Real Estate

7 Insider Tips for Millennial Home Buying

~ Linda Leier Thomason ~ Leave a comment

Millennial Home Buying Tips to Save Time & Money

Are you getting tired of paying rent? Do you think you’re wasting money? Do you want to build equity in your own home?

If you answered “yes” to these questions, you are like most Americans. You want to own your own home.

But, are you financially ready for that next big step?

Read through these 7 tips to buying your first home.

1. Assess the Timing

Did you just land your first post-college job? Are you planning to stay with this employer? Will you be relocated? Do you plan on getting married anytime soon? Is there money saved  for a down payment? Are student loans taking a big chunk of your paycheck? If so, start a “home” fund and start saving for your dream. You need to do an honest assessment of the timing to buy a home to ensure it’s a good fit in your life at the moment. Chat with a local lender who will be able to best assess your current financial situation.

2. Check Your Credit Score and Cash Flow

Don’t waste your or an agent’s time if you haven’t first checked your credit score and know your debt-to-earnings ratio. (Avoid taking on new debt while in the process of buying a home.) Click here for more information on getting your FICO score. The better your credit score, most likely, the better your mortgage rate. (Always pay your bills on time and pay down your credit cards.)

When your credit score is worthy and you have the cash flow and a sizable deposit saved, talk to a lender and get pre-approved for a mortgage loan.

Before contacting a lender, organize your paperwork. The lender will likely have a checklist of required paperwork including, tax statements, W-2s, bank statements, a list of debt, including any student loans, credit cards, etc.

Most sellers won’t even allow prospective buyers into their homes without first knowing the buyer is pre-approved for a mortgage loan.

Keep in mind it’s not just the down payment money you will need but also cash for real estate taxes, a home inspection and an appraisal, closing costs (If the seller doesn’t pay all of them.) possibly mortgage insurance, utilities, furnishings, maintenance, home owner’s association monthly fees, etc.

Always keep a 3-6-month cash reserve fund in case an unexpected emergency arises, like loss of a job or an injury that keeps you from working and earning an income.

3. Research 1st Time Home Buyer Lender Programs

The general rule has been that one should have 20 percent of the home’s value as a down payment when buying a home. But, that applies only if you don’t want to pay PMI-private mortgage insurance. Lenders require PMI to cover the loan if you default on it. If you are required to get PMI, shop around for the best rates just like you would for home or auto insurance.

Consult with your real estate agent and look for programs assisting first time home buyers.

Check with your lender about special lending programs. For instance, the Federal Housing Administration (FHA) loans let you put just 3.5% down. Click FHA for more information on FHA loans.

VA offers home buying loans to veterans and active military members. Click VA for more information.

4. Get the Right Help

The expression, “Don’t put the cart before the horse,” definitely applies in home buying. Before looking at neighborhoods and homes online, there are a number of necessary pre-steps. After ensuring the timing is right to buy a home, find a real estate agent who specializes in the type of home you are seeking and neighborhood in which you’d ideally like to live. If you’re a buyer, you don’t pay a real estate fee.

Remember agents at open houses work for the seller. Agents at new home construction sites work for the builder. Get an agent that works for you-the buyer.

Your agent’s expertise will likely save you not only money but also a lot of stress and heartache in the buying process. A great agent will guide you every step of the process, including helping you secure a lending agent just right for you.

5. Decide Where You Want to Live

Be realistic. Don’t frustrate yourself by looking at homes and neighborhoods outside of your budget. Attend open houses. Evaluate what appeals to you regarding style (older home or contemporary home with modern amenities), size (square footage, number of bedrooms and bathrooms), location (family friendly, retirees, urban), neighborhood traffic patterns (Is it a cut-through street? Is it on a cul-de-sac?) etc. Does the home need to be move-in-ready, or are you willing to buy a fixer-upper? Research re-sale values in the areas you’re highly considering.

Attempt to prioritize the general area of town and type of home you are seeking before working with an agent. If you can’t, have a list of what matters most to you: closeness to work, certain schools for your children, number of bedrooms, room for a growing family, recreation opportunities for children, etc. so that your agent can guide you to the best location and help you find an ideal home in that neighborhood. Keep in mind that your lifestyle preferences may change in the next few years, especially if you add children to your family.

6. Know the Rules

Many neighborhoods now have Home Owner Associations (HOAs). Request a written copy of the rules before buying. Can you abide by the rules and restrictions? Can you afford the monthly fees? Ask to see the Association’s finances. Is it well run? Will they be able to continue the services offered without taking a rate increase?

7. Be Decisive

If you’ve done your homework and aligned yourself with a great agent, making an offer on your dream home will be easy. Don’t delay your decision making, or you’re likely to lose the home to another buyer.

Ready to buy or sell? Connect with Megan.
Megan Owens, Realtor
Owens Real Estate Group
“Delivering extraordinary care for extraordinary clients.”
Berkshire Hathaway HomeServices Ambassador Real Estate
Phone | 402-689- 4984 Email | MeganOwensRE@gmail.com

Linda Leier Thomason is a former CEO who writes freelance business and travel stories, along with feature articles. Her work experiences include a Fortune 500 corporation, federal government, entrepreneurship and small business. Find out more about Linda by clicking the “Meet Linda” tab above. Interested in working together? Complete this form below.

©Copyright. March 2018. Linda Leier Thomason.
All Rights Reserved.

