James E. Cumisky's Blog
If you are in the market for an FHA loan, you are probably happy to get many benefits from the loan like a good interest rate along with the need for a low downpayment. While these loans can be very helpful on the path to homeownership, they can be complex. It’s a good idea to hire a realtor who is well-versed in the ins and outs of FHA loans and standards. A real estate agent can help you to find the right property to suit your needs and meet the standards the FHA loan will require.
Do you know what you’re getting into when it comes to shopping for a home? The FHA sets the rules for how homes get approved for an FHA loan and under what standards. These rules exist because the FHA is insuring the loan, but the organization is not directly funding the loan itself. This insurance protects the lender if the loan is defaulted on. An inspection appraisal report must be completed on each property. The appraiser is required to be an FHA approved appraiser to complete the job.
There are limits on how much of a loan you can get when it is FHA-backed. This is because the FHA will only insure a loan amount up to this limit. This means that you won’t be looking at high-end homes because the limits are usually quite restrictive as to the type of property you can get. This holds true unless you can afford a larger downpayment than the standard 3.5% required by the FHA.
Condition Of The Home
FHA-backed home loans can be rejected due to the poor condition of the home. If an appraiser says that the home is unsafe or hazardous to occupants, the loan will be denied. The assessment of the home’s condition is very important to the lender’s decision to grant the loan. The lender may even require that certain improvements be made before the loan can be approved. These improvements can include pest treatments, fixing leaks, or other damages that are deemed hazardous.
The Property Itself
The FHA also sets guidelines for the type of property that you can get. A condo must be in a HUD approved complex, for example. If you want to research FHA-approved condo complexes, you can search right on the HUD website. Each complex meets the Department of Housing And Urban Development’s standards for financial stability, hazard, and liability insurance. If you’re looking at manufactured homes, these are also held to certain standards. The manufactured home must be permanently attached to the foundation, have the ability to be taxed as a real estate property asset, and have been constructed before June 15, 1976.
Finding the ideal moving company to help you transport your belongings from Point A to Point B should be simple. However, no two moving companies are identical. And if you select an inferior moving company, you may encounter many problems when moving day arrives.
Lucky for you, we're here to help you take the guesswork out of finding the perfect moving company.
Now, let's take a look at three red flags to consider when you evaluate moving companies.
1. Lack of Experience
Search for moving companies that boast many years of experience – you'll be happy you did.
Moving companies that possess comprehensive industry experience understand the ins and outs of moving day and may be better equipped than rivals to deliver the best results.
Typically, a moving company that has extensive industry experience will employ friendly, knowledgeable professionals. This business also will provide fair prices and personalized support, ensuring you can get the assistance you need to seamlessly and effortlessly get your personal belongings to your new address.
2. No Licensure or Insurance
Regardless of whether you're moving within the same state or out of state, it is paramount to employ a licensed, insured moving company. By doing so, you can minimize risk of damage or destruction of your personal belongings.
Remember, a moving company will be responsible for transporting your appliances, electronics, furniture and other items to a new location. And if you fail to employ a licensed, insured moving company, you might struggle to protect your belongings in the event of an accident during transport.
Ask moving companies for verification of licensure and insurance. This will enable you to work with a moving company that will do everything possible to safeguard your belongings on moving day.
3. Poor Customer Reviews
What are past customers saying about a moving company? Take a look at customer reviews, and you can gain a better understanding of what it's like to work with a moving company.
In many instances, an online search of a moving company will allow you to learn how this business stacks up against the competition. Or, a moving company may even provide customer reviews on its website.
Of course, don't hesitate to reach out to a moving company to ask for client referrals, either. This will enable you to obtain first-hand insights from previous customers so you can select a moving company that will meet or surpass your expectations.
For recent homebuyers or home sellers, your real estate agent may be able to help you identify moving company red flags as well.
A real estate agent understands the challenges associated with moving day. As such, he or she may be able to help you find a top-notch moving company and ensure you are fully prepared for your upcoming move.
When it comes to finding a moving company, there is no need to worry. Consider the aforementioned warning signs, and you should have no trouble choosing a first-rate moving company to help you out on moving day.
Buying a home should be an unforgettable journey, one that enables you to purchase a high-quality house at a budget-friendly price. If you start planning for the homebuying journey today, you may be able to reduce the risk of encountering homebuying hurdles as you attempt to acquire a first-rate house.
Ultimately, there are many important decisions for homebuyers to make before they enter the real estate market, including:
1. Where Do I Want to Live?
As a homebuyer, you'll want to know where you want to go so you can map out your property buying journey.
Consider your current and future plans before you enter the housing market – you'll be glad you did. This will enable you to consider where you'll be in the next few months and years and plan accordingly.
For example, if you currently work in the city and intend to stay at your present job, you may want to search for a home that makes it easy to commute to work.
On the other hand, if you plan to start a family in the foreseeable future, you may want to consider purchasing a home near various top-notch parks and schools.
2. How Much Can I Spend on a House?
You know that you'd like to become a homeowner, but how much can you afford to pay for a residence? Meet with several banks and credit unions, and you can start budgeting for a home.
Banks and credit unions can help you get pre-approved for a mortgage. Then, with a mortgage in hand, you can enter the real estate market with a good idea about how much you can spend on a residence.
Many banks and credit unions are available, and they are happy to teach you about the ins and outs of numerous mortgage options. Plus, lenders will respond to your mortgage concerns and queries and help you make an informed mortgage decision.
