Real Estate Information Archive

Perhaps you are ready to buy a home, but you think you can’t because of a low score on your credit report. Bad credit can present challenges when purchasing a home, but it doesn’t have to keep you from moving forward with your dream of becoming a homeowner.  If you want to become a homeowner, don’t let bad credit hold you back!

Here are some tips for how to buy a home even when you have bad credit:

• GET YOUR CREDIT SCORE

Take a deep breath and do that search. There are several places you can get your credit score for free. Just keep in mind that you will have three credit scores - one each from Equifax, Experian, and TransUnion. These are the three major credit reporting agencies, so it’s a good idea to get scores form all of them.

• MAKE SURE YOUR CREDIT SCORE IS UP TO DATE AND ACCURATE

Your credit report is like a history of how you have handled borrowed money. There may be errors in it and if so, that could damage your credit score. You can get a free credit report from each of the three major credit reporting companies annually. When you get the reports, look over them carefully to make sure all the information is correct. If you find any errors, you can dispute them with the reporting companies.

• PREPARE YOURSELF FOR A HIGHTER INTEREST RATE

Qualifying for a mortgage with a lower credit score is possible if you are willing to pay a higher interest rate. Lenders charge more to protect themselves should the buyer make late payments or fail to make payments altogether. Unfortunately, bad credit means that you likely have a history of doing just that. While a higher interest rate does mean a higher mortgage payment, it may be worth it to become a homeowner investing in your own home rather than paying rent to a landlord.

• APPLY FOR AN FHA LOAN

Loans insured by the Federal Housing Administration (FHA loans) have lower credit requirements. With a credit score of at least 580, you can qualify for an FHA-insured mortgage with a down payment of just 3.5 percent of your home’s final purchase price. However, there are some catches. First, FHA loans are insured by the Federal Housing Administration, but they are originated by traditional mortgage lenders. Even though they can originate FHA-insured loans for borrowers with scores as low as 500, it doesn’t mean they are obligated to do so. They can choose to require higher credit scores. Secondly, FHA loans come with a financial penalty. With traditional mortgage loans, you can cancel your private mortgage insurance (PMI) after building up enough equity. With an FHA loan, you must maintain private mortgage insurance for the life of your loan.

• MAKE A LARGER DOWN PAYMENT

If you can come up with a larger down payment, lenders may be willing to take a chance on you. While it’s possible today to get a mortgage with as little as 3 percent down, people with bad credit may find that making a larger down payment is what will get them the mortgage loan they seek. When you put down more money up front it shows the lender that you are willing to take on the risk of a home loan. The lender also will feel you are less likely to walk away from a large financial investment. If you can come up with a down payment of 20 percent or more, you will increase your chance of getting approval on a mortgage loan.

• REBUILD YOUR CREDIT

If your credit is so bad that a mortgage is not feasible right now, don’t despair. It just means that it is time for you to start rebuilding your credit so that you can become a homeowner in the future. To do this, you simply need to start paying all your bills on time every month so that you can build a better credit history. Also, pay down as much credit card debt as possible to raise your score.

If you are in the market to buy or sell a home (or both), let Sandra Nickel and her Hat Team of Professionals assist you with all your real estate needs! Call them today at 334-834-1500 and check out https://www.homesforsaleinmontgomeryalabama.com for more information!

There are many steps to take when purchasing a home, but one of the first and most important is finding the right mortgage loan. Knowing the right questions to ask a mortgage banker is key to your success in acquiring a loan that works for you. It’s vital that you are educated about everything related to your home purchase.

Here are the questions you should ask your mortgage banker to be sure that you are prepared for the lending process:

• What is my credit score?

When you apply for a mortgage loan, your lender will look at your credit history including your credit score, your debt-to-income ratio (DTI), and your liquid cash and assets. Having a high credit score will help you in the securing a loan. It is calculated by taking your payment history, outstanding balances, length of credit history, number of credit inquiries, and types of credit history all into account. Your lender will use your credit score to help determine the risk of granting you a loan.

• What is the best type of loan for me?

