Resolution #1: Figure Out What You Want This is the fun part! You need to decide what, where, and when! What style house are you looking for, how big, how many bedrooms, bathrooms etc.? Do you want a wooded lot, an open lot? Take your time with these decisions as buying a home is a major commitment and you want to be somewhere you can live happily for several years! Resolution #2: Get Your Finances Ready Once you have an idea of what you are looking for it’s time to determine what you can afford. How much do you have available for a down payment? What is your monthly budget for a mortgage payment? Do you have money for closing costs and taxes? You should start the mortgage process before bidding on a home. Meet with your local lenders and determine not only which program best suits you and your needs but how much you can qualify for. Resolution #3: Get Your Pre-Approval “Pre-approval” means you have met with a loan officer, your credit files have been reviewed and the loan officer qualifies you for a given loan amount with one or more specific mortgage programs. The lender will provide you with a pre-approval letter, which shows your borrowing power. You can visit as many lenders as you like and get several pre-approvals, but keep in mind that each one carries with it a new credit check, which will show up on future credit reports and could damage your credit score. The more inquiries you have the lower your score goes. We recommend you work with a local lender as they have the best knowledge of the local market. Resolution #4: Find Your Realtor or Real Estate Agent: Most sellers will list their homes for sale through an agent. But be aware that those agents work for the seller, not you. You need a buyer’s agent. Get in touch with a Real Estate Agent that you are comfortable with and that can help you find the home that is best for your personal situation. A buyer’s agent has the same access to homes for sale that a seller’s agent does, but their loyalty lays with you not the seller. We are partial to the folks at Foran Realty, give them a call at 508-385-1355 or shoot them an email at sales@foranrealty.com and you will be in great hands! Resolution #5: Find Your New Home Now we are back into the fun stuff. A home is more than just a collection of bedrooms and bathrooms. Several properties with similar amenities may very well represent completely different designs, commuting distances, lot sizes, tax costs, interior dimensions, and exterior finishes. Here’s where the information you gathered in Resolution #1 comes into play. You already know what you want. Resolution #6: Make An Offer Once you find the house you want, it is time to make your offer. When working with a buyer’s broker, get advice from him or her on an initial offer. Try to line up comparable data on at least three houses that have sold recently in the area. If you really want the house, don’t lowball the offer. The seller may give up in disgust. Remember, that your leverage depends on the pace of the market. In a slow market, you’ve got muscle; in a hot market, you may have none at all. Once it is time to formally make your offer don’t forget about your contingencies. Typically we see Mortgage, Inspection and Title V as “standard” contingencies. Other types of things could be the inclusion of furniture, appliances or just about anything else. You also need to make a good-faith deposit — usually 1% to 10% of the purchase price — that will be deposited into an escrow account of the listing agent’s broker. The seller will receive this money after the deal has closed. If the deal falls through, you will get the money back only if you or the home failed any of the contingency clauses. For planning purposes you should have your home inspections completed within 2 weeks of the accepted offer and before you sign the purchase and sale. Plan on closing at least 30 – 45 days from the signing of the P&S. On October 3, 2015 new closing regulations came into effect. Collectively these are known as “TRID”. Under TRID the process has changed and the length of time to close has extended. Your agent and mortgage officer should be well versed in this and be able to walk you through the process to ensure a smooth and on time closing. Resolution #7: Understand Your Mortgage Options Now call your mortgage broker or lender and submit your formal mortgage application. Be sure to include the information from your preapproval as you want the process to be as streamlined as possible. Resolution #9: Close On Your New Home At three days before the actual closing, you will receive a final Closing Document (CD) from your lender that lists all the charges you can expect to pay at closing. Review it carefully as it will detail all of the closing costs you will be required to pay at the closing. It should also detail all expenses that you have already paid including inspections, application fees etc. The actual closing is somewhat anticlimactic, but your buyer’s agent can brief you on the particulars. Resolution #10: Tie Up Loose Ends You’ve done it. You’ve looked at properties, made an offer, obtained financing and gone to closing. What’s next? Those papers you received at settlement are extremely valuable, so hold on to them! Also at closing, determine the status of the utilities required by the home, items such as water, sewage, gas, electric and oil service. You want utility bills to be paid in full by owners as of closing and you also want services transferred to your name for billing. Usually such transfers can be done without turning off any of the utilities and should be done prior to closing. When you move in, you may want to replace all of the locks just to be safe. Finally and most importantly……Enjoy your home!!!! Owning real estate involves contracts, loans, and taxes, but ultimately what’s most important is that home ownership should be a wonderful experience! The Experts at Foran Realty are ready to assist you with all of your needs, whether it be as a selling agent or a buyer’s agent we are just a phone call away! ]]>
Before You Buy a Condo
Could condo living be for you? For many condominium living can be an attractive alternative to a single family home. The price per square foot of a condo is often less than a single family home. Before you make the leap to condo living make sure to do your homework to see if it truly is the best choice for you. Here is a checklist of a few things you may want to consider before signing on the dotted line.
