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How to Buy a House: 4 Ways to Purchase Faster and Smarter

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If you’re about to embark on the home-buying process, you want to know how to buy a house the quick and smart way.

The process typically takes two to three months, but in a seller’s market with low inventory and strong buyer demand, it could take six months to a year—or longer. But what if you could cut that time in half, without having to make any sacrifices? You’d do it, right?

Of course, you would.

Well, you’re in luck! Take a look at our recommendations for buying a home the smart way.

1. Let the government lend a hand

If you’re in the process of saving for a down payment, you might be able to scrape together the remainder of the money by qualifying for one of the more than 2,200 down payment assistance programs offered nationwide. These programs provide home buyers with low-interest loans, grants, and tax credits.

If you haven’t heard of down payment assistance before, you’re not alone. Many people don’t know about these programs or assume their loans are more difficult to get than they actually are.

You’ll have to meet certain eligibility requirements in terms of income, occupation, or credit, but buyers who use down payment assistance programs save an average of $17,766 between upfront savings and lower monthly mortgage payments over the life of the loan. Visit Down Payment Resource, which offers information on programs, to find a program you could be eligible for.

2. Stay on top of new listings

You can see what houses are currently for sale in your area using Realtor.com®. To stay on top of brand-new listings in your preferred area, however, ask your real estate agent to set up an automated email through the local multiple listing service so that you’ll be pinged every time a new listing that fits your needs pops up.

Tracking new listings in real-time can give you an edge over other buyers because you’ll be in a position to schedule showings right away and potentially make an offer before another buyer even steps foot inside the house.

3. Consider buying a foreclosure

Many home buyers overlook foreclosed and bank-owned properties often because they fear the condition of the home. That’s a valid concern, because foreclosed homes are frequently sold as is—which means the bank is not going to fix any problems (even if you uncover them during a home inspection). However, buying a home that’s in foreclosure has a couple of big advantages.

It’s often worth the investment, given that foreclosed homes sell for an average 15% below the home’s actual value—and foreclosed homes often sell for less than asking price. Also, because there is less competition among home buyers in this sector of the market, you’re less likely to go up against other bids when submitting an offer on a home that’s in foreclosure.

To begin your search you can browse listings of foreclosures on Realtor.com, which might also be marked as “bank owned” or “real estate owned.”

4. Certify that your finances are in order

Closing times are getting longer: On average, it now takes 50 days to reach closing, up from 40 days in 2015, according to a recent report by Ellie Mae, a company that provides mortgage solutions to consumers.

To close faster, your best move is to get pre-approved for a home loan before submitting an offer on a property. A mortgage pre-approval entails a lender running a credit check and verifying your income and assets, followed by an underwriter doing a preliminary review of your financial portfolio. If everything checks out, the lender will issue you a written commitment for financing up to a certain loan amount that’s good for up to 90 to 120 days.

Meanwhile, getting pre-qualified simply means you’ve discussed your finances with a lender and received a verbal commitment for the loan. Consequently, a pre-qualification can cause a home seller to dismiss your offer outright. And even if you somehow manage to sign a sales contract with only a pre-qualification, it’s probably going to take your lender longer to get the loan approved than if you had pre-approval.

Read more at Realtor.com

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If there is a home that you would like more information about, if you are considering selling a property, or if you have questions about the housing market in your neighborhood, please reach out. We’re here to help.

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Should you refinance your mortgage? Here are three signs it’s time, real estate experts say

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It’s unclear when the Federal Reserve could begin cutting interest rates, but many homeowners who took out a mortgage in recent years — as rates hovered between 6% and 7%, and even touched 8% — are paying attention for opportunities to refinance.

Thanks to those high mortgage interest rates, refinance activity in 2023 was at the lowest level in 30 years.

In the first and second quarters of 2023 there was only $75 billion and $80 billion, respectively, in mortgage refinance originations nationally, according to Freddie Mac, a government-sponsored entity that buys mortgages from banks.

“Because rates shot up so much over the past few years, refinancing activity has mostly disappeared,” said Jeff Ostrowski, a housing analyst at Bankrate.

Refinancing activity rose 2.9% in February compared with last year, Freddie Mac found. However, fewer owners might refinance their loans as they might still be locked in on historically low rates or may see little incentive to do so, the mortgage buyer forecasts.

As homeowners wait to see when Fed rate cuts might materialize, and to what extent, here are three signs it may be smart to refinance:

1. You can cut your rate by 50 basis points or more

The right time to refinance your loan depends on when you bought your house, said Chen Zhao, a senior economist at Redfin, a real estate brokerage site.

It’s typically smart to wait for rates to go down by a full percentage point because it makes a significant difference in your mortgage, experts say.

Yet, once you start seeing rates decline by at least 50 basis points from your current rate, contact your lenders or loan officers and see if it makes sense to refinance, depending on factors including the costs, monthly savings and how long you plan to be in the home, Zhao said.

“There are costs associated with it, but the costs are low in comparison to the savings over the long term,” said Zhao.

 
 

While the outlook on Fed rate cuts continues to change, rates are unlikely to go much below 6% in the near term, Zhao said.