Once your mortgage banker has all the personal financial information you provide, he or she will let you know the loan programs you qualify for. Every loan program has a minimum qualifying credit score and DTI ratio. A good mortgage banker will patiently walk you through each type of loan so you can determine which one you are most comfortable with.

• How much should my down payment be?

Many people believe that you must put 20% down when purchasing a home. That is not always true! You have options. A conventional loan generally requires at least 3% down. But if you want to avoid Private Mortgage Insurance (PMI), 20% is required. There are also some government-backed loans that range from 0-3.5% down. Your lender will go over these options with you thoroughly.

• What are closing costs?

When you close on your home, your closing costs may include property taxes, homeowner’s insurance, title search fees, and appraisal fees. There might be other costs as well. Basically, all fees for services completed involved in the loan process need to pay and are taken care of with closing costs. These items will be itemized, and your mortgage banker can answer any questions you have about them.

• When will I close on my home?

The time it takes to close on a house after getting your mortgage loan application approved usually runs anywhere from 30-50 days. As long as there are no last-minute problems, the closing itself (signing the papers) may take about an hour.

Buying a home can be an overwhelming experience, especially for first-time homebuyers, but finding the right mortgage lender and asking the right questions will make the process less stressful for you!

If you are in the market to buy or sell a home (or both), let Sandra Nickel and her Hat Team of Professionals assist you with all your real estate needs! Call them today at 334-834-1500 and check out https://www.homesforsaleinmontgomeryalabama.com for more information!

Are you moving this summer? With rents sky high and continuing to rise with no end in sight, you are likely going to want to purchase a home as quickly as possible. While buying a house is something you should not take lightly, there are ways to speed up the process while still making sound and smart decisions. Does that sound too good to be true?  Well, no promises, but there are steps you can take to buy a home fast.

Whether you are buying a house for the first time, or you have navigated the home buying process before, chances are you know that it can be lengthy and complicated.  But there are certain strategies you can use that will speed things up.

Here are some tips to help you get started:

• CHOOSE THE RIGHT TYPE OF HOUSE

There are certain types of homes you will want to avoid if you’re in a hurry. You should also avoid bank-owned homes or foreclosures, which generally take much longer to close. The fastest way to go is to focus on condos or new developments. Closings for condos and new developments can take as few as three to four weeks to happen.

• GET PRE-APPROVED FOR A MORTGAGE

This is a strategic move that will give you a head start so that when you do find a house you want to purchase; you will already be approved for a mortgage loan and can make an offer right away. This will also help you to stay within your budget when looking at homes because you won’t want to waste time looking at properties that cost more than what you are pre-approved for.

• HAVE YOUR DOCUMENTS IN ORDER AND READY TO GO

Get all the paperwork that you will need organized so that it is ready and waiting when you find the right home. Generally, a home buyer will need the following: federal tax returns for the past two years, supporting information such as W-2, 1099, or other tax forms for the past two years, two months’ worth of bank statements for your checking, savings, 401K, retirement and other accounts, and pay stubs from the past month.

• FIND THE RIGHT REALTOR TO GUIDE YOU THROUGH THE PROCESS 

You will want an experienced, professional Realtor like Sandra Nickel who knows the area well and can use their expertise to get you into a home quickly.

• OFFER TO SHORTEN CONTINGENCY GUIDELINES

Don’t risk waiving home inspection or financing contingencies but consider a shorter time frame to effect a faster closing.

• BE PREPARED FOR YOUR MOVE

Don’t wait until you have closed on your new home to start packing and preparing for your move. Start early so that as soon as you close, you are ready to go!

If you are in the market to buy or sell a home (or both), let me, Sandra Nickel, and my Hat Team of Professionals assist you with all your real estate needs! Call us today at 334-834-1500 and check out https://www.homesforsaleinmontgomeryalabama.com for more information!

Owning a home is likely the largest financial investment many will make, so whether you are buying or selling a home, it is important to think about resale value. With a little research, you will find that there are some things that will get you a great return on investment and there are others that will not.

When selling your home, you may want to make some improvements that will make it more appealing to buyers, ensuring a more profitable sale. But it is when you are searching for a home to buy that you can consider options that will give you desirable resale value in the future.

