Real Estate Information Archive

When you purchase a home, you are not only choosing where to live, you are making a financial investment as well. Home equity is the percentage of your home value that you own and with each mortgage payment you make you are contributing to your own financial savings.  The goal is to build up as much equity as you can so that when you sell your home, you will make a nice profit!  Here are some tips for building home equity:

• Take Out a 15-Year Mortgage Loan - It’s common for people to choose a 30-year mortgage because many believe a 15-year mortgage is out of their budget.  However, it can’t hurt to ask your mortgage lender to run the numbers to see if a 15-year mortgage is doable for you.  You might be surprised to discover that the shorter term is within reach.  Sticking to a budget that allows you to pay off your house in half the time will build equity faster and will certainly pay off in the long run! 32 Hacks for Sticking to Your Budget
   
• Pay Down the Principal - Build equity faster by paying down your home loan quicker.  Even if you don’t have the ability to take out a 15-year mortgage, you can still make extra mortgage payments when you have the means to do so and the difference extra mortgage payments can make toward building equity are huge. If you make just one extra payment toward principal each year, you can potentially pay off your home loan seven or eight years ahead of schedule.  There are ways to do this without breaking your budget.  For example, you can use a tax refund or a work bonus.  Another way to do it is to simply add a small amount to your principal payment each month.
   
• Make a Larger Down Payment - Depending on your credit standing, you can qualify for a conventional mortgage loan with a down payment as low as 3%, and an FHA loan with a down payment as low as 3.5%.  While it’s tempting to buy a house with a low down payment so that you have more cash on hand, the pros of making a larger down payment may outweigh the cons. The larger the down payment, the faster you build equity.  The faster you build equity, the more profit you will make should you have to sell your home before paying it off.
   
• Make Improvements on Your Home - Making home improvements is a good way to add value to your property.  It’s important to educate yourself about what home improvements give you the best ROI (return on investment).  For example, per Chris Terrill, CEO of HomeAdvisor, “a minor kitchen remodel is one of the best investments homeowners can make.”  “Projects including refinishing cabinets, updating the countertops and installing new appliances all provide high return without breaking the bank.”  Other home improvements that add value to your property include replacing garage doors, adding a bedroom, updating a bathroom and installing new windows. And don’t underestimate the value of curb appeal!  A professionally landscaped yard will not only help with a quick sale; it can also add up to 20% to your home’s value! Which Home Improvements Pay Off?

Owning a home is likely the largest financial investment you will make, and the more equity you acquire, the more wealth you will generate.  You can utilize your equity as a nest egg for the future or it can be used as a cash down payment on your next home.  Use these tips to build up your savings an enjoy this wonderful perk of home ownership!

If you are in the market to buy or sell a home, let Sandra Nickel and her Hat Team of Professionals assist you with all your real estate needs!  Call them today at 334-834-1500!

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You’ve just bough your first home!  Congratulations!  You got through the process with the help of your Realtor, but now you’ve signed the paperwork and received your keys and it’s time to move in. You may find yourself wondering, “what next?”.  Here are some tips to help make your transition to home owner a little less stressful:

• Educate Yourself About Your Mortgage Statement

It’s important that you learn how to read your monthly mortgage statement. When you receive the first one, you will see that there is a lot of information on it. Most importantly, it will tell you the amount due, how to pay it, and the due date.It will also include your loan servicer’s contact information, which you will need if you have any questions about your mortgage. How to Read a Mortgage Statement

• Don’t Pay Attention to Refinance Offers

You might start receiving a lot of unsolicited mail after you move in to your new home.That is because your information becomes public record and companies will start sending you refinancing offers.The thing is, it’s not usually beneficial to you to refinance early on in your mortgage repayment process.It may be a great option for you down the road, but not right away. Mortgage Refinancing: How to Know When the Time is Right

• Organize Your Documents

When you close on your house you will sign a lot of papers and you will be given copies of all of them.Be sure to keep these documents together in a safe place.You will need access to them when it comes time to pay your taxes so that you can take advantage of tax savings that come with home ownership. Tax Benefits of Home Ownership in 2020

