06
Jan
By First Rate Financial Group
Mortgage

The Top House Appraisal Tips For Home Buyers And Sellers

The Top House Appraisal Tips For Home Buyers And SellersThere are a lot of steps that come with buying or selling a home. One of the routine steps that have to be accomplished is called a home appraisal. When it comes to a home appraisal, this is something that can cause both buyers and sellers to pause for a second. For those who might not know, a house appraisal is where a trained professional will take a look at the fair market value of the home. It is important to understand what happens when a home appraisal is conducted. 

Compare The Home To Similar Properties

When a home appraisal is conducted, its value is usually compared to homes in the area that are similar. The value of a home is always determined by what similar homes in the area have sold for recently. This is what the lender is going to look for. For example, if someone is selling a condo, and the value of that condo is going to be compared to other condos in the building that have sold recently. Even though there might not be identical houses in the area, the same process is going to happen for free-standing homes. 

Make Improvements To The Home

For those who are going to be selling their home in the near future, one of the easiest ways to drive up the value of the home is to make improvements. If the countertops, floors, or cabinets have not been updated recently, then performing these updates can drive up the value of a home. In some cases, homeowners might be able to get a bigger increase in the value of their home than the amount of money they spent on the improvements. 

Get A Second Appraisal

In some cases, home buyers might not like the appraisal that came in on the home. In this case, they might be able to challenge this first appraisal by getting a second appraisal. Even though this might cost a bit of money, if the home comes back at a significantly reduced cost, then there might be opportunities for the buyer to renegotiate the price of the home. Everyone wants to make sure they are getting a fair deal when a home changes hands.

06
Mar
By First Rate Financial Group
Home Buyer Tips

Looking For A Major Lifestyle Change? Consider Buying A ‘Micro’ Home

Looking For A Major Lifestyle Change Consider Buying A 'Micro' HomeWith the sometimes high cost of buying and maintaining a home and the concept of being sustainable becoming more popular, many people are considering moving to a smaller home to minimize their impact. It’s important, however, to consider what living small is really like before deciding that it’s the right move for you.

If you’re curious about life on a smaller-scale, here are some things to contemplate beforehand.

Getting Rid Of The Excess

It’s just a fact that a smaller amount of space means a smaller amount of stuff, but many people don’t realize this works two ways. While you won’t be able to accumulate the same amount of stuff in a smaller home, you also won’t have the luxury of being able to take everything from a larger house with you. It may not be a big deal for you to pack things away or discard the old, but if you’re the type of person who likes stuff, you may want to re-consider micro.

Will You Miss The Space?

Many homeowners spend a lot of time outdoors or even traveling for work, so the size of their home may not matter that much. However, if you’re the kind of homeowner who loves to nest and have their space, the idea of lounging around a small home may not be for you. A micro-sized space can minimize costs and be easier to decorate, but if you like being able to spread out and luxuriate in a variety of surroundings, something undersized can be quite limiting.

Forget The Home Maintenance

Whether you live on a massive estate or in a studio apartment, there are minor things that need to be done to keep your space clean and clutter free. When it comes to smaller living though, there will be a lot less to do, and this can greatly impact your free time. It’s great if you’re the kind of person who has plenty of hobbies to keep them busy, but if you like taking care of the yard and doing an assortment of home maintenance duties, it may be a struggle to own a property that needs less tending.

It’s never been more popular to go ‘micro’ when it comes to home ownership, but it’s important to make sure small living is right for you before taking the leap. If you’re currently in the market for a ‘micro’ home, contact your trusted mortgage professional for specific lending information.

26
Feb
By First Rate Financial Group
Real Estate

Managing Finances Before Applying For A Mortgage

Managing Finances Before Applying For A MortgageAre you planning on using a mortgage to help cover the cost of a new home? If so, you will want to prepare your finances and figure out how you will manage all those wallet-draining monthly expenses. Let’s take a look at how to run a quick financial health check to ensure you are ready to apply for a mortgage.

Update (Or Start) Your Monthly Budget

First, it is essential to get the basics out of the way. If you haven’t already, it’s time to start a monthly budget to keep track of your income and expenses. Once you have a mortgage, it will be important to prioritize your monthly payments so that you don’t end up falling behind.

Starting a budget is easy and can be done with mobile apps, software, a spreadsheet or a pen and paper. List all sources of income so that you know exactly how much cash you are working with. Then, list out every one of your expenses. It can be tough to remember them all, so consider using debit and credit card statements from the past few months as a reminder.

Get A Copy Of Your Credit Report

Next, you will want to get a copy of your credit report so you can see what potential mortgage lenders will see when assessing your financial history. This is a free service that you can request once per year, so be sure to take advantage. Note that you will want to use government-approved websites for requesting your credit report. Be wary of scams.

Do You Have A Down Payment?

A down payment is not required for every home purchase, but having one saved up can make the buying process easier. The amount you will want to have saved up will depend on the cost of your home, whether you plan on carrying private mortgage insurance and a variety of other factors. If possible, try to save up an amount close to (or more than) twenty percent of the home’s purchase price.

Ready? Chat With A Professional

Now that you have your financial health in check, it is time to meet with a trusted mortgage professional to discuss your financing options.