Posts Tagged ‘Tips’

Top Architecture Trends For 2014

Friday, January 24th, 2014

New home construction has seen consistent growth in the last three years and sales of new homes are expected to increase by about 16 percent, or 580,000 homes, in 2014, according to Kiplinger’s Economic Outlooks and as more homes are built, new architecture trends will begin to appear — slowly.

“Building is not an industry where big changes happen really fast,” said Amy Albert, editor of Custom Home Online. ”Things happen over time.”

Still, Albert named five home-design elements she expects to see more often in 2014:

1. Tranquility

More homeowners are seeing their homes as a place to get away from it all and relax, especially in certain rooms — particularly the bathroom. “The spa bathroom is really big as a result of more people traveling to nice hotels,”  Albert said. In 2014, we’re likely to see bathrooms with walk-in showers, roomy bathtubs and tranquil designs become a big trend for homeowners.

600-02757350

2. Mission Control

In the past the kitchen was often built at the back of the house, attached to the garage, and away from high traffic areas, but that tradition is changing. In 2014 we’ll see the kitchen as a focal point of the house, often placed in the center of an open floor plan, especially as more homeowners start to use their kitchen space as a multitasking room, or as Albert calls it, “mission control.” By having the kitchen centered and open, parents can help children with homework, talk or pay bills — all while making meals.

3. Traditional Design

While “midcentury modern design is thriving” and will continue to do so in 2014, more homeowners are looking at traditional home styles, Albert said. For example, Craftsman homes with large porches, front columns and detailed gables will make a comeback in 2014. Queen Anne-style homes with asymmetrical facades and detailed gables may also see a resurgence. However, attention to detail will be important as homeowners look for exact replicas of the original styles.

Architecture:Passive

4. Passive Homes

More U.S.-based architects are expected to include passive-house elements in their 2014 designs. Originally a European design, a passive house is built to work with the climate. For example, its roof may be pitched to make use of wind power, or it could have large windows installed to attract sunlight that heats the home. A passive-house design can slash energy consumption by up to 90 percent, according to Passive House Institute U.S.

5. Flex Rooms

Between the recession and the growing number of senior citizens in the United States, more households are becoming multigenerational. That change is leading to a developing trend in home building – flex rooms. Typically bedrooms, flex rooms are designed to give more privacy to larger families and usually include a separate space such as a reading area or study off the main bedroom area. These rooms may also be built with a change in mind. “Many flex spaces include a private entrance, which could later become a rental unit,” Albert said

 

Realtor.com


Mortgage rule changes are coming in 2014

Monday, December 16th, 2013

The world of mortgage lending has changed significantly since the housing bubble burst. Mortgage lenders have returned to traditional loan standards that require extensive documentation of income and assets for a loan approval

Government regulatory agencies also continue to react to the housing crisis, with more adjustments to mortgage requirements set to go into effect in 2014:

Qualified Mortgage Rules

Whether you’re thinking of buying a home or mulling over refinancing your mortgage, Jan. 10, 2014, could be an important date for you to remember. The Consumer Financial Protection Bureau is in the process of implementing regulations to meet goals set forth by the Dodd-Frank Act in Congress, which was meant to correct the errors that led to the housing crisis. The CFPB’s “Qualified Mortgage,” or QM, rules go into effect in January. Essentially, these rules require lenders to prove borrowers’ ability to repay a loan by meeting several guidelines, including a maximum debt-to-income ratio of 43 percent. While many lenders already limit borrowers to a similar maximum debt-to-income ratio, the new rules won’t allow for any compensating circumstances such as significant cash reserves or a large down payment to be considered in order to offset a higher debt ratio.

If you have credit problems or a high debt-to-income ratio, you may want to push through your loan application for a refinance or home purchase to make sure you close your loan before the new rules go into effect. However, many lenders are already using QM standards in order to make sure they’re in compliance with the regulation. Mortgages that don’t meet QM standards will have to be held by the lender rather than sold to Fannie Mae and Freddie Mac, so most lenders are careful to meet the new standards.

The 3 Percent Rule

The new QM requirements also limit fees for originating a loan to no more than 3 percent of the loan amount. If you’re financing a more costly home, such as a $400,000 home or more, the lender can easily keep fees under 3 percent, which in this case would be $12,000. However, if you’re refinancing a smaller loan balance or purchasing a less expensive home — for example, for $80,000 — the lender might find it more difficult to keep all fees under $2,400. Mortgage lenders are less likely to offer loans for smaller amounts since they won’t always recoup their costs and make enough profit to pay their staff. If you need a small loan, you may want to push to get it closed before Jan. 10, 2014.

