You need another vehicle. You need another home. Be that as it may, will purchasing the previous effect your capacity to purchase the last mentioned?
The Affects Of Changing FICO Rating
A new article from realtor.com laid out the manners in which taking out a vehicle advance could affect your capacity to get a home loan (and to get the best rate on that home loan), including: Changing your FICO rating. At the point when you apply for a vehicle advance, it’ll appear as a hard request on your credit report. While hard requests don’t affect your credit, temporarily, they can bring down your FICO assessment by a couple of focuses—which, contingent upon your score, could endanger your capacity to get the most aggressive rate (or to meet all requirements for a home loan by any means).
Changing your relationship of outstanding debt to take home pay. Relationship of debt to salary after taxes is perhaps the main variables lender use to decide how much house you can bear—and, all things considered, what home loan sum you’re supported for. Taking out a vehicle advance prior to purchasing a house impacts your relationship of outstanding debt to take home pay and can bring about you getting supported for a more modest advance.
Going about as a “warning” to your bank. Making a major buy (like a vehicle) and assuming more obligation before purchasing a home can be a warning to loan specialists that you’re not mindful with your funds—which could affect your capacity to get supported.
All in all, what’s the significance here for you? In case you’re contemplating purchasing another home and another vehicle, you might need to consider holding on to purchase the vehicle until after your home buy is completely wrapped up.
Oakland County Michigan Professional Realtor-Tom Gilliam has earned a reputation of being a renowned local expert in Homes for Sale in Farmington Hills, Novi, Northville, West Bloomfield, Ferndale, Royal Oak, Birmingham to name just a few in the Oakland County Michigan area. As an Oakland County Michigan Professional Realtor I take pride in my knowledge of the current market conditions in all of the region’s micro-markets, and I offer my clients an intimate glimpse into the neighborhoods that might become their next home or one they sell a home in. With more than 19 years of experience in the local real estate markets, Oakland County Michigan Professional Realtor-Tom Gilliam is qualified to help first time home buyers and home sellers in Farmington Hills,Novi, Northville,West Bloomfield, Ferndale, Royal Oak, Birmingham, South Lyon just to name a few. Search all homes for sale in Farmington Hills and the surrounding areas for all the freshest home listings in one spot.
These days in the complex world of buying or selling a home and with the winter weather here in Oakland County, Michigan it’s a great time to find some great books to read, especially if your thinking of buying or selling a home in the near future. There are many differences in buying a home as appose to selling one and being fully prepared when the time is right can be the difference between thousands of dollars out of your pocket. Let’s face it, buying a home or selling a home is one of the most important financial decisions you can make in your life, so a little homework before hand is a very smart move.
As your Realtor it is my job to guide you through the home buying and home selling process and help the transaction as seamless as possible, but if I can share important information beforehand it is my pleasure to do so. The six books that I would recommend are listed below and they also are in audio form in case your like me and like to listen in my car (my second home). These books are such a value-add that I felt compelled to share them with you. Also, I’m always here for any advice or help that I can provide to you personally. Hope you enjoy!
For Home Buyers
1. Homebuying For Dummies, Eric Tyson and Ray Brown
Homebuying For Dummies, now in its 4th edition, is the quintessential guide for any newbie homeowner getting ready to make the purchase of a lifetime. Just like the rest of the contributions to the massively popular For Dummies series, this book gives step-by-step instructions on how to buy your first property. The volume covers everything from finding the right property, understanding your lending options and the tax implications of purchasing a home.
2. Mortgages For Dummies, Eric Tyson and Ray Brown
Sticking with the For Dummies series, first-time homebuyers who don’t fully understand what it means to purchase a house with a loan should definitely check out Mortgages For Dummies. Not only does this volume break down the basics of mortgages, like what they are, the difference between fixed rate and variable rate mortgages and how to secure your loan, it also breaks down how to determine how much house you can afford, how to get your finances in check before you apply and even tips for raising your credit score to clinch a lower interest rate.
