What Does a Home Warranty Company Cover?

A home warranty, as defined by the Cornell Legal Information Institute, is “a service contract that covers a major housing system–for example, plumbing or electrical wiring–for a set period of time”. These contracts protect home owners from high repair costs. Home warranties cover sudden appliance breakdowns and system failures. These are not covered under an insurance policy. With a home warranty, you’ll be covered if your refrigerator stops running or your plumbing backs up. That saves you money and time. Our service contracts promise fast service for covered issues. They protect for your home, budget, and time. A home warranty covers systems and appliances in the home that suffer from wear and tear. The amount of coverage is chosen by you. You can choose a custom plan that best suits your home. A typical plan covers:

Heating systems and ducts
Plumbing systems
Electrical systems
Water heaters
Kitchen appliances, including your oven, range, stove, cook top, dishwasher, and built-in microwave
Garbage disposal
Whirlpool bathtub
Plumbing stoppage
Garage door opener
Exhaust fans
Ceiling fans

If you would like deeper coverage, opt for a more complete plan. A Total Plan from Choice Home Warranty includes all of the above as well as your:

Air conditioning
Refrigerator
Clothes washer
Clothes dryer

You can adjust your plan to include more coverage. This lets you to build a plan that’s only what you need for your home. Some of the optional items you can cover include:

Pool and spa
Central vacuum system
Well pump
Roof leaks
Sump pump
Septic system and septic tank pumping
Second refrigerator or a stand-alone freezer

Tailor your warranty to cover the systems that matter most. You may be concerned about the age or safety of any parts of your home. You can build a plan that protects those things. Your system may need broad repairs or to be replaced. Your warranty offers all the coverage you need for the problem. A likely disaster becomes a minor item on your to-do list.

Home Buyers and Home Sellers

When buying, a warranty ensures your dream house doesn’t become a money pit. If selling, a warranty provides an average 3% higher sale price.

Get $50 OFF and 1st month FREE on reliable home warranty services for covered appliances, A/C, heating, electrical, plumbing, and more.

Click here to find your plan today.

How To Fix Bad Credit On Your Own

Provided by Credit Saint

Credit refers to the ability to borrow money or utilize goods and services without having to pay immediately. For example, a credit card allows you to pay at stores, while a home or car loan will enable you to buy a house or vehicle even if you don’t have the funds. In these cases, you enter into a contractual agreement with a creditor, like a bank: They spot you the money, which you agree to pay back later, along with interest.

Your credit score is a measure of your creditworthiness — basically, how likely you are to promptly and completely pay back the funds you owe a lender (money borrowed plus interest). Your credit score is based on your financial history and encompasses everything from whether you pay your bills on time to if you’ve ever filed for bankruptcy. Lenders look at your credit score when deciding whether to enter into a credit agreement with you and to determine how much credit they are willing to extend to you and at what interest rate.

If you have bad credit, it can be difficult to get a loan or a new credit card. This can get in the way of life goals, like buying a house. The good news is that it’s possible to improve bad credit on your own. The below guide provides a step-by-step process for self credit repair. This will better your overall fiscal health and open up more possibilities for you financially.

What Is a Credit Score?

Your credit score tells lenders how likely you are to pay back the money you owe them in a timely manner. A credit score is a number from 300 to 850. The higher your score, the better — and the more likely you’ll be able to secure loans and credit cards with larger limits and lower interest rates. The credit score model was established by the Fair Isaac Corporation (FICO). Thus, you may also see credit scores referred to as a FICO Score, as this is the most commonly used system.

The FICO model categorizes scores into one of five categories. Here is a breakdown:

Excellent: 800 to 850
Very Good: 740 to 799
Good: 670 to 739
Fair: 580 to 669
Poor: 300 to 579

Three primary credit bureaus in the United States track these credit scores: Experian, TransUnion, and Equifax. These credit reporting agencies report, update, and save consumer credit histories. They rely on five main factors to determine your rating: payment history, the total amount owed, length of credit history, types of credit, and new credit. We’ll discuss each factor, what they mean, and how you can use them to improve your credit score below.

It’s important that you get a full credit report covering all three agencies at least once per year. Why? Some lenders may only report to one agency, not all three. You need data from all three for a full picture of your credit health.

How Can I Raise My Credit Score on My Own?

You can improve your credit score. While it takes time and effort, it’s well worth the improved financial security it will bring you. You don’t want bad credit to bar you from taking out a mortgage to buy your dream home, for example, or prevent you from securing a credit card if you need emergency funds. Putting in the effort now to improve your credit score can provide you with peace of mind and will serve you practically for the rest of your life.

There are a few strategies to improve a credit score. Below, we cover the most impactful steps you can take.

Check Your Credit Score

If you’re worried about poor credit, you might put off checking your credit score. Don’t let your worries take over. Knowing your credit score is critical if you’re going to improve it: You have to know your baseline. Your full credit report will also allow you to identify areas in need of improvement, pinpoint potential errors, and find general ways to improve your credit habits. Plus, as you improve your credit score, seeing the positive changes will keep you motivated.

Some people are also scared that the act of requesting their credit report will bring down their credit score. This is a myth. When you request your annual credit report, you submit what’s known as a “soft inquiry,” which won’t hurt your score. What does have the potential to hurt your score is a “hard inquiry.” This occurs when you apply to a lender for credit, and the lender runs a credit check. Since taking on fresh debt may impact your ability to repay existing debts, a hard inquiry can bring down your score — but by no more than about five points, according to FICO.

So, how do you find out your number? According to the Federal Trade Commission’s (FTC) Fair Credit Reporting Act (FCRA), you’re entitled to one free copy of your credit report from each credit bureau every year. There are three ways to obtain your report: online, by phone, or by mail. You can expect your credit report within two to three weeks if you order by phone or mail. If you order online, you will receive immediate access. Here are detailed guidelines for how to request your credit report:

Online: You can access your free credit report through AnnualCreditReport.com — the three credit bureaus jointly maintain this portal. Simply click “Request Your Free Credit Reports” and follow the steps provided.
Phone: To order by phone, call 1-877-322-8228. Be prepared to go through a verification process. If you have accessibility needs (e.g., require a Braille or large-print version of your report), call 1-800-821-7232.
Mail: To request your annual credit report by mail, download and print the credit report request form via AnnualCreditReport.com. You will need a PDF reader like Adobe to view the form. You can then complete the paperwork and send it to this address: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA, 30348-5281.

Again, you can request one free credit report per year without financial penalties. In addition, Equifax offers six free reports per year if you sign up for a myEquifax account. However, remember that you need a full credit report covering data from all three credit agencies at least once per year.

Identify Areas of Improvement

Your credit report will provide basic personal information, a detailed history of all your accounts, and a list of all publicly listed financial records, like bankruptcy filings. It will also provide a history of credit report inquiries (by yourself and lenders). Five main factors impact your credit score. Keep these in mind as you read through your credit report so that you can identify areas of improvement:

Payment history: Payment history comprises 35% of your total credit score. It indicates whether you pay your financial obligations on time. This could include utility bills, credit cards, loans, store credit cards, and even rent.
The total amount owed: This accounts for 30% of your total credit score. It primarily looks at credit utilization — which refers to the percentage of available credit that you use. Say you have a credit card with a $10,000 limit and are currently using $4,000 of that line of credit. Your credit utilization is 40%.
Length of credit history: This accounts for 15% of your total credit score. People with a longer credit history are deemed less risky by lenders. They’ve proven that they can manage their finances and pay back debts on time. People with little or no credit history are deemed riskier due to the lack of data available.
Types of credit: The type of credit you use accounts for 10% of your total credit score. There is installment credit and revolving credit. Installment credit encompasses loans like mortgages, student loans, private personal loans, and car loans. Revolving credit includes credit cards and lines of credit (e.g., store credit). Installment credit basically involves a lump sum borrowed, while revolving credit is continually renewed as you pay the debt.
New credit: New credit accounts for 10% of your total credit score. This includes how long ago your last account was opened and how many accounts you’ve recently applied to open. Someone who suddenly opens a lot of accounts might be a red flag, as this could indicate they’re preparing to take on a lot of different debts, which might impact payment ability.

Dispute Any Errors

Check your credit report thoroughly for errors. Mistakes in credit reports are more common than you might think: According to the FTC, more than 1 in 5 people have an erroneous negative item in their credit report that makes them look riskier as a borrower to credit issuers than they actually are. Here are some of the types of mistakes you may find:

A bank account you’ve closed is reported as being open.
You’re listed as an account owner when you’re just an authorized user.
The same debt is listed multiple times.
There are incorrect payment dates.
There are balance errors (e.g., incorrect credit limit or balance).

If you find an error, you should dispute it with the relevant lenders and the major credit bureaus: Experian, TransUnion, and Equifax. Your credit report should provide details on how to carry out a dispute. This can be done online or via mail. If you send your dispute letter by mail, do it via certified mail and request a return receipt, which can prove when you mailed. Why does this matter? Credit bureaus are given a maximum of 30 to 45 days to investigate and reply to your dispute. You want to hold them to this deadline.

