few options available to both the homebuyer and home seller. The homebuyer can ask the home seller to accept a lower amount so that mortgage lender meets the 80/20% requirement. If the home seller does not want to accept...
Posted by Paul Sian on Thursday, June 08, 2017 at 7:00 AMBy Paul Sian / June 8, 2017Comment
Alternative Ways To Buy A Home Without A Mortgage
For some seeking to buy a home the traditional way of purchasing through the use of a mortgage may not be available. Mortgages are not available to some homebuyers due to credit issues, income issues, work history issues or other reasons. The lack of a mortgage does not necessarily prevent a person from buying a home as there are other alternatives. Those alternatives can be somewhat more expensive and more risky to the person wanting to use them.
One of the easiest alternatives to use to buy a home is to pay all cash for the purchase. Now obviously not everyone has access to enough cash to pay for a home outright but for those few who do a cash purchase of a home represents a good way to buy the home and not have to jump through all the hoops of getting a mortgage. Setting aside a large amount of cash to buy a home means there is less cash available for other investments or debt payments. Sometimes there are other investments with better rates of return than homeownership which sometimes can also give negative returns(LINK to behance article) so tying up cash to buy a home may not always be the best move.
As noted above when a buyer currently does not have sufficient credit history to qualify for a loan a home seller may be willing to allow a buyer to purchase their home through the use of a land contract. Under a land contract the seller is agreeing to finance the buyer’s purchase of their home. Land contracts are kind of like lease agreements except with a land contract all of the monthly payments are being applied towards the purchase of the home minus...
Posted by Paul Sian on Thursday, March 23, 2017 at 7:00 AMBy Paul Sian / March 23, 2017Comment
3 Smart Tips For Improving Your Credit Score Prior To Applying For A Home Mortgage
Not everyone buys a home very often and in fact many might only own one to three homes over their life time. As a result when buying a home, buyers should make sure they get the best pre-approval amount they can so that when they do buy they are getting the best home that meets their budget at the time. By striving for the best home you can afford now and will suit your needs for some time to come there will be less need to upgrade to another home because your current home was only a “starter home”.
There is a caveat with that in just because a mortgage lender approves a mortgage for the highest amount of money that can be had that does not necessarily mean homebuyers should buy at the top of that range. Homebuyers need to analyze their current and future financial situation to make sure they can afford the home they buy today. If in the future the homeowner plans on having a larger family, wishes to change careers, or something else that effects their lifestyle then that should be part of the consideration when buying a home today. Homebuyers should not end up in a house poor situation where they cannot afford to pay for the home as well as the upkeep resulting in a loss of home value over time. Always consider how much home you can afford today as well as in the future as part of your home shopping process.
Credit Score and Mortgage Amount
There are a number of factors that influence the...
Posted by Paul Sian on Thursday, March 16, 2017 at 7:00 AMBy Paul Sian / March 16, 2017Comment
Buying A Home With Pets In Mind
Pets are an everyday part of life for their human companions. Pets like humans also have individual needs that every house may or may not meet. When buying a home with pets in mind knowing what one should be looking for and what considerations should be made for our furry friends is on the top of many home buyers list. This article takes a look at the different considerations pet owners should take into mind when buying a home.
Type Of Pet
The type of pet a homebuyer has will dictate some of the needs for a home. Bird and reptile owners who keep their pets indoors a majority of the time may not have as many requirements for a home as those would dog or cat owners who may let their pets outdoors unsupervised or who have free roam of the house. The health and age of a pet also play into home needs as an older pet who cannot walk around as much as they could may need fewer stairs and a flat yard in order to best accommodate their needs.
The size of your pet plays into this as well particularly in the case of dogs. Larger athletic dogs need more room to run around and burn off their energy and a larger yard might be important to owners of large dogs. For smaller dogs, cats and rabbits that may be allowed to roam free in the yard, having a yard that is open and in an area that does not attract predators like coyotes, bears, raptors and more is important to consider.
As noted above the way a yard is setup and situated should be considered when buying a home with pets in mind. A steep hilly yard may not be good for smaller dogs or dogs who have joint or back problems. Homes with yards...
Posted by Paul Sian on Thursday, February 16, 2017 at 7:00 AMBy Paul Sian / February 16, 2017Comment
Why Home Buyers Need Their Own Representation
Buying a home is a complicated process that commits a homebuyer to living in the same place for a number of years and paying a mortgage over a long term while living in that house. If there are mistakes in purchasing a home then the buyer is not able to simply return the home and get all their money back as if it were a pair of pants that did not fit correctly and can be returned to the store no questions asked. In the event of some major concealment by a home seller a home buyer may be able to sue the seller and demand that they take the home back. The buyer may be able to recover money from the home seller assuming they have money to give back to the buyer. Lawsuits are expensive and time consuming so the desire to sue to undo a home deal is not something that a home buyer will be able to quickly settle and move on.