Self-Employed Borrowers

One particular group of borrowers will most likely be impacted by the QM rules: self-employed borrowers. These borrowers already are heavily scrutinized and find it more difficult to obtain a mortgage because they must prove their income based on tax returns and profit-and-loss statements, rather than standard paystubs and W2 forms. The “ability-to-repay” feature of QM rules requires all borrowers to prove they have the cash flow to make payments on their mortgage. Self-employed borrowers often have fluctuating income and rely on cash reserves to pay bills in-between payments, but the emphasis on cash flow can make it harder for lenders to approve a loan even for someone with significant funds in the bank.

Potential Lower Loan Limits

The Federal Housing Finance Agency, which regulates Fannie Mae and Freddie Mac, announced in October that plans to reduce the maximum loan limits for conventional conforming loans will be delayed until later in 2014. Typically, loan limits are adjusted on Jan. 1 of each year, but the agency decided to wait to see the impact of the introduction of QM rules before making changes. Currently, the limits are $417,000 in most housing markets and rise to $625,500 in high cost areas. If you need a mortgage near these limits, it would be wise to close your loan earlier in 2014 rather than later in case limits are lowered.

 

Realtor.com


2014 Remodeling Trends

Monday, December 16th, 2013

Home remodeling may have taken a backseat during the recession, but not anymore. According to a 2013 Hanley Wood Survey, remodeling sales were up 10 percent compared to 2012, and 45 percent of remodelers surveyed expected another 10 percent growth in 2014.

Home remodeling is back in again, and with the desire to improve our homesteads come a bunch of new and exciting trends we’ll start seeing next year.

1. Modern Kitchens

According to data compiled by Hanley Wood and Remodeling Magazine, 61 percent of remodelers surveyed expect to complete kitchen remodels in 2014, more than any other room in the house. And, those remodels are expected to follow a new trend.

Not so long ago, remodeled kitchens had a rustic feel with warm paint colors and cabinetry, and wrought iron hardware and lighting. Now, modern is in, with white or gray cabinetry, simple countertops, glossy finishes and minimalist designs.  Appliances are more likely to be blended into the design or hidden away from view entirely to give the kitchen a sleeker appearance.

2. Brass Accents

Brass made a comeback at home-design and remodeling conventions this year and the trend is expected to pick up in 2014. While brass is nothing new, it has gotten a facelift. Highly polished, bright brass hardware and lighting is gone; rustic, dull and hammered brass is in. The new looks will be incorporated into kitchen and bathroom hardware as well as lighting and door hardware throughout the house.

Remodel

3. Updated Bathrooms

In the Hanley Wood survey, bathrooms came in second to the kitchen with 58 percent of remodelers planning to do bathroom remodels in 2014. As far as style, vintage bathrooms with wainscoting and claw-foot tubs won’t be as popular as resort-style bathrooms that feature amenities such as large walk-in showers with multiple shower heads, heated floors or towel racks, and jetted bathtubs. For coloring and style, glass tiles will be a popular feature as well as neutral and cool colors like ash gray, light blue and off-white.

Remodel 2

4. Vibrant Colors

While the kitchen may be getting the modern single-shade treatment next year, designers have a different idea for other rooms. Bright accent colors such as turquoise, yellow and orange that were popular in 2013 have a new twist; in 2014, they’ll be more of a focal point and even more vibrant with colors such as Green Flash, Lemon Zest, Nectarine and Rouge Red, according to Pantone, the international authority on color. Designers will start featuring vibrant accent walls, main paint colors and flooring throughout bedrooms and main living spaces.

5. Sustainable Materials

Going green is nothing new, but sustainability may get easier in 2014 remodels. According to Craig Webb, editor-in-chief of Remodeling Magazine, “Manufacturers and builders are constantly getting greener and greener in the way they source materials and put up homes.”  As a result, “Energy efficiency is becoming an assumption, not an add-on.” Next year, remodels will include more renewable materials such as bamboo, energy-efficient appliances and additional designs that incorporate the local climate

 

Realtor.com


Do You Need Flood Insurance?