To dispute an issue in your credit report, you’ll have to include a copy of the report with the disputed point highlighted, along with a copy of any proof you have to support your claim. For example, if an account you closed is listed as open, you might include the notification from the bank confirming that the account has been closed. Always provide a copy of such paperwork, not the original, if sending by mail. You don’t want to risk losing the originals of such important documents.

Pay Off Past-Due Balances

If you have past due accounts listed on your credit report, tackle these as soon as possible. Remember, payment history is a big portion of your score (35%), so fixing these issues is a critical step toward a higher credit score. If you can’t pay off the overdue balance in full, contact the creditor to figure out a new payment plan or terms that fit your financial budget.

Also, prioritize settling any charge-offs, which occur once payment is at least 120 days overdue. Charge-offs are very damaging to your credit report. If possible, pay off the charge-off in full. Your credit report will then show that the account balance is $0 and paid. If this isn’t possible, contact your creditor to figure out a plan.

Improve Your Credit Habits

Looking at your credit report will also let you see where you can improve your credit habits. Maybe you pay your bills regularly, but you always pay them late, for example. Late payments negatively impact your score. You might choose to set up automated monthly payments to avoid this issue in the future. Here are some good credit habits to adopt:

Pay all of your bills (at least the minimum amount due) punctually.
Pay down debt, even if it’s just a little bit every month, especially credit card debt.
Avoid applying for additional credit.
Create a budget to help you get your personal finances in order.
Keep informed on credit card scams and other forms of financial fraud, like identity theft, which can take a toll on your credit.

Pay Down Credit Card Balances

Outstanding credit card balances are another factor that can seriously bring down your overall credit score. When you make your budget, allot a set amount to pay off your credit card balance every month. Alternatively, you can enlist the help of a professional company. Note that credit agencies analyze your credit card debt as a ratio of your limit. So, if you have a card with a $1,000 limit and have spent $700, you’ve used 70% of your limit. If your card has a $2,000 limit and you’ve spent $700, you’ve used just 35% (which is better).

Enlist Credit Repair Professionals to Help

While self credit repair is possible, it can be a tedious and time-consuming process. If you’re feeling overwhelmed by the prospect, credit repair companies like Credit Saint can help. Our experts have the knowledge, experience, and resources to handle critical credit builder tasks, such as:

Analyzing your credit profile to figure out what’s bringing it down
Disputing incorrect items and negative information in your credit report
Intervening with creditors who are hassling you
Sending cease-and-desist letters to creditors
Tracking your score to stay on top of changes
Inquiry targeting
Monitoring

Credit Saint Can Help You

Trust Credit Saint’s credit restoration services to help you challenge inaccuracies in your credit report. . Our credit repair packages are designed to help address your financial health, tackling everything from score tracking to creditor interventions. Are you ready to get started? Complete the online form. Do you still have questions?

See what Credit Saint can do for you.

Finance and Credit Options

Sky Blue Credit

Credit Repair Magic

Sky Blue Credit

Credit Repair Service.

Multiple payment options are available. Free trial period.

Learn more

Credit Saint

Credit Repair Magic

Sky Blue Credit

Credit Saint is a New Jersey-based credit restoration specialist with over 15 years of experience in the business — and we’ve consistently been rated #1 by sites like money.com. Our trained credit counselors take a multi-prong approach to helping our clients understand and improve their credit.

We’ve earned our reputation because your credit is our future.

Learn more

Credit Repair Magic

Credit Repair Magic Will Fix Your Credit Faster than Any Other Credit Repair System at Any Price. . .Guaranteed!

Credit Repair Magic takes a very complicated process and simplifies it to the extreme so that it can be accomplished in a matter of minutes--not days or months.

Get the details here

Home Warranty Resources

Choice Home Warranty

American Home Shield-Home Warranty

Your systems and appliances may be in good working order today, but sooner or later, everything wears out. Even with perfect maintenance, nothing lasts forever. When your system or appliance breaks down, you could spend hundreds or thousands to repair or replace it, potentially causing a serious financial setback. A home warranty service contract allows you to control the cost of home repairs. Rather than spending money on surprise repairs or replacements of systems and appliances, you can rest easy knowing that covered breakdowns are taken care of with your annual service contract fee and low cost service call fee.*

Show Less

Learn more

American Home Shield-Home Warranty

Contact Tobi Pryor for a quote.

Account Manager
tobi.pryor@ahs.com
205-585-0899

Home Warranty Quote

Old Republic Home Warranty

American Home Shield-Home Warranty

Old Republic Home Warranty

To view a current Home Warranty Brochure.

Click Below

Home Warranty Brochure/Pricing

Title Protection and Services

America’s Leader In TripleLock Title Fraud Protection - House Stealing & Title Theft Monitoring

With just a forged signature, your home and all your hard-earned equity can be too easily compromised. Only Home Title Lock provides the TripleLock™ Title Protection you need to safeguard your family's home, security, and financial future from fraud.

Title fraud is a scam that involves criminals stealing your home, then borrowing agains

Title fraud is a scam that involves criminals stealing your home, then borrowing against it or selling it behind your back. Your home and hard-earned equity can be snatched away with just a signature.

Show Less

Learn More About Title Fraud

Homebuying process

Where to start?

Get pre-approved for a mortgage

Know your credit score.

What-are-the-First-steps-for-buying-a-home

The first step every home buyer should tackle is to figure out their finances. Buying a new home (particularly for the first time) requires a mortgage, where a lender loans you the money and you pay it back over time. However, in order to get a mortgage, you will typically need some sort of down payment.

So how much do you need?

Ideally a down payment on a mortgage would be 20% of the home's price to avoid added fees, but if you don't have that much of a down payment, don't worry. A mortgage down payment can be as low as 10%, 5%, 3.5% or even 0% for certain types of mortgages (IE: VA loans or a USDA loan).

Know your credit score.

Get pre-approved for a mortgage

Know your credit score.

In addition to having a down payment, a first-time home buyer will need a decent credit score. This is three-digit number that is a numerical summary of your credit report. Which is a detailed document outlining how well you've paid off past debts like personal loans, credit cards and college student loans.

A lender will check your credit score and report, in order to estimate the odds that you will deliver your monthly payment.

In turn, the lender will use this info to decide whether or not to loan you money, as well as how much and at what interest rate. If a lender sees some late payments or other blemishes in your credit report, it can lower your odds of getting a loan with a great interest rate. Or perhaps even jeopardize your chances of getting any loan at all.

So it's essential to know your credit score.

Get pre-approved for a mortgage

Before you start home shopping, you should seek pre-approval from a lender for a home loan.

his is where you check with a loan officer, ideally at a few various mortgage companies. Check for best rates and programs that suits your needs.

Each mortgage lender will scrutinize your financial background—such as your debt-to-income ratios and assets—and use this info to determine whether to loan you money, and what size monthly payment you can realistically afford. This will help you target homes in your price range, which is good, because a purchase price that's beyond your financial reach will make you sweat your mortgage payment and puts you at risk of defaulting on your loan.

As a buyer, just keep in mind that mortgage pre-approval is different from mortgage pre-qualification. Pre-qualifying is a much simpler process that can give you a ballpark figure of what you can afford to borrow, but with no promise from the lender. Getting pre-approved is more complicated, since you'll have to provide tons of paperwork, but it's worth the trouble since it guarantees that you're creditworthy and can truly buy a home.

Search, find, and offer.

Start the mortgage process and the home inspection.

Get pre-approved for a mortgage

Start by making a list of your wants and needs. Preferred area, price range, and features. Contact me to receive up to the minute email updates of new listings, as they come on the market. Also, hop over to my Avast Realty website, for access to the Birmingham area MLS IDX search. Where you can search all available listings in the area, that meet your criteria. Then lets set up an appointment to see your favorites in person.

Found your dream home?

Then it's time to make an offer to the seller.

Start the mortgage process and the home inspection.

Starting-the-mortgage-process
Ordering-a-home-inspection
buying-a-house

Once an offer is accepted, now it is time to start the mortgage process. They will supply you with a list of all that they need to get started. Plus, the appraisal fee, to be ordered after the home inspection.

A home inspection is where you hire a home inspector to thoroughly check out the house, to determine if there are any problems with it that might make you think twice about moving forward. Like termites, faulty foundation, mold, asbestos, etc. Sure, a lot can go wrong, but most problems are fixable.

Close, move in. Enjoy!

Start the mortgage process and the home inspection.

Closing, also known as settlement, brings together a variety of parties who are part of the real estate transaction, including the buyer, seller, mortgage representative, and agents.

Closing is the day you officially get the keys to your new home—and pay all the various parties involved. That will include your down payment for your loan, plus closing costs, the extra fees you pay to process your loan.

Closing costs can be sizable, averaging anywhere from 2% to 7% of the home price, but sometimes can be negotiated with the seller.

Done with closing? Congratulations, you're officially a homeowner! Now it's time to kick back and enjoy the many benefits of becoming a homeowner.

