Tips for Finding the Best Mortgage Lenders

When buying a home you want to find the best loan with the best interest rate. In order to secure that, you’ll need to find the right lender. Never settle for the first interest rate you receive. Carefully research different lenders and apply to several. From there you will be able to find the best mortgage lenders and get the best rates. 

 

 

Explore all your options

 

According to the Consumer Financial Protection Bureau, nearly half of all home buyers take the first loan they get without shopping around for others. Different lenders have different policies which means your loan terms and interest rates will vary from lender to lender. The difference between a 0.5% interest rate and a 1% interest rate can be tens of thousands of dollars in interest payments. For that reason home buyers should always apply to multiple lenders to get the best interest rate.

 

Ask friends and family for recommendations

 

A trusted lender is the key to finding the right loan terms for the right home. A lender can help make your buying experience smooth and seamless. Sometimes the best way to find a trustworthy lender is to ask friends and family for recommendations. If you have friends with similar financial situations as you, you’ll want to ask about the specific terms they were able to negotiate so that you can try to negotiate similar ones. 

 

Consider working with a mortgage broker

 

One method to securing the best mortgage terms is by working with a mortgage broker. Brokers serve as middlemen between buyers and lenders and advocate on behalf of the buyer to negotiate the best terms. Brokers do charge fees, however, if you don’t mind paying them, and don’t want to spend all that extra time negotiating with lenders. Using a broker can help you navigate all the fine print during the application process. Like with lenders, it’s important to also screen and vet brokers before picking one to work with. 

 

Determine what type of  lender is best for you

 

 

Nowadays borrows have more options than ever. Not only do have to consider what lender is best for you, you also get to consider which type of lender is best. Borrows can choose from going with a local bank, a big bank, an online lender, or a credit union when applying for a mortgage loan. Each has pros and cons, knowing which one is best suited for your situation will streamline your loan application process. For example, local banks typically offer the same kind of loans as larger banks, however they provide more personalized assistance. Online lenders have become very popular in recent years. Online lenders such as Lending Tree and Quicken Loans have dominated the online mortgage market. Decisions at local banks are made in-house which can help expedite your application process. However, they sometimes also offer fewer options due to a lack of resources compared to larger banks. Research each type carefully and make your decision.

 

Arrive to the negotiation prepared

 

Like with anything, the more prepared you are going into it, the better you’ll fare. One tool at your disposal is a lender’s online quote. Familiarize yourself with the terms of their online quote and bring it with you to negotiate. Compare their online quote with what they quote you in person, it can be potentially be used as leverage. Be sure to ask what kind of lenders fees they levy, what their application turnaround time is, what their down payment requirements are etc. Applying for loans can be a grueling process, but the better prepared you are, the higher the chance it will work out in your favor. 

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Advantages of Getting Pre-Approved for a Mortgage Before Buying

If you’re seriously considering buying a home, the first thing you should do is get pre-approved for a mortgage loan. Before you hop on Trulia or Zillow or even drive by a house, make sure you get pre-approved for a mortgage. While getting pre-approved for a mortgage may seem like a daunting task, putting it off can lead to costly problems down the road.

 

 

Difference Between pre-Approved and pre-Qualified

 

To begin, it’s important to also understand the difference between being pre-approved and pre-qualified. Getting pre-qualified helps borrows see how much they might be qualified to borrow. Pre-qualification is based on information the borrow provides to the lenders and a soft credit check.

 

By contrast, a pre-approval is determined after the completion of an extensive review of the borrower’s financial history and a hard credit check. The assembling of financial records is often what scares people about the process and why many put it off. However, if you’re worried about the state of your finances, getting pre-approved can actually help you out.

The paper work submitted to lenders gives a very clear picture of your financial situation. As such, any problems can be easily identified and your lender can give you advice on how best to rectify them.

 

Pre-Approval Sets your Price Range

 

 

Often people looking to buy a house get lost in prices. Knowing what you can afford is important to know ahead of time. Getting pre-approved determines you price range. Different lenders have different policies which will lead to varying approval numbers. For that reason, it’s good to apply to multiple lenders and go with the best number. Once you have your number, then you can begin looking for home sin your price range. Think of your pre-approval amount as your maximum price. Nothing is worse than shopping for houses and falling in love with a property, only to discover it’s way out of your range.

 

Getting pre-approved speeds up the buying process

 

One advantage to getting pre-approved early in the process, is that it speeds up the remaining parts of the process. If a buyer is looking in a hyper competitive market, they’ll need to be able to produce an offer right away after looking at a property. Not being pre-approved beforehand could delay your ability to make offer, causing you to miss out on your dream home.

 

Having a pre-approval makes your offer stronger as it establishes you as a serious home buyer. For properties with multiple offers, those with pre-approval will be given priority. Given the amount of paperwork, getting pre-approved is a complicated process that takes time. That’s another reason why it’s best to get pre-approved right away rather than wait.

 

Getting pre-approved for a mortgages 

Once you make the decision to begin looking for homes, getting pre-approved requires a lot of paperwork. The documents that must be submitted to your lender include: 30 days worth of pay stubs, two years of W-2s or tax returns, and quarterly account statements for all your assets. From there you’ll need to request your credit report. Before submitting everything, look over your credit report and make sure everything checks out. After that, go over your budget and determine what you can afford as far as monthly mortgage payments go. From there, shop around for lenders. Ask your friends and neighbors who they went with. Take your time and apply to multiple lenders to ensure you’re getting the lest loan.

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What to Consider When Negotiating a Price For a Home

Unlike most things you buy in life, the price of a home is negotiable. In fact, it’s expected that you’ll negotiate the price, especially in a competitive market. This is a great way to get a good deal on the property, and many homeowners are open to some wiggle room in pricing.

 

However, you can’t just call out any number that fits your budget. There are things you need to consider when negotiating a price for a home to buy. Not only do you need to be reasonable and strategic with your home negotiations, but you also need to consider a number of factors. This guide will help you get started.

 

 

1. The Listing Price

The first thing to pay attention to is the listing price. This is obviously the most important thing to consider when negotiating a price for a home. Why? Because this is the suggestion for what the seller is hoping to make on the property.

 

While it’s true the listing price is often negotiable, you need to realize that the seller wants to make a profit. If the owner is selling their home before fully paying off their mortgage, they’ll need to pay the difference on any remaining balance.  It’s a good idea to base your home negotiations around the listing price if you want to see good results.

 

2. Your Schedule

Another important factor to consider is actually your schedule. Many buyers are on a strict schedule. Perhaps they have a new job starting soon or they’re relocating. All of these things put pressure on the home seller.

 

If you have flexibility in your schedule, this is something you should make clear during negotiations. Flexibility might make homeowners more willing to work with you on your offer, especially if it means they can better fit their moving date to their own schedule.

