The vast majority of people have to take out a home loan to purchase a house. This means applying for a mortgage. Unfortunately, shopping for a mortgage can actually hurt your credit score. Any potential lender will probably have to do a hard pull on your credit. This could temporarily reduce your credit score by a few points. Those few points could make the difference between qualifying for a mortgage and getting denied one. Fortunately, there are ways for you to shop for a mortgage without hurting your credit.

Check Your Credit Score First

First, you need to check your credit report before you start shopping for a mortgage. By law, the major credit bureaus are required to give you at least one free credit report every year. This is your opportunity to take a look at your credit report and correct any inaccuracies that might be present. That way, you can correct these issues before you apply for a mortgage instead of after. This can save you a significant amount of time during the shopping process. 

Get Pre-Qualified For A Home Loan

You should also get pre-qualified for a home loan before you start shopping in earnest. When you get pre-qualified for a mortgage, you receive an estimate of how much money you can borrow to purchase your home. This means that the lender will run a soft inquiry on your credit report, which will not impact your credit score. Pre-qualification is not as strenuous as the full approval process, and you will eventually have to go through the full application process to get your mortgage; however, getting prequalified is a great starting point.

Submit All Applications Rapidly When You Find The Right Home

After you apply for your first mortgage, you will have 45 days to talk to other lenders. As long as all of your other hard credit pulls take place in about six weeks, subsequent applications should not have an impact on your credit score. This means that you need to have all of your documents together, which will allow you to expedite the process. That way, you can find the best deal you can on a mortgage without unnecessarily impacting your credit score. 

Filed under: Real Estate Tips by Julie Woodward
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It’s amazing that in a year with extremely low mortgage rates being reported around the country, closing costs are up by as much as 6% from the previous year. Part of the reason for this is that the stricter regulations on loans have increased the costs to banks, and they always find a way to pass on new costs to the consumer.

Understanding Third-Party Closing Costs

When closing on a mortgage the borrower will notice a long list of additional fees that they are expected to pay for. These can range from insignificant into the thousands of dollars depending on the state and the deal. When looking at these fees you will notice that some are third-party fees.

This is not out of the ordinary and you are not being taken advantage of. These costs are for services rendered by outside companies at the request of the mortgage lender to make sure everything is in order with the property.

Closing Costs You Can Expect To Pay

Anybody going through the mortgage process for the first time should expect to see several odd sounding terms on the bill. The first is ‘origination’ or ‘processing’ which is the primary fee the lender charges for creating the mortgage.

Other fees include discount points, flood certification, title insurance, credit report and appraisal. These are all necessary for buying a home and should be expected to appear when closing.

The Trick Behind Zero-Closing Cost Mortgages

With closing fees adding up it may seem like a good idea to opt for a mortgage that has absolutely no closing costs if it’s offered. While no money will be required up front, it adds up in the long run.

This is because the lender is making a deal. They agree to pay all the closing costs for the borrower in exchange for a slightly higher interest rate, which will pay out for them over the course of the mortgage.

The amount you can expect to pay really depends on the cost of living and real estate market where you’re buying. A mortgage specialist will be able to talk to you in advance of applying for your mortgage to give you a better idea of what you are looking at paying for closing costs. Contact one today for more information on why you have to pay closing fees and the amount you should be budgeting for.

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Taking an extended vacation can seem like a dream come true. You may have plans to spend your summer in Europe, your winter in the Caribbean or even a full year or longer exploring a different region. If you have the luxury of taking an extended vacation, you may have your sights set on adventure and relaxation.

However, you also need to consider the practicality of leaving behind your home and belongings for an extended period of time. A great idea is to take on a long-term tenant for your home, and there are a number of benefits that you can enjoy by doing this.

Generate Income From Your Home

When you lease your home to a long-term tenant, you will be able to generate a monthly income from the property. This can be used to pay for your mortgage, property insurance and other related expenses while you are gone. Essentially, it can make it more affordable for you to take your trip for an extended period of time.