Your Home Buying Journey- 10 Part Series

Part 1-The First Steps in the Home Buying Process

Part 2-What Does a Realtor Do Besides Show Me Homes?

Many people dream of owning their own home. However, it can easily turn into a nightmare if a first-time buyer/couple is not prepared. There’s a steep learning curve in terms of everything that needs to be done and what paperwork will be required. Getting the right mortgage will also be one of the most important financial decisions you wi

Start from Where You Are

Unless you have enough cash in hand to pay for the home of your dreams, chances are you are going to have to come up with a down payment for the house you want, and also take out a mortgage for a certain length of time - which will be a financial commitment to pay off the house each month. In doing so, you will not be paying rent, but rather, building up equity or a stake in the house, until you’ve finally paid off the mortgage, taxes and so on and the house is completely yours.

Your first step is to determine how much cash you have on hand for a down payment. The more you have for a down payment, the better terms you can get for your mortgage. But let’s not be too hasty. There are a lot of other financial concerns you might not be aware of.

Your Income

Any mortgage lender will want to see 3 to 6 months’ worth of paystubs and bank account statements. This will help show whether or not you will really be able to afford the mortgage payments.

Check Your Credit Score

The higher your credit score, the better the terms will be for your mortgage. Some lenders stipulate a minimum before they will consider approving a mortgage.

Your Budget

If you are thinking of buying a house, pare down any unnecessary expenses for several months. Don’t start buying a lot of things for your new home and then discover cash is very tight.

Mortgage Pre-Approval

Armed with your personal paperwork, you can shop around for mortgages and get pre-approval. This will be a rough estimate of the top limit you will be allowed to borrow. Then it will be a case of finding the right home within your price range.

The Mortgage Payment Is Often More Than Just the Bank Loan

Be clear about everything you need to pay in total before committing to anything. Many lenders include other items as part of the monthly payment, including:

* Mortgage insurance (in case you can’t make payments)

* Home insurance (fire, damage, and theft insurance policies)

* Taxes on the property

Other Paperwork and Fees

There will be various legal fees involved as well, such as title deed search, surveying the property to ensure it does not need major repairs, legal assistance with the paperwork, and so on. Do your research to find out how much these might add up to. You might also ask someone you know who has purchased a home recently to get an idea of costs involved.

Beware of Predatory Lending Practices

Some people actually sign a loan agreement in order to get the down payment for the house - the equivalent of two mortgages on the same property. Others don’t ever see the entire "bottom line" of what it will cost per month until it is almost too late. They are congratulating themselves on the great "bargain" until they see the grand total of all taxes, insurance and so on.

A couple might think a $2,000 per month mortgage sounds great when they are already paying $1,800 in rent each month, but if the payment shoots up to $2,600, and they are only taking home $2,500, things are simply never going to work out.

Show Less

Part 2-What Does a Realtor Do Besides Show Me Homes?

A realtor can offer a wide range of assistance to prospective home buyers. Choosing the right one can save you a great deal of money and secure you the home of your dreams.

Is Every Real Estate Agent a Realtor?

The quick answer is no. Therefore, you need to be sure you are working with a professional realtor. It is important to be clear abo

A realtor can offer a wide range of assistance to prospective home buyers. Choosing the right one can save you a great deal of money and secure you the home of your dreams.

Is Every Real Estate Agent a Realtor?

The quick answer is no. Therefore, you need to be sure you are working with a professional realtor. It is important to be clear about definitions.

* Real estate agent: Anyone who earns a real estate license can be called a real estate agent. They need to attend classes and pass their exams.

* Real estate broker: This is a real estate agent who has taken further classes and passed a broker’s license exam. Brokers can work alone or hire other agents to work for them.

* REALTOR®: A realtor is a real estate agent or broker who is a member of the National Association of REALTORS®, and must therefore uphold the standards of the association and abide by its code of ethics. https://www.nar.realtor/

Find a realtor first. Then determine if this is a person you will feel comfortable dealing with. A good realtor can soon start to seem like a member of the family.

Showing You Homes

Showing you possible homes will be a key part of their job, but they need to get to know you and your family as people so they can help find a home that will suit your tastes and needs. They also need to have a good idea of your price range and overall budget.

Get You Pre-Approved

A good realtor should have a reliable network of trusted lenders and professionals commonly involved in the many details related to you buying a home, and they will help the sale go through smoothly all the way to closing. The first step is to get a mortgage pre-approved so you can start shopping.

Note that pre-approval means that the lender has gone through all of your financial paperwork, such as proof of employment and income, and assessed your credit report. Be sure to get a pre-approval letter if you have been shopping around on your own before working with your realtor.

Give Advice about the Local Housing Market and Neighborhood

Some neighborhoods have a certain character, and are more desirable than others. Not all four-bedrooms are created equal, therefore. Be sure to inform your realtor of any special requirements from the outset, such as being close to an elementary school or high school, near public transportation and shops because you don’t drive, and so on.

They will also know what similar houses have sold for recently and might be able to connect you with a bargain house that needs to be sold quickly, or which has just reduced its asking price significantly.

Negotiating Your Offer

Leave this to the pros and they should be able to get the best price for you. It will be contingent on what the house inspection reveals.

Connecting You with a Reliable House Inspector

Your realtor will want you to be happy and not stuck with a "lemon". They will recommend reliable inspectors they trust. Based on what they find, the house valuation may be lower, in which case you can adjust your offer accordingly.

They will also advise you on whether the price is in line with the neighborhood. The last thing you want is an "underwater mortgage" in which you will owe more than the house will ever be worth.

Attending the Home Inspection

A good realtor will be willing to attend the inspection and take part actively. Two pairs of eyes will always be better than one. They can then report back their honest opinion as to your next steps and negotiate as needed.

As you can see, the right realtor can make a real difference to the house-buying process and will help you find your dream house.

Show Less

Part 3-Are Foreclosure Properties Worth Buying?

Part 2-What Does a Realtor Do Besides Show Me Homes?

Part 4-Are Rent-to-Own Home Offers Legitimate?

Buying a foreclosed home is different in several important ways from buying a typical home. Being aware of these key differences can help you spot a bargain versus a property to pass up.

The Pros

The house will be vacant so once the deal is done, you would be able to move in right away. Sometimes the price will be competitive for the neighb

Buying a foreclosed home is different in several important ways from buying a typical home. Being aware of these key differences can help you spot a bargain versus a property to pass up.

The Pros

The house will be vacant so once the deal is done, you would be able to move in right away. Sometimes the price will be competitive for the neighborhood you want to move into.

The Cons and How to Get Around Them

Only one real estate agent is involved

You will often see the abbreviation REO (Real Estate Owned); that is, the owner is a bank or other mortgage lender. They will usually only deal with one realtor, so you might not have a lot of chances to negotiate. If you do find an REO you love, see who the agent is, and meet with them. If you are very serious about moving forward quickly, you might also ask to meet the lender.

You need to be pre-approved

The one real estate agent will not deal with you unless and until you either have cash in hand for the house, or have a pre-approval letter from your mortgage lender. The pre-approval process can take several weeks while your prospective lender looks into your employment, pay stubs, and credit history (and your partner's too). This means the house of your dreams could be bought by someone else by the time you get all your paperwork in order. The best deals will go quickly.

The one agent might be very busy

If there are a lot of foreclosed properties in your area, the one agent may be very rushed and not able to give you a lot of their time. Know what you want and ask to view only those properties that really match your needs and budget.

One price fits all

There is little room for negotiation on price, because the bank will want to recoup as much of their losses as possible on a foreclosed home in order to make up for the mortgage that has been defaulted upon. Check websites like Trulia and Zillow to see the typical prices houses have been recently sold for in that neighborhood, to be sure you really are getting a good deal.

The home may not be in great repair

Any issues found by the property inspection will need to be repaired by you, not the bank.

It might be badly maintained/a mess

People who lose their home will often leave it in a bad state of repair - or worse still, vandalize the property. They might also leave a lot of their things behind. The garden, guttering, plumbing and so on will not have been maintained. You might have trouble getting electricity, water and other utilities turned back on after the previous account holders defaulted.

Every home you wish to buy should be thoroughly inspected, and a detailed list of issues provided. Ask the realtor for recommendations for reliable inspectors. Also ask for recommendations for contractors who could carry out the needed repairs and get quotes. You can research contractors online as well, or ask friends and family if they know anyone reliable.

You can also assess how many of the jobs on the list you might be able to tackle yourself before you move in. In most cases, you should be able to handle cleaning and painting, but if you don’t have time, hire professionals to do the essentials.

Sales are usually speedy

The sales will usually go more quickly. However, if you feel too rushed or uncertain in any way, it is best to back off.

Use these factors to help you decide whether a foreclosed property is right for you.

Show Less

Part 4-Are Rent-to-Own Home Offers Legitimate?