Thursday, October 24th, 2013

Major weather events such as Hurricanes Katrina and Sandy have demonstrated the devastation that sudden flooding can cause. While major storms like these thankfully don’t happen on a regular basis, even a small amount of flooding can be a major concern for a home owner. It doesn’t necessarily take a big storm to cause trouble: Heavy rains or melting snow can lead to flooding if drainage is insufficient. Anywhere there’s rain, there can be flooding. But how do you know if you need flood insurance?

Fixing flood damage can cost thousands of dollars. Standard home owner’s insurance doesn’t typically cover flooding. The National Flood Insurance Program (NFIP) offers flood insurance to home owners and renters. People who live in high-risk areas are legally obligated to take out flood insurance if they have a federally backed mortgage. If you live in an area that benefits from a program like NFIP, you will need to take out flood insurance to get a mortgage. Even if you do not live in one of the NFIP communities, your mortgage provider may insist that you take out flood insurance. If none of these provisions applies to you, insurance is your choice, but it’s probably a very good decision. You can find out more about the practicalities of buying flood insurance from the Federal Emergency Management Agency (FEMA).

You may be required to take out flood insurance if your mortgage lender specifies this in your policy. Make sure to check out any small print in your mortgage contract. Mortgage lenders often have the right to change the requirement for flood insurance even after your mortgage payments begin. If this happens, your mortgage lender should contact you to let you know that you should buy flood insurance. There are also designated flood-hazard areas defined and categorized by FEMA; these are at higher risk for flooding. It may be hard to buy a home in these areas without adequate flood insurance.

Flood risk often changes over time. FEMA updates flood hazards across the country. Flood maps, also known as Digital Flood Insurance Rate Maps, show flood risk at a property-by-property level. When new maps are issued, your risk may change, as well as whether you will require flood insurance. If your property is mapped out of a high-risk area, your insurance rates can go down. However, if you are mapped into a high-risk area, you will probably be required to purchase flood insurance, if your mortgage is held through a federally regulated or insured lender. You can check out the update schedule on the FloodSmart website

FEMA advises that even houses in low flood-risk areas should have flood coverage. According to FEMA records, since 1978 over a quarter of all flood claims have come from home owners in areas with low or moderate flood risks. According to statistics gathered by the NFIP, within a 30-year mortgage, a home owner has a 9 percent chance of making a claim for fire damage, compared with a 26 percent chance of making a flood-damage claim.

 

Realtor.com


What You Need To Know About Easements

Monday, October 21st, 2013

As you search for a home, you may have come across the term easement in a listing and wondered what it means. An easement is a legal arrangement by the owner of the property and a non-owner to use the property in some fashion. You may see this term used in listings where a home is located near a public recreational area. For example, the property may come with a walking easement to the nearby lake.

If there are any existing easements between the current seller and a neighbor, the seller’s attorney or the seller’s agent needs to advise the buyer. It’s important to know if easements exist and how they affect the purchase or usage of the home being bought. Easements often allow the use of a pathway between adjacent properties or a pathway to reach a common play area, yard or even a fish pond.

The most common easement is called the right of way, allowing people to pass through. Easement of support refers to excavations of property. Delivery people and meter readers all have the right to step on your property by easement of right of way. Less common are easements of light and air and rights regarding artificial waterways. Easements can be hotly contested, especially where rights to oceanfront property or conservation land are in dispute.

Easements are mostly created by a binding written document. As a rule, courts base the allowance to have an easement on intention of the original parties in each situation. Courts prefer written easements and also consider account customs, habits and practices for the property.

A real estate attorney working  for a home buyer can investigate any current easements connected to the property. The attorney will explain the ramifications to the buyers. Because easements are a property law issue, they are usually straightforward. An easement can be canceled in writing, by expiration date, in estoppel and even by death. For further clarification about your specific situation, consult with a real estate attorney on what easements mean to your home purchase.

 

Realtor.com 2013


Home Repairs To Do Before You Refinance

Monday, October 21st, 2013

Property values have come roaring back. Many can now refinance their loans by virtue of having additional home equity. And increased property values can also put homeowners in a better financial position to sell their home without entering short sale territory. But the fact remains: Everyone wants to attain maximum value for their real estate and home repairs can help. So what’s the best barometer of a home’s true worth? Simple: the amount a ready, willing and able buyer is willing to pay at any given point in time. Unfortunately, appraisal estimates can be skewed, especially when not all the home repairs and improvements are taken into consideration. This is why you should weigh all home improvement decisions carefully before you commit.

When You’re Refinancing

Unlike in years past, the weight of an appraisal to determine the home value for the purposes of refinancing a mortgage is based upon the facts (which are primarily based on other homes that have sold) and what the property description is.