With the home buying process being as complex as it is working alone without your own real estate agent means dealing with the complicated paperwork and negotiations without the help of a trained experienced professional. A YouTube video or blog article while providing some answers is not the same thing as having a local real estate expert with the experience to be able to guide a home buyer through the different situations that can come up. This article explores some areas where home buyers can benefit from a real estate agent who represents their interests exclusively.
A Buyer's Agent will Represents Your Best Interests
The real estate agent who is the listing agent is the...
Posted by Paul Sian on Thursday, December 29, 2016 at 7:00 AMBy Paul Sian / December 29, 20164 Comments
Why Every Home Buyer Needs A Mortgage Pre-approval
Just as you would not go shopping for groceries without cash in your purse/wallet or without knowing you have available credit on your credit card you should also not got shopping for a home without knowing if you have been pre-approved or not for a mortgage. Just as no one wants to go to the store and find out their credit card has been declined or that they are short on cash to purchase their items, viewing homes to purchase without knowing if you can afford it can also lead to great disappointment. Thinking that you can get a preapproval at any time with enough time to make an offer and you could end up losing out on a house you really like and/or realizing you may have never been able to get pre-approved for an amount to buy a particular house in the first place. Cash buyers keep note, while you may not need a pre-approval since you have sufficient cash to purchase a home you still may be required to show that the cash is readily available.
What A Mortgage Pre-Approval Can Tell You
Even if you have a great credit score that does not mean you should wait until the last minute to get a mortgage pre-approval. The mortgage pre-approval is the first thing you should get before you even look at the first home. A big issue you can run into when viewing homes without a mortgage pre-approval is that you find a home that you really like, but once the pre-approval is run you find out the pre-approval is not enough for the home you like. A mortgage pre-approval will let you know how much home you can afford and save you some stress down the line.
Also a pre-approval is not just about your credit...
Posted by Paul Sian on Thursday, December 15, 2016 at 7:00 AMBy Paul Sian / December 15, 2016Comment
What Is A Real Estate Survey?
When it comes to buying a home or other real estate sometimes it may be necessary to have a survey performed on the property. A survey is normally done by a licensed Surveyor who will examine the deed and any plat maps associated with the property you want to purchase or currently own. (A plat map is the map used to show where the boundaries for each parcel of land.) After the deed and plat maps have been examined the Surveyor will then go to the land in question and physically begin to observe and mark out the boundary lines in order to determine the exact location of the plot.
How Exactly Is A Survey Done?
As noted above a land survey is done by initially looking at the deed and plat maps to roughly determine where the property boundaries are. After review of the deed and plat map the Surveyor will start the process of using the deed language and plat maps to mark out the boundaries of the land. The actual determining of the boundaries of the land is done with equipment such as measuring tape, GPS devices, tripods, levels, theodolite (a device for measuring angles) and more. Surveys will also show what easements, right of ways, utility line information and more are located on your property. Having that information is valuable when it comes to deciding if a certain add on structure can be placed on the property.
The end result of a survey is usually a survey map that shows the details of the boundaries of the property as well as any improvements on the land. Where the buyer or the land owner need to know the physical location of the boundary...
Posted by Paul Sian on Thursday, December 08, 2016 at 7:00 AMBy Paul Sian / December 8, 2016Comment
Do I Need Title Insurance When I Buy A Home?
When it comes time to close on the house you want to buy you may be asked if you want to buy a title insurance owner’s policy at the closing table. Unfortunately title insurance oftentimes is presented late at the closing table after you have signed too many documents and in addition you are being asked to pay extra for homeowner coverage of title insurance for which you have little information about. By understanding what title insurance is and what it covers you can go into the decision about purchasing it better informed.
Many of you might be thinking how can someone come and kick you out of the home you bought and paid for? The reason that can happen is that under most state laws a person first in line on the title who can show they never transfered the property is the legal owner of the property. In order to enforce their claim to the property they will need to file a lawsuit in court. The same applies to liens on a property, if a lien was filed in the past then that lien goes with the property and subsequent...
Posted by Paul Sian on Thursday, October 20, 2016 at 7:00 AMBy Paul Sian / October 20, 20162 Comments
Should I Buy Or Rent A Home?