 

3. Closing Costs

You don’t have to negotiate the price of the home alone. It’s also common to include the closing costs within your negotiations, so this is another important factor.

 

Closing costs are the fees that are incurred during the transaction. The average closing costs are usually around 1-2% of the home price. They quickly add up, especially for more expensive properties. You might consider negotiating for the seller to cover a certain percentage (or all) of the closing costs.

 

4. Other Offers

When negotiating, you’ll likely have other offers on the table to compete with. With the average home on the market for 69 days, it’s no wonder you might not be the only one to place a bid on a property.

 

Learning as much as you can about the other offers will help you with your own negotiations. You never want to walk into a bid blind. Your broker can help determine whether there are existing offers on the table, and this will help you better understand how to negotiate.

 

5. Home Inspection

Finally, the last thing to consider when negotiating a price for a home is the house inspection. Taking the time to go through the inspection process slowly can work in your favor. This will help you determine just how much negotiation you can get away with.

 

For example, if a home comes back with a perfect record after an examination, there isn’t much room to negotiate. However, if extensive repairs are needed, you’re now in a much better position to land a deal on the property.

 

Are You Ready for Home Negotiations?

When it comes to getting a good deal on a property, it pays to be prepared. Knowing how to negotiate the price of a home down to the best deal takes time. It also relies on knowing the right factors to consider.

 

After reading this guide, you’re ready to begin the negotiation process for the home of your dreams. As long as you’re realistic, you stand a strong chance of snagging that property.

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Best Neighborhoods to Trick or Treat in Phoenix

Halloween is upon is. Phoenix routinely ranks as one of the best cities in the country. As such, it’s home to some of the best neighborhoods for trick-or-treating. If you have kids, or want to feel like a kid yourself then make sure to find the best place to hit up and secure the candy bag and trick or treat in Phoenix.

 

McCormick Ranch

 

You won’t find the most elaborate decorations in McCormick Ranch (or any), if you want to trick or treat in a safe neighborhood with an abundance of treats, you definitely want to voyage over to McCormick Ranch in Scottsdale. It won’t be the spookiest area in the Valley, but if you want your kids to have a successful night when when you weigh your candy haul at the end of the night, this is the spot.

 

Paradise Valley

 

Known for its sprawling palatial homes and gated communities, there’s perhaps no safer place for kids to go candy collecting. Paradise Valley has very little traffic so you won’t have to worry about busy streets. Homes in this neighborhood are positioned closely together, making for an easy way to hit up a lot of houses in a short period of time. If you want some classic door to door trick-or-treating you can’t go wrong with Paradise Valley. 

 

Encanto

 

Not many neighborhoods in the Valley go as big for Halloween as Encanto. By October 1st nearly the whole neighborhood is decked out for spook season and it’s rare to find a single home in the area without at least a carved pumpkin on display. With tons of Halloween related festivities going on all throughout the area, Encanto is easily one of the best spots to haul in tons of sugary treats. That, along with its proximity to the Phoenix Country Club and the upper crust of the town, it’s likely you’ll stumble upon plenty of king size bars being passed out. 

 

Deer Valley

 

The trick-or-treating scene in Deer Valley is a complete throwback to a bygone era. Deer Valley trick-or-treating is as family friendly as it gets with a 1950s feel when doors were left wide open and children frolicked in the streets. Halloween in DV is as old school as it gets. Perfect for parents with young children. 

 

Buckeye

 

Buckeye was the fastest growing city in the country last year and it isn’t slowing down. New families are moving to Buckeye in droves. With new blossoming neighborhoods, Halloween is a perfect time to get to know people in your area. If you’re a parent, trick-or-treating is great for meeting neighbors and for your kids to meet other kids. For new families moving in, trick-or-treating is a perfect way to get acclimated into the

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Manufactured Housing May be a Solution to the Housing Crisis

The cost of owning a home has skyrocketed all over the country. Affordability is a main factor as to why younger generations are avoiding buying a home. Increased demand matched with a shortage of builders is causing prices to rise. The builders that are available are charging way more, leaving many unable to afford home ownership. As demand for housing continues to rise, so does the cost of home ownership. One alternative gaining in popularity is manufactured housing.

What are manufactured houses?

 

 

Manufactured houses have quickly become response to the growing housing crisis. Manufactured houses, are homes built off-site, often mass produced, that are then promptly delivered to a particular location to be set up. These homes are vastly more affordable, averaging about $70,000 a house compared to regular homes for which the national average is $287,000.

Especially in cities like Los Angeles where the medium home value is over $600,000, manufactured housing communities may be the answer for low income people unable to afford traditional homes. People who want to live in more desirable areas but can’t afford to buy or even rent in there can buy manufactured homes instead in the same areas.

 

How do they work?

 

Manufactured housing communities work similarly to trailer parks. People can live in a land-lease area owned by a landlord where they can park their manufactured home. In many instances these communities function like condo associations. Many of them have social and or activity clubs and even fitness centers. According to the Manufactured Housing Communities of Arizona, these neighborhoods consist of, mobile home parks, manufactured housing communities, park model communities and parks that rent spaces to recreational vehicles.” Manufactured housing communities in many ways functions exactly like regular residential neighborhoods do now. Neighbors will already have something in common that connects them.

 

Affordability

 

 

Everything from the cost to make these manufactured homes to the actual buying price is why many often float manufactured housing as a possible solution to the housing crisis. On average manufactured homes can cost up to 50% less per square foot. Currently the median family income for those who go the manufactured route is $34,700, though many have incomes exceeding $50,000. Keeping up with trends in housing, particularly among younger generations, manufactured housing meets the trend of being smaller and more affordable. As people continue to get priced out of neighborhoods by the increasing cost of traditional homes, manufactured housing communities may quickly become an attractive alternative.

 

Environmental Benefits

Perhaps one of the most appealing aspects of manufactured housing is the positive effect in can have on the environment. The environment is on the minds of many modern day home buyers. More and more families are going green with their appliances and finding environmentally friendly ways to build their homes. As the prices of solar panels continues to decline more and more people are taking advantage of them. Thanks to the construction code standards at HUD, manufactured housing, from construction to completion can actually create 90% less waste, making it a very environmentally conscious way to build. With that, manufactured housing may not just be a solution to the housing crisis, but also prove to an efficient partial solution to addressing the climate crisis,

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How to Qualify for Self Employed Mortgage Loans

Buying a house is hard enough as it is. Being self employed doesn’t make it impossible, but it certainly adds obstacles to buying a house. The process is easier when you work a typical 9-5 job, but for the self employed, all is not lost. Follow these simple tips and easily qualify for self employed mortgage loans.