“We’re just in a much higher interest rate situation with the economy,” she said.

Don’t hold out for a super low rate like the ones consumers saw in the early stages of the Covid-19 pandemic.

“We’ve been so accustomed to mortgage rates as a baseline being at 2% or 3%,” said Veronica Fuentes, a certified financial planner at Northwestern Mutual. “That’s what we expect the norm to be, but that’s actually not the case.”

2. You can pay cash for closing costs

When you refinance, “it’s like doing a brand new loan all over again,” Ostrowski said.

That means you’ll incur closing costs, typically including an appraisal and title insurance.

The total cost will depend on your area or state.

The average closing cost for a refinanced single-family mortgage was $2,375 in 2021, up 3.8%, or $88, from $2,287 a year prior, according to CoreLogic’s ClosingCorp, a provider of residential real estate closing cost data.
Refinancing can make more financial sense if you are able to pay those upfront instead of rolling the expense into your new loan. Some lenders may require a higher interest rate if you finance closing costs, plus you’ll be paying interest on those expenses for the life of the mortgage.

“You have to be pretty mindful and have a good strategy for how much money you’re going to save and whether it makes sense,” Ostrowski said.

3. You bought your home with an FHA loan

If you bought your home with an FHA loan, you might have a reason to refinance. While such loans are a “great tool” for securing a home as a first-time buyer, there’s a required mortgage insurance premium, or MIP, that can be costly, said Ostrowski. Most new borrowers pay an annual MIP that is equivalent to 0.55% of their loan, according to government figures.

“If you got an FHA loan, it could make sense to refi for a rate that is only a little bit lower if you’re going to be able to knock out that mortgage insurance premium,” he said.

For example, on a $328,100 FHA mortgage, the owner would pay annual premiums at 0.55% rate for the life of the loan, equal to $150 monthly payments, according to calculations from Bankrate.

Read more at CNBC.com

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If there is a home that you would like more information about, if you are considering selling a property, or if you have questions about the housing market in your neighborhood, please reach out. We’re here to help.

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Newly Built Homes Could Be a Game Changer This Spring

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Buying a home this spring?

You’re probably navigating today’s affordability challenges and dealing with the limited number of homes for sale. But, what if there was a solution that could help with both?

If you’re having a hard time finding a home you love, and mortgage rates are putting pressure on your budget, it may be time to look at newly built homes. Here’s why.

New Home Construction Is an Inventory Bright Spot

When looking for a home, you can choose between existing homes (those that are already built and previously owned) and newly constructed ones. While the number of existing homes for sale has increased this year, there are still fewer available than there were in more typical years in the housing market, like back in 2018 or 2019.

So, if you’re looking to expand your pool of options even more, turning to newly built homes can help. As Danielle Hale, Chief Economist at Realtor.com, explains:

“The shortage of existing homes For Sale has opened up the possibility of new-home construction to more buyers who may not have once considered it.”

And the good news is, there are more newly built homes to pick from right now. The graphs below use data from the Census to show how new home construction is ramping up in two key areas (see most recent spike in green):

 
 

Starts, or homes where builders just broke ground, have seen a big increase lately. And completions, homes that builders just finished, are also up significantly. So, if you want a new, move-in ready home or you want to get in early and customize your build along the way, you have more options right now.

Builders Are Offering Incentives To Help with Affordability

And to sweeten the pot, builders are offering things like mortgage rate buy-downs and other perks for homebuyers right now. This can help offset today’s affordability challenges while also getting you into your dream home. Mark Fleming, Chief Economist at First American, explains why you may find builders have more wiggle room to offer more for you than the typical homeowner:

“Builders aren’t rate locked-in. They would love to sell you the home because they’re not living in it. It costs money not to sell the home. And many of the public home builders have said in their earnings calls that they are not going to be pulling back on incentives, especially the mortgage rate buydown, so that will help the new-home market continue to perform well in the spring home-buying season.”

An article from HousingWire also says this about what builders are offering right now:

 “. . . the use of sales incentives still shows some momentum as 60% of respondents reported using them, up from 58% in February. “

Just remember, buying from a builder is different from buying from a home seller, so it’s important to partner with a local real estate agent. Builder contracts can be complex. A trusted agent will be your advocate throughout the process.

They’ll be your go-to resource for advice on construction quality and builder reputation, reviewing and negotiating contracts to get you the best deal, helping you decide on which customizations and upgrades are most worthwhile, and a whole lot more.

Bottom Line

If you’re struggling to find a home to buy, or with today’s affordability challenges, connect with a local real estate agent to see if newly built homes could be the solution you’re looking for.

Read more at KeepingCurrentMatters.com

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How To Plan a Deck Addition During Your Yard Renovation

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Adding a deck to your home can be a great way to increase your outdoor living space and add value to your property.

But before you start building, it's important to have a plan in place. In this blog post, we will discuss how to plan a deck addition during your yard renovation. Whether you're a seasoned DIYer or hiring a professional contractor, these tips will help you create the deck of your dreams.