• Do a Home Inventory

The day you sign the title to your new home, your home owner’s insurance will go into effect.But there is more work to be done to protect your home and belongings. The smart thing to do is to create a written/photographic inventory of all the valuables in your home.This will be very helpful if a worst-case scenario occurs and your personal property is damaged, stolen or destroyed.If you can present your insurance company with an organized list of what you have lost, it will help expedite your claim. 10 Shortcuts for Completing Your Home Inventory in Record Time

• Give Your New Home a Deep Cleaning

It’s always a good idea to give your new home a deep cleaning before you move in; even if it’s a newly constructed home.It’s so much easier to do this before you have moved all your belongings in and you will feel good about starting out in a freshly cleaned house!

• Change Your Locks

This is a step that many people overlook.You’ve just received the keys to your new home, but many people have had those keys before you.From previous owners, to Realtors, to contractors and more; you really have no idea who might still have access to your home.To ensure your safety, call a locksmith and schedule an appointment to have all your exterior door locks changed the morning after your closing.You will feel safer knowing you are the only ones with keys to your house!

• Educate Yourself About Your Home

Take the time to learn your home systems. Familiarize yourself with your HVAC unit, the circuit breaker, the security system, the fireplace, and the hot water heater. Find where the fire extinguishers are and make sure smoke/carbon monoxide detectors are in good working order.

Becoming a home owner is exciting and sometimes overwhelming, but you can start out on the right foot by following this guide!

If you are in the market to buy or sell a home, let Sandra Nickel and her Hat Team of Professionals assist you with all your real estate needs!  Call them today at 334-834-1500!

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There are a lot of perks to home ownership, but let’s face it; it can be expensive.  You’re not only making a mortgage payment every month, but you are also responsible for maintaining your home.  But there are lots of easy ways to save money without ever leaving the house. Follow these tips and start saving today!

• Save money on your electric bill by utilizing natural ways to cool your house.  During the spring and summer, open your windows and use fans to get the air circulating through your home.  Ceiling fans will help too. Moving the air through the house will help cool it down quite a bit.
   
• Another way to save on your electric bill is to line dry your clothes.  Dryers use a lot of electricity, and there are many good reasons to choose line drying.  Not only is it an energy saver, but it may extend the life of your clothing! 5 Reasons to Line Dry Your Laundry
   
• Get rid of cable television. With all the options for streaming shows on apps like Hulu and Netflix, you could save a lot of money by ending your relationship with cable and using apps to stream your favorite programs.  You might be surprised to discover that even after upgrading your internet, you will still pay less per month than you did for cable television. Best Live TV Streaming Services For Cord-Cutters in 2020
   
• Always unplug.  Even when you are not using an appliance, if you keep it plugged in, it is still pulling electricity.  It may not seem like much, but over years you can save quite a bit by unplugging when not using things.  Chances are you are not going to want to be bothered with walking around your house to unplug everything, but to make it a little easier, consider using power strips so you can just unplug that at the end of the day.
   
• Use a shopping list.  This may sound silly, but when you go shopping without a list you often come home with way more than you need.  Make a list and stick to it. It will not only make shopping more efficient, but it will save you money in the long run.
   
• Learn how to do basic home maintenance.  You can save a ton of money over time by being able to take care of home maintenance yourself.  By doing small tasks like replacing filters and cleaning out dust, you can lengthen the lifespan of many appliances, thus saving money that way as well. 100 Home Repairs You Don't Need to Call a Pro For
   
• Bundle up and save on heating costs.  Invest in quality, warm blankets so you can turn the heat down and still be warm and cozy when you sleep at night.  Decreasing your heat by just a few degrees can save you a lot of money over time.
   
• Create a budget and try to stick to it. By creating a budget, you will be more conscientious about your spending.  It will not only help you to see where you are spending too much, it will also assist you in prioritizing your spending.

Saving money is important.  Whether you’re saving for retirement or for a special family vacation, it’s the little things you do that make a big difference in the long run!

If you are in the market to buy or sell a home, let Sandra Nickel and her Hat Team of Professionals assist you with all your real estate needs!  Call them today at 334-834-1500!

