Angela Sells DFW

Journey with me through my real estate, motherhood and Texas adventures

Archive for the tag “how to buy a house”

Buying the Nicest Home in the Neighborhood

When you buy the nicest house in the area, your house will naturally appreciate at a much slower rate than the simplest home in the neighborhood. The reason being is that any improvement or renovation you make on the simplest home will immediately add value to the home. However, if you buy the nicest home in the neighborhood, your home is already valued at the top of the market and will, therefore, appreciate at a slower rate.

In addition, when you are selling a mid-range or low-range home and other houses are selling in your neighborhood, the value of your home will naturally be increased. When you are selling the nicest home in the neighborhood, the sale of other homes in your neighborhood does not raise the value of your home since you are already valued at the top of the market.

The nicest home in the neighborhood will also be harder to resell than a mid-range house in the same neighborhood. There is a select number of buyers looking to purchase the nicest home in the neighborhood. Most of the market prefers to buy a home in the mid-range of the neighborhood. People care what the neighborhood looks like along with the house itself. Buyers tend to be turned off if the house itself is beautiful but it is not surrounded by equally beautiful homes.

Finally, no one can predict the future of the real estate market. Buying a home is an investment and there is no guarantee that the property will appreciate which makes buying a mid-range home more appealing to prospective buyers.

For all of your real estate needs, please contact the Hornburg Real Estate Group at Keller Williams Realty at DallasFtWorthHomeSearch.net or (817) 264-7087.

Tips for Building Credit

Tips for Building Credit

Knowledge is Power. -Francis Bacon

Credit cards

I get a lot of calls from potential home buyers who would really love to purchase a home and thought that they would be good to go but unfortunately, they were misinformed about credit issues or not informed at all.  I have compiled some helpful information that will help align your credit with your home purchasing goals.

  1. Open a Checking AND Savings account- Try to make sure you get it for FREE!  Most banks are competing hard for your business so negotiate fees (if any) with them.
  1. Get at least 2-3 Major Credit Cards- I recommend the following companies based on their approval rate.  Please bear in mind that you are essentially “paying for your credit” by getting your first credit cards.  These cards will come fees and that should be expected because right now you are considered a “high risk” case. Don’t over do it though.  If you’re denied by the first 3 companies below, don’t try the 4th.  Too many “hard inquiries” on your report will drop your score lower.

http://www.OrchardBank.com

http://www.CreditOne.com

http://www.MyPremierCreditCard.com

http://www.Discover.com

  1. Use your credit cards- The key to building your credit is using it and using it correctly.  Buy something small on your credit card each month.  Pay that bill off completely each month.  This will help boost your credit worthiness.  Keep your monthly balances at $0 or as low as possible.  The amount of available credit vs. total credit you have affects your credit score.  The more available credit you have, the better off you are…yet you still need to use the credit cards to help boost your scores so don’t let them sit unused.
  1. Monitor Your Credit Report- Yes, this too will cost you a fee.  I recommend http://www.FreeCreditReport.com ($14.95/ month) because it is extremely user friendly and offers helpful tools to understanding what affects your score.  You will receive monthly credit score reports on how your score changed and what caused it.  You can also see all of your open credit accounts, past and present.  Sometimes you may find that a company may have mistakenly identified you as someone else.  The credit monitoring websites make it easy to dispute claims online.  If you have items on your credit report that are incorrect or are old, try disputing them and having them from being seen on your report.
  1. If you are Renting an apartment or home, ask your Landlord to report your good paying habits.  Websites like http://www.tenantverification.com allow Landlords to do so for free.  You can suggest this to them as a great way to attract responsible adults as tenants because renting their home helps the tenant build credit.

I recommend using your credit cards responsibly as mentioned above for 6 months.  Within 3-6 months it should help boost your score.  If you’re watching your score on a credit monitoring website, notify your real estate agent when you’re at or near 640.  This is a great number and you can often secure prime interest rates with this score!

These tips are based on personal experience and tools that have helped prior real estate clients.  They are not guaranteed and each person’s credit report varies because of everyone’s unique financial history.

 

 

Please feel free to ask if you have any questions or concerns regarding this information!

