First Time Buyers – Page 2 – Mel Foster Co Blog

Three Things Your Agent Can’t Tell You

Posted on November 17, 2015

If you’re moving to a new town or even just across town to a new neighborhood, you may unintentionally ask your real estate agent questions that legally he or she cannot answer. Fair housing laws restrict your agent from answering what may seem like honest questions. But your agent can guide you to resources where you can gather the data you are seeking.

Is this a good neighborhood?

Seems like a pretty basic question, but the classification of “good” could mean a host of things. Is it a question about crime, walkability or proximity to amenities? If crime is your key concern, the web is filled with comparative sites that allow you to look at two cities side by side and form your own opinion.

Are the schools good?

There are a number of independent websites where you can find rankings, test scores, graduation rates and other academic benchmarks. For each major city served by Mel Foster Co., a link is available with additional listings for public and private schools. Click here to link to the communities page.

Is it cheaper to live in Iowa or Illinois?

This is a much more complex question that is best answered by your income tax advisor who is familiar with your situation. Click here for broad information about both states and specific communities.

Why You Need a Real Estate Agent

Posted on October 6, 2015

Buying a home may seem like an overwhelming task, but relying on the expertise of a real estate agent can make the process a breeze. Here are the top three benefits of using an agent:

1. Agents can help you manage all the paperwork.

Each state has different required contracts for a sale, which are constantly changing. A real estate agent is able to help guide you through the paperwork and make sure everything is done correctly.

2. Agents have experience negotiating with sellers.

If you’re buying a home, you want to pay the lowest price. Your agent can help you determine your monthly mortgage and insurance cost and help you write an offer that’s within your budget. Having a real estate agent negotiating with sellers on your behalf removes some of the stress of this part of the transaction.

3. Agents know what is happening in the housing market.

Real estate agents pay close attention to the housing market. They’ll be able to tell you about recent trends in the market, provide information about comparable home prices and give you referrals to resources like lenders, movers and home warranty providers. This is incredibly valuable information to have when looking for a home. The more information you have, the more confident you’ll be making decisions that affect you and your family.

You wouldn’t replace the engine in your car without a mechanic, why would you buy a home without a real estate agent?

Use the Rent vs. Buy Calculator

Posted on September 16, 2015

The question of should I rent or buy a home has been around forever. With rent prices rising, now is the perfect time to reconsider your housing options and figure out if owning is cheaper than renting.

The first thing you need to decide is how long you’re planning on living somewhere. If you only intend to stay for a year, renting is usually the better option. Renting has upfront costs that are lower than a down payment to buy a house and you often receive this money back when you’re finished renting. Buying a home requires a down payment, which is a certain percentage of the sale price or home’s value.

Also be sure to consider the benefit of stable monthly costs with a mortgage vs renting. Keep in mind with a mortgage, you can have the monthly cost fixed and it will be consistent until you have paid off the amount due. Often landlords will raise rents at the beginning of each year. This may be a small percentage raise, to hundreds of dollars added to what you initially thought you were going to pay.

If you are still wondering whether you should rent or buy, check out Mel Foster Co.’s rent vs. buy calculator. You can enter the price of the home with your expected interest rate and find out what your monthly payment will be. You can compare this to your monthly rent payment, and determine if buying a home would be a better solution for you.

Property Virgin Buyers’ Tips.

Posted on April 21, 2015

If you’re considering buying a home in your 20s, or just for the very first time, it may seem like a daunting task. It may not be easy, but with this helpful guide you’ll be able to confidently search for a home that’s right for you and your plans for the future. Break it down into smaller portions, and it becomes much easier, and less stressful, to buy a home.

The first thing you need to think about is how long you’re planning on staying in this new home. Are you looking for a forever home? Somewhere you can stay for a few years? These are important questions when it comes to finding the house you’re looking for.

You should decide if the house is just for you, or a future family that will live in the house for the next 20 years. Deciding what type of house you are searching for can help narrow the search and help your agent know what you’re looking for in a home.

The last step is extremely important, and may seem obvious, but always needs to be considered when it comes to finding your new home. You have to find a home that is within your price range. Remember to think about how long you could be able to afford the mortgage if you were laid off from your job, or pursuing other personal ventures. Whatever your plans are for buying a house, make sure that they are financially feasible.