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When you’ve lived in a home for a while, it can start to lose the charm you first saw in it.  Day to day life can make it feel like a burden rather than a retreat.  Especially this time of year, when you’ve taken down the holiday decorations and the days are shorter and darker.  But it doesn’t have to be that way.  February is the month of love and it’s a great time to remember what made you fall in love with your house to begin with.  Even if your current home is not your dream house, you can still create a place you will love.  Here is a list of ways to love the home you have:

• Declutter.  A messy, cluttered home can make you feel overwhelmed and embarrassed to have company.  Negative feelings about your home make it a place of stress instead of a place of peace and comfort. Cleaning up the clutter can seem like a huge task, but once you’ve done it, you will be glad you did! Stop Household Clutter: 50 Things to Get Rid of Right Now
   
• Show the kitchen some love.  Whether you love to cook or not, chances are you spend a lot of time in the kitchen.  So, it makes sense to have a kitchen you enjoy.  Simple things like keeping the sink, drainer and counters clear will go a long way into creating a space you will feel good about.  Place some fresh flowers on your counter or eat-in kitchen table. Find a spot for a speaker so you can listen to music while cooking.  Make the time spent in the kitchen a joy and not a chore.
   
• Make your bedroom a retreat.  Your bedroom should provide you with peace, quiet and comfort.  When decorating, you might focus on the rooms that guests will see.  But don’t neglect your bedroom.  It is your sanctuary.  Your place to escape to when you want time alone.  Choose colors that give your bedroom a relaxing vibe. Splurge on luxurious bed linens. And don’t be frugal when purchasing a mattress and pillows. Sleep is so important to your overall health and having the right mattress and pillows greatly effects the quality of your sleep. 15 Calming Bedroom Colors to Relax and Unwind
   
• Display favorite family memories. Like many people, you probably have hundreds, if not thousands of photos on your electronic devices.  Take some time to go through them and find photos of your favorite family memories to print and frame for display.  Need some ideas?  Check out Pinterest for lots of unique ways to display photos in your home. Photo Displays
   
• Design a room that works for you.  Do you have a room that doesn’t get used much (if at all)?  For example, a formal living room that nobody in the family uses?  Perhaps it’s time to make use of that room in a way that works best for you and your family.  Don’t get tied down to the fact that is a “formal living room”.  It can be anything you want it to be. Do you love to read?  Create a cozy library with a comfy chair and book shelves.  Do you need home office space?  Then create a home office that makes you look forward to “going to work” each day.

Even if you are not currently living in your dream house, you can make small changes that will help you fall in love with the home you’re in! 

However, if you are looking to sell your current home so you can find your dream home, let Sandra Nickel and her Hat Team of Professionals assist you with all your real estate needs!  Call them today at 334-834-1500!

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Owning a home is part of the “American Dream”.  Working hard, saving money, finding the right house, and going through the mortgage process all pays off when you move into your own home and begin to enjoy the perks that come with what is likely to be your largest financial investment.  Some of those perks come in the form of tax breaks. And with tax season around the corner, it’s time to educate yourself about those tax breaks. You might be surprised to discover that many of your biggest home-related expenses are often tax deductible. Here are the top four tax breaks for homeowners:

1. MORTGAGE INTEREST

The most significant tax break you’ll get is a mortgage interest deduction, which is nice since a huge part of your monthly mortgage payment goes towards paying off interest for a while after your purchase.All the interest you pay during the tax year will be deductible. However, if you own properties with mortgage balances over a million dollars, the IRS will limit your deductible interest.If you own a second home, your interest for that home is also deductible as long as you are residing there part of the year.If you stay there less than 14 days out of the year or less than 10% of the number of days you rent it out, the IRS may consider it a residential rental property, and in that case, you will not be able to take an interest deduction. Mortgage Interest Deduction

2. REAL ESTATE TAXES

Another large deduction you get to make as a homeowner is on your property taxes. As a homeowner, you will always have to pay some form of real estate tax.  If you have an escrow account, which most mortgages do, it means you have been paying a portion of your property tax bill for the year as part of your monthly mortgage payment.  At the end of the tax year, your lender will send you a statement, which will tell you what you have paid in taxes and interest and how much went into your escrow account to be used toward taxes.  You will be able to deduct the amount your lender paid from your escrow toward taxes. Escrow

3. POINTS

When you purchase a home, you have the option to pay mortgage points to your lender to lower your interest rate.A point is typically 1% of the loan price, so if you bought or built a new home that cost $300,000 and you paid your lender for one origination point, this should enable you to deduct the $3,000 in closing costs paid from your taxes for the year of the home purchase.

