Do You Need a Mortgage Pre-approval Letter?

by Barry Shaw

There are a lot of steps involved in successfully buying a home. For many buyers, one of those steps is getting a mortgage pre-approval letter.

But not every buyer knows what, exactly, a mortgage pre-approval letter is, or whether they need one for their home purchase.

So what is a mortgage pre-approval, and do you need one?

A recent article from realtor.com answered common questions about mortgage pre-approval letters, including:

What is a mortgage pre-approval letter? A mortgage pre-approval letter states that your lender is willing to lend you money to buy a home, up to a specific amount. A mortgage pre-approval is a guarantee from a lender that — based on the financial information you shared with them and they verified, like pay stubs and credit reports — they’re willing to move forward with your loan.

When do you need one? Ideally, you should get a pre-approval before you even start looking for a house. That way you’ll know how much you can afford and focus your search on homes you can actually buy, rather than falling in love with one only to find out it’s not within your budget. Besides, you will certainly need one when you make an offer on a house, so it’s better to have it in hand before you’re in that position.

Under what circumstances do you not need a mortgage pre-approval letter? Unless you’re paying for a home outright with cash, you will need a pre-approval. But keep in mind that you’ll still need “proof of funds” when using your own savings to purchase a house, so make sure to have formal documentation from your bank proving that you have the money you’ll need to make the purchase, and that it’s liquid and accessible to you.

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Buyers • Local Real Estate Market • Sellers • Uncategorized • February 26, 2024

Last Minute Issues on Closing Day? Here’s How to Deal

by Barry Shaw

For many buyers, the time between getting an offer accepted and closing on a home can be a stressful one. Many people think that once they hit closing day, they’re in the clear, but the truth is, there are still some issues that can come up on closing day, and those issues often come as a surprise to the soon-to-be-homeowner.

The good news? There are ways to deal with closing day surprises; you just need to know the right way to handle the situation.

But what, exactly, does that look like?

A recent article from realtor.com outlined closing day surprises, and how buyers can effectively deal with them, including:

Issues with the walkthrough. On closing day buyers should do a “walkthrough” of the house before signing on the bottom line. Walkthroughs are an opportunity to tour the property to make sure it’s still in the same (or better!) condition as it was when the contracts were signed, and that everything that should be in the house is intact, as well as anything that shouldn’t be there is gone. But what if the house isn’t in the same condition? For example, the basement has flooded from a recent flood or, now that the sellers have moved the furniture, it’s clear that pieces were strategically placed to hide flaws in the walls or floors? If you notice there are issues with the house during your final walkthrough, it doesn’t have to be a dealbreaker. Instead, ask the sellers to cover the cost of the repairs, and to put an adequate amount of money to cover the costs into escrow.

Disagreements over what comes with the home. Sometimes, there are misunderstandings about what stays and what goes when the seller leaves the home; for example, you might expect that the refrigerator you saw when you toured the home would be there when you moved in, but on closing day you find out the seller took it with them. So, what should you do? Unless an item was specifically included in your contract as part of your deal, it’s usually best to let it go, and just buy your own items once you move into the home. Unless you’re super attached to a particular item for some reason, it’s generally not worth losing the home over. But if the item was included in the listing or agreed upon terms of the contract, ask the sellers to return the item to the house, or replace it with a similar one before closing.

Money transfer issues. On closing day, funds need to be transferred from the lender to cover the cost of the home. Different financial institutions and title companies have different requirements over how those funds are transferred; for example, some prefer an electronic transfer, while others prefer a certified check. To avoid any misunderstandings, ask your agent and lender how funds should be transferred before closing day. And if you make a mistake, try not to stress too much; these issues can generally be cleared up pretty quickly.

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Buyers • Local Real Estate Market • Sellers • Uncategorized • February 19, 2024

Thinking About Selling Your Home in 2024? Here’s Why Now Is a Great Time to Sell

by Barry Shaw

Historically, spring is the most popular time to sell a home. But 2023 was an extremely challenging year in real estate, and now that the market’s changing, it may be a better idea to get ahead of the curve and list your home now, even though spring is months away.

