Tips To Pay Off Your Loan Faster

Tips to Pay off Your Loan Faster 

For generations, homeowners would buy a home for life. Working over the years to make the payments and celebrating the end of the 30-year mortgage were great milestones in the family. Today, few homebuyers expect to be in their homes for longer than 7 years on average. Paying off a 30-year mortgage seems like an impossible task. Fortunately, there are great ways to pay off your loan which do not involve time. Here are a few tips for paying off your mortgage loan faster. 

•  Biweekly Payments – Work with your lender to determine how they handle biweekly payments. If processed immediately, you can save 8 years of payments on a 30-year loan. 

• Extra Payments – By making just one extra payment each year, you can pay off your loan 11 years earlier. 

• Refinance to 15 years – There are great interest rates available for mortgage loans. Consider a 15-year mortgage. 

•  Principal Reduction – Watch for ways to add to your monthly payment a little at a time. 

When possible, increase the principal payment you make. Paying off your mortgage builds wealth. Consider your life goals, including retirement. A 30-year loan taken out at 37 years old will not be complete until 67 – retirement age. The loan needs to be part of the overall financial plan from the beginning and making a payoff a priority with a few simple steps can add up to huge savings in interest which can then be used for better investments.

Your Home - Your Neighborhood - My Priority

Down payments Explained

A down payment is the amount of cash a home buyer puts toward the price of a new home. It accomplishes a few things; first it reduces the amount of money you need to borrow and it reduces the risk the lender takes in loaning the money. By reducing the risk, the borrower will typically get a better interest rate on the loan and increase the amount of home they can buy.

 How Large a Down Payment Do You Need?
 The amount of down payment needed depends on the type of the loan, the lender and the property price itself. While most of the 0% down home loans of the last decade are gone, Veterans can still purchase a home loan with no down payment. Other programs include FHA loans with as little as 3.5% down. With a government backed loan like a FHA mortgage needing the minimum 3.5% for a $200,000 home, you will need to save $7,000. Conventional loans typically require at least 5% down payment, but some can be as low as 3.5%. If you decide on a Conventional loan say you are buying a home for $200,000, in this case you will need $10,000 to secure a home loan. The USDA also has a zero-down payment loan guarantee program for specific rural areas. 

 Is it Better to Make a Larger Down Payment?

 In addition to the down payment, buying a home also requires cash for closing costs and some reserve savings to guard against unexpected financial concerns. One thing to remember though is that any financing with less than 20% down will require private mortgage insurance – a monthly payment which protects the lender in the event of default. The best amount of down payment should be determined in consultation with your lender and your tax or financial advisor, but the quick answer is “it depends.” By working with a trusted lender, explore your options and you will make the best decision for your needs.

How is a down payment on a home calculated? 

The down payment is a portion of the total sales price of your home, which you give to the home's seller. The rest of the payment to the seller comes from your mortgage. Down payments are expressed as percentages. The main reason some down payments can be so expensive is because lenders typically require them before giving approval for the loan. The larger the down payment, the lower your monthly mortgage payment will be.

It is important to check around to make sure you are getting the best rate available for you. Contact me to help you start the process, I can get you in touch with exceptional lenders that will go the extra mile to help you buy the home you've always wanted. 

Appraisals Explained

Appraisals Explained

Appraisals are one of the most confusing aspects of buying or selling real estate for the consumer. Is the value of your home what you and the seller just agreed on? When a buyer and seller agree on a sales price, it can be frustrating to hear that the appraisal came in with a value too low. It’s not enough for the principals to agree to the price, the appraisal is the lender’s way to ensure they are not loaning money over the actual market value of the property.

What does the appraisal cost and who pays for it?
While your lender will typically arrange for an appraisal, the buyer is ultimately responsible for the cost. Don't let this cost stop you from making offers: The home appraisal will only occur after your offer has been accepted by the seller and you have begun to work with a lender to finance your new home. You do not need to complete appraisals on every house you choose to bid on. 

 The appraised value is reached by a licensed professional who looks at the real estate market in which the target property is located. In most residential property transactions you are able to choose your real estate agent and your lender, but you cannot choose your appraiser. Instead the appraiser must be chosen by your lender to provide a level of independence from the buyer and seller. 

 They start with the target property and then look for recent sales in the area of comparable properties. These comparable properties will be located within a short distance of the target home, normally within a 5 mile radius. They should also be of comparable size and often fall within the same housing development.