4. ENERGY TAX CREDITS

Making improvements to the energy efficiency of your home will not only save you money on energy costs, it may also help you qualify for a tax credit. Tax credits can be better than tax deductions as they are a dollar-for-dollar savings no matter what tax bracket you are in.Things like upgrading windows, roofing, appliances and more with energy efficient equipment will often count toward a tax credit. But since the IRS does change things from year to year, be sure to check with them beforehand so you will know what tax credits you qualify for.

Become a homeowner this year and take advantage of these tax credits! If you are in the market to buy or sell a home, let Sandra Nickel and her Hat Team of Professionals assist you with all your real estate needs!  Call them today at 334-834-1500! 

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One of the perks of being a homeowner is that you can make changes to your home to suit your own needs and desires.  Some home improvements are simple DIY projects you can accomplish in a weekend, but others are a little more complicated and should be handled by professionals.  In fact, some home improvement projects can be downright dangerous and it is in your best interest to hire someone who knows what they are doing! While DIY projects might save you some money, hiring a professional to complete the following might save your physical and mental health:

• Adding Skylights - This project not only requires that you stand on a slanted roof, it also means lifting a very heavy window and placing it properly.  In addition, if a skylight is not installed by a professional, chances are great that you will end up with leaks.
   
• Tree Trimming - We’re not talking about removing small limbs from a tree.  We are talking using a chain saw to do some major cutting.  If you have never used a chain saw, you may not be prepared for how it can kick back, causing injury.  Also, you will be taking a risk in climbing to reach the parts of the tree you are attempting to remove.  And anyone on the ground could be hurt with branches falling. Professional tree companies have trained employees who can trim and/or remove trees safely. Top Tree Services in Montgomery
   
• Replacing a Water Line - Unless you’re a plumber, you should probably not attempt to replace a water line on your own.  There is too much at stake. It is crucial to have properly sweated joints, and unless you’re handy with a blowtorch, you will need a professional plumber to be sure it’s done properly. Otherwise you might end up with leaks, which in turn can cause black mold and in worst case collapsing walls and/or floors.
   
• Updating Your Circuit Breaker Panel - This is a complicated task that requires the knowledge that only a trained electrician will have. Only a trained electrician with years of experience will understand electrical systems and the needs of your home. Should I Update My Electrical Panel?
   
• Removing Walls - It looks like so much fun on the home improvement shows, doesn’t it?  People with sledgehammers and goggles knocking down walls - how hard can it be?  But is the wall you’re removing a load bearing wall? If it is, you need to have a way to support the structure or you will risk the danger of collapse.  If you are not 100% sure about what you are doing, it’s best to hire a professional who does!
   
• Installing Windows - This is another project that requires specific knowledge to get it right. Windows need to be properly seated and sealed or they will not sufficiently work and you will be no better off than you were with old windows.  It is not easy to install windows and this is a job better left to professionals.

If you are in the market to buy or sell a home, let Sandra Nickel and her Hat Team of Professionals assist you with all your real estate needs!  Call them today at 334-834-1500!

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The holidays are winding down and the new year is upon us. Chances are you are thinking about some personal goals you would like to achieve in 2019, but if you are a homeowner, you might want to add some resolutions to your list regarding your home.  Here are some homeowner resolutions for you to consider in 2019:

1. Do a HOME INVENTORY and put together a DISASTER KIT for your home.  You never know when disaster may strike, and while it’s no fun to think about, it’s important to be prepared.  Include your home inventory and financial documents in your disaster kit so that you will be ready should the unthinkable happen.  Make sure that your kit is stored in a fireproof, safe place that will be easily accessible if you need it.
    
