10 Problems to Avoid When Buying or Selling a Home

10 Problems to Avoid When Buying or Selling a Home
House For Sale

10 Problems to Avoid When Buying or Selling a Home

There is nothing worse than making an important decision without having all the information. A lack of preparation can result in mistakes that can cost you thousands of dollars. At Ideal Lending Solutions, we know that preparation, along with a little bit of education, can go a long way in helping prospective buyers and sellers avoid costly mistakes and ensure a positive and affordable outcome.

For Buyers:

1. PROBLEM
You’re in the market for a home, but don’t know just how much house you can afford.
SOLUTION
Know exactly what you can afford by getting a pre-qualified mortgage through a reliable lender. It’s fast and easy and will give you confidence to make an offer the buyer will take seriously

2. PROBLEM
Learning too late in the buying process that your Realtor represents the seller.
SOLUTION
Before you start looking, establish a relationship up front with a Realtor to ensure that your interests are represented

3. PROBLEM
Choosing the wrong mortgage and paying unnecessary interest, closing fees and taxes.
SOLUTION
When considering multiple lenders, review all completed Loan Applications with your CPA or a Financial Advisor to ensure you choose the most affordable mortgage.

4. PROBLEM
Purchasing a home and discovering hidden defects after you’ve closed the deal.
SOLUTION
Avoid surprises by hiring an independent professional home inspector It is always worth the additional expense. You’ll be glad you did.

5. PROBLEM
Discovering that your credit score is not where it needs to be when you go to buy or refinance.
SOLUTION
Work with a mortgage lender in advance. He or she will review your credit rating and recommend steps needed to improve your credit, so you’ll be ready when the time comes.

For Sellers:

6. PROBLEM
Setting an asking price too high based on personal need or emotions rather than fair market value.
SOLUTION
A Realtor can help you determine fair market value using comparable homes recently sold in your area.

7. PROBLEM
Your home has been on the market for some time and just isn’t selling.
SOLUTION
A good home, priced reasonably may not sell because it hasn’t been properly showcased. Before you list your home be sure to repair and clean thoroughly to make the best impression.

8. PROBLEM
You’ve signed a listing contract with a Realtor, you’re unhappy with the results, but you can’t get out of the contract.
SOLUTION
Tell your Realtor up front that you want to be able to cancel the listing agreement, with no questions asked, before you sign the contract.

9. PROBLEM
You’ve chosen a Realtor for the wrong reason. (For example, the Realtor works for the most the popular company, or was the only one you met with.)
SOLUTION
Meet with a minimum of three agents and be sure to check references. Make your decision on their track record and their proposed marketing plan for your home.

10. PROBLEM
You’ve signed a legally binding contract with a lender before you’ve suddenly learned this transaction will cost you thousands of dollars.
SOLUTION
The lender must provide you with a completed Loan Application before closing. Before you sign, review the application with your CPA or Financial Advisor and avoid costly mistakes.

Finding the Right House

Finding the Right House
Finding the Right House

Finding the Right House

Let’s start with finding the right house. Before you begin your search for a home, it’s important to identify the type and style you’d like. Build your checklist by asking yourself some key questions. Once completed, sharing this list with your real estate agent will help them focus on finding a home that’s just right for you.

While this may be your first home, it’s not likely to be your last. As you put together your list keep in mind on average most first-time buyers move within 5 to 7 years. Set your sights on identifying what meets your needs now and into the foreseeable future. Your list is about identifying basic needs that must be met and features you’d like to have.

Your Family’s Needs

What will make your home, comfortable, efficient and livable?

  • How many bedrooms do you need? Does each child need their own room?
  • How many bathrooms do you need?
  • Do you need additional storage space, a basement or attic?
  • Do you need a guest room or home office?

Commuting Needs

Which neighborhoods will best meet your travel and commuting needs?

  • How far are you willing to commute to work each day?
  • How close to family members do you need to be?
  • Do you need to be close to transportation, such as bus or train routes?
  • Are there other activities you need to be close to like local schools, church or golf club?

Ideal Amenities

What added features do you want? Then, prioritize based on importance.