Mel Foster agents are experts at finding homes that fit your needs. Click here to view new listings and start your home search today.

Insurance Basics For First Time Buyers.

Posted on April 9, 2015

You’ve compared the costs of renting vs. owning, and home ownership is in your future. As you budget for new household expenses, be sure to include homeowners insurance, which is usually more expensive than what you are paying for renters insurance.

Having enough coverage with your homeowners insurance will give you peace of mind knowing that your home is protected. There are a few things that you should consider when choosing a homeowners insurance policy.

You need to be sure that you understand what most standard policies cover. It usually includes exterior and interior damage from vandalism, fire and weather incidents. It also may cover out of pocket expenses, damage to outside structures and even medical costs if someone is injured on your property. It also covers personal property, which is why it’s so important to have photos and to keep purchase receipts of your most expensive assets.

Also keep in mind that whenever you add something to your existing home, such as a porch or an extra bathroom, you should see if your policy needs to be adjusted. Renovations and additions can add significant value to your home and you want to be sure that the new investments you have made are also covered by your insurance.

One thing that is missing from some standard policies is coverage for flood damage. Ninety percent of damage from natural disasters occurs from flooding. Insurance providers usually offer an additional policy that will have insurance for any flood damage that may occur. Keep this in mind if you have a finished basement.

Often it can take up to 30 days for new policies to go into effect. So don’t delay any longer, contact Mel Foster Insurance today.

Not So Fast…Five Things To Check Before Writing An Offer.

Posted on March 11, 2015

You’re in love. The house seems perfect and you almost don’t want to know if it’s not. But before you blindly make an offer, be sure to check these five things.

Assess the grounds

Even if it’s cold and snowy, do a thorough walk around of the yard checking for drainage issues, major concrete shifts or cracks in the foundation.

Open every door and window

Check the locks, evaluate the operation and make sure every door and window opens and closes properly. Also check for any cracked glass that may be hidden behind window treatments.

Turn on every appliance

Be sure to check the stove, refrigerator and dishwasher in the kitchen and don’t forget the washer and dryer if you are asking for those items to be left for you. Also run both the furnace and central air to be sure the systems are functioning properly.

Check the water

Turn on each faucet and check for water pressure and leaks. Also flush every toilet. Be sure to check outdoor faucets.

Turn on the lights

Every interior and exterior light should be turned on. Also test the speed of ceiling fans and check the fan in the bathroom and the vent hood above the stove. If a light is not functioning, determine if it’s a burned out bulb or an electrical issue.

Doing this quick checklist will uncover major issues, before you write up an offer or schedule a home inspection. For added peace of mind after you move in, consider purchasing a Mel Foster Co. Advantage Home Warranty Plan.

For more information on The Mel Foster Co. Advantage Home Warranty Plan, contact one of our experienced professionals.

Living Large In A Tiny Home.

Posted on February 25, 2015

The days of the ginormous McMansion are coming to an end. People are starting to downsize, understanding that less is more when owning a home. Have you thought about the option of a micro home? These miniature homes, trailers, and even converted shipping containers are growing in popularity nationwide. With this growing niche in real estate, perhaps it’s time to give micro housing some serious consideration. Ask your agent to search for homes with less square footage or find a small parcel of land to build your own micro home.

Take a look at just a few of the benefits of living in a tiny house.

Reduced Cost

A smaller home can mean lower building costs, insurance, taxes and utilities. If you decide to build, you may be able to afford the construction cost outright, eliminating the need for a home loan. As a homeowner, who wouldn’t want more disposable income!

Reduced Clutter

With a micro home comes the idea of a simpler life. Less space means less room for unnecessary clutter. You may find that all that “stuff” you thought you needed was simply just junk taking up space. In a micro home, a minimalistic lifestyle becomes a necessity. With less square footage, you are more likely to only keep necessities. And think of the time you’ll save cleaning a smaller house!

Green Living

Micro homes use far fewer resources than a traditional home. Micro homes use less land, fewer materials, and make a much smaller dent in natural resources traditionally utilized to keep a traditional home running.

Top Three Tips For First Time Buyers.