Decrease Your Maintenance Expenses

When you are away from your home, you may still have maintenance and upkeep chores to do. When you are home, for example, you may easily be able to water your lawn and mow the grass on your own. You may deal with a leaky pipe before it becomes problematic and causes considerable damage to the home. When you are gone, you may need to pay for a lawn service, and you have nobody to watch over the interior of the home. However, when you lease your home to a tenant, the tenant may be responsible for caring for the yard. In addition, he or she can alert you to issues that develop inside the home.

Someone to Keep an Eye on Your Property

When a home appears to be vacant, it is more likely to be vandalized or burglarized. A tenant will give your home an occupied look and will decrease the risk of criminal activity. In addition, the tenant may change your air filters, replace batteries in the smoke detectors and take other steps to keep the home in great condition for you while you are gone. You can specify your requirements in the lease.

If you are planning an extended vacation and you are looking for a convenient way to ensure that your home is taken care of while you are gone, consider the benefits of taking on a long term tenant. You can speak with a real estate agent to learn more about the market rental rate for your home.

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If you have recently purchased a home, you are probably excited to move into your new house; however, the moving process can be stressful. There are a few important tips you need to keep in mind if you are moving soon. Make sure to plan ahead, as there are several ways to save time and money.

Get Quotes From A Few Moving Companies

First, you need to get multiple quotes from multiple moving companies. If you have heavy furniture, it is better to hire a moving company to reduce the chances of your furniture getting damaged. When you talk to moving companies, make sure they can handle the items you have. If you have a grand piano, make sure the moving company is comfortable moving it safely.

Get Rid Of The Items You Do Not Need

Before you move, make sure you get rid of the items you do not need. You may want to start by dividing your items into three piles. Create a pile for items you want to keep, another pile for the items you will donate, and a third pile for the items you throw away. Get a receipt for the items you donate, as you might be able to deduct the value of the items from your taxes as charitable donations.

Pack Up Before The Movers Get There

While you might be able to ask the movers to help you pack, it is better to pack before they get there. Label the boxes so you know where they go in your new house. Movers usually charge by the hour, so if you can save them some time, you can save yourself some money. Remember that moving expenses could be tax-deductible, but talk to an account if you have questions about tax deductions.

Get Ready For The Moving Process

These are a few of the most important tips you need to keep in mind if you are moving soon. While the moving process can be a bit busy and frustrating, if you plan ahead, you can streamline the process. There might even be opportunities for you to save money. Remember that you should get quotes from multiple moving companies before you decide which moving company you go with.

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The coronavirus pandemic has had a significant impact on individuals and families across the world, and it has permanently changed the way we live our lives. We will continue to wash our hands more frequently than before, we will probably avoid people if we are the slightest bit ill, and the way our homes work has been changed forever. In particular, open-concept living might not be as popular as it once was. 

Why Is Open Concept Living Less Popular Than Before?

The biggest reason why open-concept living might now be less popular than it once was is that people are spending more time at home than they were before. Parents are working from home, children have to go to school from home, and chores around the house still have to get done. It can be difficult for parents to have a conference call if kids are going to school right next door. When this is combined with pets people have at home, it is easy to see why open-concept living could be a problem. The noise coming from the TV, the computer, fighting kids, and barking dogs can be incredibly distracting.

Why Open Concept Living Might Still Be Popular

Even though there are certainly some downsides that people discovered to open concept living, the advantages still remain. Open concept living creates more space to entertain, it lets in more natural light, and it allows family members and friends to feel more together even if they are in different rooms. To some, open-concept living might continue to be appealing, even if families with young children have a few downsides to overcome.

Open Concept Living Is A Lifestyle Choice

Ultimately, the pandemic has shown us that open concept living is a lifestyle choice. It is not something to be tossed to the side, and it is not something that is required. People simply need to decide whether an open-concept lifestyle is right for them. They need to think about what their lives look like today as well as what they will look like in the future. Keep in mind that nothing is permanent. There are ways for people to make changes to their homes to make them better suit their needs. 