  • Working Fireplace
  • Central Air Conditioning
  • Hardwood Floors
  • Walk-In Closets
  • Gourmet or Eat-In Kitchen
  • Whirlpool Bathtub
  • Separate Laundry Room
  • Large or Fenced Yard
  • Swimming Pool
  • Three Car Garage

Top Mistakes of 1st Time HomeBuyers

Top Mistakes of 1st Time HomeBuyers
Top Mistakes of 1st Time HomeBuyers Blog

Top Mistakes of 1st Time HomeBuyers

MISTAKE 1: Start House Hunting Without A Pre-Approval

Imagine finding and falling in love with a house you can’t afford. Starting your search without a pre-approval* can mean wasted time and disappointment. Save time and avoid disappointment by putting first things first. Get a pre-approval letter from a qualified lender that lets you and your Realtor know exactly how much house you can afford.

MISTAKE 2: Buying A Home That’s Not Right For You

A clear understanding of what’s most important to you in a first home is critical. Call it a checklist or a wish list, but before you start your search consider these questions:

  • What type of home? – Start with your basic “must haves.” This includes not just the style of the home, but also the number of floors, number of bathrooms, availability of a garage, etc.
  • How much square footage? – How much space will you need? What floor plan will best suit your needs?
  • What Other features? Think of these as preferences. What type of heating do you prefer? Is a gas stove essential? Do you require a finished basement? Do you prefer the laundry room be on the main floor as opposed to the basement?
  • Which neighborhood? – For many people where you live is almost as important as the house you choose. What local amenities will you require? Is the location convenient to your work? If you have school age children, how are the local schools rated? What are the real estate taxes like?

*A pre-approval is not a commitment to lend. A pre-approval is subject to satisfactory appraisal, title, and no material changes to borrower’s financial condition.

MISTAKE 3: Not Using A Real Estate Agent

The importance of working with a professional realtor cannot be overstated. A good realtor understands local market conditions, can provide insights into the community such as: the quality of local schools, the convenience of nearby amenities, etc. Most importantly, a seasoned realtor can assist in the crucial negotiations leading up to and following your initial offer.

MISTAKE 4: Tampering With Your Credit Prior to Closing

Your pre-approval is based on a number of factors: income, debt, and perhaps most importantly, your credit history. Prior to closing, the lender will pull your credit report to see if there have been any changes to your financial situation. Changes to your credit report can mean additional documentation that can send your loan application back to underwriting for review. Here are a few things you shouldn’t do if you want to keep you’re closing on schedule and avoid putting your loan approval at risk.

  • Don’t change jobs
  • Don’t make any large purchases
  • Don’t max out or open new credit card accounts
  • Don’t sell off assets or move large amounts of money between accounts

Hold off on purchasing furniture or appliances for your new home. There will plenty of time to shop after your loan has closed.

Stop Paying Your Landlord’s Mortgage

Stop Paying Your Landlord’s Mortgage
New home Key photo

Stop Paying Your Landlord's Mortgage

Invest In Yourself

Are you tired of paying rent? Don’t miss out on fulfilling your dream of homeownership. Put your hard earned money to work for you, not your landlord. Start your homeownership journey today. Call today to get a free loan pre-approval* from Ideal Lending Solutions. At Ideal Lending Solutions, we have low down payment options available, competitive interest rates, fixed and adjustable rate loans, a variety of loan programs including FHA, VA, USDA, Jumbo and more! The rent you pay to your landlord could be used to help build equity in your own home. Contact us today to learn more about our loan programs and begin your journey towards homeownership.

*A pre-approval does not constitute a loan commitment or guarantee of a loan. Preapproval is subject to a satisfactory appraisal, satisfactory title search, and no meaningful change to borrower’s financial condition. **Ideal Lending Solutions is not a tax or financial adviser. Please consult a licensed tax adviser and appropriate government agencies for any effect on taxes or government benefits.

Rent Payments Add Up Over Time

This chart is a sample of what your total rent payments would add up to over a 30
year time frame based on $1,000 – $3,500 rent amounts (not including additional
costs associated with renting).

Possible Benefits of Homeownership:

• May help build your credit
• Possible tax deductions
• Build equity with each payment
• Freedom to remodel & have pets
• More stable monthly payments (based on a fixed interest rate)

Renters Have Much to Gain by Pursuing Home Ownership

Renters Have Much to Gain by Pursuing Home Ownership
rent home vs buy blog photo

Renters Have Much to Gain by Pursuing Home Ownership

Buying a home vs. renting is a big decision that takes careful consideration, as most mortgage consultants will agree. But the rewards of home ownership are great. For many years, purchasing real estate has been considered an extremely profitable investment. It is an achievement that offers a sense of pride, financial stability and potential tax advantages.