 

 

Have your tax returns ready

 

For most people with employers that aren’t themselves, they need to simply provide their lender with W-2 forms. Self employed people however, don’t have w-2s and need to provide two years worth of tax returns (1040s) in order to prove they have a sufficient income level. Lenders want to see at least 2 years of steady income, and if you employ yourself, tax returns are the only way to do that. 

 

If you own your own business, some lenders may also ask to see profit and loss statements and other statements from various business accounts. It’s good to work closely with an accountant to carefully prepare any and all paperwork need to present to lenders.

 

Keep your accounts separate

 

It’s rarely a good idea to mix business and pleasure. When you’re self employed, mortgage loans are going to require a very clear picture of your financial situation. Make sure when you’re doing your accounting to keep you personal and business accounts separate. For tax purposes this will make your life much easier. Open up a separate account to charge all your business related expenses.

 

Make sure all other factors are in good shape

 

 

Tax returns will be crucial for lenders reviewing your loan application, but it’s not the only thing to worry about. Just like any other person applying for a mortgage loan, you’ll want to have a good credit score and a sufficient income-to-debt-ratio. You’ll also want to have cost of living funds on hand. 

 

Especially when you’re self employed, your income may vary from month to month. People who own their own business frequently have sporadic monthly incomes. Sometimes that may pose a problem, but can be easily overcome provided that all other factors are rock solid. The one most in your control in that case is your credit score. 

 

If you are trying to buy a home while self employed take time to build up your credit score and pay down all your debts. Everyone should do that anyway, but especially self employeds looking to buy homes. 

 

Don’t go overboard with deductions

 

Typically it’s good for people to take advantage of various tax deductions. However, for self employed people applying for mortgage loans, it can actually hurt your application. When reviewing self employed applicants, lenders look at post-deduction income, meaning your total net income. The tax returns for the years you provide should be as high-net as possible with as few deductions as possible. It’s a bit of a balancing act as taking fewer deductions means your net income may be smaller since you’re paying more in taxes, but the right balance can get your loan approved faster. 

 

Ultimately you’re going to want to take extra time when shopping around for lenders. Since your application will be more unconventional than most people’s, it’s important to find the right lender. During the interview process, inquire about past experience working with self employed applicants. Self employed mortgage loans are trickier to qualify for, but it’s not impossible. As long as you take extra precaution and pay extra attention to your accounting, you’ll be fine. 

 

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Michael Jordan Puts Utah Mansion up for Sale

Michael Jordan has added to the never ending listing of celebrity homes for sale. Recently, the former Chicago Bull listed his 9,000 sq ft Utah Mansion. Jordan previously listed his Chicago home in Highland Park. While he has been unable to sell that home for $14M for over seven years, he hopes to have better luck with this one. Jordan’s recent listing is up for a modest $7.5M.

 

 

 

Well most likely wish their house was worth seven million, it’s actually a loss for Jordan who initially bought the home in 2007 for $7.9M. The house itself is 9,574 square feet and contains 5 bedrooms with 7.5 bathrooms. 

 

The property itself is not quite as big as his 56,000 square foot mega-mansion for sale in Chicago, but the landscape more than makes up for it. Jordan’s Utah manor sits on 171,910 square foot of land looking over Wasatch Mountains and Glenwild Golf course. 

 

Along with 5 different fireplaces, the house also includes; a home theater, a golf simulator, multiple cascade waterfalls and private terraces, and an infinity pool. According to the listing, the home’s furnishings are also available for purchase. 

 

 

The home sports bamboo floors, granite counter tops, and vaulted ceilings. Mosaic tiled showers and jetted bathtubs. The garage is heated for the winters can hold up to 9 vehicles. 

 

Outside amenities include waterfalls, and outdoor kitchen area, and amazing scenic views that are well worth the price of $7.5M. 

 

Built in 2006, according to its realtor.com listing, Jordan’s Utah pad is, “modern elegance in mountain serenity.” However, that may not prove to be enough for some buyers. As noted, Jordan’s Chicago home has been on the market for seven years and some indicators in the Utah market point to Jordan having a hard time selling. Celebrity homes for sale are always a toss up. Some sell their house fast, others sit on the market for lengthy periods of time. 

 

According to the Salt Lake Board of Realtors, while there has been a 23% uptick in million-dollar home sales for Salt Lake, Davis, Tooele, Utah, and Weber counties combined, selling homes priced $1.5M and up remains a challenge. According to mortgage calculators, the monthly payments for Jordan’s 9,000 square foot home would be around $35,000 with a 20% down payment. Even former Utah state senator Jim Dabakis took to his Facebook page to opine about the listing, joking that, “it will only cost you $34,883 per month!” 

 

Only time will tell whether Jordan’s spacious home in the mountains sells or if it’ll be like his Chicago home, stuck on the market for years. Already he joins a long list of celebrity homes for sale in 2019.

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Questions To Ask When Buying A Condo

Are you considering buying a condo? Maybe you want more flexibility than your apartment offers. Maybe you aren’t ready for homeownership or you want to sell your home and downsize.

 

Whatever your reasons may be, living in a condo can be a very fun, comfortable, and rewarding experience. There are plenty of reasons to choose a condo over an apartment or a traditional home. They are typically cheaper than actual homes, have great amenities, have security, and many more great features.

 

However, it’s important to consider that buying and living in a condo is not like buying a home. So, before you make a purchase, it’s important to know what to look out for.

 

Make sure you ask these five important questions when buying a condo.

 

Questions to Ask When Buying a Condo

 

What questions do you need to ask before buying a condo?

 

As condo associations have their own rules, fees, and other qualities, it’s important to ask these five critical questions when looking for your new condo.

 

1. Are There Any Fees?

 

Condo associations are much like homeowners’ associations. Most condos require you to pay a monthly fee, often ranging between $200 to $500. High-end condo associations will cost even more than this. It’s important to know what your monthly financial obligations will be before moving in.

 

You should also ask what this fee covers. Fees are usually applied to maintenance, landscaping, cleaning, and similar expenses. Since you’ll be paying these fees on a monthly basis, be sure you’re okay with how your money will be spent.

 

2. Who Manages the Property?

 

Like living in an apartment, it’s important to know that you can trust and rely on your condo’s management team.

 

In some condo associations, there are no property managers. Instead, the community is collectively managed by the residents. In other cases, your condo will be managed by a traditional property management company.

 

Be sure to interview your condo manager and talk to your potential neighbors to see what they have to say about the quality of the management team.

 

3. Are There Any Assessments Coming Up?

 

Condo assessments are occasional payments that you have to make in addition to your monthly fee. These assessments are usually meant to cover repairs and improvements to the property.

 

Be sure to ask if there are any assessments coming up in the near future so you aren’t surprised by a bill after you move in.