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If you are looking for a house for the first time, you might be wondering whether you should purchase a starter home or a forever home. A starter home is a home in which you intend to live for a few years before you sell it and upgrade to a better home. A forever home is a home that you intend to be in for ten years or more. You can see yourself moving into the house and potentially spending your entire life there. How do you decide which type of home you should purchase?

A Starter Home

If your budget is relatively tight right now, you might be thinking about purchasing a starter home. A starter home is typically smaller than a forever home, which makes it more affordable. On the other hand, if you plan on having kids in the near future, you might want to purchase a larger home instead. Furthermore, you need to think about capital gains taxes when you sell your starter home. If you take the proceeds from your starter home and use them to purchase a larger house immediately, you might be able to avoid capital gains taxes. 

A Forever Home

If you could see yourself spending the rest of your life in a certain place, you may want to consider buying a forever home. This is particularly helpful if you can secure a low-interest rate, as the interest rate might not change during the life of the mortgage. Interest rates could go up in the future, so you may want to lock in a low-interest rate for your forever home now. You will also need to think about your future cash flow to ensure you have the money to cover a larger mortgage. Do not forget to think about real estate taxes and home insurance as well.

Find The Right Home For Your Needs

These are a few key factors you should think about if you are looking for your first home. There are starter homes and forever homes available, but you need to think about which option is best for your needs. 

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There was a time when a higher percentage of people were married before they committed to buying a home together, but it’s a lot more common to co-habit and invest in a home together. If you’re considering the commitment of a mortgage without being married, here are some things to be aware of before you start searching the market.

Relationship Status Won’t Affect Your Rates

It might seem like there are greater risks involved if two individuals purchasing a property are not legally bound, but it actually makes no difference to the mortgage lender. If two people are buying a home together, the lender is going to be assessing their credibility based on their individual credit reports and financial history, not on their relationship to each other. While it may seem like co-habiting will have an impact, the proof – as far as lenders are concerned – is in the numbers.

What’s Your Credit History?

Most people are aware of their credit history, whether they’ve had financial hiccups in the past or are still paying off a significant amount of debt. However, it is more difficult for some to know the financial background of their partner, and this can be more common when it comes to co-habiting. Because the lender will be looking at both credit scores, if you or your partner have had financial issues in the past, it can have an adverse impact on your application. While you may have a nearly perfect credit history, if your partner does not this can make mortgage approval more difficult.

In The Event Of Separation

Home ownership can involve significant hurdles after a divorce, but there will still be some legal and financial issues to wade through if you’ve never been married. Since it’s likely that you won’t want to continue to co-habit, there’s the possibility that one party will have to buy the other out, which can be a sizeable financial burden. While this type of situation may never come to fruition, it’s important to be aware of what might occur so you can be prepared.

There can be a lot of complexities involved in co-habiting whether you’re married or not, but it’s important to have an awareness of your partner’s financial history and be prepared for financial hurdles. If you’re currently on the market for a new home, contact one of our mortgage professionals for more information.

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Equity is a powerful tool. As homeowners pay off the mortgage, the amount of equity in the house grows. As the house appreciates in value, homeowners accrue even more equity. Then, homeowners can tap into this equity for a variety of purposes. What are a few of the ways homeowners might be able to use this equity? 

Purchase A New House

One of the top ways homeowners can use the equity in their existing home is to purchase a house that better suits their needs. Even though homeowners may find a house that is right for them now, it might not be right for them 10 years from now. For example, homeowners may have children, meaning they need more bedrooms. In this case, homeowners can leverage the equity in their house to purchase a bigger home. 

Complete A Renovation Project

Homeowners can also use the equity in their home to complete a renovation project. If homeowners have a significant amount of equity in the home, they might be able to refinance their house, tapping into the equity to complete the project. For example, homeowners might want to renovate the kitchen. Or, they may want to add a gym or a home theater. They might even want to complete an addition. Instead of having to save up the cash to do so, homeowners might be able to tap into their equity to do this.