But why, exactly, does it make sense to sell now? A recent article from realtor.com outlined reasons why sellers should consider putting their homes on the market ASAP, including:

Mortgage rates are dropping.
In late 2023, mortgage rates for a 30-year fixed mortgage hit a 23-year high of 7.79 percent, and with mortgage rates so high, many sellers and buyers opted to wait. But now that 2024 is in full swing, mortgage rates are trending down. And as they drop, more buyers are entering the market, which can make it easier to sell your home.

Inventory is still low.
Although mortgage rates are dropping, available inventory is still low, which means there’s less competition for buyers. That may change in the spring, when more sellers put their home on the market, making now a great time to list a home.

You can beat the rush.
If, in addition to selling your home, you’re also planning to buy, doing so now, before the spring rush, can make both buying and selling a faster, easier process.

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Buyers • Local Real Estate Market • Sellers • Uncategorized • February 12, 2024

The Benefits of Using a Mortgage Broker

by Barry Shaw

If you’re purchasing your home with a mortgage, you have quite a few options.

For instance, you can work with your personal bank; you can research and find another lender on your own; or, you can partner with a mortgage broker who will help you find the best lender and program for your needs for you.

A mortgage broker could be a huge help in navigating the financing for your home. But what are some of the pros of working with a broker?

A recent article from realtor.com outlined some of the benefits of partnering with a mortgage broker on your home purchase, including:

Access to lenders.
Brokers have relationships with multiple lenders. And because of those relationships, they understand the best terms each lender can offer, and can use that information to help you find both the best lender and the best deal for your mortgage.

Less paperwork.
When you apply for a mortgage, you need to fill out application paperwork, and if you’re applying with multiple lenders, all that paperwork can quickly get out of hand. When you work with a broker, you only have to fill out one application, and from there, the broker can reach out to lenders on your behalf.

Support.
The mortgage process can feel overwhelming, but when you work with a mortgage broker, they’re on hand to answer your questions, help with paperwork, and support you through the lending process. That support can make the process feel a lot less stressful.

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Buyers • Local Real Estate Market • Sellers • Uncategorized • February 4, 2024

Selling Your Home in 2024?

by Barry Shaw

The real estate market is constantly changing; trying to sell your home in 2024 could be completely different from the selling experience in 2023.

So, the question is, if you’re planning on selling your home this year, what do you need to know about the market?

A recent article from realtor.com outlined key things homeowners need to know about selling their home in 2024, including:

Prepare for bidding wars. Low inventory and high interest rates made it hard to buy a home in 2023 and, as such, many would-be buyers decided to wait for better conditions. But now that mortgage rates are dropping, many of those would-be buyers are entering the market, which means there will be more competition for available properties, leading to potential bidding wars.

Work hard to make your home stand out. With such low inventory last year, many buyers were happy to buy less-than-ideal properties. But with market conditions improving, you can expect more homeowners to list their properties. That means buyers will have more options, so if you’re planning to sell your home, it’s important to upgrade your property and invest in making your home as appealing to buyers as possible by refreshing the landscaping, or replacing dated or broken light fixtures, for example.

There’s more room for negotiation. With so few buyers in 2023, negotiating was a challenge, and sellers often accepted offers as is. But as market conditions improve and more buyers hit the market, sellers may have more room to negotiate better offers.

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Buyers • Local Real Estate Market • Sellers • Uncategorized • January 29, 2024

Want to Sell Your Home in 2024? Leave These Bad Habits Behind

by Barry Shaw

With a new year comes a new real estate market, and if you want to sell your home in 2024, there are definitely some outdated habits you’ll need to leave behind.

So what, exactly, are those habits, and, more importantly, what should you do instead?

A recent article from realtor.com outlined habits you’ll want to shake if you plan to sell your house in the coming year, including:

Trying to sell your home on your own. Many people think they can easily sell their home on their own. But the truth is, selling a home is a complex, challenging process, and working with an agent is the best way to navigate those challenges. Real estate agents have the experience, knowledge, and network needed to successfully sell your home quickly and profitably, so if you’re thinking of selling your home this year, you’ll definitely want to partner with an agent.