3. Will I Need to Hire a Real Estate Agent?
If you're on the lookout for your dream home, why not hire an expert to guide you along the homebuying journey? With a real estate agent at your side, you can take the guesswork out of finding and purchasing your ideal residence.
A real estate agent will provide expert support at each stage of the homebuying journey. As such, he or she will help you set realistic expectations before you begin your search for your dream house.
Perhaps best of all, a real estate agent will set up home showings, keep you informed about new properties as they become available and negotiate with home sellers on your behalf. This housing market professional will even offer expert real estate insights that you might struggle to obtain elsewhere.
When it comes to purchasing a house, there is no need to leave anything to chance. Fortunately, you can hire a real estate agent to help you along the homebuying journey and simplify the process of going from homebuyer to homeowner.
When it comes to buying a home, there is no reason to let negotiations get the best of you. Fortunately, we're here to help you become an expert negotiator, i.e. someone who understands the ins and outs of obtaining a high-quality residence at a budget-friendly price.
What does it take to become an expert homebuying negotiator? Here are three negotiating tips that every homebuyer needs to know:
1. Act Quickly on a Home That You Like
If you fall in love with a home and are ready to make an offer on it, don't hesitate to put your best foot forward. Submit a competitive offer, and you may be able to avoid stressful negotiations with a home seller.
Understanding the true value of a residence is paramount for homebuyers. Conduct plenty of housing market research before you submit an offer, and you can better understand the prices of comparable houses in your area.
Also, if a home seller counters your initial offer, don't be afraid to negotiate. Be flexible, and you can boost your chances of securing your dream residence.
2. Do the Math
How much can you afford for a new home? You'll want to establish a homebuying budget before you enter negotiations with a home seller. Otherwise, you risk spending too much to acquire a residence.
Getting pre-approved for a mortgage may make it easy for you to avoid the temptation to overspend. With a mortgage in hand, you can search for houses that fit your price range.
In addition, be sure to account for closing costs and other fees that you may encounter down the line. If you fail to do so, you may wind up overspending on a residence.
3. Collaborate with a Real Estate Agent
Homebuying negotiations can be time-consuming and expensive if you're not careful. Thankfully, real estate agents are available who can negotiate with a home seller on your behalf.
Hiring an experienced real estate agent usually is a good idea, particularly for first-time homebuyers. Stress and anxiety can be problematic during homebuying negotiations, but a real estate agent will ensure that you won't have to deal with these issues.
Your real estate agent has a simple goal: to ensure that you can purchase the best house at the best price. He or she will go above and beyond the call of duty to accomplish this goal. As such, employing a real estate agent to handle homebuying negotiations can make a world of difference for homebuyers nationwide.
Furthermore, your real estate agent will keep you informed throughout negotiations. This real estate professional will offer expert tips and recommendations and will never make a move without consulting with you. Perhaps best of all, your real estate agent will be happy to answer any of your homebuying concerns and queries, guaranteeing that you can make informed decisions throughout the homebuying process.
Work with a real estate agent as you prepare to enter negotiations to purchase a residence. By doing so, you can simplify the process of going from homebuyer to homeowner.
Submitting a "fair" offer on your dream home may seem difficult, particularly for a first-time homebuyer. Lucky for you, we're here to help you determine what it takes to submit a fair offer on a home that increases the likelihood that a home seller will accept your proposal without delay.
Now, let's take a look at three tips to ensure that a first-time homebuyer can submit a fair offer on a house.
1. Study the Housing Market Closely
Are you preparing to submit an offer in a buyer's market or a seller's market? Ultimately, the current state of the housing market may help you define a fair proposal based on the sector's conditions.
For example, a buyer's market frequently includes an abundance of top-notch residences and a shortage of homebuyers. In this market, you may be able to submit an offer at or below a home seller's initial asking price and receive an instant "Yes."
On the other hand, a seller's market usually features a shortage of high-quality houses and an abundances of homebuyer. As such, you may need to submit an offer at or above a home seller's initial asking price if you want to secure your dream residence.
For first-time homebuyers who analyze the housing market closely, they should be able to differentiate between a buyer's market and a seller's market. That way, a first-time homebuyer can determine fair market value for a residence and submit an offer that corresponds to it.
2. Evaluate Your Homebuying Budget
There is no need to overspend for a house, regardless of the current housing market's conditions. But with a homebuying budget in hand, a first-time homebuyer can resist the urge to pay too much to acquire an outstanding residence.
Getting pre-approved for a mortgage often provides a great option for those who are uncertain about how much they can spend on a home. This budget will enable a homebuyer to narrow his or her home search based on the finances at his or her disposal.
Meet with a variety of banks and credit unions to learn about all of your mortgage options. Then, you can select a mortgage that matches your budget and move one step closer to acquiring a terrific residence.
3. Work with a Real Estate Agent
A real estate agent is a must-have for a first-time homebuyer, and for good reason. This housing market professional can teach you about the intricacies of buying a house and help you submit a fair offer on a residence any time you choose.
Furthermore, a real estate agent will guide you along each stage of the homebuying journey and help you overcome any potential pitfalls along the way. And if you ever have homebuying concerns or questions, a real estate agent is happy to respond to them at your convenience.
Take advantage of the aforementioned tips, and by doing so, a first-time homebuyer should have no trouble submitting a fair offer on a residence.