 

4. What is Covered by Insurance?

 

Next, you should make sure to ask what is covered by your condo association’s insurance policy. If possible, ask to obtain a copy of the policy yourself for review.

 

Be sure to check the estimates to rebuild, how much it costs to bring the property up to code, and whether or not your personal belongings are protected in case of damage. If not, you may want to consider taking out your own supplemental insurance policy.

 

5. What are the Community Rules?

 

Last but not least, what are the rules and regulations of your condo association?

 

These rules will usually indicate basic things like where you can and can’t park, whether or not holiday decorations are permitted, whether you can rent out your condo, and more. Not only will these rules impact your experience living in the condo, but they can impact the potential resale value of your home.

 

Final Thoughts

 

Buying a condo can be a very attractive alternative to buying a home or renting an apartment.

 

By making sure to ask these five questions when buying a condo, you can make a more accurate and informed decision.

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Changes Coming to Reverse Mortgage Loans

If you watch television at all, there’s a good chance at some point you’ve seen a reverse mortgage loan ad featuring Tom Selleck. Reverse mortgage loans are available to people 62 years old and up who have considerable home equity. With a reverse mortgage, they can borow against the value of their home and receive either a lump sum payment or monthly payments. New changes maybe coming to the structure of the reverse mortgage program. Last month HUD proposed three main amendments to preserve reverse mortgages for the future.

 

 

Reverse mortgage loans have surged in popularity since they were first introduced in 1990. While initially slow to pick up, currently over 1 million reverse mortgage loans have been sold since their inception. Seniors who are strapped for cash turn to reverse mortgages to convert their home equity into cash income. However, recently Housing and Urban Development secretary Ben Carson announced new rules regarding reverse mortgages. Included in the recommended reforms are:

 

Amend HECM’s Loan Limit Structure

The purpose of changing the loan limits for Home Equity Conversion Mortgages (HECM) is to “ reflect variation in local housing markets and regional economies across the U.S. instead of the current national loan limit set to the level of high-cost markets in the forward program” to ensure that these mortgage opportunities remain available to seniors.

 

Separate HECM capital reserve ratio and remove HECMs as obligations to the MMIF

This provision is intended to “provide for a more transparent accounting of the program costs and decrease the cross-subsidization that 6 occurs with mission borrowers in the forward mortgage portfolio.” This will allow the process to be open and available for all to see. 

 

FHA eliminate HECM-to-HECM refinances

This reform is necessary as these loan transactions result in “greater appraisal inflation, increasing program costs, and negatively impacting GNMAguaranteed HECM MBS (HMBS) due to quick “churn” in pool participations.”

 

 

Experts say that these changes are necessary to preserve the future of the reverse mortgage loan program. Some however are more skeptical, fearing that the changes will result in driving up costs for seniors. In 2012, FHA reported a loss on reverse mortgage loans of $1.7B. Following the market collapse, HUB has consistently taken steps to tighten up the process by decreasing the amounts available to borrowers and by being more stern about appraisals. 

 

In the written testimony to the Senate Committee on Banking, Housing, and Urban Affairs, sec. Carson details the purpose of these reforms stating, “Reform will reduce the Federal Government’s outsized role in housing finance and prevent its activities from crowding out the private sector.” Carson hopes these reforms will ensure the stability of the reverse mortgage loans program and be kinder to taxpayers. 

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Why are Millennials Buying Small Houses?

After the second world war, baby boomers flooded the housing market buying up the biggest homes they could finance, often then rushing to start families. Two generations later however, millennials are doing almost the complete opposite. Many have bemoaned the low rate that millennials are buying homes at, opting to wait till later in life. The same is true for starting families. Many nowadays are waiting until they’re further along in their career to start families, lessening the need to buy houses. When they do finally buy homes, the new trend is to buy small.

 

Financial Reasons

 

 

Efficiency homes and options like ADUs are becoming more and more popular, especially as millennials are moving away from the city. So why are millennials buying such small houses? The answer is two-fold. The main reason is money. Millennials are vastly underpaid compared to previous generations and many simply cannot afford to splurge on a house like baby boomers did.

The new generation today faces economic circumstances much different from previous generations and that is affecting their real estate trends. From the Great Recession of 2008 to the student debt crisis, many today don’t have the money to buy a house. Since larger homes tend to be on the pricier end of the spectrum, naturally, with smaller budgets, millennial homes tend to be smaller.

 

Changing Priorities

 

 

As hinted earlier, millennials are having children later in life, if at all. According to the data from the Census, the number of 30-34 years old without children at home increased by 4% from 2011 to 2015 and the ‘baby boom’ from the 50s has turned into a ‘baby bust.’ The lack of having kids greatly reduces the need for buying homes. The reality is, the younger generations want to be established in their careers before they do things like purchase homes or begin a family.

 

Of this recent trend, Lawrence Yun, the chief economist says, “The fact that we’re [millennials] having smaller-size families I think naturally means that the demand for smaller-size housing would get greater interest than before.” 

 

Similarly, millennials have different priorities in what they look for in a house. In general, millennials spend much of their time working. As a result, when they aren’t working they prefer to spend their leisure time doing other activities such as biking, hiking, going to different events in the city, etc, all things that don’t require being home. Millennials tend to enjoy doing things outside of their home. The result of that is a decrease in the need for spacious homes, resulting in an increased demand for smaller houses.

 

Environmental Concerns

 

Along with the economic factor, there is also the environmental factor. Millennials are also seeking out homes that are more energy efficient. With climate change being the most pressing issue facing the generation, they are very environmentally conscious. With that, many are opting for energy efficient homes outside of the city. By moving away from the city they are reducing their costs and the amount of energy they use. Things such as xeriscaping have become popular among millennials as they require less maintenance and don’t need irrigation systems like other landscaping types. 

 

The downsizing trend is not exclusive to millennials however. Many from generation Z who are currently in college and will soon graduate are also experiencing the constraints of students loans and are buying accordingly. Parents whose children have all moved out are also picking up on the small house trend as they no longer need the space. The ‘tiny house’ trend appears to be here to stay for a while as millennials continue to fundamentally change the real estate market.

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How a Single Credit Card Purchase Can Ruin Your Credit

Credit is an unavoidable part of life. The credit system isn’t always easy to understand, but you know it’s important. One of the most confusing things about credit is just how dangerous it can be for your financial health. In fact, a single credit card purchase can ruin your credit.

 

While this might sound extreme, it’s true. It only takes one mistake with a credit card to do years worth of damage to your credit score.

 

What does this mean about credit? More importantly, how can you learn healthy financial habits so you can create a strong future for yourself and your family. In this guide, we’ll explore how a single credit card purchase can ruin your credit as well as what to do about it.

 

 

How Do Credit Scores Work?

First, we need to talk about the basics. How do credit scores work? How is your credit rating calculated? There’s a lot of confusion about the realities of credit.