15 Safety Tips for Buyers & Sellers

~ Linda Leier Thomason ~ Leave a comment

Ready to Sell Your Home? Keep Safety in Mind

What other time in your life do you invite random strangers into your home? Probably never. However, when your home is listed for sale, strangers indeed view your home online and in person. At the first listing appointment with your real estate agent, go over this list of security items to keep your home burglar proof and to keep your items safe while your home is on the market.

Buyer Screening Process

Understand your listing agent’s buyer screening process. At a minimum, it should include a phone screening prior to showing the home. Discuss whether or not you want buyers to be pre-qualified before a showing and understand what safety precautions will be in effect at open houses and showings. Will an electronic lock box be used to track all home entries? Are photo IDs required for entrance? Is video surveillance being used? If so, ask your listing agent to include these in all advertisements.

15 Security Items to Pay Attention to When Selling

  1. Prescription Drugs

Remove them or lock them up prior to open houses and showings. Also, remove expired drugs from your cabinets and night stands.

  1. Valuables

A real estate agent is not responsible for your valuables. A selling agent cannot be present at all showings. Therefore, it’s important that you canvas your house prior to any video or photographs being taken to post online. Remember, thieves can look at your home from the comfort of their home. If your images include valuables, it may make your home a target. Consider removing artwork, gaming systems, jewelry, cellphones, guns, etc. Secure all credit cards and always keep mail locked and away so no one can get access to your personal information.

  1. Personal Identifiers + Family Portraits

A listing agent suggests removal of family pictures not just for staging but also for safety. You don’t know who will be coming through your home. What if a pedophile or predator attends an open house and photographs of your children are on the wall? Take down all family pictures. Be safe and protect your privacy. Hide all family calendars and anything with your children’s names or schools, including school banners and photographs.

  1. Electronics

Stow away your laptops and conceal all easy-to-steal electronics like iPad’s and cellular phones. Keep all video games hidden away.

  1. Windows + Lights

Keep windows locked and open the blinds or draperies, especially during open houses. Check all of them after showings and open houses. Are they still locked? Make sure your home has adequate indoor and outdoor lighting before listing it for sale. Leave all of the lights on during a showing for everyone’s safety: the agents and potential buyers.

  1. Spare Keys

Keep them out of sight. This goes for house, car, safety box, etc. All keys. Keep them hidden.

  1. Kids

Try to find out if kids are attending a showing. If so, pay extra attention to your home’s safety. Is the entryway clean and clear? Any tripping hazards? Make sure a responsible adult will be watching them throughout the showing so they do not get into personal items. Speak to your real estate agent and ensure she will be vocal about kids not straying during a showing or at an open house.

  1. Knives + Guns

Always remove kitchen knives from countertops and drawers. If there are any guns in the home, remove them prior to listing the home for sale.

  1. Pets

Always remove pets prior to a showing or open house. You will be liable if someone is injured by your pet while viewing your property. If someone has a pet allergy, it makes your home less desirable to them.

  1. Extra Security

Once the home is listed for sale, it’s available to the public. Consider adding motion-sensor detectors to the home. Make sure doors have deadbolts. Sliding glass doors should have bars and extra locks. And, for added peace of mind, consult your real estate agent about a wireless security system.

  1. Unaccompanied Buyers

Never allow someone into your home without a licensed real estate agent who has set an appointment with your listing agent. If they come to your door, refer them to your agent. Never let them inside the home. Also, be aware of online real estate scams where, unfortunately, someone can list your home for rent. If this happens, immediately call your local police department.

  1. Roamers

Never allow a potential buyer to roam unaccompanied through your home. You want to be trusting and hospitable, but you cannot be foolish. Do not let your guard down and never be alone when showing your home. Watch their behavior. Are they lingering too long? Be aware.

Most people coming through your home will be legitimate buyers. Still, take the necessary precautions to ensure your safety and your home’s safety during the sales process. Always enlist the services of a licensed real estate agent who knows how to protect you, your home and your possessions.

You’re Buying

As a buyer, your safety is also foremost on a real estate agent’s mind when looking for your new home. It’s important to:

 

  1. Know the neighborhood you are considering purchasing in.

You will be advised to drive through the neighborhood at different times of the day to see if what it looks like and what is happening there meets with your standards and expectations. Check crime reports and sexual offender registries.

  1. Vacant and/or Distressed Homes

Prior to stepping inside, look around. Are there broken windows? Do outside walls or the roof have holes? What does the yard look like? Is it littered? Are there signs of squatters? Once inside, be on the lookout for loose floorboards, rotting decks, loose railings, stray animals, rodents or other hazards.

  1. Contamination

Be aware of the home’s history. Were there drugs like methamphetamines manufactured in the home? These drugs can seep into the surfaces without being visible and cause health related issues later. If you get a burning sensation in your eyes or throat when entering a home, that is not a good sign. Mold can result from moisture in homes where marijuana was grown. Look around carefully for signs of contamination.

Linda Leier Thomason is a former CEO who writes freelance business and travel stories, along with feature articles. Her work experiences include a Fortune 500 corporation, federal government, entrepreneurship and small business. Find out more about Linda by clicking the “Meet Linda” tab above. Interested in working together? Complete this form below.

©Copyright. April 2017. Linda Leier Thomason
All Rights Reserved.