Yes, there are certain responsibilities associated with owning a home. Landlords will often argue the benefits of renting, and for obvious reason. If you are renting, you’re helping them make their mortgage payment.

The numbers are staggering if you look at it this way. If you are paying $1,000 per month for an apartment, and you know your rent will increase 5% every year, then over the next five years you will pay your landlord $66,309. If you are currently renting a house, you may be paying much more than that each month. Either way, you gain no equity by shelling out this monthly housing expense and you certainly won’t benefit when the property value goes up!

However, if you were to purchase your own home or condominium, you would be on your way toward building equity. By choosing a fixed-rate loan program, you can have the comfort of knowing that your monthly mortgage payment will never go up. In fact, you would have the option of refinancing to a lower interest rate at some point in the future should interest rates drop lower than the rate you’d currently be locked in at, and this would cause your monthly mortgage commitment to go down.

And not only would your own home give you added space, your own back yard and overall privacy—home ownership could possibly give you some tax advantages.* Depending on your tax bracket, owning a home is often less expensive than renting after taxes. Interest payments on a mortgage below $1 million are tax-deductible, and your mortgage consultant should help you evaluate the tax advantages of various loan scenarios, and share this information with your tax consultant to glean feedback on your behalf.

To find the loan program that is right for you, your mortgage consultant will need to evaluate your monthly household income, current assets and savings, as well as any monthly obligations you may have for credit card payments, car payments, child support, etc. These prequalification factors, along with the report of your credit score, will determine how much house you can afford and what interest rate you will pay for financing. It is also important to let your mortgage consultant know what your future goals are, because this will help narrow down which loan option is the best fit for your long-term needs.

There are many different types of loan programs available, including “low” down payment mortgage programs. The most common and beneficial loan for people buying their first home is the FHA loan, which only requires a 3.5% down payment. In addition, FHA allows a seller to cover up to 6% of a buyer’s closing costs which really helps decrease the amount of money it takes to buy a home. Many people also don’t know that FHA allows the lowest credit scores of any loan available today, only needing a 640 score in most cases.

If there is any time to buy it is NOW! Don’t miss this opportunity to take advantage of the current market before home values rise.

*AFN is not a tax or financial advisor, and individual tax circumstances may vary. Please consult a licensed tax professional and appropriate government agencies to determine tax consequences of home ownership.

Let Us Help Make Your Dream a Reality!

Buying vs Renting a Home

Buying vs Renting a Home

Buying vs Renting a Home

Buying Vs Renting

How much could you be saving by buying a home?

West Palm Beach, FL – How much could you be saving by buying a home? Let’s calculate it and find out!

In this all too common example, our renter is throwing money away year after year by not owning a home.

If you are still renting, you are probably paying someone else’s mortgage and helping them to accumulate wealth that should be yours. We have helped many first time homebuyers finance their homes and we would love to help you.

*Assumes 4% annual appreciation. This is not a rate quote or an offer of credit. The example above is intended for rent-own illustrative purposes only. For today’s rate, please consult your Ideal Lending Solutions licensed Loan Officer.
**This is not an offer for extension of credit or commitment to lend. All loans must satisfy company underwriting guidelines. Not all applicants qualify. Information and pricing are subject to change at any time and without notice. The content in this advertisement is for informational purposes only.

Buy Vs Rent

It is hard to ignore the many possible benefits homeownership has to offer for your future.

Buying:

  • Possible Tax Advantages and Deductions
  • Potential for Home Equity Accumulation
  • Freedom to Express Your Style
  • Pride Of Ownership & Sense of Community
  • Have Pets As You Wish
  • Decide How Long You Live There

Renting:

  • No Control Over Increases in Rent
  • Restrictions On Personalization
  • May Be Building Landlord’s Equity
  • Lease Restrictions
  • Pets May Not Be Allowed
  • Less Privacy
  • Possibly No Tax Advantages and Deductions

Ideal Lending Solutions is your premier home mortgage lender in Florida. At Ideal Lending Solutions your clients will work one-on-one with a dedicated mortgage professional who can explain loan programs and offer great mortgage rates to meet your financial goals.