The fact of the matter is everyone needs a place to stay and call home, whether you should rent a home or buy a home depends on a number of different factors. For those who plan to be in one location for some time and will not be changing jobs that involve long distance moves, they may be better off with buying a home. On the other hand someone who is only staying in an area for a short while, home ownership may not make sense for them. This article explores in depth the decision to buy or rent a home and the advantages each has.
Advantages Of Buying A Home
Buying a home provides many advantages that are not available to renters. One of the biggest advantages you get from owning a home is the ability to deduct your property taxes and mortgage interest on your tax returns which could result in great savings on your yearly tax bills. In the case of a rental home the owner of that home gets the advantage of deducting the tax bills and mortgage interest on their tax bill, you as the renter do not get to deduct your rental payments on your tax bill.
As a homeowner you are able to decorate, remodel and adjust your home as need be with the only exception of complying with local zoning and building laws. This means if you want to add a bathroom to your home you can do so and the only permission you will need are building department permission (depends on your local rules and regulations) and possibly from your lender if you intend to borrow money to do the addition. As a result of making the addition your home may also realize a boost in home value.
Posted by Paul Sian on Thursday, October 13, 2016 at 7:00 AMBy Paul Sian / October 13, 2016Comment
5 Things To Do To Ensure Home Buying Success
Buying a home is a process that takes time and effort and that if done right ensures many years of happiness and worry free living. When you try to purchase a home without following the correct steps you set yourself up for a frustrating experience. Additionally if you ignore some of the tried and tested home buying advice you might be stuck in a home you hate or worse in one that ends up costing you more money in order to make the house work for your or just to keep it habitable. By following the tips listed below you can ensure a home shopping process that is less stressful, that you find a house you love, and it is a house that will last you as long as you want to live there.
Tip #1. Work On Improving Your Credit
If you don’t already have excellent credit then you should work on improving your credit prior to buying a home. The earlier you can improve your credit score prior to buying a home the better mortgage options and interest rates there will be available for you. The best ways to improve your credit score include paying down debts (especially short term credits cards, consumer loans, etc.) and to make sure all debts at least receive the minimum payments and that those payments are made on time. Any late payments on debts, even you pay off the debt in full, will knock your credit score down.
Another recommendation is to not close any credit card accounts until after you purchase your home. The credit scoring agencies look at your overall credit usage and by closing accounts down without also paying other debts...
Posted by Paul Sian on Thursday, September 29, 2016 at 7:00 AMBy Paul Sian / September 29, 2016Comment
Should I Buy A Condominium Or A House?
No matter what stage of the home buying life cycle you are in (first time homebuyer, empty nester looking to downsize, retiree home, etc.) you may have wondered whether a condominium is right for you as compared to a traditional house. A condominium and a house both accomplish the same things in that they give you a place to live and call your own but there is more to a condominium that just a place to live. Many condominiums offer different features of ownership as compared to a traditional house and those differences are discussed below.
What Are Condominiums?
Condominiums or condo for short are a type of residence where the homeowner usually owns the interior spaces of the building and the exterior and other common areas are owned by the condo association as a whole. A condo association usually consists of elected members from the condo community who are responsible for arranging the maintenance of the common areas, enforcement of condo association rules, and budgeting and managing condo association dues. Most condo owners are required to pay monthly condo association fees which are used to maintain the common areas of the condo community and pay for other fees associated with condo management.
Condos are usually apartment like in nature in that there will be shared walls, shared driveways, and parking areas. Generally the condo owner owns and controls everything to their unit’s wall and inside whereas everything outside of the wall boundary is overseen by the condo association. There are also detached condominiums where the owner’s...
Posted by Paul Sian on Thursday, July 28, 2016 at 2:57 PMBy Paul Sian / July 28, 2016Comment
6 Common Ways Buyers Fail When Trying To Purchase A Home
While home buying can be an exciting time, for some it can quickly turn into a nightmare filled with frustration, regret and remorse if not done correctly. The process of buying a home has many complexities and buying a home is definitely not as easy as buying a car where you can walk in, test drive a car and drive off with it that same day. Due to the amounts of money, emotions, and the long term commitment involved the home buying process needs to be approached with a full understanding of what can cause the process to go wrong.
Shopping For A Home Above Their Price Range
Shopping for a home above your price range is a definite path towards failure. A home purchase is a long term commitment. Even though you may have been pre-approved for a certain amount, attempting to buy at the top of your limit without considering how your budget and long term finances will be impacted by the monthly mortgage, interest, tax and insurance payments could set you up towards getting into a house poor situation.