Many people dream about owning their own home but don’t feel they can afford it, for various reasons. It can be a considerable commitment to scrape together a down payment and all of the legal and closing costs involved in buying a property from a seller.
In addition, people might be deemed a credit risk for various reasons, which means it could be difficult to get an affordable mortgage, homeowner’s insurance, and so on. They might also have unpredictable income due to working for a commission, for example, making them seem a greater risk to the bank they have applied to for a mortgage.
One recent idea for extending home ownership to those who might not otherwise qualify is the "rent to own your home" offer. The principle behind it is that your monthly rental payments won’t just be rent, or "dead money" as some people call it, but a payment towards equity in the house - with a view to paying off the full price of the home and eventually owning it outright.
This can sound like a dream come true, but as with all things, it is a case of buyer beware.

A Typical Rent-to-Own Agreement

In a rent-to-own deal, the person or company that owns the home you are interested in agrees to sell it to you in the future for a specific price. The rent you pay every month is counted toward your future down payment on the house.
However, these deals can be risky, and even complete scams, for a number of reasons. There are several main issues to look out for:

1. The "seller" doesn’t really own the property
Some people are renting the home themselves, and would only be subletting to you. Or they have keys and access to the property, but no right of ownership.

2. The owner hasn’t paid property taxes
This can mean your payments get eaten up, giving you a lot less equity in the house and making it take much longer to pay it off.

3. The owner is not allowed to sell it
There can be a number of reasons for this. They might not be paying taxes and have a lien on the property. It might also be in a designated flood zone and thus have restrictions on it being sold

.
4. The house is in terrible shape, or has issues like lead or asbestos
This will cost you a great deal in the long run and of course, is a grave health concern. A full home inspection should be carried out before ever considering a rent-to-buy deal.

5. Promised repairs are never done, ever after the contract is signed
The smart thing to do is not commit until the fixes have been completed and the house passes inspection.

6. The house is in foreclosure
The person trying to "sell" you the home does not actually own it because they have failed to pay their mortgage and the bank is in the process of reclaiming their property.

7. They back out of the agreed-upon price, especially when you are nearing the end of the payment process
Not everyone keeps their end of a deal. Then you feel stuck and of course are not willing to walk away because you have already paid in so much. If you’ve done things "on the cheap," chances are you did not consult with a lawyer, and might hesitate or not have the money to hire one to defend your rights in course.

8. Their terms are unduly harsh
Some will negate the deal if one payment is missed.
Bottom line: Look for ways to boost your credit and save for a down payment so you will be eligible for a mortgage and be able to afford the house you really want, and not get scammed into a deal just because you think it is all you can afford.

Show Less

Part 5- What Is a Short Sale?

Part 4-Are Rent-to-Own Home Offers Legitimate?

Part 6-What Happens After My Offer Is Accepted?

In the course of looking for a dream home, prospective buyers will often hear the term "short sale." No, it does not mean you can move in right away. A short sale refers to the owner of the house being willing to sell the house for less than its market value.

A short sale can potentially be a good deal, but there are a number of things to

A short sale can potentially be a good deal, but there are a number of things to watch out for before getting too excited about the "bargain" in the perfect neighborhood you’ve been longing to move into.

Why a Short Sale?

A short sale is usually triggered for one of three reasons:

1) They don’t care about the money so much as getting rid of the property because they don’t want it any more.

2) They want to get rid of it quickly because they are paying two mortgages.

3) The house is in foreclosure due to them not paying their mortgage, and the bank wants their money.

The third reason is the most common. But why would they take less than the house is worth when they clearly need the money?

The Pressure Is On

If the bank is moving to foreclose on the home, they might be willing to accept a smaller sum than the current valuation of the house to end that mortgage and get that bad debt off the books. But just because you offer the short sale price does not mean the mortgage lender will accept it, no matter how eager the seller might be.

In some cases the lender might actually look for a short sale even if the sellers have been keeping up their mortgage. They may have a poor credit score and/or credit-to-debt ratio. They might also owe more on the mortgage than the house is worth, a so-called "underwater mortgage." The lender is therefore taking steps to bring the value of the house in line with what the market will bear for that size of house in that neighborhood.

Do Your Research

Fortunately, these days there are websites like Zillow and Trulia to help you research homes you might like in neighborhoods you wish to live in. Pay particular attention to the details about what homes have sold in the area recently, and what was paid for them.

Once you have a good idea as to whether or not the short sale terms you have seen are a bargain, find out who is handling the sale and/or go to a local realtor who seems trustworthy. They should be a member of the National Association of REALTORS® and seem like a person you can get along well with, because the process of buying a house can be long and complicated, and can take from three months to a year depending on what you are looking for and how soon you need it.

Your realtor will be able to dig a little deeper to find out who owns the title to the house, whether or not the house is being foreclosed upon, and how much is owing. They can also find out if there is a second mortgage, a refinance filed for, or any back taxes owing. A lender will not accept a short sale if there is no equity (money paid) in the home, because they will not be able to get any money back.

Home Inspection

Even if all the lights are green for go after your realtor does their research, and the lender appears willing to work with you, don’t be hasty. Ask your realtor to recommend a reliable home inspector and ask that they attend the inspection too in order to make sure nothing gets missed. Then they can negotiate on your behalf to ensure the deal really is as good as it seems.

Show Less

Part 6-What Happens After My Offer Is Accepted?

Part 4-Are Rent-to-Own Home Offers Legitimate?

Part 6-What Happens After My Offer Is Accepted?

You’ve found the home of your dreams, and made an offer. What happens next? Quite a few things, is the answer, before you get the keys to your new home.
The offer may seem like the end of the process, but it’s actually just the beginning of the really important things you need to take care of

1. Give Your Earnest Money

Deposit
Most hous

1. Give Your Earnest Money

Deposit
Most house sales will include an earnest money deposit to show you are serious about your offer. The deposit will be accepted by the realtor and put into an escrow account. It will count towards your down payment and/or closing fees. It will usually be 1% to 3% of the asking price for the house.

2. Apply for Your Mortgage
Ideally, you’ve been pre-approved with a lender, but now you need to finalize terms and get ready to sign on the dotted line. This is a crucial step, because even though you have been pre-approved, you still might not be able to get a mortgage, or one with the favorable terms you might have hoped for. You credit score or employment situation might have changed, or the bank’s lending policy.
But it’s not the end of the world. You’ll have to start again, but you do have all the paperwork organized and you can compare terms.

3. Get the Home Appraised and Inspection
The appraisal will assess whether or not the price is in line with what the house is worth. No mortgage lender will give you a loan for more than the house is worth.
The inspection will assess whether the house is in good repair, or whether there might be issues that need to be fixed by the seller before the sale can go through.
Ask your realtor for the names of two or three reliable home inspectors and get an appointment for them to inspect the property. They will produce a detailed report on their findings.
If the house inspection is not perfect, in most cases the seller will have the "right to cure" the issue - that is, time to fix things so the sale does not fall through completely. However, this can take some time and you need to be certain all the repairs are carried out before completing the deal.
If you want to take them on yourself, then you should be able to reduce your offer because you will be paying for the repairs. Be sure your realtor attends the inspection and renegotiates based on what has been found.

4. Get Your Down Payment and Closing Costs Ready
Make sure the funds you need are both accessible. For example, if you plan to take out a loan from your 401k as a deposit, be sure to have the money in an easy-to-access savings account. If you plan to sell stocks and shares, don’t wait. Keep all your paperwork to show you have the money ready.
In terms of the closing costs, be clear about what is involved, like title and deed fees, legal fees and so on. Your realtor should be able to give you guidance on what to expect. Don’t forget; your earnest money can go towards the costs.

5. Get Homeowner’s Insurance
This might be included with your mortgage, or you may have to shop around.

6. Do a Final Walk-Through
You can do this 48 hours before closing, just to make sure you are happy with any work that has been done. Now is the time to speak up. After the sale will be too late.

7. Close the Deal
You and your realtor will be there to sign all of the official documents for your mortgage and for the home. Bring photo ID and a cashier’s check for the final amount you have been told you will need.
If you are buying the house with your spouse or partner, they will need to be there with photo ID as well. Pay the money, and get the keys to your new home.

Show Less

Part 7- What Expenses Will I Have When Buying a Home?

Part 9-Can I Have a Home Inspected Prior to Placing an Offer?

Part 7- What Expenses Will I Have When Buying a Home?

Many people get so excited at the prospect of owning their own home and dealing with the down payment and mortgage, that they overlook the many expenses that go into buying a home - both at the start and on an ongoing basis. Note that some of these fees might be up front, and others rolled into the total cost of your mortgage, in which ca

A Deposit or The Earnest Money Deposit

Sometimes you will be asked for a deposit right away to secure a home. It will usually be part of your down payment. It should be refundable if the house does not pass inspection for any reason.

Home Inspection

Every house should be inspected to make sure there are no hidden issues that can end up costing you big time once you move in. The average price is around $400-$700.

Title Deed Search and Transfer

The paperwork pertaining to the legal aspects of the property and its sale might be billed individually, or as part of the work a lawyer will do on your behalf to make sure the sale goes smoothly. The most important things are to be sure of the extent of the property, the right of the person to sell it to you, and any reasons why the house might not be eligible for sale - such as because it is located in a FEMA Special Flood Hazard Area (SFHA). This can hold up the whole sale, and/or require you to take out special flood insurance.