- Condominiums have monthly maintenance fees.
- Check with the condominium association to see what the annual increase in the monthly maintenance fee has been for the past few years.
- What is the percentage of residents are current with their monthly association payments. Look for about ninety-seven percent of the development’s residents to be current with their monthly payments.
- What percentage of the association fees are dedicated to a reserve fund. A good number would be at least 10 percent of the association’s annual budget.
- What are the condition of the condo’s roof and major mechanical systems? When were they last replaced or repaired. When the condo requires big upgrades, costly “special assessment” fees are passed on to the homeowners.
Homeownership is a Good Investment
Year after year, study after study, good market, down market the story is always the same…owning a home is a good investment. Not only does it build wealth but it also provides many psychological benefits too. A survey released earlier this year by the magazine Better Homes and Gardens found that eight in 10 respondents said homeownership is still a good investment and believe owning a home is a smart financial move and a source of pride. Here are some results of the 2,500 people surveyed online:
- 86% of home owners still feel owning a home is a good investment.
- 85% feel “owning a home is one of their proudest accomplishments.”
- 69% of Americans who don’t currently own a home agree with the statement, “No matter what happens in the U.S. housing market, owning a home is still an important goal in my life.”
- 68% of Americans plan to spend money on their homes in the next six months, with roughly half (49%) expecting to pay up to $1,000.
Ask Us Today What Else We Can Do For You…
As the leaves fall, many of our friends and family members leave Cape Cod for warmer climates. Some leave for months at a time and others for a week or two. No matter how long you are away, you want to be sure that your Cape Cod home will be taken care of while you are away. Patrick Foran is an accredited member of the National Home Watch Association. Foran Realty Property Management Services offers several levels of service to ensure the care, safety and security of your biggest asset while you are away. From opening and closing services, pre and post storm inspections or weekly, bi monthly or monthly home inspections there is a level of service that you can choose for yourself. Inspections can be strictly exterior or can include the interior. The Emergency Response Service is something that you hope you never have to use but you can rest assured knowing that someone is available just in case. Foran Realty House Watch provides their clients with a piece of mind that their property is being watched by someone who is licensed by the Massachusetts State Police (lic # LW0118A), Insured and Bonded. Ask us today what else we can do for you…so you don’t have to!]]>
Going from Renter to Owner
Home prices are at rock bottom and mortgage rates at all-time lows so you may be considering going from renter to homeowner. If you are planning on staying put for a while the choice makes sense. There are a few things to take into consideration before you make the leap from renter to owner. First, you will need to determine how much you can afford. Consult with a mortgage professional to help you determine what kind of mortgage you qualify for. Just because you pay $1,000 a month in rent, doesn’t mean you can handle a $1,000 monthly mortgage payment. There are more costs to owning a home than just the mortgage payment. As a homeowner you will also be responsible for property tax, home insurance, utilities, and repairs. To prepare for those costs plan on adding about 40 percent to your base cost. So, if your mortgage is $1,000, add about $400 a month for a better estimate of costs. Before you make a rash decision see if you really can afford the cost difference. Once you know the cost difference spend a few months depositing the difference between your rent payment and your cost estimate in the bank. In the previous example you would deposit $400 a month into savings. If you’ve been able to keep up the deposits and pay your other bills, that’s a sign you can afford to buy. Now that you have been saving more you have more money to put toward the down payment of your new home. These are just a few tips to get you started. Once you have a better financial picture it will be time to start shopping. That is when the fun begins.]]>
Beginner's Guide to Condominiums
