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How Should I Prepare The Outside For An Open House?
Professional “staging” may include the exterior, but if you’re doing it all yourself, try the five things outlined in this video.
1 – Landscape & lawn.
That’s the first impression; make it a good one.
Mow, prune, edge and get rid of junk!
2 – Paint And Clean!
You don’t have to do the whole house, but the front door and lintels should either be painted or cleaned.
3 – Leaks & Repairs
Small visible problems can become large mental objections and change how someone feels about your house.
Fix ‘em beforehand.
4 – Pets
Some people have allergies and concerns.
Time for Fido to visit a friend.
You weren’t including him with the house anyway.
5 – Get Fresh Eyes
Have your realtor or a friend who’s willing to be candid tell you what you missed. Or pay a staging professional for a report.
We don’t really see familiar things well – so let them be your
‘test buyer’ so you can present the best first impression to the real ones.
What Are 203(B) And 203(K) Loans?
The video puts this in more visual terms, but 203(b) is the most commonly used FHA program. It offers a low down payment, flexible qualifying guidelines limited lender’s fees, and a maximum loan amount.
203(k) loans enable homebuyers to finance both the purchase and rehabilitation of a home through a single mortgage. A portion of the loan is used to pay off the seller’s existing mortgage and the remainder is placed in an escrow account and released as rehabilitation is completed.
Basic guidelines for 203(k) loans are as follows:
- The home must be at least one year old.
- The cost of rehabilitation must be at least $5,000, but the total property value – including the cost of repairs must fall within the FHA maximum mortgage limit.
The 203(k) loan must follow many of the 203(b) eligibility requirements. Lenders will know specifics about improvement, energy efficiency, and structural guidelines.
Closing Costs Explained Visually
Purchasing a home is exciting. Once escrow begins, the excitement can change to frustration, particularly if you are not ready for the closing costs that quickly accumulate.
Closing costs simply refer to the fees associated with various things associated with the escrow process in a real estate transaction. In the excitement of having an offer accepted for your dream home, you can easily lose track of the fact you are going to need to have some serious cash on hand to pay them. Many people make the mistake of only assuming they need the down payment money, and have to rush around town trying to come up with money for the closing fees.
Do yourself a favor, and discuss closing costs in advance with your real estate or mortgage person. And watch this video to have a good mental picture of the costs that you’re likely to incur.
What Are Discount Points?
Discount points allow you to lower your interest rate. While this video simplifies things to help you remember, “points” are essentially prepaid interest with each point equaling 1% of the total loan amount.
Generally, for each point paid on a 30-year mortgage the interest rate is reduced by 1/8 (or.125) of a percentage point.
When shopping for loans, ask lenders for an interest rate with 0 points and then see how much the rate decreases with each point paid.
Discount points are smart if you plan to stay in a home for some time since they can lower the monthly loan payment.
Points are tax deductible when you purchase a home and you may be able to negotiate for the seller to pay for some of them.
What Responsibilities Do I Have During The Lending Process?
To ensure you won’t fall victim to loan fraud, as you’ll see in this video, be sure to follow all of these steps as you apply for a loan:
- Be sure to read and understand everything before you sign.
- Refuse to sign any blank documents.
- Do not buy property for someone else.
- Do not overstate your income.
- Do not overstate how long you have been employed.
- Do not overstate your assets.
- Accurately report your debts.
- Do not change your income tax returns for any reason.
- Tell the whole truth about gifts.
- Do not list fake co-borrowers on your loan application.
- Be truthful about your credit problems, past and present.
- Be honest about your intention to occupy the house
And do not provide false supporting documents.
What About A Home Located In A Flood Plain?
A flood plain is an area of land adjacent to a stream or river that experiences flooding during periods of high discharge. Watch this video and it’ll make sense.
If you live in a flood plain lenders will require that you have flood insurance before lending any money to you. But if you live near a flood plain, you may choose whether or not to get flood insurance coverage for your home.
Check the National Flood Insurance Program site at FloodSmart.gov for more information. And work with an insurance agent to construct a policy that fits your needs.