Here are 5 surprising things that will raise your home’s value:

1. LOTS OF TREES

While a brand-new house in a recently established community has its perks, what it often lacks is a proximity to mature trees. Large, well-rooted trees found in older neighborhoods, not only make for a lovely landscape, but they also provide shade. They add beauty and they save energy, while also increasing your home value.

2. GOOD SCHOOL SYSTEM

It may not seem so unexpected that a home in a good school district would have increased value. But sometimes people who do not have children do not think about this. Even you if you never intend to have children, you should keep in mind that many buyers will be highly motivated to purchase a home based on the quality of the area’s school system. For the purpose of resale value, it would be smart to invest in a home in an area with desirable schools.

3. SHOPPING NEARBY

People like convenience, so if a house is in close proximity to a shopping area with a supermarket, it will likely increase its value. This is especially true if it is close to higher-end stores like Trader Joe’s or Whole Foods. Per Zillow, homes near these grocery stores may appreciate up to 40% more quickly than other homes.

4. OUTDOOR RECREATION AREAS

Living close to a park, walking trails, or other recreation areas can increase your home’s value. Things like dog parks, tennis courts, golf courses, and playgrounds are appealing to people who enjoy staying active. They will be willing to spend a little more to live close to areas where they can enjoy outdoor activities.

5. SEPARATE LIVING SPACE

Whether you have a mother-in-law suite, an apartment, or a carriage house, having a separate living space will add to the value of your home. Unlike the other items listed here, this is something you can add to a home after moving in. But while looking for a home, you may want to keep an eye out for one that already has one. Not only will it boost resale value, but it will give you the opportunity to earn rental income (depending upon the laws in your area) while living in the house.

When buying a home, it is important to find a place that feels right for you, but unless you plan to stay there forever, it will benefit you to think about resale value as well!

If you are in the market to buy or sell a home (or both), let me, Sandra Nickel, and my Hat Team of Professionals assist you with all your real estate needs! Call us today at 334-834-1500 and check out https://www.homesforsaleinmontgomeryalabama.com for more information!

When you are considering the purchase of a new home, one of the first things to think about is if you will be able to get a mortgage loan. At the start of the home buying process, you will hear terms like “pre-qualification”, “pre-approval”, and “conditional approval”. If you are not familiar with these terms and their meanings, it can add to the already stressful process of entering the housing market as a buyer.

While all these terms may sound similar, they are not the same. Pre-qualification, pre-approval, and the conditional approval letter share common characteristics, but they occur at different times during your journey to home ownership. Having a clear understanding of what they mean will save some of the confusion, time and energy that goes into finding the right home for your budget and your family.

Let’s take a look at each of these terms:

PRE-QUALIFICATION

Getting pre-qualified for a mortgage loan is the earliest step of the three terms we are looking at. A pre-qualification will give you an estimate of how much you may possibly be able to borrow from a lender. Basically, you will provide information such as your financial history and credit report to your lender. You can do this verbally at this stage as it is not an overly comprehensive process. Your lender will use the information provided and will give you an estimate of the amount you may qualify for. This will allow you to explore the mortgage options available to you.

After your lender has determined the amount you pre-qualify for, you will receive a pre-qualification letter. By sharing this letter with your Realtor, they can use it when making an offer to a seller to give evidence of your commitment to and preparation for buying a home.

Remember, a pre-qualification is not a guarantee for a loan. While it is a great way to determine what types of loans are available to you, it does not mean a loan for the amount of the home you hope to purchase is a sure thing.

PRE-APPROVAL

Getting a pre-approval is a more formal process that requires an in-depth investigation of your finances. This process will take place after you have submitted your mortgage application and documentation will be required.

Your lender will need the following:

• Employment verification (W-2s or 1099s)
• Bank statements
• Retirement and brokerage account statements
• Any other assets
• Current real estate debt or rental statements
• Monthly debt payments (student loans, auto loans)
• Court orders (divorce, child support, alimony, etc.)
• Tax returns

It may feel overwhelming to provide so much personal, financial information, but it is necessary to obtain a pre-approval for a mortgage loan. Like pre-qualification, you will get a pre-approval letter if your application is accepted by your lender. This letter provides the sellers with the information they need to know that you can afford the mortgage payment and you are ready to purchase a home.