Is a condominium right for you? The market has been steadily rising for the past few years but condo living may not be for everyone. Condo buyers typically fall into three categories: -First-time buyers -Second home or vacation home owners -Retirees looking for a low-maintenance alternative Under the right set of circumstances a condominium can be a great purchase. Before you run out and shop for condos you have to be comfortable living with rules and restrictions, and in close proximity to others. There are different types of condominiums. They can take the form of apartment-style complexes, townhouses or converted multi-family dwellings. Most condominiums have common areas, such as stairwells, dividing and outer walls, fitness centers, pools, walking paths and gardens. These common areas are under shared ownership. Each unit owner holds an interest in these spaces. Because space is shared there needs to a way to manage the maintenance, repair and costs of these common areas. To deal with that and other issues that involve space sharing every condo development has a condominium association. The association is typically elected by condo owners and makes communal decisions in the interest of the community. When you find a condominium you are interested in you will want to inquire about the association: Some questions you may want to ask are:
- Does the association maintain reserve of funds to pay for unexpected and potentially expensive repairs? If so, how much is in reserve and how is it managed?
- Has the association maintained the building in good repair? Are there currently or any planned special assessments?
- Does the association have plans to add any facilities, such as a swimming pool or gym, in the near future?
- Does the development have any pending legal actions? Are there any disputes between owners, with developers or with the association that you should know about? Buying a condo also comes with costs some are similar to a single family home purchase while others are condo specific. These costs include:
- Down payment, mortgage and property tax
- Condo fees, otherwise known as maintenance fees. Condo fees are paid by every resident to help with the maintenance of the building, pay the salaries of groundskeepers, concierges or handymen, and provide luxury facilities such as a pool, gym or rooftop garden. Condo fees are paid monthly and are subject to change. The condominium association budgets and determines the condo fees for all units. Condo fees are typically determined by the size of your unit, how many units are currently occupied, and the projected expenses for building maintenance and repair.
- Special assessment fees. These fees may be requested when an unexpected repair or planned modification exceeds the cost of the condo fees collected One of the most important considerations is to determine if you can live with the condominium rules or covenants. The rules vary from one condo development to another. Some condominiums may impose restrictions on pet ownership, noise levels, remodeling projects, and renting. Always read the condo rules and regulations to make sure that you are comfortable with them before you make a commitment to purchase.]]>
Is New Construction for You?
You may have noticed that new homes are going up around town again. Along with the sale pending signs on existing homes builders are building again. A national index measuring builder sentiment rose in June to its highest level since May 2007. But is buying a new home right for you? Homebuyers trying to decide between new and existing homes have more choices than they have had in the past. The case for new homes: New homes come with builder warranties. New homes allow buyers to select colors and floor plans. New homes can be easier to insure. Some builders have their own financing divisions, so getting a mortgage from the builder may be easier than from a lender. New homes may have a resale advantage. The case for existing homes: Existing homes may offer more space for the money and a more convenient location. Existing homes can be 10 percent to 20 percent less than new construction for comparable square footage. Existing homes are in established neighborhoods. New homes can take several months or longer to build. ]]>
How to Buy Your Dream Home
What is your dream home? It is a water-front home, a cabin in the woods, a city apartment or a home on a cul de sac in a suburb? The phrase “dream home” means a lot of different things to a lot of different people. Here are some things to consider when looking for your dream home: Square Footage Consider how much room you need in your home. Do you need a media room or a finished basement? Three decades ago the average home size was 1,645 square feet. Now the average home size has gone up to 2,195. Recent trends have shown house sizes again decreasing as buyers evaluate what they truly need. Floorplan Think about how you will use your home, will you be entertaining? Do you like your home with rooms that are intimate and have a traditional feel? Or do you prefer an open floor plan? The way you use your home will dictate the type of floor plan you ultimately choose. Extras What kind of extras are you looking for in a home? Do you want granite counter tops, high-end appliances, or other extras? That will also affect price. Decide what you want and make sure it fits your budget. Landscaping The bigger the better may not be the case when it comes to a lawn. A big lawn means lots of landscaping. If you are willing to perform the necessary upkeep you may opt for a large yard; if not, your dream home may be a home with a smaller yard or even a condo. Location Choosing a neighborhood is important when picking your dream home. If you have a family or are planning one in the future you most likely will want to look at school systems. Other considerations are commute time to work, location to stores, highways, the ability to walk to venues and public transportation. ]]>