Improvements that may help a refinance valuation:

  • Additional bedroom or bathroom
  • Addition to the lot size
  • Addition to the garage
  • Improvement that expands the “use” of the home

When it comes to improvements such as landscaping, painting, any home improvement more “cosmetic” in nature, realize that the primary benefit is for the enjoyment of the property, not for trying to influence value.

When Selling

A home buyer is going to take into consideration all of the facts associated with the property, location, lot size, square footage, bedrooms and bathrooms, as well as additional cosmetic improvements that have been done that add to the look and feel of the home.

Improvements that may help a sale price:

  • New paint job
  • Freshly maintained landscaping
  • Remodeled and/or upgraded interior
  • Deck and/or patio addition
  • Additional bedroom or bathroom
  • Addition to the lot size
  • Addition to the garage

What’s the Biggest Bang for Your Buck?

These include the high-ticket items that increase square footage. An additional bedroom or an additional bathroom increases the square footage, which in turn allows an appraiser to make higher adjustments when determining valuation against other comparable homes around the subject property.

Refinancing

Let’s say you have funds ready for possibly improving your home for long-term enjoyment. Instead of using the funds to make home improvements in an attempt to enjoy your home more, you might actually see a greater benefit if you used that money toward a refinance. Over time, the money you save from refinancing could then be put toward those home improvements down the road.

Selling in the Near Future

Typically, you won’t get a dollar-for-dollar recapture on the home improvement cost, even when selling. Because the weight is given to improvements that expand the use of the house (i.e. bedroom, bathrooms, etc.), it’s more common to expect 20 cents on the dollar, or maybe 30 cents on the dollar, depending on the improvement in such a scenario. Because the market is the strongest indicator of price, the market will dictate sales price followed by additional improvements and subsequent marketing of the home.

 

Realtor.com 2013


Benefits and Drawbacks of Homeowners Associations

Wednesday, September 11th, 2013

Talk to 10 different people about homeowners associations (HOAs), and you’ll likely get 10 different opinions. Some people love living in a development with an HOA, while others find it too restrictive. Depending on your lifestyle and needs, it can be a great experience or one that feels too intrusive. Today about one in five Americans live in a house with home-owner or condo fees.

HOAs began in the mid-19th century but didn’t really gain in popularity until the early 1960s, as an outgrowth of the postwar housing boom and the growth of the middle class. Typically, an HOA is incorporated by the developer during the development and sales process, and gradually control and ownership are transferred to the home purchasers upon completion of the project. The original owner/developer quits membership in the association and has nothing more to do with it. Anyone purchasing a home in an existing housing development with an HOA must become a member. There is no other option. The overall purpose of the HOA is to represent the residents. Depending on how active these associations are, they can be quite effective in providing forums for common home-owner representation and needs.

HOAs Are Like Small Towns

A homeowners association governs the development like a small town. The HOA’s powers include imposing fines, organizing activities and providing certain services. It can also levy assessments and force home owners to pay them. Many HOAs have yearly dues, and a homeowners association can legally impose monetary fines to enforce its decisions. The groups usually appoint a board of directors, which may then elect an association president and other officers. Meetings are typically monthly but can be quarterly, depending on the size of the group.

If the HOA is larger, it will likely be broken down into committees. Committees are also appointed for various activities: maintenance, membership dues and neighborhood representation. An accounting committee or, in smaller HOAs, an individual is assigned to present the annual budget and monitor expenses and funds collected. During the foreclosure crisis, some HOAs began to lose revenue as people living in homes facing foreclosure stopped paying their fees.

HOAs Can Promote Neighborhood Harmony and Uniformity

HOAs offer many benefits to the home owner. According to the bylaws of the association, it can collectively represent the group for whatever purposes assigned. For example, to maintain a certain degree of conformity, the association can stipulate which changes are permitted for the exterior of the buildings. Sometimes the HOA can determine acceptable noise levels. If there are common areas, such as gardens and pools, the members can appoint an internal management committee or elect to bring in an outside maintenance company. On snowy days, a snow-removal company may need to be called in, and this service will be paid for out of the association’s funds. For condos or groups with shared structures or parking lots, fees can go to upkeep.

HOAs Can Be Restrictive and a Financial Drain

If you want to change the color of your house or even add a new tree, you may run afoul of your local organization. Also, if your HOA decides to undertake a major capital improvement project and the governing group approves it, you may be left with no choice but to pay your share. If you fail to pay your dues or you go against the HOA rules, you could be assessed fees and late charges. If you disagree with some of the rules, it can be very hard to get them changed.