When competing for a home with other buyers, a pre-approval letter can be a game changer, making you look like a serious buyer over others who may not have a pre-approval letter yet.

CONDITIONAL APPROVAL

Conditional approval is also known as “up-front underwriting”. If you choose this option, your lender will review your finances thoroughly in order to provide you with an exact loan approval amount for the specific home on which you are submitting an offer.

What makes a conditional approval letter different from a pre-approval is in the name itself; there will be a few conditions that must be met before closing. For example, purchase agreements, title verifications, home appraisal, and inspections must all be complete and in order. The closing process cannot begin until all the conditions listed in the letter have been met.

Pre-qualification, pre-approval, and the conditional approval letter all provide validation to both your lender and the seller that you are a serious buyer that can afford the home.

They each serve the same purpose, but you will encounter them in different circumstances within the home buying process. Understanding the nuances and differences now will make you a better-informed buyer and will make the home buying process less stressful for you!

If you are in the market to buy or sell a home (or both), let me Sandra Nickel, and my Hat Team of Professionals assist you with all your real estate needs! Call us today at 334-834-1500 and check out https://www.homesforsaleinmontgomeryalabama.com for more information.

Deciding whether to buy a home is a big deal, especially for military families who may only live someplace for a short period of time. If you are in the military and are thinking about buying a home, here are some important things to take into consideration:

RESEARCH

It’s important to start researching the area where you will be moving long before your moving date. Check out real estate listings online. Have a list of wants and needs prepared to help narrow down the types of homes you’re interested in viewing. Pay particular attention to houses in the neighborhoods you’re interested in to see how long they are staying on the market and if there are changes in their asking prices.

COMMUNITY

Moving a lot can make it challenging for military families to find a sense of community. Buying a home in an area that offers a lot of amenities makes it easier for residents to meet people and form connections. Look for neighborhoods that offer things like pools, fitness centers, dog parks, playgrounds, and community gardens. Families with children moving in the summer before school starts can utilize these amenities to meet people and establish relationships that will help you integrate more easily into the school year.

MILITARY INCENTIVES

You will find that many developers and builders will offer special incentives for military buyers. Some communities even offer free landscaping services for members of the military who are deployed. Military buyers also can qualify for interior design extras and help with closing costs. It is prudent to always ask about any available extras for active military and veterans. In addition, military buyers can benefit from special financing options. Using a VA Home Loan is a great advantage for military buyers. And if the military buyer has greater than 30% disability, there are tax benefits which will lower his or her tax rate. With low interest rates and your housing allowance, you will be able to pay your mortgage and build equity even if you only live there a short time.

Military buyers want the same things in a new home that all buyers want…a good floorplan, great schools, lots of storage, nice appliances, and a safe neighborhood. But you do bring a unique perspective to the home-shopping experience. Connecting with a military-friendly professional Realtor like Sandra Nickel is vital to navigating the homebuying process. Sandra is a Certified Residential Specialist who will provide information about schools, safety, traffic, and neighborhood activities to help military families make the best choice for their new home!

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 and check out https://www.homesforsaleinmontgomeryalabama.com/ for more info! 

Whether you are buying, selling, or refinancing a home and a mortgage is involved, a home appraisal is going to be an important aspect of the process. Therefore, it’s crucial that you understand how the appraisal process works and how an appraiser determines a home’s value.

A home appraisal is an unbiased, professional opinion of a home’s value. Conducted by a licensed home appraiser with the knowledge and experience to determine the fair current value of the home, it takes place in almost every home purchase/sale transaction and is commonly used in refinance situations as well. Within a purchase/sale transaction, it is used to establish if the home’s contract price is appropriate, based on the home’s location, condition, and features. For a refinance, the appraisal makes sure that the lender isn’t giving the borrower more money than the home is worth. Because the home serves as collateral for the loan, lenders want to make sure that the homeowner is not over-borrowing. With a purchase/sale transaction, the home appraisal is typically paid for by the buyer and the fee is included in the closing costs.

