Real Estate Information Archive

- Write a list of needs and wants for your future home, beginning with size, the number of rooms, type of neighborhood, size of the yard, garage, or no garage, etc. Be realistic, as there is only so much house you can afford. Set a price range, and stick to it. 
 

- Create an income/expenses list, or use this handy budget calculator so you may see exactly where your money is going.  If there is little left of your paycheck at the end of the equation, it is time to begin eliminating unnecessary purchases so you can start saving. 
 

- Start paying off any debt you currently have credit cards, car loans, or personal loans. Eliminating these balances will reduce your debt-to-income ratio, and will show lenders you’re serious about paying for a home. 
 

- Once you start paying off debt, start depositing the amount of those payments into a savings account. Not only do you need to save towards the payment, but you’ll also have other costs for buying a home: appraisal, home inspections, and other fees may or may not be added to the closing costs. 
 

- Some people that live on low incomes may feel like homeownership is a pipe dream, but that is not true. Many government-backed agencies will assist those with limited incomes buy a home: 

- Federal Housing Administration offers loans with low down payments (3.5%). 

- USDA  helps low-income families in rural areas with purchasing a home with no down payment. 

- VA loans assist veterans with home-buying, as well as home repair. 

- Most foreclosures have been unoccupied for several months and will surely be affected by that. You will need to be willing to put in some work and some cash to bring it up to code/living conditions. 

- If the house is on the auction block, you will likely need the full purchase amount in cash, as the lender or bank is looking to recoup as much from the defaulted loan as they can. They do not allow time for financing to take place. 

- Some states allow redemption to the homeowner, and HUD defines this as “...a period after [the] home has already been sold at a foreclosure sale when [a homeowner] can still reclaim [their] home.”  

- Because a foreclosed property is sold “as is,” you will not receive any disclosures, meaning, a home inspection is a must!  Depending on who owns the property will make a difference in how much time you must complete the inspection.   

- On the other hand, if the property is REO (real estate owned), you will be able to go through the home-buying process in the usual way and have time to secure financing for your purchase. 

- An REO will be sold as-is just like an auctioned house, and all repairs will have to be done by the new owner--there are no repair requests or contingencies granted. 

- For buyers that are new to the foreclosure-purchase game, going through a bank to buy the property is your best bet versus auctions. Once you gain some experience in the process, try your hand at auctions. 

- For any distressed property, make sure you have a title search performed. Buying a foreclosure takes long enough, and you want to make certain you will not run into any roadblocks. 

Mortgage lenders in order to be adequately prepared to begin looking for a new house, you should be pre-approved. It’s best if you look at a few different lenders in order to find the best loan, so before you go, see what the balance recommends for finding the right mortgage for you. 
 

Real Estate Agents The agent you choose to assist you on your new home search is extremely important, as they will be your resource and constant contact throughout the home-buying process. In most transactions, there will be a listing agent representing the sellers, but it’s unlikely you’ll be meeting them. 
 

Appraiser Your lender wants to be certain that the house you want to buy is worth what the seller is asking and will have a home appraisal done by a qualified person.  Learn more about what’s involved with the appraisal from realtor.com®. 
 

Home Inspector Once your offer has been accepted, it’s in your best interest to hire an inspector to go over your prospective new home.  You don’t want any surprises with structural issues or mold or insect infestation after you have the keys in hand. Call a few before you decide who to hire, and ask these important questions when you contact them. 
 

Homeowners Insurance Agent This agent should be familiar to you, as you already have auto or even renter’s insurance. Most insurance companies offer a discount for having more than one policy with them, and it may be an easy fit to go with your current company. Don’t let that stop you from shopping around for better rates, however. 
 

Real Estate Attorney Many states require you to hire an attorney, as they will go over all the documents, handle funds, and perform the title search, to name a few of their jobs during the home sale process. Find out why it’s always a good idea to have a real estate attorney, whether it’s the law or an option. 
 

Title Insurer  In case there are any questions about the sale of the home being legitimate (no liens, family feuds, etc.), you’ll need title insurance, and in most cases, the lender or attorney will already have that lined up. 
 

Mortgage Servicer Sometimes, a lender will sell your loan to a mortgage servicer, and you will be notified if that happens. Learn the difference between a lender and a servicer at Investopedia.  

