Richard Dumont's Blog
With closing day rapidly approaching, you're almost to the finish line of your home purchase. However, before you complete your home purchase, you will need to conduct a final walk-through of the property.
Ultimately, a final walk-through offers a valuable opportunity to identify any last-minute problems with a residence. If you encounter any issues during a final walk-through, you can ensure that the seller can correct these problems prior to a home closing.
Preparing for a final walk-through is key. Lucky for you, we're here to help you get ready for a final walk-through so that you can complete a successful home purchase.
Now, let's take a look at three tips to help you prep for a final walk-through.
1. Avoid a Closing Day Walk-Through
When it comes to a final walk-through, it pays to be cautious. Thus, you should give yourself plenty of time to set up a final walk-through. This will allow you to avoid the dangers associated with finding home problems on the same day as a house closing.
Try to schedule your final walk-through at least a few days before you close on a residence. That way, if you discover problems with a house, you can ask the seller to respond to these issues and reduce the risk of a home closing delay.
2. Keep an Eye Out for the Seller's Leftover Belongings
A final walk-through gives you an opportunity to view a house that is virtually empty. But if you find that a seller has left behind various belongings, you should not hesitate to ask the seller to remove his or her possessions.
Furthermore, a home seller should leave a house in "broom-swept" condition; this means a home's walls, floors and other surfaces should be dust- and dirt-free. If you find trash and other debris in a home, you can ask the seller to clean the property.
3. Be Ready to Test All Appliances
A homebuyer may acquire a refrigerator, washer, dryer and other appliances as part of a home purchase. These items often are expensive to replace, and as such, you'll want to make sure they work properly during a final walk-through.
If an appliance does not perform as required, you have the right to request that the seller repair or replace the appliance. Or, you may be able to receive financial compensation for the defective appliance.
When it comes to prepping for a final walk-through, there is no reason to work alone. Fortunately, if you collaborate with an expert real estate agent, you can receive plenty of support in the days leading up to a home closing.
In addition to providing homebuying assistance, a top-notch real estate agent is happy to attend a final walk-through. By doing so, this housing market professional can help you identify any potential home problems and resolve such issues as quickly as possible.
Plan ahead for a final walk-through, and you can avoid the risk of discovering assorted home problems after you close on a residence.
For those who want to enjoy a seamless homebuying experience, it helps to prepare accordingly. That way, you will be ready to identify and address any hurdles that come your way during the homebuying journey.
Ultimately, there are lots of things you can do to avoid a complex homebuying journey, such as:
1. Establish Homebuying Criteria
If you enter the housing market with homebuying criteria in hand, you can search for residences that match your expectations. Best of all, you may be better equipped than ever before to streamline your quest to find and acquire your dream home.
To craft homebuying criteria, think about what you require from a house. For instance, if you need a home that is located near your office in the city, you can hone your house search to residences in or near the city itself. On the other hand, if you want a home that offers two or more bedrooms, you can search for a house that provides the space you need.
You may want to create a list of home must-haves, too. This list may help you simultaneously narrow your home search and speed up the homebuying journey.
2. Know Your Homebuying Budget
There is no need to focus on homes that fall outside your price range. Instead, develop a homebuying budget, and you can avoid the risk of wasting time pursuing a house that you are unable to afford.
Oftentimes, it helps to meet with banks and credit unions before you launch a home search. These financial institutions can teach you about different home financing options so you can develop an effective property buying budget.
Banks and credit unions can help you get pre-approved for a mortgage as well. Once you have a mortgage in hand, you will know precisely how much you can spend to acquire your ideal residence.
3. Collaborate with a Real Estate Agent
Let's face it – no one wants to encounter roadblocks during the homebuying journey. Fortunately, real estate agents are available in cities and towns nationwide, and these homebuying experts are happy to help you achieve your desired results.
A real estate agent can offer comprehensive insights into the homebuying journey. He or she also can help you conduct an in-depth home search, set up house showings and much more.
In addition, a real estate agent understands the challenges associated with buying a house. He or she will help you alleviate stress throughout the homebuying journey and ensure you can make informed decisions along the way. Plus, a real estate agent is ready to provide homebuying recommendations and suggestions at your request.
When it comes to navigating the homebuying journey, you may want to start planning today. Thanks to the aforementioned tips, you can map out a successful homebuying journey. And as a result, you can boost the likelihood of purchasing a house that will serve you well both now and in the future.
Many home buyers have lots of questions as they go through the buying process, especially first-time buyers. Whether you’re looking for a $50,000 house or a multi-million dollar luxury home, the questions are often the same.
How Much House Can I Afford?
Lenders use several factors in determining whether to loan you money, including your credit score, loan-to-value and debt-to-income. If you are self-employed, you could make $400,000 per year and still not afford a $150,000 home. Lenders look at your income, and if you are self-employed like many luxury home buyers, you use tax deductions and expenses to your benefit. However, doing that lowers your adjusted net income. If your adjusted net income plus depreciation doesn’t meet the debt-to-income bar for the lender, you won’t qualify for the loan. People in this situation need to find a lender who will lend based on bank statements instead of tax returns.
How Convenient Is This Location?
Luxury home buyers often have location concerns. You travel more and have more people — friends and relatives — visit. That means you need a home location that is convenient for travel. If travel convenience is a concern, ask your real estate agent about the distance to the airport, the ability to rent limos, and other travel concerns.