The reason the home appraisal is so important is because it lets the lender know that they are lending the appropriate amount of money for the value of the home. Sometimes the appraisal will come in for a lower amount than the agreed upon price and when that happens, the lender might deny a loan for that amount. If the appraisal comes in at or above the contract price, the transaction can proceed. However, chances are the seller doesn’t want the deal to fall through, so if the appraisal comes in low, the buyer may be able to use it to negotiate a lower selling price. Knowing that the bank won’t lend any buyer more than what the home is worth, the seller may be willing to lower their selling price so that they can proceed with the sale.  A low appraisal can also derail a homeowner’s attempt at refinancing their home. The home needs to appraise at or above the amount the homeowner wants to refinance. One exception is if you have an FHA mortgage.  With an FHA mortgage, you can refinance without an appraisal through the Streamline Your FHA Mortgage.

The appraiser will look at many things to determine the home’s fair current value. The property’s value will be influenced by recent sale prices of similar properties and by current market trends. The home’s amenities, floor plan, functionality, square footage, and number of bedrooms/bathrooms will also play a part in coming up with a fair price for the lender.  A thorough visual inspection of the interior and exterior of the property will allow the appraiser to note any issues that might have an adverse effect on the property’s value.  You may confuse a home appraisal with a home inspection, but they are not the same thing, A home inspection is a much more detailed evaluation of the home and does not involve the lender.

Usually, the home appraisal will just be a box checked off on your home closing checklist. But if the appraisal comes in lower than expected, the purchase/sale transaction can be delayed or canceled.  Understanding the process and being aware of potential problems will help you be better prepared to handle whatever circumstances come your way.

If you are in the market to buy or sell a home (or both), let me, Sandra Nickel, and my Hat Team of Professionals assist you with all your real estate needs! Call us today at 334-834-1500 and check out https://www.homesforsaleinmontgomeryalabama.com for more information.

Purchasing your first home is a huge milestone…and not one that should be taken lightly.  It’s a big commitment and you want to be sure you get it right. It is important that you educate yourself before you begin the home buying process so that you can find the right property and procure the financing for it. 

Here are some things you should know as a first-time homebuyer:

• PEOPLE INVOLVED IN THE HOME BUYING PROCESS

Entering the home buying process for the first time might feel a little overwhelming. You will have a lot of questions, but don’t worry, there will be people who will guide you through. The first thing to do is to find an experienced, professional Realtor. Your Realtor will assist you in finding your starter home, making an offer, and negotiating with sellers. Another person you should meet with prior to starting your home search is a mortgage lender. Your mortgage banker will help you complete your loan application along with determining the amount you qualify for.

Getting preapproved for a mortgage is an important step that will set you on the right course for buying your first home.

• STARTING YOUR HOME SEARCH

I’m sure you’ve heard the saying “location, location, location” in relation to real estate. It exists for a reason. Because location is one of the most important aspects in choosing a home. The first thing you must do when searching for your starter home is determine the area you want to live in. You should take many things into consideration when making this decision. Do you want city, suburban, or country living? What is the reputation of the school system? Are there shopping, dining, and entertainment activities nearby? The answers to these questions aren’t just important for you when you’re living there but may also have an impact on resale value. Remember, this is your starter home, not necessarily your forever home. So, you should take resale value into consideration when choosing the location. Once you’ve determined WHERE you want to look, you can create a list of what you’re looking for in a home. You may have to compromise on some things, but going into your search knowing what you want will make things less confusing.

• FINANCIAL IMPLICATIONS

When buying your first home, there may be some expenses that you didn’t anticipate. Don’t risk being blindsided by unexpected expenses. Do your research and make sure you know what you are getting into. Here are some costs you may not have thought of:

• Closing costs
• Home inspection
• Moving expenses
• Setting up your new house

Remember that your Realtor and Mortgage Banker are there to answer questions you may have, so don’t hesitate to take advantage of their expertise!

If you are in the market to buy or sell a home (or both), let me, Sandra Nickel, and my Hat Team of Professionals assist you with all your real estate needs! Call us today at 334-834-1500 and check out https://www.homesforsaleinmontgomeryalabama.com for more information.