 Once these homes are identified, the appraiser will adjust for the specific differences. For instance, does the target home have an upgraded kitchen or swimming pool? They add or subtract value based on such things as location, view, lot size, upgrades, additions, condition and many other factors. They can then arrive at a valuation for the target home.

 Once the appraisal has been completed, the lender is notified of the value. At this point, the loan amount is either confirmed or declined. If the appraisal comes in too low, the principals can choose to make up the difference in sales price, lower the sales price or cancel the transaction.

 What is the difference between an Appraisal and a Home Inspection? Although the home appraisal may seem similar to the home inspection, the goals of these two processes are very different. 

• The Appraiser determines the value of the home
• The Inspector determines any repairs needed, and their potential cost.

 Appraisals are not as complicated as they appear. By learning about recent sales in your area ahead of time, you can price your home appropriately up front with me; then the appraisal should come back as expected. 

If you have further questions about appraisals or your homes value please email me or call. I'm happy to give free home evaluations. 

Your Home-Your Neighborhood- My Priority

Streamlining the Lending Process

Streamlining the Lnding Process

If you are starting a search for a new home, most likely you’ll need to get a home loan. The process might seem overwhelming if you haven’t obtained a loan in a long time; even more so for first time home buyers. The lending process doesn’t need to be difficult and by being prepared, you can streamline the process and ensure you are able to get the best loan for your needs.  

Choose a Lender
 The first step is to find a lender. You might start at your personal bank or credit union. Another good source for referrals is your agent or family and friends. The lender should have access to a variety of programs as well as the government options: VA and FHA programs.  

Be Prepared
Before you meet with the lender, gather the information you will need. Generally, you will need to provide current pay stubs, W2s, bank account statements and the last 2 years of your tax returns. If you have been divorced and/or have child support obligations, bring the final court document with you as well. 

 Understand Your Limits
 Typically, you will be able to borrow up to 31% of your gross monthly income. In addition, the lender will require that you have no more than a total monthly debt of 36% of your gross income. Be prepared to disclose all your debt, even if it does not appear on your credit report. Your loan officer is your advocate and there to help you succeed. 

 Don’t Make Any Credit Changes
 Once you’ve started the loan process, it’s critical that you make no changes to your credit. Postpone any big purchase, do not apply for new credit of any kind and do not pay off any credit cards. It’s also important not to change jobs during the approval process, even if it’s for more money. Before you do anything, talk to your lender.  Getting a home loan is not as difficult as it was a few years ago, but it’s important to plan early and do the right things. Once you make the decision to buy a home, speak to a lender immediately and then follow their advice and you’ll find the loan process simple to manage.

Currently, interest rates are running to the lowest levels in nearly two years. It's been another awesome week for rates. 
Home Mortgage Rates are now all sitting below 4%, Two weeks in a row in fact. If you have been waiting to own a home while locking in at a low rate now is the time to think about calling your lender and your agent. 

Questions about rates, home sales, home buying or relocation send me a message and I'll be happy to assist in way I can. 

What are Contingencies on a Contract?

What are Contingencies on a Contract?

Contingencies are commonplace in contracts of all kinds. A contingency allows for one party or another to legally back out of a contract in the event of some specific condition occurring. They are protection against the unknown. 

 In real estate, there can be contingencies inserted for either buyer or seller or both. These take many different forms and until removed in writing, either party may change their minds based on the result of the contingent event or issue.

  Some examples of home buyer contingencies: 

• Home inspections – condition of the home

 • Specialty inspections – mold, geological, roof inspections

 • Code Violations – an investigation into improvements made without permits

 • Lender appraisal – ensures the offered price is not too high 

• Sale of current home – allows the buyer to back out if they cannot sell their current home in specific time frame

 • Final loan approval – loan is ready for signature and close

 • HOA CC&Rs – review of documents to ensure rules and regulations do not infringe on enjoyment of property 

• Insurability – home owner’s insurance available at a reasonable rate 

Home sellers can also have contingencies included as well, such as one which states the sale is contingent on finding a replacement home. Contingencies are a fact of contract law. In real estate, they ensure that the offer is concluded as expected.

Home Buying doesn't have to be complicated or stressful. You can trust that I can advise you every step of the way. Contact me at Davis and Associates to help you answer all your Real Estate Questions. 

DETERMINING THE RIGHT PAINT FINISH

Determining the right paint finish

Paint is one of the easiest ways to change the feel of a room – or even a home. A fresh coat of paint in a trendy color can update a room in an instant. Choosing the color is only one aspect of picking the right paint; the finish or sheen is also important to the look and feel of the space.  