How Much Down Payment Do I Need?
Most loans require 20 percent down if you do not want to pay private mortgage insurance (PMI). However, if you are buying a multi-million dollar luxury home, that might be difficult if you don’t have liquid assets. Before you start looking, get a pre-approval from a jumbo lender, including the amount the lender requires with and without PMI. You can adjust the amount you are willing to spend or take the time to liquidate assets to get the down payment if you have your heart set on a home that requires a high down payment.
What Does My Credit Score Need to Be?
Conventional loans have a cap, which changes depending on your location and whether the Federal Housing Finance Agency (FHFA) increases that cap. If your mortgage is going to be higher than that cap, you will need to take out a jumbo loan unless you put enough down so that you are financing an amount below the cap. When you take out a jumbo loan, you are at a higher risk to the lender, so you have to jump through more hoops, including having a higher credit score.
If you are applying for a conventional loan, especially a loan backed by the VA, Fannie Mae or Freddy Mac, your credit score could be as low as 500. However, with a jumbo loan, your score must be at least 680. Some jumbo lenders require scores as high as 720.
Ready to enter the real estate market for the first time? As a first-time homebuyer, you may encounter many challenges as you kick off your search for the perfect house. However, property buyers who understand these challenges will be better equipped than others to overcome such difficulties quickly and effortlessly.
Now, let's take a look at three common challenges that first-time homebuyers may face:
1. You don't know what to look for in a house.
You know you want to own a house, but how do you define your "dream" residence? Ultimately, you'll want to consider what you'd like to find in your perfect house so you can map out your real estate search accordingly.
Creating a checklist of things you'd like to have in your dream home usually represents a great starting point for first-time homebuyers. This checklist should include both "must-haves" and "wants" and can help you narrow your search for the ideal residence.
2. You aren't sure how much money you have available to purchase a home.
How much can you spend to acquire a residence? Without a budget, you may struggle to begin your real estate search.
Lucky for you, many banks and credit unions make it simple to get pre-approved for a mortgage.
Set up meetings with a few lenders in your city or town – you'll be glad you did. These lenders can help you assess your current financial situation, outline all of your mortgage options and ensure you can gain pre-approval for a mortgage.
With a mortgage in hand, you may be better equipped than other homebuyers to secure your ideal residence. This mortgage will help you determine exactly how much you can spend on a home. Plus, getting pre-approved for a mortgage can help you avoid the temptation to spend beyond your financial means to acquire your dream house.
3. You don't know what it takes to go from homebuyer to homeowner.
The homebuying process can be long and complicated, especially if you have no idea about what to expect from it. Fortunately, real estate agents are available to help you take the guesswork out of going from homebuyer to homeowner.
A real estate agent is a housing market professional who is happy to share his or her insights with you. He or she will respond to your homebuying concerns and queries and teach you about all stages of the homebuying cycle.
Furthermore, a real estate agent will set up home showings, keep you up to date about new houses as they become available and negotiate with property sellers on your behalf. This housing market professional will even go above and beyond the call of duty to guarantee you can purchase a home that you'll be able to enjoy for years to come.
When it comes to buying a home for the first time, there is no need to navigate the homebuying journey alone. Instead, collaborate with a real estate agent, and you can accelerate the process of acquiring a top-notch house at a budget-friendly price.
A home is one of the biggest purchases that an individual can make in his or her lifetime. It also may prove to be expensive, particularly for those who fail to plan ahead for the property buying journey.
There is no need to break your budget to acquire your dream residence. In fact, there are many quick, easy ways to guarantee you can keep you finances in check and avoid the risk of spending too much to purchase your ideal house.
Now, let's take a look at three tips to ensure you can buy a quality house at a budget-friendly price.
1. Get Pre-Approved for a Mortgage
You want to buy a home, but you still have no idea how much you can spend on a residence. Thankfully, if you get pre-approved for a mortgage, you can enter the real estate market with a budget in hand. As a result, you will know exactly how much you can spend on a house and can plan accordingly.
Banks and credit unions employ friendly, knowledgeable mortgage specialists who are happy to meet with you. These mortgage specialists can review your income, credit score and other relevant financial data. Then, they can provide you with mortgage options based on your finances.
2. Narrow Your Home Search
Although most people want to buy a mansion, it is important to establish realistic homebuying expectations. Because if you narrow your home search to properties that fall within your price range, you can speed up the property buying journey. Perhaps most important, you can shop around to find a terrific home that corresponds to your budget.
Don't forget to consider homes in a variety of cities and towns too. In some instances, it may prove to be more cost-effective to purchase a house in a small town than a residence in a big city.
3. Evaluate Your Short- and Long-Term Plans
Think about your short- and long-term plans, and you may be better equipped than ever before to map out your home finances for the foreseeable future.
For instance, if you plan to raise a family in the years to come, you may want to consider the costs associated with childcare and other child expenses. This will allow you to budget properly as you search for your dream home.
On the other hand, if you recently accepted a work promotion, your income soon may rise. In this situation, you may be able to increase your homebuying budget due to the fact that extra income will be coming your way.
Lastly, as you get ready to search for a house, you may want to hire a real estate agent. In addition to helping you find a home that matches your budget, a real estate agent will offer expert guidance throughout the property buying journey. He or she will help you prepare for a home inspection, closing and other important steps during the homebuying process. By doing so, a real estate agent will help you seamlessly navigate the homebuying journey and achieve the optimal results.