Homeowner’s Insurance

This will usually be required by the lender. In some cases, they might insist on their own insurance and add it as part of the monthly repayment. In other cases, you will have to shop around. However, this type of insurance is usually based on one’s credit score, so if your score is not good, you will end up paying more.

Mortgage Repayment Insurance. MIP or PMI

Some lenders require that you take out insurance just in case you won’t be able to pay back the mortgage. Again, this will usually be rolled into your monthly repayment.

Property Tax

This should be current at the time you are interested in buying the house, but if the sale drags on for some time, you could sign on the dotted line and then get slapped with the bill. Property taxes are typically paid in arrears and the closer will usually sort them out. Just be aware of the due dates in your area. In most cases, they will be rolled into the monthly repayment.

Closing Costs

There are a number of costs associated with completing the sale and purchase of the home, commonly referred to as closing costs. These can include:

* Real estate attorney fees

* Title expenses

* Mortgage processing fees

* Title deed fees

* And others

These costs will typically be payable at the closing. Experts suggest you save 2% to 5% of the purchase price of the house so you don’t get hit with sticker shock.

Moving Fees

A lot of people forget to factor in the cost of moving and/or storage once you buy the home.

Renovation

The house should be in good repair, but if you plan any major changes to it such as painting or decorating a nursery, set aside money for your projects.

Appliances

Some people will leave various items behind. Others will take them with them, such as appliances. Be sure what will be included and factor in these extras as needed.

Essential Furnishings, Curtains, Blinds, Carpets

You might be moving from a smaller place to a much larger one. Make a list of the essentials you will need. You probably won't be able to afford to fill every room at once, but shopping strategically can help.

As you can see, your mortgage is not the only cost when you buy a home. Use this list when working out your budget.

Show Less

Part 8-What is A Earnest Money Deposit?

Part 9-Can I Have a Home Inspected Prior to Placing an Offer?

Part 7- What Expenses Will I Have When Buying a Home?

Prospective new homeowners can often become confused by the strange-sounding terms used throughout the process of looking at homes, finding one they love, and wanting to actually buy that house. There are a lot of steps involved from looking to moving in. One of those steps at the decision-making stage is the earnest money deposit.

The E

The Earnest Money Deposit
The earnest money deposit is important because it tells the seller of the house that you are a committed buyer with the money to go ahead with the sale.
Without the earnest money deposit, there would be nothing to stop a prospective buyer from making offers on many homes, which would result in them being taken off the market until the buyer decided which one they liked best - leaving the other sellers in the lurch. These days, most sellers insist on having a deposit of some kind as a part of accepting your offer.

The Earnest Money Will Be Part of Your Down Payment and Closing Costs
Many people worry that this is an additional cost on top of all the other financial obligations involved in buying a home. The truth is that the money will go towards the down payment and/or closing costs when the sale goes through.

What If I Change My Mind?
The only exception to getting all your money applied towards the sale is if it does not go through. If you change your mind, for example, there will usually be a fee involved, with a percentage, or possibly all, of the earnest money forfeited.

On the other hand, if you want to back out of the sale because the house does not pass the inspection and/or there will be too long a wait for the seller to redress the issues, you should not forfeit any money. Sometimes the seller might also discover that for various reasons, they are not allowed to sell the home. This could be because they are in foreclosure, have a tax lien on the house, or are not aware they are in a flood zone and need to follow certain rules and regulations when selling.

How Much Earnest Money Will Be Required?
In general, it will be $500 or up to 1% to 2% of the agreed-upon price for the home. You should have this money available before making a firm offer. If it is a lively market, they may ask for more but they might also be willing to haggle on the price if they can be assured of a large down payment and quick sale.

What Happens to the Deposit?
Once you have signed the purchase agreement, the money will usually be put in an escrow account by the realtor, or title holder if you are opting for a foreclosed property. Never give the money directly to the seller. You should of course use only a reputable realtor and be clear about how they will hold the money.
Once the sale reaches the final stages, the money will be released from escrow and applied to your down payment for the house.

What to Do to Get Your Money Back
If the deal falls through, a small cancellation fee might be charged, especially if you change your mind.
The rest of the amount in escrow will be handled based on what is stated in the purchase agreement, so make sure there is a clause about this in the agreement.
The agreement should also state certain contingencies. For example, sometimes even pre-approved customers actually get declined for a mortgage in the end. In this case, you should be able to recover 100% of the earnest money deposit. Issues with the seller not being able to sell, or the home inspection, should also be stated in the contract to ensure that you get your full deposit back.

Show Less

Part 9-Can I Have a Home Inspected Prior to Placing an Offer?

A lot of first-time buyers wonder if it is all right to have a home inspected before they place an offer on a house they are interested in. The answer is yes, definitely, if you want to be certain it is the house for you quickly so you don’t waste time haggling.
A home inspection is an essential part of any housing purchase, and should be at the top of your to-do list. The house does not have to be perfect, but you do need to know what you are letting yourself in for. In this way, you can negotiate with the person selling the house from a position of having all the facts, rather than just hoping things will work out.

The Cons
The only downside to a pre-offer home inspection is that they might sell the house to another person. However, home inspections usually only cost around $300 or $400, so it might be worth it to risk this money rather than place an offer on the house, give in your earnest money deposit, but then find out it is a lemon you really don’t want.

The Pros
A professional home inspection will reveal important things you need to know about the property before committing to it. You realtor should have several people he or she can recommend, and also be willing to attend the inspection. Two pairs of eyes are better than one. They will also be in a better position to negotiate for you if they have a complete picture. In addition, they can advise you on anything that might be a "deal breaker," so you don’t waste any more time and effort on a property you will regret buying.
Some people believe that realtors will discourage pre-offer inspections because they don’t want to lose the deal, but this is not the case. It is far better for everyone to know the truth about the property before spending ages on the paperwork, only to have it fall through.
If it passes, you have the green light to buy the house you want right away, and usually at the right price. If you decide you don’t want the house in the end based on what the inspection reveals, you won’t have to forfeit part of your earnest money deposit because the seller has taken the house off the market but you’ve changed your mind.

Dealing with the Right to Cure Provision
Many states have various regulations in reference to home inspections. These regulations are often boilerplate as part of the paperwork in relation to making a formal offer. The "right to cure" provision would give the chance for the seller to fix any issues within a reasonable amount of time, rather than simply having to give up the deal. This can cause problems if you really want to back out for whatever reason.
In terms of the right to cure, you could then discuss the issues with the seller and be clear about what you want done, and to what standard. If you don’t have the confidence that they will solve the issue in the manner you wish, you could negotiate a lower price on the understanding that you will undertake the repairs.

Finding the Right Home Inspector
Ask your realtor for recommendations. Interview three of them. Also consider asking anyone in your area who has bought a house recently. They may be able to suggest someone reliable.
Inspections should take place only during daylight hours. This means you may have to be patient getting hold of one. See if they have a website, and contact them via email with your questions in the first instance.

Determine what Services They Offer
Some will do a pre-offer walk-through, while others do a more thorough inspection. The older the home, the more thorough the inspection should be.
As you can see, a pre-offer home inspection has many advantages. Follow these tips to help you find the home of your dreams.

Show Less

How Soon Can I Move In?- Part 10 of 10

Part 9-Can I Have a Home Inspected Prior to Placing an Offer?

One of the main questions new homeowners have is how soon they can move in once they spot the house of their dreams. The truth is that the process can take around three to six months from start to finish.

It's not as simple as just viewing the houses and falling in love with one and buying it. Unless you have cash in your pocket to buy it

It's not as simple as just viewing the houses and falling in love with one and buying it. Unless you have cash in your pocket to buy it, you’ll have to deal with various stages of paperwork from opening to closing the deal, and getting the keys so you can move in.

Getting Pre-Approved for Your Mortgage

Getting pre-approved is key so you know your budget (roughly) and realtors will be willing to work with you. Get a pre-approval letter from your lender before you start to look.

Viewing Houses

Viewing houses can be the fun and also the frustrating part. It will depend on your needs and tastes. It will also depend on how soon you want to move. Expect the entire process to take at least three months.

Making an Offer

If you decide you want to make an offer, do so through your realtor.

Giving an Earnest Money Deposit

Once you decide to make an offer, you will need to give an earnest money deposit of 1% to 3% of the price of the home. This will show you are serious, and the seller will then take the house off the market. Give the money to your realtor, who will put it in escrow for safekeeping until it can be used as part of the down payment for your house.

The House Inspection

The house inspection is essential in order to determine if the price is right, and if the house is in good repair. You can adjust your offer based on what the inspector finds. Once the list of repairs is completed, or you’ve agreed to a lower price, the sale can go ahead.

Finalizing Your Mortgage

Once you are clear about how much you need to borrow, you can finalize your mortgage.