Flat Finish
Flat finishes is exactly like it sounds – flat. There is no sheen at all. Today’s matte finishes reflect rich tones and are much more luxurious than the dull finishes of the past. Use for: 

• Ceilings
• Dinging Room
• Formal Living Rooms
• Adult Bedrooms

Satin Finish 

Satin finishes have just a slight sheen. These finishes reflect the light softly and provide a richer look and feel than flat paint. These are better for high traffic locations than flat.  

• Halls
• Baseboards 
• Family Rooms 
•  Children’s Bedrooms

Semi-Gloss

Semi-gloss provides even more shine. These paints can make a room seem larger by providing a slight gleam from the painted surfaces. Easy to clean, a semi-gloss paint works well in areas frequently cleaned.

• Kitchens
• Bathrooms
• Close Doors and Cabinets 
• Stair Rails and Banisters

Gloss

 A high gloss paint is the brightest available. These paints bring out the truest color of the paint and provide a durable finish for areas you wish to highlight. A high gloss paint works well for accents. 

• Wood Trim
• Doors
• Furniture

Each of these types of finishes has variations as well. Today’s paints are more luxurious with deep, rich pigments and more durable elements. Choosing the right color and finish can bring freshness and modernity to any room or home. 

Contact Me (Kristi Fenton) at Davis and Associates Inc., Realtors  if you have any questions on all of your home buying and selling needs. 

IS A BIGGER HOUSE REALLY BETTER

IS A BIGGER HOUSE REALLY BETTER

If you are looking for your next home, it’s naturally to assume that you should buy the biggest home you can afford. Certainly if you need a big home, then this is the right decision, but if not then there are other ways to maximize your investment that doesn’t include more square feet. Bigger isn’t always better. If you don’t need 4 bedrooms, then why spend your money on that? There are many other ways to spend your money. 

View- First let's get things straight- what constitutes a view? Well, for different people a "view" can mean different things. One person's idea of a great view may be a home that overlooks the ocean, while someone else prefers a lake or river. Basically any kind of scenic vista is usually considered to be a good view-mountains, hills, forests, vineyards. Then there are the man-made views-the city skylines are the most popular of these, whether it's on the outskirts of the city, or a loft apartment in the midst of Quincy's district , these can provide fabulous views if you like that kind of thing.
 View homes will always command higher sales prices than those without. If you enjoy a distant vista, use your money for a view and enjoy better returns when you sell.

 Space – Space is not only counted in square footage, lot size also adds value and enjoyment to a home. A bigger house and a bigger lot usually are worth more than smaller ones. It's not a simple equation, like "double the size, double the value," because there are so many factors involved in an appraisal. One of those factors may be how the size of the property compares to other homes nearby.

  Amenities – Ask anyone who has looked at upscale retirement communities about amenities and how they contribute to qualify of life. Golf courses and lake front homes increase value as well as value. On a smaller scale, look at the appliances that come with the home, finishes and materials (at your price point know what finishes should be expected built with the home in your price range), Ceiling, it is important to notice leaking ceilings, cracks in dry wall etc.

Location – The old adage of location, location, location is true. But why does location matter so much? for starters, you can't move a home - at least not easily or inexpensively. When you buy a home in a good location, it's usually a solid long-term investment. From the craftsman cottage in the historic downtown to a trendy urban loft in our cities district, choosing a home in the right location is critical to building value. 

 Choosing the right home is not simply about resale value, but that doesn’t mean you shouldn’t think about it. First and foremost choose a home that fits your needs and lifestyle, but if that’s not a huge house on the hill, there are other options that are just as good. The bigger house is not necessarily the best choice. 

Contact me to help you make the best choice for your investment.

Why You Should Never Skip A Home Inspection

Why You Should Never Skip A Home Inspection

Buying a home can be expensive. It might feel like once you’ve entered escrow, you have new things to pay for at every turn. While the fees are normal and customary, if you don’t buy a home often, you might wonder if they are all necessary.

 One expense that is often discussed is inspections. What inspections do you need and how should you choose the right person to perform them. During the home inspection contingency period, you have a right to perform as many investigations as necessary to determine the condition of the property you are buying. 

Typically you will want to make sure there are a home inspection and a termite inspection. Other options could include a mold inspection, radon inspection, well/septic tank certification, roof inspection and pool/spa inspection. The type of inspection is determined by the condition of the home. Most buyers start with the basic home inspection.