2. Think about getting a HOME WARRANTY.  If your appliances are nearing the end of their life cycles, a home warranty could possibly help prevent high costs for replacements.  Just be sure you do your research and read customer reviews regarding different home warranty options.  And always read the fine print so that you don’t get blindsided by exclusions.
    
3. Thoroughly examine your HOMEOWNER'S INSURANCE.  You likely got a standard homeowner’s insurance policy to satisfy the lender when you purchased the home, but that does not assure that you are adequately covered. Each policy has unique coverage options and exclusions that you may not be aware of.  Look it over and find out what it does and does not cover and then decide if it is adequate for you or if you need to purchase a different one.
    
4. Make saving for an emergency a priority.  Sometimes homeowners are blindsided by unforeseen expenses.  An EMERGENCY SAVINGS FUND can be a life saver when that happens!  Think of it as a safety net for your home.  An idea emergency fund will be able to cover several months of expenses.  Don’t let that overwhelm you.   You have to start somewhere.  Just start setting aside a small portion of your income each month and before you know it, you will have a sizeable savings for emergencies.
    
5. Start building your equity. If you financed your home mortgage, it will be years before you own your home outright.  But there are ways to BUILD EQUITY  faster, which will enable you to enjoy the benefits of homeownership sooner.  Home equity is a valuable asset that can be used to pay for things like home improvements or student loans. 6 Ways to Build Home Equity (and Savings) Faster

If you are not a homeowner yet, but would like to become one in 2019, let Sandra Nickel and her Hat Team of professionals help you find the perfect home!  Call them today at 334-834-1500!

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The idea of purchasing your first home is exciting, but can also feel overwhelming.  Before starting your home search, you need to figure out how much you can afford.  If you’ve been hesitant to move forward because you’re afraid you won’t have enough cash for a down payment or that you won’t qualify for a loan, you shouldn’t despair.  There are programs available that can help you!  So, stop padding your landlord’s pockets and take advantage of programs that will assist you in making a sound financial investment in a home of your own.

The Alabama Housing Finance Authority has two programs designed to assist people with purchasing homes:

1.Step Up - Step Up is a homeownership program designed specifically for moderate-income home buyers who can afford a mortgage, but need help with the down payment.  With this program, the money for the down payment is secured by a 10-year second mortgage and is combined with a 30-year, fixed-rate first mortgage.  Since the loans are serviced by ServiSolutions, a division of AHFA, homeowners have only one check to write each month.  Program participants must complete a homebuyer education course to qualify…a small price to pay to become a homeowner!  People who earn less than $97,300 are eligible for the Step Up program, regardless of household size or location.

Step Up+ is a new, temporary program that was just announced by the AHFA in June, 2017.  This mortgage enhancement will pay the upfront split private mortgage insurance premium (up to $1,500) for homebuyers who earn less than 80% of the area median income.  This way, homebuyers will pay a lower monthly premium as part of their mortgage payment. Information and qualifications:

• HFA Preferred conventional loans only
• 3% down payment assistance available through Step Up
• For new or existing homes in Alabama
• Homebuyers must have a credit score of 620 or higher
• Must complete homeownership education course
• Must apply for loan through a participating lender
• Private mortgage insurance will be underwritten by Genworth or ARCH (no delegated options)

All Step Up+ loans must close by September 30, 2017.

The Step Up program’s standard $97,300 household income limits will NOT apply for Step Up+.

For more information, contact a participating lender.

2.Mortgage Credit Certificates - The Mortgage Credit Certificate (MCC) program gives homebuyers another savings option.  MCCs are available with conventional fixed-rate, FHA, VA, Rural Development and privately insured mortgages.  Applications are accepted on a first-come, first-served basis by a statewide network of participating lenders.  Participants must meet federally established income and sales price limits.

MCCs provide a tax credit to reduce the amount of federal taxes owed by a percentage               of the annual mortgage interest paid each year.  The remaining annual interest may be claimed as a mortgage interest deduction on the homebuyer’s federal tax return.

Qualified homebuyers pay lower federal income taxes or benefit from immediate savings by updating the withholdings on their W-4 form.  MCCs may be paired with AHFA’s Step Up program or any other 30-year, fixed rate, amortizing mortgage offered by a participating lender.