Overall, most people see an HOA as a positive. According to the Foundation for Community Association Research (FCAR), 70 percent of residents in common-interest communities say they are satisfied with their community-association experience. The FCAR’s research also found that 76 percent believe their own community-association rules “protect and enhance” property values.

 

Realtor.com


What Goes With You When You Sell Your Home?

Wednesday, August 7th, 2013

When you are getting ready to sell one of the things you will need to consider is what stays in the home and what goes. There are certain things that are generally considered to be part of the home and others which are often negotiable. Before you put the home up for sale you will want to figure out what things you absolutely want to take with you and what might be up for discussion. If you know where you will be moving to next then you are already one step ahead of the game because you know what is in your new place. If not, or if you are moving far away, it can be trickier to decide what is worth moving or putting in storage and what is worth offering to the buyers of your home.

Generally things that are not attached go with the seller. If there are things you are absolutely certain you want to take with you that are attached, make sure you tell your Realtor and so that they are included in the listing and you don’t end up breaking any potential buyer’s heart.

Some people, especially if they are downsizing or moving far away, may choose to include the furniture as part of the package. This can be tricky because furniture will not factor into an appraisal value so if it adds significant numbers to the sale price then the sale may need to be done separately. These items can also be included as a value add for the potential buyer.

There are several areas which generally feature in this type of discussion:

Lighting: Lighting fixtures are often something that people are attached to because they often reflect personal style. In general things that are attached to the home such as lighting fixtures are generally considered to be part of the home. For example, when I bought my condo, the owners wanted to take their crystal chandelier in the dining room with them. For me this wasn’t an issue, the chandelier wasn’t my style and I was happy with having the chance to replace it with something else. However if I hadn’t known this in advance and I had my heart set on the way the dining room looked with the chandelier it  could have been an issue. Fixtures are to remain in the home unless the seller explicitly stated the item is not to be included in the sale. The seller also needs ensure that the item be removed without damage to the home. Lamps are moveable items and are considered personal items that can be claimed by the seller when they vacate the home.

Appliances: Appliances are often an area where the buyer and seller can negotiate.  In some cases, the buyer may actually prefer that the seller remove appliances because they have their own. Other times, the seller may be ready to take the appliances but could use them as an incentive to get the buyer to pay the list price because the buyer won’t have to pay for new appliances. If you are absolutely certain that you want to take the appliances with you make sure your agent notes that. If you are willing to negotiate let your agent know that too. Most appliances are moveable items that the seller would normally be allowed to remove from the home. Moveable items are considered personal items or possessions of the seller.

Landscaping: Plants, shrubs and trees are items that are affixed to the property and will remain with the home however if you have container gardens or perhaps flower-filled urns on the front porch those can be negotiable. Backyard equipment, such as lawn chairs, tables, swings and grills, are all considered personal items. The swing set may get a bit tricky because it can be claimed that it is attached to the ground in some cases. The seller may often be very willing to sell all of the backyard items for a price.

Window Treatments: Window treatments are another area that can be negotiated. Often window treatments were bought to fit the specific size and shape of the windows and so the seller may not be interested in taking them to a new home. If you are planning to leave the window treatments behind be sure to let your agent know so that it can be added to the listing. This is often a great selling point to use because it means the person can move in and not have to worry about privacy.

 

Realtor.com


The Pros and Cons of Buying the Builders Model Home

Wednesday, August 7th, 2013

When you tour a new development, you are often shown the model home. The home has the all the gleaming finishes and perfect layout you desire. The model home is a marketing tool designed to show how beautiful your home can be — so why not buy the model itself? In many developments, the model is sold at a discount, because it isn’t as new as the other, freshly created homes.

Before you sign on the dotted line, there are some things to consider. While the home is new, it has seen a lot of foot traffic and use; it’s generally more “slightly used” than a completely new, untouched home. Another issue to consider: If the development is new, the model may not be available for immediate occupancy, because it is still being used to attract other home owners. It’s always important when moving into any new development to find out how many other owners are currently residing in your new neighborhood.

Pro: The model has the top-of-the-line finishes. Generally the builder will use the most desirable options to outfit the model home, including upgrades that would cost extra in other homes.