Launch A New Business

Some homeowners might decide to use the equity in their homes to launch a new business. Getting a new business off the ground can be expensive, and the cost of taking out loans can be daunting. Instead of having to take out a loan, homeowners can use the equity in their existing house to launch that business. 

Fund Higher Education

The cost of higher education can also be expensive. Even though parents might save up to send their kids to college, the cost of education is growing quickly. Instead of having to take out a student loan, consider tapping into the equity in the house to pay for that college education. Homeowners may want to work with a financial advisor that can help them make the right decision for themselves and their children. 

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We have all  heard the saying, “You never get a second chance for a first impression?”

If you are selling your home, it is important to appreciate the significance a first impression has on your potential buyer.

When buyers drive up to your property and take their first look at your home, they will instantly be forming ideas about your house and how it might fit for their family.

When you are trying to entice a buyer to make an offer on your house, you must consider the curb appeal – how your house looks from the outside, or while standing on the curb – of your home for sale.

In fact, some surveys show that curb appeal can affect a buyer’s decision even more than price or square footage.

Below are seven simple and inexpensive things you can do to improve your home’s curb appeal.

1. Plant a few shrubs or decorative flowers in the front yard to bring color to your lawn.
2. Is your front door looking a little worse for wear? Give it a fresh coat of paint or replace it with a new one.
3. Keep your grass well watered so it appears green and lush.
4. Remove anything your pet leaves lying around, such as bones, chew toys or droppings.
5. Take a look at your gutters. If they look damaged or are hanging loose from the roof, be sure to have them repaired before showing the house.
6. Clean up your flowerbeds by removing weeds and trimming overgrown plants.
7. Add a bench, a garden ornament or a couple of beautiful pots to make your front yard more attractive. 

These are just a few ways you can improve the curb appeal of your home for sale and make a great first impression on buyers.

A good next step for preparing your home for sale is inviting a trusted, licensed real estate professional to your home for a preview.

An agent’s experience in the real estate market can help you plan your strategy to get top-dollar for your home and help you improve the curb appeal at the same time.

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With all of the expense that can go into buying and selling a home, it’s good to be aware of what you can claim and how a home can benefit you come tax time. When the New Year rolls around and you’re sitting down to the task of completing your taxes, here are a few things that you’ll want to keep in mind.

Gaining from Capital Gains

In the event that you’ve made money off the sale of your home through a capital gain, it’s possible that you may be able to exclude this amount from your tax filing. If you’ve lived in the home you just sold for at least two of the five years before the sale date, not having to report this amount on your taxes may come as a financial win.

Reporting Your Gain

If you have not lived in your home for two of the five years, you will have to report the sale of your home and the capital gain when you file your taxes. This is necessary whether or not you decide to claim the amount. If this happens to be the case for you, it’s a good idea to educate yourself on ‘Net Investment Income Tax’ before filing your return so you can ensure your claim’s accuracy.

A Two-Year Claim For Capital Gain

While there is definitely a great financial benefit in not having to report your gain in all situations, it’s important to be aware that you can only exclude any gain you’ve received from a home sale every 2 years. So, if it happens to be the case that you’ve moved more than once in the last few years, you will have to report any amount that you’ve made from these home sales.

Selling Your Home At A Loss

The boon of a capital gain is certainly ideal if you’ve made some money on your home, but if you’ve sold your home for less than you paid, you won’t be able to claim this. While the end result may be a bit disheartening, this amount cannot be deducted off of your tax return.

Beyond the benefits of buying or selling your home, there are ways that your tax filing can be more pleasant next year if you know some of these tips. If you think you may be perusing the real estate market in the near future, you may want to contact your trusted real estate professional for more information.

Filed under: Real Estate Tips by Julie Woodward
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