Gathering Your Down Payment

Make sure your down payment is ready so you can hand it over as and when needed.

Decide on a Closing Date

Decide when you will have all the paperwork and money available to be able to close.

Determine a Move-In Date

If the seller is still living in the house, be sure to negotiate a move-in date before you close. If you are in a hurry, this could put you both under a lot of pressure. However, you don’t want to be paying rent and a mortgage at the same time, so the sooner you can move in, the better.

You should usually get the keys within a week of closing. If you can’t get the keys right away, be clear about the number of days of occupancy they are requesting, such as 30 or 60 days after closing.

What If They Can’t Move?

What happens if the seller hasn’t moved? This can happen if they are looking for their ideal new home too, and are delayed in completing their purchase.

Your occupancy date should not be changed once it is set. It is part of the entire legal agreement in buying the home. However, you could offer to rent the home to them for the price of the mortgage payment each month until they finally move. This is commonly referred to as a leaseback. It can be frustrating, but it will be worth the wait.

Keep in regular communication with your realtor until such time as you have the keys and are completely moved in. They can help you with any issues so you can all do your best to make sure your move-in date will go according to plan.

Show Less

Home Selling Tips

When Is the Best Time to Sell My Home? Part 1 of 10

Why Is the Assessed Value Different Than What the Realtor Says My Home Is Worth? Part 2 of 10

Many factors come into play when putting your home on the market, but a recent study conducted by Zillow has revealed that May is the best month to try to sell your home - and in particular early May.

The Statistics

The Zillow research discovered that homes listed between May 1 through May 15 sold around 18.5 days faster than homes that wer

The Statistics

The Zillow research discovered that homes listed between May 1 through May 15 sold around 18.5 days faster than homes that weren’t listed during that time frame. They also found that homes sold in that time frame were also purchased for about 1% more than the average listing, which translates to a bonus of around $1,700.

The Joys of Spring

A lot of people want to buy a new house in order to make a fresh start. It’s the ultimate in spring cleaning. In recent years, the number of homes available for purchase has been down, while the number of sales has been up, leading to a shortage of viable homes and creating more of a seller’s market.

The housing market starts to perk up a little in December, and the spring selling season starts to get into full swing by the end of February. However, if prospective buyers spend all those weeks looking, but have nothing to show for it, they start to get very eager.

This means that by May, they are pretty desperate. Many families want to be in their new home and settled by the time the school year starts, so will be more open to purchasing, and even willing to pay more, in order to get a house.

Regional Variations

There are some regional shifts in this pattern, however, that are worth noting. Most people will start actively looking for a new home when the weather is nice, so they might start earlier or later depending on climate. Warmer climates don’t tend to have such a strong bias towards spring.

It also depends on the area. Some areas have been experiencing high demand and a low number of houses for sale, leading to busy open days and even bidding wars on certain homes.

When in doubt, check out the Zillow tool "The Best Time to List Your Home" to track trends and determine the best time to list via your zip code.

https://www.zillow.com/sellers-guide/best-time-to-sell/

Aiming for May

Since the first two weeks of May will likely be the best time to list your home, knowing this can help you make the most of the opportunity by lining up all your ducks in a row. You can get everything done in advance in order to make a quick sale before you ever list the home. Fresh paint inside and out, staging your home, de-cluttering and donating to charity can all be done according to this timeline.

The more your home creates the impression that the prospective buyer can move in right away without having to worry about any major repairs or changes, the more likely they are to buy.

If you have missed the May window of opportunity and need to sell, not to worry. It’s still a seller’s market and you are sure to get a buyer if your house is attractive and in good repair.

Show Less

Why Is the Assessed Value Different Than What the Realtor Says My Home Is Worth? Part 2 of 10

Assessing the value of a home when putting it on the market with a realtor is affected by a number of factors. There are two numbers to consider when selling your home: assessed value versus market value.
In some cases, assessed value and market value may be similar. But in general, the assessed value will be lower than the market value. Each of these two numbers will be used in different ways throughout the course of the selling process. Knowing the difference can help you get a great deal.
Assessed Value
Understanding assessed value starts with understanding who is assessing the property and why. Counties employ assessors to place a value on a home in order to levy property taxes on it. The assessor looks at what similar properties in the area are selling for. They also assess the value of any recent improvements, any income you may be making from the property (such as renting out rooms), and the replacement cost of the property if it were to burn down in a fire. An assessor is usually a real estate professional, so they are fully aware of the many aspects that go into the sale of a home.
Once the assessor comes up with a number, s/he will multiple that number by an "assessment rate" - a certain percentage in that tax jurisdiction. The percentage is usually 80% to 90%. So for example, if the assessor determines the market value of your home at $500,000 and your local assessment rate is 90%, then the assessed value of your home will be $450,000.
That sum will then be used by your local government to calculate your property taxes. The higher your home's assessed value, the more you'll pay in taxes. To get a ballpark figure, go to https://publicrecords.netronline.com/ and search by zip code.
Market Value
The market value of a home is based on market conditions - that is, what buyers are willing to pay for a home, and what a seller is willing to accept. Websites like Trulia and Zillow will help give you an idea of how your home compares to others that have been sold recently.
Other factors will also go into determining market value. The main one is location. How desirable is the area? Are there lots of schools and amenities in the area?
In terms of the house itself, factors will include the exterior condition of the home, style, availability of public utilities and so on. It will also include the number of rooms and their sizes, appliances, heating systems, energy efficiency and so on.
Supply and demand will also drive up market value. If there is a seller’s market, anyone seeing your house as their dream home might be willing to offer more.
The market value will be used in your listings as a fair asking price for your home. This is also a ballpark figure that the prospective buyer and their agent can use to estimate the value of the home, make sure they have enough financing in place, and so on. Everyone would like to get a great deal and ensure the transaction goes as smoothly as possible, so no one wastes any time.

Show Less

What Should I Do to Prepare My Home for Showings? Part 3 of 10

Why Is the Assessed Value Different Than What the Realtor Says My Home Is Worth? Part 2 of 10

How Long Does the Realtor Listing Agreement Last, and Are the Commissions Negotiable? Part 4 of 10

There are a number of things you can do to prepare your property for showings that can help you create a great impression and drum up interest in your valuable home. Some of these things will be external, while others will be internal.

Exterior
This is your chance to make a great first impression.
* The lawn - It should be well-kept.
* The garden - It should be well-tended. Consider adding a few colorful plants to cheer things up. Prune trees and shrubs, and get rid of old leaves.
* Fencing - All the fencing around the property should be in good repair and freshly painted.
* Fresh-looking driveway - Your driveway should look well-tended and not be stained.
* A great garage - De-clutter your garage so people get a sense of spaciousness. Consider donating, selling or storing items you rarely use. Ask the neighbors if they will be willing to stow things for you to help make things less cluttered. Also consider investing in a stand-alone tool shed.
* A fresh paint job - The entire house should be painted a bright, clean color like white.
* A fresh front door - Consider painting the front door, or replacing it.
* New numbers - Add bright and shiny new door numbers for your address.
* Check any siding - Make sure your siding is in good repair.
* Roofing - Replace all broken roof tiles. Be sure to also clean the guttering of leaves and other debris.
* A new welcome mat - Put out a new welcome mat to make your place took more inviting.

Interior
There are lots of things that can help buyers picture what life will be like in this house.
* De-clutter - Now is your time to sort out what to keep, sell, donate to charity, or pass along to someone who could really use the item. Be ruthless. Remember; whatever you keep will have to be put in storage or moved to your new home, when you eventually find one.
* Paint every room - Once you have de-cluttered, it will be a lot easier to paint the house. Choose neutral colors, not ones that make a bold statement. Strong colors might put off buyers, or give them the impression that they will have to put a lot of work into the house to get it just the way they want it.
* De-personalize - Remove all the family photos, knickknacks and so on from the house. Again, you want them to feel that the house could be theirs. They won’t be able to do that if they see the stamp of your ownership all over it.
* Organize all storage space - Don’t think you can hide anything from prospective home buyers. They want to make sure they are getting the best deal and will have no qualms about going into your closets, kitchen cabinets or drawers.
* Hire a professional cleaner - A professional cleaning service can work wonders to make every surface in your home shine. While they are working, you can be focusing on other things, such a packing up things to put in storage.
* Get rid of the rugs - Hardwood and vinyl flooring are cheap, durable, pet-proof and allergen free. They are far better than your mildewy old carpet full of pet soil.

Follow these tips to make sure prospective buyers see your home in the best possible light.

Show Less

How Long Does the Realtor Listing Agreement Last, and Are the Commissions Negotiable? Part 4 of 10

A realtor listing agreement is a written, binding legal document between you as the seller of your property and a real estate agent who will help handle the sale of your home and earn a commission from it once the sale is made.

The realtor earns their commission through marketing your home in a range of ways and handling a lot of the impor

The realtor earns their commission through marketing your home in a range of ways and handling a lot of the important paperwork involved.

It is up to you to decide how long you would like to list your home with that particular realtor. You can negotiate with the realtor in terms of duration and payment of commissions. For example, they may list it for you, but you might be the person who finds the buyer in the end - in which case, they would not get the commission.

