Cynthia Lanciloti's Blog
The homebuying journey is rarely problem-free. Fortunately, homebuyers who know how to address challenges throughout the property buying journey should have no trouble making their homeownership dreams come true.
Now, let's take a look at three tips to help you develop an effective approach to address any homebuying challenges that come your way.
1. Be Diligent
When it comes to homebuying challenges, it helps to be diligent. A diligent homebuyer allocates time and resources to understand problems and address them from every angle. As such, this buyer may be better equipped than others to find the right solution to any homebuying challenge, at any time.
Furthermore, a diligent homebuyer often learns about the housing market and analyzes real estate market patterns and trends. With this information at his or her disposal, a homebuyer can use real estate market data to gain an advantage over rival property buyers. And as a result, a diligent homebuyer can use housing market data to make fast, informed decisions throughout the property buying journey.
2. Understand the Worst-Case Scenarios
No one likes to think about the worst-case scenarios. Yet considering potential challenges that could arise during the homebuying cycle may help a property buyer plan ahead for these problems.
As a homebuyer, it is important to prepare as much as possible for all stages of the property buying journey. If a buyer understands potential challenges, he or she may be able to address such problems without delay. Perhaps best of all, this buyer can minimize the risk of encountering possible hurdles that otherwise may prevent him or her from finding the right house at the right price.
3. Work with a Real Estate Agent
Dealing with a homebuying challenge on your own can cause immense stress. Lucky for you, real estate agents are available who can help you identify and resolve any homebuying challenges before they escalate.
A real estate agent is a homebuying expert who can guide you along each stage of the property buying journey. First, he or she will learn about your homebuying goals and craft a custom property buying strategy. A real estate agent next will keep you up to date about new homes that match your property buying criteria, as well as set up home showings. And once you find a house that you want to buy, a real estate agent will help you submit a competitive offer to purchase this residence.
Let's not forget about the assistance that a real estate agent provides after a seller accepts your offer to purchase a home, either. At this point, a real estate agent will help you schedule a house inspection and ensure that you are fully prepared for closing day. And if you have concerns or questions along the way, a real estate agent is ready to respond to them.
Want to become a confident homebuyer? Use the aforementioned tips, and you can bolster your homebuying confidence and address any homebuying challenges with poise and integrity.
You can ask any homeowner-buying and owning a home is expensive. Mortgage payments, property taxes, utilities, and other bills quickly add up.
If you want to buy a home but don’t have a large down payment saved, odds are you’ve discovered something called private mortgage insurance (PMI).
PMI is an extra monthly payment that you make (on top of your mortgage payment) when you don’t have enough to make a large (20%) down payment on your home.
However, if you want to buy a home and don’t want to tack on an extra monthly payment for PMI, you have options. In today’s post, I’m going to talk about some ways to avoid paying PMI on your mortgage so you can save more money in the long run.
Before we talk about getting rid of PMI, let’s spend a minute on what to expect when you do have to pay it.
PMI typically costs 0.30% to %1.15% of your total loan balance annually. That means that your PMI payments will decrease a moderate amount as you pay off your loan.
Furthermore, once you have paid off 22% of your loan, your PMI will be cancelled and you’ll only be responsible for your regular monthly mortgage payments.
Getting PMI waived early
With conventional loans, you can request to have your PMI cancelled once you’ve paid off 20% of the mortgage. However, many buyers with PMI are using some form of first-time buyer loan, such as an FHA loan.
With an FHA loan, you’ll be stuck with PMI for the lifetime of the loan if you don’t make a down payment of 10% or more. That’s a lot of PMI payments, especially if you take out a 30 year loan, and it can quickly add up.
If you have an FHA loan with FHA insurance, the only way to cancel the insurance is to refinance into a non-FHA insured loan. And remember--refinancing has its own costs and complications.
Making it to the 20% repayment mark
On conventional loans, the best way to get rid of PMI is to reach your 20% repayment mark as soon as possible. That could mean aggressively paying off your mortgage until you reach that point.
This can be achieved by making extra payments, or just paying more each month. However, you don’t want to neglect other debt that could be accruing costly interest in favor of paying off your loans. Make sure you do the math and find out which debt will be more expensive before neglecting other debt.
Once you do reach the 20% repayment mark, you’ll have to remember to apply to have your PMI canceled with your lender. Otherwise, it will be canceled automatically at 22%.