Considering only the highest offer. Many sellers think that the highest offer is always the best offer and, as such, it’s the only offer they’ll consider. But the truth is, there are so many elements other than price that make an offer competitive, and if you’re only looking at the number, you could be missing out on the best offer. If you plan to sell your home this year, make sure to consider everything about each offer, including the contingencies, closing timelines, and the buyers’ financial stability, and then choose the offer that makes the most sense for you, even if it isn’t technically the highest.

Being strict about showing times. Showing your home whenever there’s an interested buyer is inconvenient. But if you want to sell your home, only showing your property during strict time frames (like weekends from 2PM to 5PM) can limit the number of buyers that see your property, which can ultimately make it harder to sell. If you want your home to sell quickly and for the highest price possible, make sure to be as flexible as possible with showings.

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Buyers • Local Real Estate Market • Sellers • Uncategorized • January 22, 2024

Are Bidding Wars the New Normal for Home Buyers?

by Barry Shaw

If you’ve been planning on buying a home, there’s a good chance you were hoping that the good news about higher interest rates would be that there would at least be fewer bidding wars.

But despite rates and the economy edging some buyers out of the market — and others just deciding to take a break from searching for a house — there’s a good chance you’re not feeling like the market has bid farewell to bidding wars at all.

According to Yahoo Finance, bidding wars are still very much a thing in 2024, with some houses receiving upwards of 30 offers.

So it’s completely understandable if you’re starting to wonder if bidding wars are the new normal, and are just something buyers will have to deal with forever at this point.

While They May Feel like the New Normal, They’re Not a New Thing

Real estate is driven in large part by supply and demand. And, for quite some time now, there simply have not been enough houses for sale to satisfy the number of buyers competing for them, which has been the reason bidding wars have continued even after rates went up.

However, supply and demand isn’t the only thing that causes bidding wars. They can occur even in a “buyers’ market” where there are more houses for sale than there are buyers looking for a home.

It doesn’t matter if it’s a recession, depression, or the best economic period ever; if a seller prices their house appropriately for the current market conditions, and there’s more than one buyer looking in the area and price range that house is in, there’s a good chance there will be a bidding war.

In other words, they’re something you always need to be prepared for and expect.

3 Key Strategies for Buyers Who Might Have to Compete in a Bidding War

Whether you’re in a market where bidding wars are the norm or not, it pays to be prepared and ready to compete. Here are 5 things you should do to increase your odds of success if you’re competing against multiple offers:

– Be ready to prove you can pay the price. If you’ll need to obtain a mortgage to complete the purchase, have a recent pre-approval from a reputable lender ready at all times. If you’ll be paying cash, make sure you have bank records to prove you have the money accessible.

– Don’t let a listing linger. Go see any house that you have interest in as soon as possible, and if you like it, put an offer in writing as soon as possible. It may not help you avoid a bidding war, but it’ll ensure you’re in the mix, and show the owners and their agent that you’re a serious and interested buyer.

Make a strong, competitive offer that you’re comfortable with. Just because there’s a bidding war, that doesn’t necessarily mean a house will sell for over the asking price, but there’s always a chance. Be prepared to offer your best and final offer if and when the owner and their agent ask for it, based upon what you feel the house is worth, and how much you feel comfortable paying. Also try to keep your contingencies to a minimum, without taking on more risk than you’re comfortable with.

Bidding wars have become increasingly prevalent in many areas and price ranges, defying the expectation that rising interest rates would take competition (and possibly even prices) down a notch for buyers.
While bidding wars may seem like the new normal, they’re not a recent phenomenon. Dealing with a bidding war is always a possibility in any market (if a house is priced appropriately), so buyers should always be prepared and act quickly.
However, exploring areas with more supply, targeting overpriced homes, or looking in less in-demand price ranges may be a possible solution for those seeking to avoid bidding wars altogether.

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Buyers • Local Real Estate Market • Sellers • Uncategorized • January 13, 2024

Buying a New Construction Home?

by Barry Shaw

Buying a new construction home is a great option for many buyers, particularly if they’re looking to have some control over the home’s final layout, finishes, and features.

But there are a lot of mistakes that can be made, both when buying a new construction home and during the building process — mistakes that can cost you a lot of money.

So what, exactly, are those mistakes, and, more importantly, how can you avoid them?