Determine the Purpose of Your Deck
Before you draw up any plans or purchase materials, spend some time thinking about what you want to achieve with your deck. Do you envision a cozy space for intimate gatherings, a family-friendly area for outdoor meals, or perhaps a peaceful retreat for reading and relaxation? Consider also if you'll want to include features like built-in seating, planter boxes or a space for a hot tub. Your deck's purpose will significantly influence its design, size,and the materials you'll choose, making this step critical in creating a space that truly meets your needs and desires.

Set a Budget
Establishing a budget for your deck project is essential and can vary widely depending on the materials, size and design features you choose. It's important to research the cost of materials and labor in your area, and if you're planning to hire a contractor, get multiple quotes to ensure you're getting the best deal. Remember to include a contingency fund in your budget, as unforeseen expenses can arise during construction. Additionally, consider the long-term maintenance costs associated with different materials, as this can affect your budget over time too.

Choose the Right Materials
When it comes to building a deck, there are a variety of materials to choose from, such as wood, composite or PVC. Each material has its own benefits and drawbacks, so consider factors like maintenance, durability and aesthetics when making your decision. Research different materials and speak with a professional to help you choose the right option for your deck.

Design Your Deck
Once you have determined the purpose of your deck, set a budget and chosen the right materials, it's time to design your deck. Consider the layout, shape and features you want to include, such as built-in seating, pergolas or lighting. Don't forget to take into account the natural features of your yard, like trees or slopes, when designing your deck.

Obtain Permits and Hire a Professional
Before breaking ground on your deck addition, it's crucial to check with your local building department regarding necessary permits. This step cannot be overlooked, as obtaining the correct permits ensures your deck complies with local codes and regulations, which can vary significantly from one area to another. Once you have the permits in hand, selecting a professional contractor with expertise in custom deck construction can make all the difference in bringing your vision to life. A custom deck builder will be key in navigating any challenges that arise during construction and ensuring a high-quality finish to your deck project.

In conclusion, planning and building a deck during your yard renovation is a process that requires thoughtful consideration and meticulous planning. From determining the deck's purpose and setting a realistic budget, to choosing the right materials and designing the deck of your dreams, each step is crucial for a successful addition to your home. Don't forget the importance of obtaining the necessary permits and the value a professional contractor can bring to your project. By following these steps, you will not only enhance your outdoor living space but also increase the value and beauty of your property.

Read more at Rismedia.com

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5 Ways to Transform Your Basement Into a Cozy Haven

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Does the thought of your basement bring to mind a dark, damp dungeon?

It's time to change that perception and turn your basement into a cozy haven that you and your family can enjoy. With a few key upgrades and design choices, you can transform this underutilized space into a welcoming retreat. Explore five ways to make your basement cozy and inviting. 

Ensure Adequate Heating
Before you start any other renovations in your basement, it's crucial to ensure that the space is properly heated. A cold basement is not conducive to coziness, so consider upgrading your current heating system. A furnace installation can make a significant difference in the comfort level of your basement, allowing you to enjoy this space year-round. Consult with a professional HVAC technician to determine the best heating solution for your basement.

Add Soft Lighting
Basements are known for their lack of natural light, so it's important to incorporate soft lighting to create a cozy atmosphere. Consider installing recessed lighting, sconces or floor lamps to brighten up the space and add a warm glow. Avoid harsh overhead lighting that can make the basement feel cold and unwelcoming. By strategically placing lighting fixtures throughout the room, you can create a cozy ambiance that invites relaxation.

Invest in Comfortable Furniture
To transform your basement into a cozy haven, invest in comfortable furniture that beckons you to relax and unwind. Consider plush sofas, oversized armchairs and soft area rugs to create a warm and inviting atmosphere. Add throw pillows and blankets for extra comfort, creating a space where you can curl up with a good book or watch a movie with loved ones. Choose furniture pieces in warm, neutral colors to enhance the cozy vibe of your basement.

Create a Relaxing Atmosphere
To truly make your basement a cozy haven, consider incorporating elements that promote relaxation and tranquility. Add a small indoor fountain for a soothing sound, install a fireplace for warmth and ambiance, or introduce plants to bring a touch of nature indoors. Consider adding a cozy reading nook with a comfortable chair and good lighting, creating a quiet space where you can escape and unwind. By infusing your basement with these relaxing elements, you can create a peaceful retreat within your own home.

Personalize the Space
Finally, don't forget to personalize your basement to make it feel like a true extension of your home. Display family photos, artwork and personal mementos that add personality and warmth to the space. Consider incorporating a theme that reflects your interests, whether it's a cozy cabin retreat, a beachside getaway or a rustic farmhouse. By infusing your basement with your unique style and personality, you can create a cozy haven that feels like a retreat from the outside world.

With these five tips, you can transform your basement from a dreary space into a cozy haven that you and your family can enjoy for years to come. From ensuring proper heating with a furnace installation to adding soft lighting, comfortable furniture, relaxing elements and personal touches, there are many ways to make your basement a warm and inviting retreat. So roll up your sleeves, get creative and turn your basement into the cozy haven you've always dreamed of.

Read more at Rismedia.com

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If there is a home that you would like more information about, if you are considering selling a property, or if you have questions about the housing market in your neighborhood, please reach out. We’re here to help.

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