 

If you’re confused, you’re not alone. A reported 80% of Americans only know basic facts about their credit scores. While this is a good start, it pays to learn as much as you can about how credit works and is reported.

 

Your credit score, in simple terms, is a way to rate your credit-worthiness. It’s used by lenders to determine whether you’re a good candidate for a mortgage, car loan, credit card, or any type of credit. Your credit score is calculated based on a number of factors including:

 

• Your payment history
• Age of your credit accounts
• Types of accounts
• Numbers of hard credit inquiries
• Debt usage (aka credit utilization)

 

In a perfect world, you’ll have a low credit utilization and pay all of your bills and debts on time. Unfortunately, things do happen. Sometimes you’re caught off guard and can’t afford a payment or you take on more debt than you can afford. These things hurt your credit, but they’re not impossible to overcome.

 

Why Every Purchase Matters

When it comes to credit, every purchase matters. As we mentioned at the beginning of this article, it only takes a single credit card purchase to ruin your credit.

 

How could this be possible? It doesn’t matter what you purchase. What matters is how you handle your purchases.

 

Let’s look at an example. Say you purchase a new pair of shoes for $60. This all seems fine, and you have the money to pay for it. However, if you miss your payment deadline, you might find yourself facing a late fee and interest. Suddenly that $60 purchase turns into an $80+ purchase.

 

Though it’s annoying to pay extra fees, this still won’t ruin your credit. However, it can get much more extreme. Let’s say you made a few more purchases on top of that $60 pair of shoes. Perhaps that payment is actually part of next month’s balance, so you don’t realize it’s not paid off with your first payment. Not all banks will let you know about missed payments, so you might find yourself facing several months of interest and late fees.

 

Now you’ve got a problem on your hand. Several months of missed payment will add up quickly, damaging your credit score. That’s not something you want to deal with, especially for what might have been a minor purchase.

 

Credit Card Tips for Responsible Spending

The good news is this credit horror story doesn’t have to be your reality. There are a few tips that will help you spend responsibly so you can build a healthy credit score. Try these tips below:

 

• Set reminders – Always set reminders for payment deadlines and due dates. Your credit card payment will be due on the same day every month, so make sure you have an alert in your calendar or automatic payments.
• Talk to your lender – If you know you won’t be able to make a payment on time, talk to your lender sooner rather than later. Lenders just want to get paid. They often have options for those who are proactive and willing to work with them.
• Spend cautiously – Credit cards make it easy to spend more than you can afford. Always spend cautiously and keep your budget in mind.
• Check your credit – Finally, check your credit score regularly to stay on top of your progress and make sure everything is accurate.

 

It’s crazy to think that a single credit card purchase can ruin your credit, but it’s true. The good news is you can be proactive to keep your credit in good standing right now. Learning how to use your credit card responsibly is an important step in becoming a financially savvy individual.

The post How a Single Credit Card Purchase Can Ruin Your Credit appeared first on National Cash Offer.

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Casa Encantada is the Most Expensive Listed House in the US

Bel Air is on pace to set yet another real estate record. According to the Los Angeles Times, the mammoth estate known as Casa Encantada was recently listed on the market for a grand total of $255 million. With that price tag, Casa Encantada is the most expensive publicly listed home in the country. If sold this year it would shatter the current record of $119M set this past summer by the Manor in Holmby Hills as the most expensive sale in California. 

 

 

The Bel Air compound is currently owned by billionaire and founder of Global Crossing Gary Winnick. The house itself is a 40,000 square foot behemoth with 60 rooms and 18 foot ceilings and a guesthouse that anyone would gladly take as their main house. 

 

The home was originally built in 1934 for the Hilda Boldt Weber, the widow of a glass bottle manufacturer. Weber originally purchased the home for $100,000, equivalent of $1.9M today. Since then it has had many owners, notably Conrad Hilton of Hilton Hotels and David Murdock of Dole Foods. Both spent big money on the house with Hilton spending the equivalent of $2.4M in today’s dollars and Murdock dropping $12.4M. Neither however came close to the current asking price. Even the current owner ‘only’ spent $95M on it. Interestingly, the home that was once owned by Conrad Hilton is now listed by his grandson Rick Hilton of Hilton and Hyland. 

 

 

Though the lister is not publishing photos of the estate’s current condition, Winnick has reportedly restored its original 1930s classic detailing and there are nearly 100 archival photos of the interior online.

 

So what does $225M get you? In addition to the H shaped main house, the property also comes equipped with a motor court in the back, a rose garden, koi ponds, a basketball court, a lighted tennis court, a home movie theater, a rose garden, a bar, and multiple greenhouses.

 

Upon entrance, visitors are greeted by a large fountain and then four massive pillars surrounding the front door. The pillars continue inside the foyer of the house which also includes a spiral staircase up to the second level. The rooms are large and open with high ceilings and can be easily made into whatever you like. As you peruse the halls, the home is adorned with various sculptures and decadent works of art.

Hyland of Hilton and Hyland believes the property is worth $175M just in land value. Speculating on who the eventual buyer might be, Hyland said, “We don’t expect it to be someone who just made their money in tech on an IPO and is 29 years old,” adding, “It’s going to be someone who is sophisticated, someone who is a world traveler, who has homes in other places around the world.”

The post Casa Encantada is the Most Expensive Listed House in the US appeared first on National Cash Offer.

source https://nationalcashoffer.com/casa-encantada-most-expensive-house/

How to determine what to offer on a house

Let’s say that you have already found the home that you want, most think that most of the work is done. But that is not exactly the case. Now, before you actually start submitting offers, you’ll first want to figure out how much you should offer. One of the most important parts to figure out during this process, is determining your offer price.

 

Here are some of the factors that can help you decide what to offer on a home.

 

Below are some of the most crucial questions you can ask yourself or your real estate agent to help you determine the best price for your offer.

 

 

1. What have the same type of houses sold for?

The research that you can do with recent sales in the same area is a great place to start when considering what to offer on a house. Comparables are a collection of recent or similar and nearby houses that are on sale. When generating comparables for the property you want to buy, think about having a checklist of things to check on similar to the one below:

• Bedroom & bathroom count
• Location & construction type
• Square footage of the house
• Condition (i.e. new construction, etc.)

 

 

2. How long has the house been on the market?

The amount of time a home has been on the market is a factor you should think about when determining your offer price for a house. Usually, the length of time a house has been on the market has a connection with how much you could or should offer.

The longer the house has been on the housing market, the lower your offer can be in most situations. Typically then, if a home has just been put on the market, your offer price should be higher. If you shoot low with an offer with a home that is fairly new to the market, the seller will most likely pass on and consider another opportunity since its new to the market.