What You Need to Know about Sunscreen
Sunscreen is essential but buying sunscreen can be very confusing. From water resistant sunscreens to SPF to broad spectrum protection, it is hard to know what you need to keep your skin safe this summer. Sunscreens protect you from the sun’s ultraviolet (UV) radiation from reaching your skin. There are two types of ultraviolet radiation, UVA and UVB. They both damage your skin and increase your risk of skin cancer. The difference between UVA and UVB Ultraviolet (UV) radiation is part of the electromagnetic (light) spectrum that reaches the earth from the sun. Ultraviolet A (UVA) is the longer wave UV ray that causes lasting skin damage, skin aging, and can cause skin cancer. Ultraviolet B (UVB) is the shorter wave UV ray that causes sunburns, skin damage, and can cause skin cancer. The definition of SPF SPF stands for Sun Protection Factor. The SPF number on sunscreen is a measure of a sunscreen’s ability to prevent UVB from damaging the skin. The number of the SPF is how long it will take the sun to redden the skin. For example, SPF 15 sunscreen theoretically prevents reddening 15 times longer than no sunscreen at all– about five hours. What is broad spectrum? Sunscreens that have broad-spectrum protect the skin from both UVA and UVB rays. Beginning in December 2012, the U.S. Food and Drug Administration (FDA) will implement new rules for “broad-spectrum” products. New sunscreen rules Here are some of the new rules The US Food and Drug Administration (FDA) has issued for labels on sunscreen. • Sunscreens may be labeled “broad- spectrum” if they provide protection against both UVA and UVB radiation according to FDA-sanctioned test methods. • Only broad-spectrum sunscreens with an SPF of 15 or higher may state that they protect against skin cancer if used as directed with other sun protection measures. • Broad-spectrum sunscreens with SPFs of 2-14 must display a warning that the product has not been shown to help prevent skin cancer or early skin aging. • The terms “sunblock,” “sweatproof” and “waterproof” are no longer allowed on sunscreen labels. • Sunscreens may claim to be “water-resistant,” but must specify whether they protect the skin for 40 or 80 minutes of swimming or sweating, based on standard testing. Sunscreens that are not water-resistant must instruct consumers to use a water-resistant sunscreen if swimming or sweating. • A company cannot claim that its sunscreen products provide sun protection for more than two hours without submitting test results to prove this. ]]>
How Do Mortgages Work?
When it comes to figuring out mortgages many people use the phrase, “it’s all Greek to me” but figuring out how mortgages work is actually quite simple. First, a mortgage is a loan from a lender to a borrower to buy a piece of real property (a fancy way to say house, land, etc). The interest on the mortgage is the percentage of money the borrower agrees to pay the lender each year, in return for lending the money. Here is where it gets complicated, the lender wants to loan to be affordable for the borrower so they spread the interest out over time. This is called amortization. Amortization is the amount of money that goes toward principal (the amount of the loan) and interest. This amount changes over time because the interest owed is spread over time. There is a booklet put out by the U.S. Department of Housing and Urban Development that explains the mortgage and interest process. You can find the booklet here. Now often your payment is more than just the principal and interest. A monthly mortgage payment is often called a PITI payment. No, not pity even though you might need pity when looking at your loan statement. PITI stands for:
Principal — the loan balance Interest — interest owed on that balance Real estate Taxes — taxes assessed by different government agencies to pay for school construction, fire department service, etc.
Property Insurance — insurance coverage against theft, fire, hurricanes and other disastersThere may also be other fees depending on the kind of mortgage you have. Your monthly payment may also include private mortgage insurance (PMI). Remember there is a lot to know about mortgages beyond the rate so be sure to talk to a mortgage professional to make sure you fully understand your payment options.
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