The Average Duration

The average duration of most contracts is six months. If the house does not sell by then, you can list it with another realtor. The term should be no less than three months, because that gives the realtor the chance to get to know your property and market it effectively. They can build up momentum in order to make a good sale and thus earn a good commission.

Commission Clauses

The average commission on a home is 6% of the final closing price of the property. However, you might be able to go lower if the house is in good repair and in high demand due to its location and desirability as a property.

Protection Clauses

It is important to note that in some cases you might still have to pay commission even if the listing has already expired. If the person who eventually buys is someone that the realtor brought to the table, the clause will usually state that the commission is payable for up to 90 days after the contract has expired. This helps protect realtors from having all their hard work taken advantage of by unscrupulous sellers and buyers trying to cut them out of the deal and save money.

Exclusion Clauses

If you have been in discussions with other interested parties prior to the contract with the realtor, such as family members or neighbors who might want to buy your house, you can include the names of these people in order to show you are bringing in the sale and therefore there is no commission due to the realtor.

Early Cancellation of Contracts

Your contract with the realtor can be cancelled early for a number of reasons. If you don’t feel the realtor is doing enough to market your property effectively, you are legally entitled to ask for an early cancellation. Be clear about the responsibilities and obligations of each party, and see if you can get them to be more proactive on your behalf. If they are not meeting the terms of the agreement, ask to cancel.

If they make a fuss, remind them that word-of-mouth referrals are important, and they certainly would not want to hold you to a contract when you are so unhappy with their services.

Show Less

What Are Seller Concessions? Part 5 of 10

How Long Does the Realtor Listing Agreement Last, and Are the Commissions Negotiable? Part 4 of 10

What Should I Disclose to Potential Buyers? Part 6 of 10

There are many different costs and fees involved in buying a home. If a buyer is not careful, they can really start to mount up. Therefore, smart prospective buyers will often ask for concessions frTom the person selling the home in order to keep down expenses.

Closing costs in particular can really become overwhelming. They are rarely bud

Closing costs in particular can really become overwhelming. They are rarely budgeted for when eager buyers scrape together their down payment. Rather than let a good buyer walk away from the table at the last minute, sellers might be willing to offer the concession of paying some or all of the most common fees involved in finalizing the sale.

Various Concessions

There is a large amount of paperwork involved in selling a home. In some cases, it might be cheaper for the seller to do it than the buyer, and this will also generate good will.

Seller concessions might also include little perks around the house that won’t cost too much, but can move the sale along for a great price. Replacing the old appliances, or taking up the gross old carpeting and putting in wood flooring would be good examples.

Concession Restrictions

Concessions can sweeten the deal, but there are limits as to the number of perks allowed in relation to the type of mortgage the buyer is taking out. A conventional mortgage allows from 2% to 9% in seller concessions. A VA mortgage permits up to 4%. FHA and USDA loans allow up to 6% percent in seller concessions.

These concessions mean the expenses are all being rolled into the mortgage so the buyer does not need to pay in cash. Certain concessions will also add to the value of the house, making the final appraisal and sale a lot easier.

Settlement Costs

For cash-poor buyers who have underestimated how much they needed to close the deal, the seller can pay any of the settlement costs. They are not allowed to contribute to your down payment, and they will also not be allowed to pay for your mortgage application fees or credit check fees.

Adding It All Up

When you have moved far enough forward in the process to get pre-approval on a mortgage, you will have a good idea of who the lender is, how much you can borrow, and what the closing costs will be. Some realtors will ask for seller concessions in round figures, such as 6% of the closing cost and other fees.

However, it is important to note that if you are living in a low tax area and buying only a modest home, that would actually cause you to lose money in the long term. Why take 6% and therefore give up 6% of the mortgage to the seller when the fees are really only 3%? It’s a case of buyer beware, knowing what things actually cost, and itemizing them rather than making blanket concession deals.

The Bottom Line

Seller concessions help grease the wheels of a house sale, but they are certainly not a gift. Be clear about all the title deeds required, fees and documents, and make the deal based on what your closing costs actually are.

Show Less

What Should I Disclose to Potential Buyers? Part 6 of 10

How Long Does the Realtor Listing Agreement Last, and Are the Commissions Negotiable? Part 4 of 10

What Should I Disclose to Potential Buyers? Part 6 of 10

Disclosures are a key part of selling your home. The prospective buyer should have some reasonable assurance that the home they are getting is a valuable one, with no ticking time bombs lurking that will land them with a lot of expensive repairs.

Honesty Is the Best Policy

Most smart sellers will spruce up their home with a fresh coat of p

Honesty Is the Best Policy

Most smart sellers will spruce up their home with a fresh coat of paint and perform any minor repairs before they put their home on the market. However, some unscrupulous people will make cosmetic changes with a view to hiding something more serious, in the hope of making the sale and tricking the buyer.

This is short-sighted, because the house will need to be appraised, and any decent real estate appraiser knows all the tricks. The sale will fall through, and you as a seller will have your reputation dented in the eyes of the realtor trying to work with you to sell your home. Therefore, it’s best to disclose and work out who will repair what, rather than trying to run a scam.

Real Estate Disclosures

Real estate disclosure statements are the buyer’s opportunity to learn as much as they can about the property and the seller’s chance to give an idea of what it will be like to live in that house.

Potential seller disclosures range from knowledge of dry rot or leaky windows, to work done without a permit, to information about a major construction project nearby that might affect the price of housing and the quality of living in that area.

Disclosure documents inform buyers and also protect sellers from future legal action. Disclosures are the chance for the seller to reveal anything that can negatively affect the value, usefulness or enjoyment of the home.

Varying Disclosure Laws

Disclosure laws vary from state to state, and in some cases, city and county. Some are stricter than others. In general, disclosure laws requires that sellers, and their agents, complete or sign off on a wide range of documents. These will include a Natural Hazards Disclosure Statement, Local and State Transfer Disclosure Statements, Advisories about Market Conditions and more.

These are usually boilerplate forms that have been written by the local or state real estate association and are most often a series of yes/no questions about the home the seller is putting on the market, and their experience of living there.

Sellers must also present any important documents between neighbors, previous owners, the seller or the agents in reference to any substantial defect or issue that might affect the value of the home.

It is important to be honest about these disclosures because depending on where the seller lives, they might liable for what they disclose, or fail to disclose, for as many as ten years after the sale. Trying to hide something can come back to haunt you long after the sale, and the last thing most sellers want is an expensive and complicated lawsuit.

Disclose previous improvements, renovations or upgrades, and whether the work was done with or without permits, and by which vendors. Other standard disclosures include termites, any history of property line disputes, and defects or malfunctions with major systems or appliances.

Disclosure documents will also ask sellers if they are involved in bankruptcy proceedings, if there any liens on the property, and so on.

Show Less

What Is a Sales Contingency? Part 7 of 10

What Are Closing Expenses and Am I Responsible for Paying Them? Part 8 of 10

A home sale contingency is one type of contingency clause which is often included in a real estate sales contract or an offer to purchase real estate. The clause states that the transaction is dependent (or contingent upon) certain circumstances - usually the sale of the buyer’s home.

Many people start looking for their ideal home before t

Many people start looking for their ideal home before their own home has sold. If they find their dream house, they will usually make an offer on it so it doesn’t slip away.

However, they will be depending on the money they get from selling their home in order to buy the new home. With a sale's contingency clause, they would stipulate a date by which they would be able to sell their own home, so the sale would move forward. If the house does not sell by that date, the contract will be terminated and the seller will be free to sell to another party.

There are a couple of things to keep in mind when writing contingency clauses. The first is that there are two types of home sale contingencies.

Sale and Settlement Contingency

A sale contingency is dependent upon the buyer selling an existing home and getting the money to then pay for the new home they are interested in. This clause is appropriate if the buyer has not yet received an offer on their existing home, or has not yet accepted it.

This type of contingency clause will usually allow a seller to continue to market the home to other potential buyers. The prospective buyer would then have a certain period of time, such as one or two business days, to either move forward with the sale or terminate the contingency clause so they seller could proceed with the sale with another buyer. The buyer would then get their earnest money back and they would no longer have the option to buy the house.

A settlement contingency is used if the buyer has already marketed their property, found a buyer, and has a scheduled settlement date by which the sale will be closed. However, things can go wrong at the last minute when it comes to buying and selling a house. This clause protects the buyer if the sale falls through for any reason, because it prohibits the seller from accepting other offers on the house for a certain period of time. If the settlement does not occur on the specified date, then the contract would come to an end.

The Reasons for Contingency Clauses

Contingency clauses are invaluable for buyers because they can avoid owning two homes and holding two mortgages at one time while waiting for their own home to sell. A home sale contingency also means they can move from one home to the other right away, rather than selling their home and then trying to find a place to live until their new home is ready.