3. 100 Questions Every First-Time Home buyer Should Ask, Ilyce R. Glink
Written in easy to understand question and answer format, this first-time home buyer guide from real estate expert Glick digs deep into virtually any question a first-time home buyer might have in today’s market.
In 100 Questions Every First-Time Home buyer Should Ask, Glick leveraged expertise from top real estate brokers around the world to create what is essentially the encyclopedia for buying your first home. Questions run the gamut from how to have your potential purchase tested for harmful substances like mold or radon to how the purchasing process has evolved in recent years – and how you can make those changes work for you.
For Home Sellers
4. House Selling For Dummies, Eric Tyson and Ray Brown
Tyson and Brown created another essential how-to guide, this time for sellers, with House Selling For Dummies. This edition will give you all the information you need to make the most out of the home selling process and get the maximum profit for your home. Topics include how to best prepare your home to put on the market, the best time of year to list your home, how to find the best real estate agent and negotiating tips to ensure you get the best offer on your property.
5. How To Sell A House Fast in a Slow Real Estate Market: A 30-Day Plan For Motivated Sellers, William Bronchick and Ray Cooper
Whether you’ve already purchased a new home or you’re in the red on your mortgage, there are going to be times you need to sell sooner rather than later. For those sellers who are looking to unload their property fast, How To Sell A House Fast in a Slow Real Estate Market: A 30-Day Plan For Motivated Sellers is a great guide for securing a quick selling process, even if the market in your area runs slow. This guide is full of practical advice on how to leverage marketing techniques, advertising and improvements to the property to get your house sold quickly and (relatively) easily.
6. The Complete Idiot’s Guide To Staging Your Home To Sell, Julie Dana
One of the major components of selling your home for a prime price is showcasing your property in its best light. Staging your home in a way that makes it most appealing to potential buyers can mean the difference between getting an offer you’re excited about or consistently falling short on your asking price. The Complete Idiot’s Guide To Staging Your Home To Sell gives you step-by-step instructions on how to effectively stage each room in your home for maximum impact. This book is especially helpful for the design-challenged and will have even the most novice interior designer staging rooms like a pro.
If you’re gearing up to buy or sell your home , grab a cup of tea, get comfortable and read these books. Your wallet – and sanity – will thank you.
Have you been searching for your dream house for long in Farmington Hills? Did you find one but the negotiations did not go your way? Your house search is contingent on negotiations… it can either make or break the deal. Of course, your real estate agent will be by your side guiding you throughout the process but at the end, you have to take the final decision.
Often people let go of a great deal on a home for sale in Farmington Hills, Michigan thinking that the price is too high. Until you have looked at the comps and have had a house inspection, do not make any rash decisions. Yes, the negotiating phase is nail-biting because you never know what kind of counteroffer the seller will come up with but you have to keep an open mind, so that the opportunity in front of you does not slip through your hands.
Following are six mistakes that you should know before approaching a seller:
Price Is the Only Thing You Should Focus On
So, you finally found a house that is $10k below your budget. While the price of the house is low but you are forgetting to factor in the cost of repairs and maintenance. Then there’s the landscaping, repainting and most important of all, the roof. Add all these costs to your monthly mortgage payments and the number will reach an astronomical level.
Don’t just look at the sticker price! You might get lucky if the seller is in a hurry to sell the house, which means an even lower price but still, make sure that you look at every feature of the house.
Unwilling To Negotiate on Small Repairs
Say the house has a deck and some of the floorboards are rotten. Instead of focusing on the plus point that it has a “deck”, getting stuck on its repair is not a good argument. You are saving thousands of dollars on the house and the repair will cost you top $100. So, keep an open mind when it comes to small repairs.
The home for sale in Farmington Hills, Michigan you just visited is the “one” you have been looking for. Fearing that another buyer might place an offer anytime now, you waive few of the formalities such as a house inspection. Bad move! You don’t know if the basement has termites or the plumbing is faulty. Such repairs can cost you thousands of dollars, which will blow out your budget and your savings account.