- You know what you want in a new home because you know what kind of lifestyle your family lives.  A buyer agent will listen and learn about your needs, wants and don’t-wants, take that information, and you don’t have to do another thing but wait for them to find prospects for you to see! How easy is that?! 
 

- Hiring a buyer agent opens a whole world of real estate options of which you are likely unaware. REALTORS® not only have a network of other agents, but the tools and expertise that can connect you with the right house sooner than you can find on your own. 
 

- The experts a real estate agent has at the click of a mouse or tap on their smartphone will all work together to ensure your home-buying process goes smoothly! Real estate attorneys, tax experts, and inspectors are just a few of the people you may need during the home-buying process. 
 

- If problems arise, your buyer agent isn’t always a miracle worker, but they will use all their means to see that the issue is resolved.  They want your transaction to go as smoothly as you do. 
 

- In most cases, you will owe a buyer agent nothing when you buy your house. Fees are normally paid by the seller, so you’re getting an exclusive, personalized service free! 

- As defined by the Business Dictionary, a condominium is a “Single, individually-owned housing unit in a multi-unit building.” In some cases, a condo is in a co-op, which is much different than owning a single unit. 
 

- Architecture of the buildings varies, but the exteriors and common areas are owned by the Homeowners Association (HOA). 
 

- Most condo HOA’s offer community perks, such as a pool, community center, playground, tennis courts, or workout gym. Landscaping is taken care of, and many condo complexes offer gated security. 
 

- Homeowners insurance premiums are normally lower, as the owners only insure the unit’s interior. 
 

- Perks come with a fee, and that will vary from HOA to HOA. House hunters are given this information up front so they can be sure they can handle the added fees in their budget. 

- “Two or three storied single-family housing unit, often connected other such units via party walls.” --Business Dictionary 
 

- Unlike condos, townhouse buyers own the exterior of the unit as well as the interior. 
 

- Architecturally-speaking, the exterior of townhouses in a neighborhood are generally the same style.  
 

- Owning the exterior of a townhouse means you have control of its appearance.  While those communities that have an HOA means you may be limited to certain paint colors, etc., owners otherwise have free rein for upgrades. 
 

- Not every townhouse community is part of an HOA, but either way, the owner is responsible for the upkeep of the landscaping. Some non-HOA neighborhoods still have a few perks, but upkeep for these amenities isn’t a given. 

- Moneycrashers.com defines a duplex as “...a house or building with separate entrances for two families. The units can either be on separate floors (i.e. two-story house) or side by side.” 
 

- Purchasing a duplex usually means you will be purchasing both units--one whole building, though you will find some municipalities that allow half-unit sales. The owner is solely responsible for upkeep of interior, exterior and landscaping. 
 

- For ‘sandwich’ families, a duplex meets important needs: aging parents can live close by their families but have the privacy of their own home. 
 

- Perfect for someone who is interested in a starter investment, renting out the other unit will help with the mortgage, taxes and utilities if the unit shares those meters. 

- Find a buyers agent that has a reputation for handling sales efficiently.  You want someone who understands your need to buy quickly, but who will also make sure you’re not making huge mistakes in the process. 
 

- Make sure your credit score is in good standing, and gather all paperwork necessary for the lender:  tax returns from past years, current pay stubs, bank statements, documentation for rent payments if you’re a renter, gift letter if someone is gifting part of the down payment, and proof of any assets you may have. 
 

- Don’t just get pre-qualified for a mortgage--get pre-approved.  This way, you’ll know exactly what you can afford, and when you make an offer, the seller will be certain you are serious about buying the house. 
 

- You might have to forgo the perfect house dreams, but don’t sacrifice your must-haves.  That said, not being extremely picky with what you want in a house will see your success a few steps closer.   
 

- When you talk to your agent, ask them to look for homes that have been on the market for a while.  This may give you some leeway in the offer process because the seller is likely somewhat anxious to sell. 
 

- If you have any equity in the home you will be moving from, and you don’t want to lease or rent it, selling as quickly as you are able will give you a head start on the purchase of a new home. 
  

- Be prepared to put your belongings in storage if you do sell before you buy, and talk to friends or relatives about staying with them temporarily. 
 

- You’ll want a transaction without a lot of contingencies so there isn’t a lot of time-consuming negotiating, but be careful about what you are willing to let go to buy the property.   
 