Mortgage credit rates are based on the loan amount:

• 20% MCC for loans of $150,001 or greater; no cap
• 30% MCC for loans of $100,001 to $150,000; $2,000 per year cap
• 50% MCC for loans of $100,000 or less; $2,000 per year cap

The real estate professionals at Homes for Sale in Montgomery Alabama can explain these programs to you and answer any questions that you have.  Contact them and start your home search today!

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Buying your first home is exciting.  After getting approved for a mortgage loan, working with a professional REALTOR and finding your dream home, it’s time to settle in and start enjoying your new digs.  Then BAM!  The shock of an unexpected expense slaps you in the face.  Don’t let that happen to you.  Being informed about the possible expenses of being a homeowner will not make spending the money any more fun, but at least you will be prepared.  Here are some ancillary costs of homeownership that you should be aware of:

• CLOSING COSTS - When closing on your mortgage you will be presented with a long list of costs: mortgage taxes, lender application fees, attorney’s fees, title insurance, recording fees and any potential real estate tax reimbursements if the seller has paid them up front.  Altogether, closing costs are an average of 2 to 5 percent of the total cost of the home.  They will vary state to state.  Closing cost information for Alabama can be found here.
• HOME MAINTENANCE - Now that you are a homeowner, you are solely responsible for the maintenance and upkeep of your property.  Everything from yard work to cleaning; pressure washing to clearing the gutters…it’s all in your hands and on your dime.  Oh…and fixing things.  Yeah.  When the AC isn’t working or there is a leaky faucet, you will be footing the bill for repairs.  This all sounds a bit scary, but the key is to be prepared.  Go into your home purchase knowing that you will likely be spending about 1% of the purchase price of your home on maintenance annually.
• PROPERTY TAXES - Property taxes vary by state and can also vary based on city, ordinance, and even specific house.  You can utilize a Property Tax Calculator to get an idea of what your taxes will be when planning for your expenses.
• UTILITIES - If you’re coming from a rental where your utilities were included with the rent, you may not have considered how much you will need to set aside to pay for electricity, gas, water and sewage costs.  Added to internet, cable and phone bills, it can be quite a chunk of change.  Planning for utility costs is crucial to making sure you can afford to live in a home of your own.
• HOMEOWNER’S INSURANCE - When you get a mortgage, you must get homeowner's insurance as well.  Be sure to do your homework and shop around for the best possible price.  You can get discounts for things like security systems, working from home or bundling coverage for your home with your auto insurance policy.  Educate yourself on what your insurance policy covers so that you’re not left disappointed when you have to pay for something you thought would be taken care of.

Don’t let these expenses scare you off from purchasing a home.  Again, the key is to be aware of them going in so that you won’t be caught unawares when they come up.

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There are a few mistakes that many first-time home buyers make. Here are three of the most common mistakes and how you can avoid them when purchasing your first home.

Mistake #1: Assuming your credit is good.

The information in your credit report determines whether you can get a loan — and how much interest you will have to pay – so it pays to be certain your credit reports are accurate.

Check your credit reports for free from all three credit reporting companies — Equifax, Experian, and TransUnion — to make sure everything is correct. If you find errors, contact both the credit reporting company and the information provider (the person, company or organization that provided information about you to a credit reporting company) involved in the errors and ask them to fix the credit report errors.

Mistake #2: Getting pre-qualified, not pre-approved, for a loan.

It’s far better to be pre-approved for a loan than to be pre-qualified. Here’s why…

With pre-qualification, your lender does a preliminary evaluation of your ability to pay for a home and gives an estimate of the mortgage amount they’ll give you. The lender does not verify the information you provide.

Mistake #3: Allowing emotions to influence your decisions.

Buying a home is an investment. It needs to be treated as any other investment. You don’t buy stocks because they are pretty and you shouldn’t pick your home that way either. Make sure the home you buy fits your needs and allows you room to grow over the next few years. As with any sound investment, time is the key to a good return.

If you are a first-time home buyer, I would be happy to help you find (and get the best price for) your first home.

Courtesy of Montgomery AL Real Estate Expert Sandra Nickel.