Perhaps you have imagined your dream house. You’ve pictured it in your mind and can only hope that you can find it in real life. Some buyers must look for a long time before finding the home of their dreams, but others know right away. When reality matches the vision you have for your home, you might fall in love at first sight.

Here are some things that make buyers know they had found “the one” the moment they see it:

1. A GORGEOUS FRONT PORCH

Nothing says “welcome home” better than a beautifully appointed front porch. A creative front door with porch railings painted a complementary color are a great way to draw a potential buyer into a home. That first look can make or break the interest of buyers.

2. STANDING OUT AMONG THE CROWD

That neighborhood full of “cookie cutter” houses may be the right area for you, but you don’t want your house to look like everyone else’s. A home that stands out is the one for you. For example, maybe that one white brick house in a sea of red brick houses is just different enough to make it the right one for you.

3. LAYOUT

Open concept has been popular for a long time, but maybe your dream house affords more privacy. When you walk into a home that has defined rooms that serve specific purposes, you have found what you have envisioned as the perfect home for you.

4. THE GREAT OUTDOORS 

Perhaps the inside doesn’t matter quite as much as the outside to you. Despite the imperfections in the house itself, that huge, beautiful yard is all you ever wanted. Or maybe you see a diamond in the rough well worth “fixing” if it means living in a beautiful neighborhood with mature trees and walking trails.

5. GOOD BONES

If your dream house is one that you want to design yourself, then you might just fall in love with a fixer upper that has good bones. Just make sure to educate yourself about what it will take to make the vision you have for your home a reality.

There are many things that can make a buyer fall in love with a house at first sight. A professional Realtor like Sandra Nickel can help guide you through the process of finding and purchasing your dream home. 

If you are in the market to buy or sell a home (or both), let Sandra Nickel and her Hat Team of Professionals assist you with all your real estate needs! Call them today at 334-834-1500 and check out https://homesforsaleinmontgomeryalabama.com for more information.

With all the fees and expenses involved in purchasing a home, it may be tempting to skip the  home inspection to avoid spending the money.  But in the long run, it may cost you more to skip it. Home inspections sometimes reveal things that ultimately could have cost you way more than the fee involved.

While you might believe that sellers are being honest about the condition of the home, it’s important not to take their word for it. Truthfully, they probably are being honest. But they don’t necessarily see what could be “wrong” with the house any more than you do. That’s why you need an expert to come in and do the inspection. They can find things that never would be noticed otherwise because they know what to look for. Home inspectors can also give you advice and things to look out for in the future. With that information, you can have an idea of how to prepare for potential costs down the road.

A home inspection can be a deal breaker as well.

For example, if sellers offer a discounted price or cash back for skipping the inspection, walk away from the deal. This is a huge red flag!  A home inspection only takes a few hours and is paid for by buyers, so there is no reason sellers should protest unless there are critical issues in the home they know about and are trying to hide.

When hiring a home inspector, you want someone with many years of experience and proper certifications and licenses. You also want someone who will be thorough…willing to go through the basement, attic and up on the roof to check out every nook and cranny of the home.  It’s important to gather as much information about the house as possible so that you know what you are getting into.

It is not mandatory for you to be present for the inspection, but it’s a good idea to be there.  Some inspectors are happy to have you walk along with them and ask questions as you go.  Others will want to do the inspection on their own and then have you do a walk through with them after they are done. Either way, be sure to look carefully through the report they give you and ask as many questions as you want. Remember that you are paying for their time, so don’t hesitate to have them go over the report with you so that you have a clear understanding of it.

Even if your inspection comes up clean, the fee you pay is worth the price to have peace of mind. Include it in your home-buying budget and don’t think of it as an “extra” expense. It is a crucial element of your decision in purchasing the home and paying a $450 fee and finding nothing wrong is better than skipping it and ending up having to spend thousands to repair something! 

If you are in the market to buy or sell a home (or both), let Sandra Nickel and her Hat Team of Professionals assist you with all your real estate needs! Call them today at 334-834-1500 and check out https://homesforsaleinmontgomeryalabama.com for more information.