Posted on January 31, 2015

Buying your first home is an exciting adventure. However, there’s a lot of your money on the line, so you’d better be prepared. Avoiding mistakes and getting guidance from seasoned professionals will ensure the process goes smoothly. Here are a few tips to help you make the most of your time and efforts when starting the home buying process.

Know What You Want and Do Your Research

This is one of the most important steps. What are your must-haves in your new home? What are you willing to compromise on? The more prepared you are before you start to look at properties, the easier it will be to pinpoint the perfect home. Also, with the power of the Internet, you have a wealth of information at your fingertips. Focus your search on the neighborhoods you are interested in and learn as much as you can about the surrounding area. Use the interactive search map to zoom in on neighbors and see what’s for sale.

Get Preapproved

Talking to the bank prior to getting a mortgage will give you a leg up when you start looking at homes. Your lender will be able to assess your finances and let you know how much house you can afford, and give you an idea of what percentage rates you might expect to receive on your loan. Making an offer with a bank’s preapproval may give you the upper hand if it’s a competitive offer situation.

Work with a REALTOR^®

Your agent can be your right hand man or woman when it comes time to start your search. Your agent can help you narrow down your options so you aren’t wasting your time with homes that don’t fit your needs. Their job is to help you find the home you want, and help you negotiate a fair asking price. Your agent can also help you navigate the paperwork, which can be overwhelming for first time buyers. Click here to find a Mel Foster Co. agent to start your home search.

Where Gen Y Buyers Can Find A Diamond In The Rough.

Posted on December 21, 2014

When shopping for a home, check out transitional city neighborhoods that might just be on the verge of revitalization. You might find a great price or a really unique home that’s in the middle of the action. There are several reasons why you should consider all of your options when searching for your new home.

Urban neighborhoods are home to coffee shops and corner stores. Boutiques and other quirky shops can add the character you might be missing in a traditional suburban setting.

Young couples or singles, who aren’t ready to give up a thriving nightlife, are often drawn to downtown lofts, converted warehouse spaces or even upper floors of shops and restaurants. Living downtown may give you more opportunities to make friends who are your age.

Many times, living in an urban area gives you easier access to public transportation that could significantly reduce your annual transportation budget, if you’re fortunate enough to no longer need the use of a car.

Farmer’s markets and food co-ops are also becoming very popular in urban areas. With access to organic and farm fresh food, your health and wallet could be thanking you. Another point of consideration is that living in densely populated areas gives you the potential for exposure to other ethnic groups and cultures. New and interesting food and customs could become just another perk of your new neighborhood.

Downtown homes or lofts are often smaller than homes out in the burbs. This means less to clean, a smaller yard or maybe no yard to mow, and your utility bill may be smaller in a smaller home. You have your whole life to move out to the suburbs. Look around your downtown for the hot spots that fit your budget and style.

Count on a Mel Foster Co. agent to help you identify up and coming neighborhoods and the programs that may make homeownership more affordable to you. Find an agent at your local office.

Get Your Finances In Order.

Posted on November 19, 2014

One of the smartest things you can do before buying a home is getting yourself pre-qualified. By getting pre-qualified, you’ll get an idea of what your mortgage might cost, ahead of time. This can help you prepare your budget, set your expectations and strengthen your confidence to negotiate when you’re ready to make an offer.

What is pre-qualification?

Pre-qualification gives you an estimate of what you could potentially borrow. It is based on information you give on your income, assets and credit. Many times a pre-qualification can be done online and is offered by many lenders at little to no cost. It is however just an estimation, and not a guarantee of any type of loan.

Why get pre-qualified?

Once you know how much of a monthly payment you are able to afford, and you’ve figured out a budget for yourself, a pre-qualification will allow you to estimate a loan option to fit your needs. You’ll also have a better idea of which homes you can afford during your search.

What documentation do I need in order to get pre-qualified?

You will need proof of income, this could include recent pay stubs, or W-2 statements from the past two years. You should also bring a copy of your tax return for the past two years, as well as proof of any alimony or additional income. You’ll also want to bring proof of your assets, including bank account statements to show you have the money for a potential down payment. Don’t forget your driver’s license and social security card, as the lender will need these to access your credit report.

Pre-qualification can help you be fully prepared to purchase that home you’ve been eyeing. You can get a head start by using the mortgage calculators to determine your monthly payment, figure out how much home you can afford and make a decision about renting versus buying.