For those who plan to list a condo, it helps to prepare as much as possible. By doing so, you can limit the risk of potential condo selling hurdles, as well as find ways to optimize the value of your property.
Ultimately, there are many factors to consider prior to listing a condo, and these include:
1. Your Condo's Condition
No two condos are exactly alike. As such, it may be beneficial to upgrade your condo before you list it. Because if you perform assorted property upgrades, you may be able to differentiate your property from the competition.
Performing a condo inspection often proves to be a good idea, particularly for a condo seller who is uncertain about the current condition of his or her property. During an inspection, a property expert will examine your condo and identify any structural problems. Then, you can use the inspection results to establish condo improvement priorities.
2. Your Price
What your condo was worth when you initially bought it is unlikely to match what your property is worth today. Fortunately, if you conduct a condo appraisal, you can find out the present value of your condo and price your property accordingly.
After you perform a condo appraisal, you'll receive an appraisal report that includes a property valuation. Next, you can establish a competitive price for your condo, one that increases the likelihood that your property will stir up lots of interest from dozens of potential buyers.
Of course, it helps to consider your condo fees when you set the price for your property too. Include details about any homeowner's association fees when you list your condo. That way, you can help condo buyers make an informed decision about whether your property is the right choice.
3. Your Timeline
You know that you want to sell your condo, but how quickly are you looking to vacate your property? With a timeline in place, you may be better equipped than ever before to enjoy a fast, seamless condo selling experience.
If you want to sell your condo without delay, you may want to set an aggressive initial asking price. On the other hand, if you can afford to be patient, you may want to wait until you receive a competitive offer before you finalize a condo sale.
When it comes to selling a condo on a timeline, it helps to hire a real estate agent as well. In fact, employing a real estate agent who possesses condo selling experience can make a world of difference for any condo seller, at any time.
A real estate agent who understands the ins and outs of selling a condo can help you get your property ready for the real estate market. Furthermore, this real estate agent will make it easy to establish a competitive initial asking price for your condo and ensure that you can sell your property on a timeline.
Want to list your condo? Consider the aforementioned factors, and you can prepare to add your condo to the real estate market.
Framingham, MA 01701
A low appraisal is a possibility when you’re buying a home. This can happen for a variety of reasons. If it happens to you, don’t panic!
Once you get an offer accepted on a house you love, it may feel like a huge weight has been lifted off of your shoulders. As any seasoned homebuyer will tell you, this is only the beginning!
It can be tough for both the buyer and the seller when a deal seemingly falls apart due to an appraisal that comes in too low. This is a common occurrence and there are ways to work around it.
Reasons For A Low Appraisal
There are a few reasons for a low appraisal including:
Insufficient sales data for the area can often skew appraisal numbers
Lenders may only lend up to a certain percentage of the appraised value
If the appraisal comes in lower than what you offered for the purchase price of the home, you’ll need to come up with the rest of the cash upfront in order to purchase the property. There are other options for you if you do come into this situation.
The Appraisal Contingency
The appraisal contingency is built into your sales contract and is a protection for the buyer, allowing them to walk away without financial burden if the appraisal comes in too low. This allows you room for negotiation on the seller’s part if they really are motivated. The contingency clause isn’t a one-size-fits-all protection. Even with this clause, you could end up spending more out of pocket cash or walking away from the deal completely. It’s simply a protection.
What If The Appraisal Is Wrong?
The appraisal can be submitted for review. The appraiser would need to explain why they didn’t use comparable sales provided by the lender. The property can also be completely reevaluated. In addition, you can request a separate appraisal from your lender. The seller may even pay for the second appraisal in order to keep the deal from falling through.
Don’t Offer More Than You Think The Property Is Worth
When you base huge financial decisions on emotions, you could end up in a bad situation. Your offer that wins the house can quickly become a case of regret as a buyer. Many times in a tight real estate market, you’ll need to make decisions fast. If you have a general idea of property values and work with a realtor to make an informed offer, you’ll be in better shape to avoid a big headache. While you may be able to afford paying more than a house is worth, it’s not a smart financial decision.
Low Appraisals Are An Opportunity
A low appraisal should be thought of by the buyer as an opportunity to renegotiate the sale price of the home. This step in the home buying process is a protection for you as a buyer for one of the biggest purchases that you’ll ever make.