A recent article from outlined some of the most common mistakes buyers make when purchasing a new construction property, including:

Signing a deal without vetting the builder. When you buy a new construction home, you want to buy from a builder with a great reputation and a solid history of building safe, high-quality properties. But not all builders have that kind of reputation or history, and buying a home from one of those dealers can end up being a costly (and frustrating!) headache. Before you commit to buying a new construction home, make sure to vet the builder. Do your research, read through online reviews to see what past clients have to say about working with them, and check to see if they have a history of complaints and/or legal issues.

Not considering potential delays. Buying an existing home and a new build are different processes. As the name implies, an existing home already exists, so once the deal is complete, you can generally move into your new home pretty quickly. But a new construction home has to actually be built. Homebuyers often underestimate how much time that will actually take, which can be a problem whether you’re leasing or selling your current place. Before you buy a new build, make sure to discuss timing with your builder. Ask for a realistic timeline as well as their insights into any potential slowdowns or delays; that way, you can plan about how to manage your current living situation accordingly.

Thinking that changes and upgrades are part of the price. For many buyers, one of the main selling points of buying a new construction home is that they can customize the layout and features. But some mistakenly think that making changes and upgrades to the property are included in their home price, and end up going completely over their budget. When you’re talking about making any changes, additions, or upgrades to your build, make sure to talk to the builder about pricing and how much those changes, additions, or upgrades will add to your final cost, which can help you keep your budget on track and avoid upgrades you don’t actually want or need.

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Buyers • Local Real Estate Market • Sellers • Uncategorized • January 8, 2024

Things Your Mortgage Broker Wants You To Know

by Barry Shaw

The right mortgage broker can be a huge asset in your journey to homeownership. Mortgage brokers walk you through the often confusing process of financing your home purchase, and can help you get the best deal on your mortgage.

But not every buyer knows the best way to work with their broker, and there are definitely things brokers wish buyers knew in order to make the process go as smoothly as possible.

So, what are those things? A recent article from realtor.com outlined the top things brokers wish home buyers knew, including:

Call your broker with any and all questions — and call them first.
Your broker is a key part of your real estate team. But some buyers are hesitant to reach out when they have questions or concerns about their mortgage and try to figure things out on their own instead. According to the article, brokers want their clients to feel like they are partners in the homebuying process, and that they should be their first call for any questions regarding financing.

Understand the rules around down payments.
Brokers want their clients to have a clear understanding of the rules around down payments, particularly that they can’t borrow money for a down payment. Any money the buyer receives for a down payment must be considered a gift, and not a loan, and needs to be documented as such; otherwise, it could put the home purchase at risk.

Don’t make any sudden changes.
Many buyers think that once the loan process is in full swing, they’re in the clear and approved to buy their home. But any sudden financial changes — like making a big purchase or switching jobs — can cause the loan to get denied. If you’re thinking about making a change, talk to your broker, but be prepared that their advice will probably be for you to wait until after you close.

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Buyers • Local Real Estate Market • Sellers • Uncategorized • January 2, 2024

Thinking about selling your home this Winter?

by Barry Shaw

– Showing traffic is up as buyers start to come of the sidelines as the mortgage rates drop.

– Homes priced correctly are seeing multiple offers and are selling quick.

– Housing Inventory although still low, is climbing and forecasted to keep doing so. We still need more homes for sale for the increasing number of buyers hitting the market.

Lets chat if you are thinking of selling. I would love to help.

What’s Your Home Worth!

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Do You Need a Mortgage Pre-approval Letter?

What’s Your Home Worth!

Last Minute Issues on Closing Day? Here’s How to Deal

What’s Your Home Worth!

Search for Properties Now!

The Benefits of Using a Mortgage Broker

What’s Your Home Worth!

Want to Sell Your Home in 2024? Leave These Bad Habits Behind

What’s Your Home Worth!

Are Bidding Wars the New Normal for Home Buyers?

What’s Your Home Worth!

Buying a New Construction Home?

What’s Your Home Worth!

Things Your Mortgage Broker Wants You To Know

What’s Your Home Worth!

Thinking about selling your home this Winter?

What’s Your Home Worth!

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