How To Buy a House


I recently held a home buying seminar for not just first-time home buyers but second, third and fourth-time home buyers. The feedback that I got was that while most homeowners currently owned their home, they had forgotten how to buy a home and weren’t sure what to do with their current one. The other feedback I received was that first-time home buyers just didn’t know where to start. While the internet has a wealth of information available at our fingertips, it can sometimes be overwhelming so I thought I would break it down for you.

There are an infinite number of variables that come into play when purchasing a new home.  These variables are why it’s important to hire an experienced, seasoned agent with an eye for detail.  My PSA for the day: It costs you nothing as a home buyer to work with a REALTOR.  The Seller pays for your agent and their agent.  Don’t make the mistake that a lot of people do by not hiring your own representation.  Remember, the Seller hired their agent to work for their best interest and you should hire yours too.

Without further adieu, here are the steps to purchasing your new home:

1. Decide to buy.

Sounds easier than it actually is.  The truth is there are a lot of reasons decide to purchase a home.  There is never a wrong time to buy the right house.  Often times, by purchasing a home you create accidental financial leverage.  Did you know that the average worth of a renter is $8,400 and the average net worth of a homeowner is $184,000?

All you need to do in the short run is find a good buy and make sure you have the financial ability to hold onto it for the long run.  The most important rule for keeping your stress to a minimum is that you don’t have to know everything- leave that to your real estate agent!

2. Hire Your Agent.

Real estate agents can make or break your home buying experience.  Be sure that you feel 100% good (or awesome!) about your agent.  Purchasing a home is often times the biggest investment we make so be sure that you’re choosing a great leader to help you with that investment.

I recommend asking your agent questions about their knowledge and experience in your area and in your price range. A few simple questions will easily convey their ability. Client testimonials are also a great jumping off point!

3. Secure Financing.

Finding out what kind of financing works best for you, is very important.  By knowing this information up front, you will be positive you’re looking in the right price range but more importantly your agent will you know how to negotiate the contract in your best interest.

Whether you’re going VA, FHA, USDA or conventional it’s important to know the numbers up front.  Sometimes if you’re going through a first time home buyer program, you may have to attend classes ahead of time so it’s important to know about that upfront.  Have I mentioned how important is this?!

If you’re not sure where to turn to find a great lender, ask your agent!  We work hand-in-hand with lenders day in and day out so we can point you in the right direction.

4. Find Your Home.

Your experienced, seasoned agent will sit down with you and go over exactly what you’re looking for. We call this a Buyer Consultation. Your agent will know what questions to ask in order to help you define what it is you’re looking for. Once that’s complete, get out there and see some houses!

5.  Make an Offer.

When you find your dream home, it’s time to make an offer. This is where all of those important numbers come into play. Your agent will know how to write a “bullet proof” contract to help ensure it’s in your best interest.

6. Perform Due Diligence.

This is a critical step! This is when you should be getting your home inspected (it’s not required, but I HIGHLY recommend it!), talking to homeowner insurance companies about their rates and requesting any pertinent repairs. Your experienced agent is going to point you in the right direction of licensed individuals for inspections and awesome vendors for everything needed to complete your due diligence.

7. Close.

Once you have performed due diligence, it’s time to close. Prior to closing you will receive a HUD-1 which is a closing statement. This statement will outline what you should bring to closing in a cashier’s check (or wire). This amount will include your down payment and any closing costs associated with the purchase. The closing statement will also have your monthly payment amount and an outline of your loan terms in an easy to read (and understand) format.

8. Maintain Your Investment.

This is the fun part of homeownership! This is where it’s important to properly maintain your home by ensuring it’s always water tight, free of wood destroying organisms, free of debris and overall well kept! The fun part comes in updating different aspects of your home to suit your tastes and improve your home’s value!

In a nutshell, that’s how to purchase a new home. As I previously mentioned, there are a lot of different aspects to each step but that’s why it’s important to hire an experienced professional who can anticipate problems before they start in order to protect you and your future investment. If I didn’t answer all of your questions, please feel free to ask! I would love to hear from you!

For a FREE, e-book that goes a little more in-depth, click here.

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