On the other hand if you are looking for homes without even having applied for a pre-approval then you have no idea what your price range is. You may fall in love with that $300,000.00 home in the perfect neighborhood but when it comes time to financing you find your pre-approval will not cover purchasing that home results in a big waste of time. Know your price range ahead of time so that your home purchase is successful from the start.
Posted by Paul Sian on Thursday, May 19, 2016 at 10:36 PMBy Paul Sian / May 19, 2016Comment
What Home Buyers Should Be Looking For When Touring A Home For Sale
When touring houses that you are considering buying you should do more than just look at the layout of the floorplan, consider whether the kitchen is to your liking or see if the front of the home has curb appeal that looks good to you. While those are indeed considerations you should take into account, you should also dig a little deeper past the character and look of the house and examine those areas that affect the longevity of the house as well as that can have a direct impact on your finances after you move in. Yes a home inspection should uncover many issues that you can use to negotiate the repair or an adjustment in price, but it you find certain things ahead of time that could be cause for concern that may help you to pursue some other home that has good character and no major issues.
The Importance Of A Good Foundation
As with anything in life having a solid and stable foundation is key and the same is true for any home you want to buy. If the foundation in the home you want to buy is cracking, leaking or showing signs of buckling inwards you may want to pass on that home or at least have a structural engineer evaluate what repairs may be needed to stabilize the foundation and make an offer based on those conditions. Often times the signs of foundation issues may not be that evident, especially if a seller is attempting to cover it up.
Posted by Paul Sian on Thursday, May 05, 2016 at 10:27 PMBy Paul Sian / May 5, 2016Comment
How To Boost Your Credit Score Prior To Applying For A Mortgage Loan
The main reason to boost your credit score prior to applying for a mortgage loan is because the higher the credit score you have the better (i.e. lower) interest rate you can obtain on your mortgage. When your mortgage is a 30 year loan even a modest decrease in the interest you pay can save you money over time. Therefore by taking active steps in the short term to boost your credit score you are saving money in the long term on the mortgage you use for buying your home.
The sooner you start working on your credit score prior to applying for a mortgage is better. Ideally you should start at least 6 months prior to applying for your mortgage and even better a year before gives you more time to look at where the gaps in your credit score are and develop a plan to repair those gaps that can help boost your score. If you are not already part of a credit monitoring service then now might be a good time to join one so you can actively monitor your credit reports on a regular basis. Many retailers and businesses have offered free credit monitoring services to those of their customers who have had their information stolen in hacker attacks so if you have access to free credit monitoring service then by all means sign up for it. Even if you don’t have access to a free monitoring service you can purchase credit monitoring service, use a free service like CreditKarma.com or WalletHub.com (in exchange for their using your information to sell you products and services) or use the ...
Posted by Paul Sian on Thursday, March 24, 2016 at 4:48 PMBy Paul Sian / March 24, 2016Comment
How To Make An Offer On A Home
Putting in an offer on a home is a little different that your typical buy and sell product transaction. When buying a home there are many laws and other considerations at play that prevent one from simply going up to the owner of a home and saying you will buy their house for X amount of dollars. Put in an offer on a home correctly with a full understanding of all that is involved in purchasing the home and you should have a low stress experience. If on the other hand you put in an offer with haste and without a proper understanding of all that needs to take place you will find yourself in a high stress situation, you may lose your earnest money, and even worse could face the possibility of a lawsuit.
The Basics of any Residential Real Estate Offer
The basics of any offer to purchase a home require that the offer and everything in it must be in writing. The amount of the offer, the home to be purchased along with any personal property not considered a fixture and any other conditions of the sale must all be included in the contract to purchase document. Other conditions of the sale could include the home purchase being conditioned on the home passing a home inspection, the home appraisal being in excess of the amount of the mortgage loan, and the buyer being able to obtain favorable financing terms to buy the home.
While you can start the ball rolling by having you agent begin negotiations verbally, unless the offer is in writing and signed by both the seller and buyer you don’t have a contract to purchase a home. That could also mean if you make a verbal offer that a home seller verbally agrees to, the seller later can change their mind when a written offer is presented to them...
Posted by Paul Sian on Tuesday, October 20, 2015 at 7:42 PMBy Paul Sian / October 20, 2015Comment
For this podcast I sat down with Pam Paulson, Regional Account Manager with Home Loans Assist. During our conversation we discussed credit rating, the impact of bankruptcy on credit, types of debt and more. This podcast is helpful for those about to purchase a home who are wanting to learn about how their credit will impact them. I hope you enjoy the podcast and find it informative. Please also consider sharing with those who may find it useful.