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Who’s Who in the Home Buying Process

by Melissa Thompson


Buying a home is not something you do alone. There are a lot of players that participate in the process.  You will work together with several people who will use their professional expertise to guide you along the way to home ownership.  It might seem a little overwhelming, but once you understand the role each of these individual’s will play, you will realize the benefit of having them on your team.  Are you wondering who these people are?  Here is a “who’s who” list of the professionals you will meet along the path of your home buying journey:

  1. Mortgage Lender - Meeting with a mortgage lender is something you can and should do prior to even starting your home search.  Getting a pre-approval for a mortgage loan is a great way to make yourself stand out to sellers.  Your mortgage lender could be an independent lender, a credit union, or a bank.  Meet with several so you can choose the one that suits you best.  Once you choose, you will work with an individual Mortgage Banker who will be your guide through home loan process.  Your mortgage banker will help you determine how much you can afford to spend and assist you in filling out your loan application.
     
  2. Realtor - Navigating the home buying process will be much easier with an experienced Realtor on your side. A professional Realtor will not only help you find the perfect home, she will also be your advocate throughout the whole process; before, during and after you close on the home.  Take the time to interview several Realtors to find the one whom you feel comfortable with.
     
  3. Home Inspector - Trust me when I say that you don’t want to skip the home inspection. No matter the age of your future home, having it inspected can save you from buying a one that has issues that could cost you a lot of money in the long run.  A Home Inspector is trained to carefully check the home’s structure, electrical, HVAC, plumbing, and roofing among other things in order to provide you with a detailed report on the condition of the home.  This report will have an impact on your decision to continue with the purchase of the home and may help you negotiate for repairs by the current owners before the sale is completed.
     
  4. Appraiser - The home appraiser plays a crucial role in the home buying process.  This is the person who will make sure that you are not overpaying for your new home. He or she will look at the condition of the home and make a comparison to similar home sales in the area to come up with the fair market value. Guidelines for Home Appraisals
     
  5. Title Searcher - A Title Searcher will review public records for your property to make sure there are no issues that will be problematic for the home sale.  The research things like overdue taxes, zoning restrictions or liens against the property that prevent the issue of a clean title on your new home. The title company facilitates the closing on the home and provides the documents involved.  Finally, they will make sure that the new home’s title records are appropriately filed.
     
  6. Insurance Agent - As a home owner, it is required that you have home owner’s insurance when you obtain a mortgage.   This insurance will financially protect you and your home should there be a disaster.  Be sure to do your research prior to submitting your mortgage application so that you can find the best insurance policy for your needs.

If you are in the market to buy or sell a home in the Memphis area, contact professional Realtor, Melissa Thompson, and let her help you with all your real estate needs. Give her a call at 901-729-9526 today!

Why Millennials Choose to Buy

by Melissa Thompson

Why Millennials Choose to Buy [INFOGRAPHIC] | Keeping Current Matters

Some Highlights:

  • “The majority of millennials said they consider owning a home more sensible than renting for both financial and lifestyle reasons — including control of living space, flexibility in future decisions, privacy and security, and living in a nice home.”
  • At 93%, the top reason Millennials choose to buy is to have control over their living space.
  • Many Millennials who rent a home or apartment prior to buying their own homes dream of the day that they will be able to paint the walls whatever color they'd like, or renovate an outdated part of their living space.

Learn more about buying Memphis Real Estate at yourkeytomemphis.com. 901.729.9526 or [email protected]

 

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When Is the Best Time to Buy a House: Right Now, or Wait?

by Melissa Thompson

You know you should buy a home. Eventually. But timing matters when it comes to such an enormous and potentially life-changing purchase. Which begs the question: When is the best time to buy a house? Does such a moment exist when all lights turn green, guaranteeing this is a decision you won’t regret?

While there’s no crystal ball in real estate, there are some fairly easy-to-read signs that a home purchase is something you should consider. Let’s dive into some of the factors that can influence whether the time is right for you to pull the trigger.

Your finances

For many people, knowing when to buy a home all comes down to the numbers. Here are the biggest pieces of that equation.

  • You have a down payment: If you need a mortgage to buy a home, you should know that most lenders will want you to show them the money—that is, have a sizable down payment. For most conventional loans, you’ll need to scrape together 20% of a home’s price, or $60,000 on a $300,000 home. Amassing that cash can be challenging, but know that some lenders can require as little as 5% down. You also may want to check into down payment assistance programs; many homeowners are surprised to find that they qualify.
  • You can afford a monthly mortgage: How much you can afford in monthly mortgage hinges on your income and debts. Higher income is good, of course; higher debt is bad. Check out a mortgage calculator for an easy way to plug in your salary and debts to see how much home you can afford in your area.
  • You have a good credit score: Your credit score is a measure of how well you’ve paid off past debts. Lenders look at this number to prognosticate how well you’ll pay them back, too. If you have no credit history, you should get some fast (lenders will want to see at least a year of payments under your belt). If your credit score is poor, you may want to do what you can to bring it up to snuff, because a higher credit score means you’ll stand to land a better loan.

Market conditions

Housing markets go through highs, lows, and bubbles—much like stocks. As such, you may be wondering whether current market conditions are conducive to buying (e.g., “Wow, you can buy a whole townhouse for under two hundred grand?”) or a total rip-off (e.g., “a two-bedroom for a half-million, seriously?!”).

Sadly, the adage for stocks applies to housing, too: It’s impossible to perfectly time the market. Yet there is still something to be said for considering economic conditions.

“You should never buy a home you can’t afford, but sometimes market conditions offer a little incentive to get off the sidelines,” says Mark Abdel, a real estate professional with Re/Max Advantage Plus in Minneapolis–St. Paul.  

You’ll want to consider the following:

  • Inventory: Look through listings for your area. If the majority of houses have been sitting on the market for more than six months, then the market is slow and prices should be OK. But if many properties get snapped up in months, or even weeks, this suggests you’re in a seller’s market—and that’s where buyer bidding wars could drive up prices. Of course, they could just continue to climb, or they may have peaked and go down. Local real estate agents can give you the lay of the land and their predictions, but just remember it’s anyone’s guess what could happen next.
  • Interest rates: Interest rates on home loans also fluctuate depending on market conditions. Currently interest rates are fairly low but have been inching up fast, which has many thinking of buying a home before they rise even higher. Make sure to check out interest rates in your area.
  • Renting vs. buying: A final factor to consider is whether it’s cheaper to own or rent, based on the market conditions in your area. You can figure that out with our rent vs. buy calculator.

Does time of year matter?

Conventional wisdom says to buy during the peak seasons of spring and summer, when there may be more options. But that also translates into more competition and potentially higher prices. That’s why you shouldn’t neglect fall and winter for home shopping, especially if the other conditions above line up.

“Buying off-season usually gives buyers more negotiating power for both the price and the closing date,” Abdel says, because off-season sellers are often more motivated to sell and therefore may be more willing to make a deal.

How long should you stay put?

Last but not least, one final factor to consider regarding when to buy a house is whether you plan to stick around. Buying a home carries a bunch of upfront costs, so it’s generally best you don’t sell soon after you’ve closed the deal. Typically home buyers should expect to stay in their house at least five years to make this investment worthwhile.

 

Learn more about buying Memphis Real Estate at yourkeytomemphis.com. 901.729.9526 or [email protected]

 

By and photo credit: Cathie Ericson, Realtor.com

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