- Don’t go AWOL during the process--sure you’ll be busy getting packed up and prepping for a move, but you need to be available to your agent so no time is wasted.   

Popular in the 1930s was the Arts and Crafts, or Craftsman, house.  Known by their low-pitched roof, front porch with tapered columns, the interiors of this type of home features lots of woodwork and built ins. 
 

Cape Cod-style homes are rectangular in shape, usually with the front door in the center of the front of the home, shuttered windows on either side of the front door and gable ends.  Traditional structures are one and a half stories, with living, sleeping and dining rooms all divided with walls.
   

Colonial houses are the predecessor of the Cape Cod, and they are similar in shape, style, and interior.  The biggest difference between the two is the Colonial’s second story was a full story, versus the Cape Cod’s half-story.   
 

A home that is described as Contemporary should be just that--a house of “now.”  Think of a contemporary home as having Colonial, Ranch or other architectural characteristics, just with an updated look. 
 

As times changed during the 1930s-60s, Mid-Century Modern-style houses began to make an impression using sleek straight lines, asymmetrical form and basic materials like glass, concrete, and metal.   
 

Ranch-style homes were a popular architectural style in the US during the post-World War II years through the 1970s.  The one-story form was usually low on the ground, with mixed exterior siding and attached garage.   
 

Looking like something from a fairy tale, Tudor homes featured curved rooflines and doorways, timbered or half-timbered gables filled with mason work or shingles, decorated windows, and cross-gables on the front exterior.  
 

The Victorian era brought romance and frills, and the homes of that period are no different.  A Victorian-style home will normally have a steeped-pitch roof, gabled windows, decorative woodwork, bay windows, and wide front porch.  

- A “Bank-Owned Home” is just that:  the owner stopped making payments, and the lender is in the process of auctioning the home to try and recover the money they loaned.  Houses that are “Real Estate Owned” mean that the bank’s auction didn’t result in a sale and is being sold through a real estate agent. 
 

- Vacant homes can have all sorts of issues: mold, vandalism, pest issues, stolen copper piping, and neglected landscaping are just a few.  Before you make a bid, go and see the home for yourself, and decide if you can afford the sale price plus the cost of repairs. 
 

- Hire an inspector to go to the house with you so you’ll have an idea of exactly what needs to be done.  You don’t want to underestimate renovation costs. 
 

- When considering the asking price, and you have taken steps to get a contractor bid on all the rehab, use this formula to calculate your offer:  80% of the appraised value minus the cost of repairs. 
 

- Investing in a foreclosure as a rental will require less trendy but rugged materials and flipping to resell might be more expensive (and more headache!).  Moving into the home yourself can keep initial costs in check if you’re willing to do what’s necessary before moving in and holding off on upgrades. 
 

- Some foreclosure purchases must be made in cash, and that can put investors at an advantage.  In case cash isn’t a requirement for the purchase, have proof of pre-approval from your lender when you make your offer. 

- Change all of the entryway locks, keypad codes, and make plans to get a security system set up. 
 

- Have utilities turned on in your name, as well as television provider and internet.   
 

- Deep clean the new house, even if it looks clean.  This job can be hired out, or you can DIY if time permits.  Keep in mind costs involved with renting any necessary equipment, as well as cleaning product expenses. 
 

- Plug in/turn on all appliances, to make sure they’re in working order. 
 

- Walk through the house to check for minor things that didn’t warrant repair by the seller. Having your copy of the home inspection in hand will help you find the problem areas that may need to be addressed before they get too big and too costly. 
 

- If you want update the home’s color palette with a fresh coat of paint, or do any other small improvement jobs consider getting them done before move in day. This will allow for the painting and repairs to be finished easier and faster before settling in with added obstacles.
 

- Typically sellers leave the window treatments, but in case they didn’t be sure to measure the windows. Allow for time and budgeting to purchase and install shades or blinds until curtains or shutters can be hung. 
 

- Let everyone know your new address:  relatives and friends, of course, but also medical offices, your employer, schools, and other important people that communicate by mail. 
 

- Create a homeowner folder to keep all of your important papers. Be sure to store it in a safe and easily accessible place. 
 

- Meet your neighbors!  Once you’ve moved in, introduce yourself and your family by hosting a front porch social, with light refreshments.  Slip invites in mailboxes and simply ask them to stop by to say hello.