Con: The finishes may not work with your decor. If you buy a new, unfinished home, you may be able to choose some of the finishes yourself. Also, while the home is technically new, it is also slightly used. You have no way of knowing how many people have tromped through, flicking on light switches, turning on taps, and metaphorically kicking the tires on the home.

Pro: It’s beautifully decorated. The model home has generally been staged and styled by an interior designer for maximum appeal.

Con: It’s not decorated to your taste. If you don’t like the style of the model home, you may end up spending money redecorating to make the home align with your personal preferences. Also, if you have your own furniture, you may not want to pay for new furnishings. Make sure that the carpet and flooring aren’t too worn. If you notice any wear and tear, build those allowances into your offer.

Pro: The home has been landscaped to provide a more appealing look.

Con: Because the landscaping may be designed for low maintenance and lower water bills, it may not have the lush green lawn you desire. Also consider the location of the home: The model is often in the front of a development, while other homes may offer more privacy.

Pro: The appliances are often included and are generally top-of-the-line.

Con: If the home has been a model home for some time, the appliances may be a year or two old and could be outside the warranty. Ask the builder about warranties on all appliances included in the sale. Because the heating and cooling systems may have been working overtime for months, you may want to get a home warranty to cover any potential issues.

Work with a buyer’s agent who can help you negotiate so that you get the best deal possible. Even though you are buying a new home, make sure it has a through inspection. The model home is often where builders test out new ideas, and you want to be sure that the construction is solid and that no corners were cut.

 

Realtor.com


Five Reasons Pending Sales Fall Through

Thursday, June 13th, 2013

Buying a home can be a very emotional experience, even when it appears to going smoothly. When something goes wrong, it can be stressful. Your agent will likely prepare you for the possibility that a pending sale won’t go through, but when it happens to you, it can be heartbreaking. Help prepare yourself by learning a few reasons that pending sales fall apart.

1. You change your mind. Cold feet or, as it’s often dubbed, “buyer’s remorse,” happens surprisingly often: fear of commitment, fear of being overextended, fear that the house is not “the one.” Sometimes instincts are correct, but often people let the natural anxiety of home buying wrap around the home itself. The best way to prevent this is to prepare yourself before the process starts. Be practical about your needs, and be honest about whether a house meets them. Don’t allow yourself to be pressured into a home that doesn’t feel right. Limit your discussions about the house to your agent, family and close friends. More input and advice, even the most well-intentioned, can cause confusion.

2. You are unable to obtain financing. Sometimes a mortgage loan falls apart.  That’s why it’s important to be prequalified for loans, to avoid last-minute heartbreak. The rejection by a mortgage lender can be based on a poor credit score or negative items on a credit report. A buyer in need of a loan can correct errors on a credit report, but this generally takes a bit of time. Buyers need to be wary about taking out large loans for cars, furniture or appliances, as well as making major purchases on credit cards. These actions could compromise your loan if the lender runs a supplemental credit check.  A buyer can also offer to make a larger down payment, thus reducing the mortgage balance. If you are careful during the loan process, then you should be well on your way to financing your new house.

3. The home failed inspection. Hiring a professionally licensed home inspector can aid in detecting plumbing and electrical issues, roofing and drainage problems, or faulty heating systems. Repairs can often be negotiated into a contract so that either the buyer receives a credit or the seller agrees to make the necessary repair before the closing. Sometimes, however, your inspector can turn up something that is too large to repair, such as a structural issue.

4. You haven’t sold the home you already own yet. If you haven’t sold your house yet, and if your contract with the home owner is contingent upon selling, you may not be able to go through with the purchase. Most people cannot afford to pay two mortgages at the same time. Some buyers are able to take out a bridge loan, a form of short-term financing, to bridge the gap. New home buyers who have not yet put their old house on the market can save money with a home-equity line of credit. In this type of financial agreement, a lender extends a loan for a certain period, during which the collateral is the borrower’s equity in their own house. These two solutions can help you avoid the prospect of losing out on the home you want.

5. Your appraisal comes in too low. The lender will generally loan up to the appraised value of the home, so if the appraisal comes in lower than the potential mortgage, the buyer cannot purchase. At this point it’s time to negotiate. Either the seller needs to reduce the price to the appraisal value or the buyer must come up with the difference in cash.

All of these scenarios demonstrate why it’s important to maintain close contact with your agent throughout the process. The agent has weathered many sales and has probably saved more than a few from disaster. It’s much easier to go through this exciting and emotional life transition with a knowledgeable real estate professional at your side.

Realtor.com




Entries (RSS)