 

 

3. What’s the condition of the houses?

A home that is ready for you to move into already, will usually receive higher offer amounts than a home that is in need of a lot of repairs. Although homes that need more repairs may save you money initially, you will still end up paying more for the repairs later.

When looking at the condition of a house, you’ll want to pay attention to structure or functional issues that the home may be experiencing. Meaning, you may want to look at the following below:

• A damaged roof
• Cracks in the foundation
• Rusty plumbing
• Mold or water stains on the walls
• Floors that are not even or warped
• pest or insect infestations

 

 

4. How flexible are you willing to be on price?

If your budget doesn’t allow you to offer more money, you can play around with the other aspects to ensure that your offer is still luring to the seller.

Aside from price, you can make your offer more enticing by showing more flexibility on things like:

• Contingencies
• Closing schedule
• Closing costs
• Repairs

 

The post How to determine what to offer on a house appeared first on National Cash Offer.

source https://nationalcashoffer.com/how-to-determine-what-to-offer-on-a-house/

How To Buy A House With $10,000

There is a difference to buy a house with only $10,000 and to buy a house for $10,000. Well we will start this article by saying you need to first have $10,000. Once you have the $10,000 you will use this for a down payment and to cover the cost of your home inspection. All other closing costs, which include your tax, insurance escrows and everything else can be paid by a third party who is not by you.

 

Your lender will probably ask you to pay for the appraisal upfront, but you can ask to have that included as part of your closing costs (which we highly recommend). Tell your lender that you are getting a seller credit and that you want to discuss interest rates and lender pricing that includes a lender credit.

 

However, we know that such costs as the following are still on your mind; the closing costs, escrows, and everything else that will be due at closing. However; all of the “everything else due at closing” costs can be paid with a seller credit and a lender credit.

 

We also want to state that it is important to discuss seller paid closing costs with your real estate agent in the beginning of the home buying process. Make sure you work with your realtor to determine what your strategy will be sticking to before you make an offer on a house and include the seller paid closing costs.

 

Let’s guess that the total closing costs, escrows and everything else is at $10,000 and the seller agrees to allow $8,500 of that in the form of a seller credit or go towards your closing costs. The remaining $1,500 can be paid using a lender credit resulting from what is known as par plus pricing.

 

Par pricing is market pricing, or what the interest rate is offered with no additional cost (which is points) to the mortgage consumer. Due to this, a seller credit, a lender credit and your $10,000 are all the necessary things to have for you to become a homeowner!

 

So add up what you have managed to save, save more through a yard sale, or even through eBay selling, and see if you can get enough together to take a shot at becoming a homeowner.

 

After all, all you really need is $10,000.

The post How To Buy A House With $10,000 appeared first on National Cash Offer.

source https://nationalcashoffer.com/how-to-buy-a-house-with-10000/

How Much Window Coverings Cost & Why Your Home Needs Them

Why Window Covers?

They create an aesthetic in a room that often creates a homey, warm, clean feeling. They also provide sound protection, privacy, and protection from the sunlight.

 

For light control, blinds and shutters offer the most options, since you can tilt slats or louvers to allow in just the amount of light you want. If it’s a bedroom that needs to be totally dark at times, opt for blackout shades or blackout lining for draperies. For energy efficiency, honeycomb blinds actually trap hot or cold air in cells, keeping the room cooler or warmer with the season.

 

To block noise, “the more fabric you put up, the quieter it is,” says Babylon. Consider layering window treatments such as a shade, then sheers then lined floor-length draperies (add a fabric-covered cornice at the top).

 

A better question is why wouldn’t you use window covers? For some people, the answer to that question is the cost.

 

 

Number & Size of Windows

Clearly the number of windows that need treatments installed affects the price of installation. However, like most home improvement jobs, there are some cost savings associated with increased volume because the workers and their tools are already on site.

 

Therefore, while the installation of a single custom window covering costs on average $60-$70, the price to install two is less than double that, around $80. The price for three or more is similarly discounted, ranging from about $100 for three to about $120 for five window treatment installations.

 

 

Style

The style of window treatments you want to install also affects their price immensely. While simple curtains and drapes only require a straight-angled rod, custom blinds, shutters, and shades are all more complex because they must fit exactly within or around a window. Here are some specific considerations to keep in mind with each of these popular window treatment styles.

 

Curtains and Drapes.  A simple rod and curtain is an easy installation on your own and a low-cost way to add volume, interest, and dramatic design to any window.  Furthermore, the curtains and drapes themselves can add or subtract substantially from final costs, with basic cotton or polyester panels costing as little as $7-$10 or hand-spun silk types going for $1,000 or more.

 

Low-Cost Blinds and Shades. Most home improvement and hardware stores offer basic aluminum blinds and roller shades cut-to-order so they can fit your windows exactly. These basic treatments are quite inexpensive, costing anywhere from $7-$25 apiece, and they are usually self-installed.

 

Custom Blinds and Shades. Custom-designed blinds and shades have the same clean, fitted look as their low-cost counterparts with the added benefit of professional installation and features such as energy efficiency, cordless operation, and even automatic movement. Installation of these custom blinds generally costs between $80-$250, depending on their features.

 

Shutters. Similar to custom blinds, shutters must be sized according to the window and are almost always professionally installed. Their price ranges according to the materials used and details present, including carvings and color. The average cost for installation ranges from around $150-$400.

The post How Much Window Coverings Cost & Why Your Home Needs Them appeared first on National Cash Offer.

source https://nationalcashoffer.com/how-much-window-coverings-cost-why-your-home-needs-them/

Things To Consider Before You Refinance Your Mortgage

When someone is refinancing a mortgage, this means that they are obtaining a new mortgage to replace the original one that they first had. Although, it can be a good strategy for borrowers with good credit history in search of a lower fixed interest rate instead of a variable rate: The 1st loan gets paid off to then start 2nd loan.

 

Not only does a reduced interest rate work to save money in the long term, but it also increases the rate at which a homeowner builds equity in their home. It can also minimize the size of their monthly payment.

 

Here are some things worth considering as you think about refinancing.

 

How much equity is already in your home?

Whether the economy is up or down, it’s not always easy to make payments on your house each month. Every time you make a mortgage payment though every month, you raise your chances of ownership with your house. As home values start to rise consistently, this means you own more with your home that is consistently gaining value over time.

 

 

How much will it cost to refinance?

There’s always a cost to refinancing. With that being said, don’t be shocked if you are spending up to 3% of your principal plus any third-party fees or costs. Also, some lenders will offer loan programs with all closing costs credited so keep that in mind. You should always ask for that option if it’s what you would like.

 

 

How long do you plan to live at your home?

Your timeline is an important thing to thing about and consider because you may have plans to move before obtaining the benefits of refinancing. You should probably plan on living in your home for a few years at the least.