The downside is that buyers will usually have to pay a bit more for the property than if they made an offer without the home sale contingency clause. This is due to the fact that they are asking the seller to take a risk that they might or might not get their money. The sale could fall through, so buyers would pay a bit more to compensate them for basically taking their house off the market.

Show Less

What Are Closing Expenses and Am I Responsible for Paying Them? Part 8 of 10

Closing expenses, or closings costs, are part of the process of finalizing the sale of a house. In some cases, the closing costs might be paid by the seller, and in other cases by the buyer. It will depend on the nature of the fees, and how good a deal the parties negotiate with one another.

Seller Closing Costs

If you have used a realtor,

Seller Closing Costs

If you have used a realtor, one of your biggest expenses will be the commission on the final price of the property. This will usually be 5% or more of the value of the home. The other fees vary depending on where you live, but anticipate 6% to 10% of additional costs.

Other charges will be itemized on the ALTA Statement or HUD-1 Settlement Statement, for both sellers and buyers.

These fees will not have to be paid in cash, but rather, out of the price of the house. However, it is important to factor them in from the outset so you don’t end up with a much smaller profit on the sale of your house than you had hoped for.

The most common costs in addition to commission are:

1. Loan payoff fees

Your mortgage loan payoff will usually be somewhat higher than the actual remaining balance on your mortgage because of early repayment penalties. These can vary depending on how long you have held the mortgage. If you have a home equity loan or line of credit, you must also pay this off in full, and there may be some fees involved.

2. Transfer taxes and recording fees

State or local governments will usually charge a tax and fee in order to transfer the title for the property from one owner to another.

3. Title insurance fees

Title insurance protects the owner of property and the mortgage lender against future claims for any unknown issues with the title to the property at the time of sale. Issues may include fraud, forgery, unpaid property taxes, judgments, liens, or other encumbrances that were not discovered during a search of the property’s title history, which should have been conducted thoroughly before the sale.

Sellers typically pay the owner's title insurance premium, as an undertaking that they have been honest in all their dealings with regard to the sale. The fees vary from state to state, but the Title Insurance Rate Service Association makes broad recommendations as to costs. http://www.tirsa.org/Insurance-Forms.html

4. Legal fees

If you have an attorney represent you at the settlement, you will need to pay them. Fees vary depending on the number of services. In some cases, one attorney might be used for both sides, in which case the parties could split the costs.

5. Additional closing costs for sellers

Additional closing costs for sellers can include outstanding matters related to the property, such as:

* Tax liens or judgments against the property

* Unpaid homeowner association dues

* Pro-rated property taxes up to the date of the sale

* Back taxes

Some closing costs may be related to essentials that need to be cured before sale can go through, such as certain repairs, termite issues, and so on.

Show Less

What Are Seller Concessions?

What Are Closing Expenses and Am I Responsible for Paying Them? Part 8 of 10

How Does the Inspection Phase Work?

There are many different costs and fees involved in buying a home. If a buyer is not careful, they can really start to mount up. Therefore, smart prospective buyers will often ask for concessions from the person selling the home in order to keep down expenses.

Closing costs in particular can really become overwhelming. They are rarely budg

There are many different costs and fees involved in buying a home. If a buyer is not careful, they can really start to mount up. Therefore, smart prospective buyers will often ask for concessions from the person selling the home in order to keep down expenses.

Various Concessions

There is a large amount of paperwork involved in selling a home. In some cases, it might be cheaper for the seller to do it than the buyer, and this will also generate good will.

Concession Restrictions

These concessions mean the expenses are all being rolled into the mortgage so the buyer does not need to pay in cash. Certain concession will also add to the value of the house, making the final appraisal and sale a lot easier.

Settlement Costs

Adding It All Up

The Bottom Line

Show Less

How Does the Inspection Phase Work?

The inspection phase of a home will vary from county to county, but in general, all inspections will involve evaluating certain aspects of the home before a seller can sell their home to a prospective buyer.

Health and safety are important considerations. Basic amenities expected of a modern building should also be in place and functioning

Health and safety are important considerations. Basic amenities expected of a modern building should also be in place and functioning properly.

Inspections are crucial to help arrive at a final sale price as well. If there are any serious issues, the bank may determine the seller needs to fix them before the sale can go ahead. In some cases, the prospective buyer might agree to make the repairs, but would also expect to get the house for a lower price in consideration for the work and money they will be putting in.

The Required Areas of Inspection

The usual areas of inspection are:

* Structure

* Exterior

* Roofing system

* Plumbing system

* Electrical system

* Heating system

* Air conditioning system

* Interior

* Insulation

* Ventilation

* Fireplaces

They will also look for problems like radon gas, carbon monoxide, asbestos, termites and more.

Inspection Standards

The American Society of Home Inspectors, ASHI, has "Standards of Practice" which stipulate what must be inspected, and how far home inspectors need to go to report those findings. Sellers who want to get a clear idea of the state of their home and what needs to be attended to urgently can hire their own inspector, who will then give them an evaluation of all that needs to be done. Inspections usually take 2 to 3 hours depending on the size of the house.

Hiring an inspector will cost money, but it can also prevent your sale from falling through further down the road because "deal breakers" have been discovered.

Buyer Inspections

Once a buyer makes an offer on your home, they will come with an inspector to assess the property. This is bound to make most sellers nervous, but again, if you ve hired your own inspector and done all the chores on your to-do list, you should get a good evaluation.

The prospective buyer will usually walk through with the inspector. This can be very nerve-wracking, so it is probably best to leave the house while they are doing the walk-through. However, do make yourself available by mobile phone if they have any questions.

The Report

When the home inspection is complete, the inspector will write a report and give a copy to the prospective buyer detailing everything that has been found. If there are major causes for concern, they will usually require immediate attention before the sale can go through. They might also report on potential future issues, such as the boiler only having another three years under warranty. You probably won t be required to buy a new boiler, but you will most likely have to lower the price of the house.

You will have time to fix the issues, and there will be a follow-up inspection. Once all the parties are satisfied that the house is in good condition, the sale can proceed.

Show Less

What Does a Home Warranty Company Cover?

Home Buyers and Home Sellers

The Ultimate Moving Checklist

Moving Supplies and Resources

Packaging Material Direct

How To Fix Bad Credit On Your Own

Provided by Credit Saint

What Is a Credit Score?

How Can I Raise My Credit Score on My Own?

Check Your Credit Score

Identify Areas of Improvement

Dispute Any Errors

Pay Off Past-Due Balances

Improve Your Credit Habits

Pay Down Credit Card Balances

Enlist Credit Repair Professionals to Help

Credit Saint Can Help You

Finance and Credit Options

Sky Blue Credit

Credit Repair Magic

Sky Blue Credit

Credit Saint

Credit Repair Magic

Sky Blue Credit

Credit Repair Magic

Credit Repair Magic

Credit Repair Magic

Choice Home Warranty

Home Warranty Resources

Choice Home Warranty

American Home Shield-Home Warranty

American Home Shield-Home Warranty

American Home Shield-Home Warranty

American Home Shield-Home Warranty

American Home Shield-Home Warranty

Old Republic Home Warranty

American Home Shield-Home Warranty

Old Republic Home Warranty

Title Protection and Services

America’s Leader In TripleLock Title Fraud Protection - House Stealing & Title Theft Monitoring

Free eBooks and Resources

Homebuying process

Where to start?

Get pre-approved for a mortgage

Know your credit score.

Know your credit score.

Get pre-approved for a mortgage

Know your credit score.

Get pre-approved for a mortgage

Get pre-approved for a mortgage

Get pre-approved for a mortgage

Search, find, and offer.

Start the mortgage process and the home inspection.

Get pre-approved for a mortgage

Start the mortgage process and the home inspection.

Start the mortgage process and the home inspection.

Start the mortgage process and the home inspection.

Close, move in. Enjoy!

Start the mortgage process and the home inspection.

Start the mortgage process and the home inspection.

Your Home Buying Journey- 10 Part Series

Part 1-The First Steps in the Home Buying Process

Part 2-What Does a Realtor Do Besides Show Me Homes?

Part 2-What Does a Realtor Do Besides Show Me Homes?

Part 2-What Does a Realtor Do Besides Show Me Homes?

Part 2-What Does a Realtor Do Besides Show Me Homes?

Part 2-What Does a Realtor Do Besides Show Me Homes?

Part 3-Are Foreclosure Properties Worth Buying?

Part 2-What Does a Realtor Do Besides Show Me Homes?

Part 4-Are Rent-to-Own Home Offers Legitimate?

Part 4-Are Rent-to-Own Home Offers Legitimate?

Part 4-Are Rent-to-Own Home Offers Legitimate?

Part 4-Are Rent-to-Own Home Offers Legitimate?

Part 5- What Is a Short Sale?

Part 4-Are Rent-to-Own Home Offers Legitimate?

Part 6-What Happens After My Offer Is Accepted?

Part 6-What Happens After My Offer Is Accepted?

Part 4-Are Rent-to-Own Home Offers Legitimate?

Part 6-What Happens After My Offer Is Accepted?

Part 7- What Expenses Will I Have When Buying a Home?