What is a home inspection? It is a visual, non-invasive inspection of a property. There are usually seven systems observed during the inspection; the Attic and Roof, the Basement and Foundation, Plumbing, HVAC, the Interior Living Space, the Homes Exterior, and the Electrical System. Throughout the process the inspector assesses the home's safety, operation and the condition of it's various systems. A home inspection can protect you and your money by showing you where things are past their prime, or if something is in great shape. The inspection isn't for the lender, your Real Estate Broker, or the Seller-it's for "you" the buyers. When or if your home inspection Report reveals a defect, it gives you an opportunity to go back to me "your agent" and decided if you want to renegotiate the price or even walk away from the deal. 

 Home inspections are very important. Never judge a home by it's facade. Every buyer should know what they are buying. The more you know the less surprises you will have down the road. There is no substitute for a proper inspection by a licensed home inspector. You might be handy or have a handy friend, but the home inspector is experienced in identifying problems and potential problems so you can make an informed decision about moving forward with the sale.

Tips on buying and selling your home at the same time

Tips for buying and Selling at the same time! 

Either buying or selling a home can be extremely stressful, it can be even more overwhelming if one is trying to do both at the same time. Adding in the additional stress of moving now having to sell first to move or is it the other way around? In an ideal world, you'd buy a new home, move, and then, and when all the dust settles deal with the turmoil of selling. But for most people, that's totally unrealistic. Not only does it cost significantly more, since you'll be paying two mortgages, but sellers might be quick to judge if you're holding on to your current home.  The good news is that this happens all the time and by following a few simple tips, both buying and selling can be a seamless process. 

Tips for Buying and Selling at the Same Time

Contract Contingency: Buyers can request that their new home purchase be dependent on the successful sale of their old home. If you're looking in a competitive market, this may not be a good option; however, if the seller of your intended home has had difficulty attracting interest, this may be a good deal for all parties involved-assuming you can convince them that your home will sell quickly. 

Bridge Loans: A bridge loan allows you to own two homes simultaneously if you don't have deep pockets for a second down payment. This option is especially attractive if you'd planned to sell your home first and use the proceeds to buy the second. It functions as a short-term loan, intended to be repaid upon the sale of your original home. 

(Make sure to talk to your agent and lender to know what is best for your individual real estate needs)

The good news is that you’re planning to move any way. Before you list your home for sale, why not start packing now? Take personal items and excess furnishings and pack them up and move them to storage. Not only will your home look larger and neater, you are getting a start on the move. 

Next make sure your agent, understands the timeline and requirements. There are many standard contingencies which can protect you from owning two homes at once, or none at all. Not only can the purchase of your new home be contingent on successfully closing on your current one but you can also reverse the process and ensure you find a replacement before the close as well.

 Finally, get the entire family involved. Be excited about the change and create a moving plan in which everyone has a task and there is a plan for the move itself. By taking a few initial steps, moving can be fun and easy. 

Having the right person representing you can be the difference between calm smooth process and a nightmare. Don't sell yourself short by not being protected and advised in a huge home purchase and sale. It is essential to be advised by the best. 

Contact me Today to help you ease your anxiety and let me navigate the market for you! 

The Internet Can't Replace Your Agent

The Internet Can’t Replace Your Agent

 We live in the information age; the Internet offers advice on every topic and real estate is no exception. With more and more home buyers starting their home search online, they are bombarded with advice and information – it can be easy to think that you can learn everything you need to know just by reading articles online. 

The truth is your real estate agent does much more than answer your questions and open doors with a special key. A professional real estate agent will be there every step of the way. They have the experience necessary to navigate the complicated home buying process and solve common hiccups that present themselves in every real estate transactions,

 Your real estate agent is a local professional. They will start by presenting themselves to the buyer’s agent as someone who will work with them to see the transaction through to a successful conclusion. They have a network of professionals who will work as a team to help you through the process. These include such professionals as: lenders, title reps, escrow officers, transaction coordinators, home inspectors, contractors and handymen, among others.

 Most importantly, your agent is your ally in the home buying process. They negotiate on your behalf – armed with experience and understanding of customary charges, costs and terms. They will ensure that the price you pay for the home is fair for the condition and neighborhood. They will negotiate repairs, if needed and make sure you are protected with the proper contingencies. 

The Internet offers lots of great information, but the most important step you can take when buying a new home, is hiring a local professional real estate agent. Their knowledge and expertise can’t be found by reading an article or two online.