 

You should always know your break-even point, when that 3% to 6% is covered by your monthly refinancing savings. Suppose your refinance costs $4,000 and saves you $200 per month, you’ll want to stay there for about 20 months in order to cover that expense of the refinance. Any time spent in your home beyond that puts more savings in your account.

 

 

How is your credit score?

The better your credit is, the easier your refinancing will be. Pay down small revolving debt before running your credit application as soon as possible. This will typically boost your FICO score.

 

For the simple fact of refinancing a home, can also impact your credit score. Your lender will check your credit history, and these actions can potentially shave some points off your score.

 

You will ALWAYS get the best interest rates with a credit score of 760 or better. You can expect to put some money down if your credit is below that threshold when refinancing.

The post Things To Consider Before You Refinance Your Mortgage appeared first on National Cash Offer.

source https://nationalcashoffer.com/things-to-consider-before-you-refinance-your-mortgage/

Why Now Is The Time To Invest In Rental Property Ownership

Now is the time to invest in rental property ownership, we are going to tell you the reasons why.

 

 

Mortgage interest rates are very low again.

There have been very few times in history when we’ve seen 30-year fixed mortgage rates at about 3.7% and 15-year mortgage rates closed to or above 3%. Because of this, this makes buying a rental property as a long-term investment very much in your favor.

 

You can also consider interest-only loans. The nice thing about interest-only is that the monthly payment goes down since you’re not paying down principle. This can make the unit more profitable, especially in the early years when most real estate investments have tighter cash flow constraints.

 

 

Real Estate is shifting toward a buyer’s market.

Although it’s been years, the housing market is shifting. Due to this, you’ll be able to find a property in your area at a fair market rate. Chances are, you’ll at least be able to use the rental income to pay off your mortgage and still have some profits from just the rent payments.

 

 

When a recession is coming, rental properties can be one of the best places to invest in.

If you put your money in the stock market right before a recession, it will be so up and down for you and your investment. If you put your money into a rental property in a city where rentals are constantly in high demand, you will likely find yourself with much more stable investment returns.

 

With that being said, the value of your property will likely go up more slowly or even decrease during a recession. As long as you keep the unit rented and are planning to hold for the long term, you’ll be able to wait out the recession while receiving a consistent cash flow on your rental property.

 

 

The double bottom line is hard to beat.

When you own a rental property, you initially have 2 sources of wealth income: the money you get from rent yielding a net profit each month of rent, and your home’s value growth.

 

Let’s use the following scenario as an example: You buy a $400,000 rental property, and decide to invest $80,000 of your money as a 20% down payment. In the 1st year, you get $2,000 per month in rent for the property. After paying all of the needed costs for upkeep, you clear $150 each month in net cash flow, or $1,800 for the year. This represents a 2.25% return on the $80,000 you put down. Overall, this doesn’t sound like a bad scenario to invest in a rental property.

 

The post Why Now Is The Time To Invest In Rental Property Ownership appeared first on National Cash Offer.

source https://nationalcashoffer.com/why-now-is-the-time-to-invest-in-rental-property-ownership/

Frank Lloyd Wright House in Phoenix Sells for $1.6M

Frank Lloyd Wright’s last creation ever just sold for $1,677,500 in Phoenix. The house sold at a public option with the bidding beginning at $750,000. The home has been on and off the market for the past 3 years. The house, nicknamed the Circular Sun House finally went to an out of state resident who outbid 20 others for it. According to reports the buyer, who asked to remain anonymous, intends to keep the property as a vacation home. 

 

The 3,095 sq-ft home was the last home every designed by Lloyd Wright and was designed just before his passing in 1959 for Norman and Aimee Lykes. Nine years later it was finally built by John Rattenbury, an apprentice of Frank Lloyd Wright’s, in 1967.

 

 

The house is built on a desert plateau in Phoenix and is best known for its round curvature siding. From an aerial view, the design resembles the gears on a clock. Wright was inspired heavily by the shape of the mountains and designed the property to give it a 180 degree view of the surrounding landscape. 

 

On the inside, the home sports rounded walls draped in golden mahogany and circular windows. Even the pool (especially from an aerial view) is shaped like a crescent. Other geometric cutouts are sprinkled throughout the house’s interior with a series of overlying circles and arcs.

 

Wright’s focus on geometric shapes, especially his use of circles, is very common throughout his work during the 1950s. The home was built just before the opening of the Guggenheim museum, which also utilized circles and arcs throughout its design.

 

 

The house contains three bedrooms and three bathrooms and also boasts of; a second floor office with 360-degree views, two separate living areas, a garden terrace with a indoor wet bar and pool, and a media room (added by the second owner with the help of Rattengburry for the design).  The house originally was supposed to have 5 bedrooms per Wright’s design, but due the small size of some of them, Rattenburry reduced the number to 3 including a larger master suite in the final design.

 

In another unique Wright design, the windows were made so that they would never receive direct sunlight, but the interior will always soak up natural sunlight.

 

 

The final sale price of $1.67M was a drop from the final listed price of $2.9M. The auction was done by Heritage Auction. Another Wright-designed house also sold this month in Los Angeles. After a year on the market, the Ennis house finally sold for a massive price of $18M, the most expensive Wright house ever sold. Also in Phoenix, the David and Gladys Wright house is currently on the market for over $10M.

The post Frank Lloyd Wright House in Phoenix Sells for $1.6M appeared first on National Cash Offer.

source https://nationalcashoffer.com/frank-lloyd-wright-house-phoenix-sells/

How To Get the Most Out Of Your Home Buying Experience

Getting ready to buy your home can be both exciting and scary. When you think about down payments, mortgage types, credit scores, and all of those things that weigh your home buying possibilities so much, it can seem downright overwhelming.

 

We’re here today to give you a short guide as to how you can make the most out of your home buying experience and avoid the headaches that could arise.

 

 

1. Prepare For the Mortgage Process

There are so many people that go out and find their dream homes, only to realize that purchasing it is not financially viable. To make sure that you’re dream home is set in stone, you’ll need to make sure that you have solid credit, enough money to put a down payment and close, and income that can be verified.

 

To get a good mortgage, you must have a good credit score. Make sure to check your credit report to see if there are any errors. To do this, we recommend investing in a daily credit monitoring service like these.

 

Beyond your credit score, you want to make sure that you have enough cash on hand to make a down payment. A down payment can be anywhere from 3.5% to 20% of the overall cost of the home. Make sure that you are keeping this money safe and stored away somewhere so that you won’t accidentally use it under other circumstances.

 

Lastly, to get verified, you want to have all of your documents in order. This includes W-2s, paystubs, bank statements, and anything else with proof of income.

 

 

1. Shop Around For Mortgages

There are so many new homebuyers that leave the mortgage shopping to the last second. Unfortunately, that is a great way to lose the home of your dreams. This is why we highly recommend going for mortgage pre-approval. It is totally free and non-binding, but helps to present you as a serious prospective buyer when you first bid on the home.

 

You want to have a good understanding of the types of mortgages and the fees/rates associated with each.

 

 

3. Find the Right Real Estate Agent

Once you have a few houses or neighborhoods in mind, it is time to get a real estate agent who is familiar with the area. Don’t just ask your real estate friend. You want someone who is an expert in the particular area, as they can tell you more about the surrounding neighborhood and help to get you the best deal possible.

 

 

Summary

As we said, buying your first home can feel a bit overwhelming. The more you have yourself and your finances in order, the more of a seamless process it will end up being. The goal is to make it more exciting than it is overwhelming, so make sure to follow our tips above to make the most of your experience!

 

Do you have any tips for first-time homebuyers that you’d like to share? Let us know in the comments!

The post How To Get the Most Out Of Your Home Buying Experience appeared first on National Cash Offer.

source https://nationalcashoffer.com/how-to-get-the-most-out-of-your-home-buying-experience/

Things Banks Check Before Making A Mortgage Loan

Before you buy your new home, one of the biggest steps you have to take it applying and being approved for a mortgage. So, unless you happen to have enough cash lying around to buy a house upfront, you should understand what mortgage lenders look for in borrowers.

 

Understanding what factors lenders take into consideration can not only help you get approved for a mortgage, but it will help you get the best terms possible on your home loan.

 

So, before applying for a mortgage, take a look at these five things banks check before they will approve you for a mortgage.

 

Credit Score

 

One of the most important factors banks take into consideration is your credit score. Your credit score is a metric banks use to determine whether or not you are a responsible borrower.

 

The higher your credit score is, the better. Low credit scores often indicate that you are a risky borrower. So, even if you are able to get approved, you may end up with unfavorable loan terms.

 

Before you apply for a mortgage, you should make an effort to improve your credit score. This can be done simply by making on-time payments towards your debts over time. It may take a while, but having a good credit score is necessary if you want to take out a mortgage at a reasonable interest rate.

 

Every lender has their own requirements, but you should aim to have a credit score of at least 650.

 

Income

 

Your income tells lenders whether or not you will be able to make your mortgage payments on time every month. Banks will want to review your bank statements, pay stubs, and other information to make sure you earn enough money to afford your mortgage.

 

As a general rule of thumb, your mortgage payments, property taxes, and insurance should not exceed about 30% of your monthly income. Keep this in mind when applying for your mortgage.

 

Outstanding Debt

 

Lenders will also need to know about any outstanding debts that you are currently making payments on. Having other loans isn’t necessarily a bad thing, but lenders will want to make sure they won’t impact your ability to make mortgage payments.

 

If it turns out you don’t have much money left after making payments towards your other debts, it may be difficult to get approved for a mortgage.

 

Down Payment

 

The larger the down payment you are able to make, the easier it’ll be to get approved for a mortgage. A larger down payment means that you will be borrowing less overall. It also demonstrates good financial health, making it easier for lenders to trust you.

 

Generally, 20% is considered the standard down payment for serious applicants. However, if you aren’t able to put down this much, you might still be approved, but it will be a little bit more difficult to find a suitable lender.

 

Employment History

 

Last but not least, lenders will need to review your employment history to make sure you are a reliable borrower. Your income doesn’t tell the whole story, banks also need to ensure that your income is steady.

 

A rocky employment history can indicate that you may not be able to continue making mortgage payments in the future. Banks will likely want to contact your employer to make sure you are employed and to verify your current salary.

 

Finding the right mortgage isn’t always easy, especially when you don’t know what banks look for in a borrower. By understanding what factors your lender will take into consideration, you can find the mortgage you need to buy your new home.

The post Things Banks Check Before Making A Mortgage Loan appeared first on National Cash Offer.

source https://nationalcashoffer.com/things-banks-check-before-making-a-mortgage-loan/

Reasons to Hire an Accredited Buyer’s Representative

When you buy a home, sometimes you need someone there on your side. An Accredited Buyer’s Representative (ABR) is someone who has special training designed to help you through the home buying process from start to finish.

 

Using an ABR also gives the buyer unique assistance that other buyers don’t have. ABRs have training in how to ensure the transaction is ethical and fair, and the buyer is protected throughout the process. So why might you hire an Accredited Buyer’s Representative when buying a home? Let’s explore the top reasons.

 

 

1. Simplify the Process

The first reason is simple: buying a home is complicated. There are so many steps from start to finish that it’s easy to feel lost and confused along the way.

 

With an ABR on your side, you’ll have an expert at your side the entire time. If you’re not already familiar with complex real estate contacts and buying tactics, this is an invaluable resource. Since it takes an average of 30 to 45 days to close a home deal, it pays to have someone there to help.

 

2. Protect Your Interests

When working with a real estate agent, it’s important that you choose someone who will protect your best interests. While it’s natural to think the agent is always working to get the best deal for you, this, unfortunately, isn’t always the case.

 

If you have an ABR, you know that you have representation that promotes your best interests. These types of agents keep your information confidential, stay loyal to your needs, and remain ethical in all dealings.

 

3. Stronger Negotiations

While you might wish securing your dream home was as simple as putting in an offer, that’s rarely the case. You might find yourself needing to negotiate with the seller.

 

Deciding how much to offer when buying a home is tricky. You need a strong understanding of the local market, the home, and so on. This isn’t always easy, but an ABR has all the best practices when it comes to negotiation. They can help you improve your chances of getting the outcome you want.

 

4. No Extra Cost

Another reason to consider an ABR is that it’s no extra cost to you! Most real estate transactions include the agent’s commission is paid out of the seller’s proceeds. This means you rarely will need to pay the agent’s commission. You’re able to get a higher level of service without worrying about a higher cost.

 

5. Learn From Their Experience

Last but not least, Accredited Buyer’s Representatives have a lot of experience. One of the qualifications for becoming an ABR includes having proven experience, so this is something you can trust.

 

Working with an up-to-date expert who knows there stuff will only help you when buying a home. Your ABR has done special coursework, passed a certain test, and has a strong understanding of their duties. This is a professional designation you can trust!

 

Find an Accredited Buyer’s Representative Of Your Own

To find an ABR agent, you can search the national directory. They’re very easy to find, so there’s no reason not to work with one of your own when buying a home.

 

There’s a lot of confusion that can come along with buying a house, but it doesn’t have to be that way. Choosing to use a real estate agent who has your best interest at the forefront of their search will always pay off.

The post Reasons to Hire an Accredited Buyer’s Representative appeared first on National Cash Offer.

source https://nationalcashoffer.com/reasons-to-hire-an-accredited-buyers-representative/