Getting Stuck on Your Offer Price
Say the house costs $200,000 and you come up with a counteroffer of $198,000. The seller doesn’t like your offer and won’t budge from his asking price. Are you going to walk away from the deal? You shouldn’t. Say if you have paid 20% down payment and are on a 4% interest rate loan, then the monthly payments will rise by just $8. In the bigger picture, it’s a small amount.
Backing Out of the Deal after the Inspection Revealed a Few Repairs
Are the repairs so big that you feel they will cause a problem in the future? If not, then sit down with the seller and have chat on how to deal with the repairs.
Offering a Low Ball Offer on a Farmington Hills home
A low ball offer usually feels like an insult to the seller. So, do your homework and ask your real estate agent for comps. Only then come with a price for the negotiations.
Remember, when the time comes to make an offer, look past the small stuff and focus on what matters such as the foundation of the house. If you want to buy a home for sale in Farmington Hills, Michigan that falls under your budget, then visit Homes2MoveYou. Get in touch with me today and start seeing houses in areas of your liking. Tom Gilliam 248-790-5594
It seems that the biggest hurdles and worries for penitential home owners is the down payment on a home, leaving potential home buyers feeling defeated in the first steps to moving and getting their own home. The potential home buyer still believes that it is the 20% traditional down payment that is needed to secure a mortgage and to purchase a home. This way of thinking and believing can stop any potential home buyer from even taking the first step into becoming a homeowner, but this has changed and many potential home buyers are unaware that the traditional days are long past us.
Down Payment Changes
Times have indeed changed for most potential home buyers, depending on your credit worthiness and other factors the 20% down day’s area thing of the past. Many potential home buyers are able to get a mortgage for a new home with not 10% down payment, but as low as 6%. That’s right, in 2017 over 61% of potential home buyers made a 6% and sometimes less down payment on their new homes according to National Association of Realtors’ Realtors Confidence® Index. Not only that, but I have seen in recent months new homebuyers getting down payments as low as 3%. For potential home buyers this is reason to celebrate.
Low down payment mortgages such as FHA and others have paved the way for potential home buyers to realize the American dream of home ownership without having to stash away and struggle with trying to save up to 20% on a down payment for their first home. This is good news for a whole new generation of potential home owners that were concerned and stressing about a large down payments in order to be able to purchase a new home.
The Take Away
If you have been unable to save up to 20% for a down payment, it’s time to start talking to some lenders to determine the right situation for you. Your dream of home ownership without the stress of depleting your savings or having enough for a down payment is awaiting you. I know some great lenders that I can suggest to you. Give me a call 248-790-5594 or Contact Me
As a Realtor for 17 years there I personally have never experienced a time like this for Farmington Hills housing inventory and the lack of it. The last time I checked the statistics there were less than 2 months’ worth of inventory currently in the Farmington Hills housing inventory which play into itself and effects more homes to become listings and available on the market for home buyers. It would seem that the very low Farmington Hills housing inventory prevents current home owners to get their homes on the market as they may find themselves in a situation as most home buyers are now.
The Farmington Hills Housing Inventory and the Domino Effects
Although this is a “sellers market” in Farmington hills, the prices of the few homes that are available are priced high, some out of reach for an average buyers income and growing. In a blog post “Farmington Hills Existing Home Sales Dip-Inventory to Blame?” explains how this effects the ability for buyers to purchase a new Farmington Hills home. As a professional realtor I have to put myself in a sellers position in order to clearly see the whole picture to try and determine the reasons for the low Farmington Hills housing inventory in order to service and understand both my home buyers and home sellers position in this market. It is clear that one thing is true, how can one sell if they cannot find another home to move to or find something affordable in the nearby market?
Recovering From The Farmington Hills Housing Inventory
I’m a Realtor not a “fortune teller” but being in this business for quite some time I do know as everything in Real Estate, what goes up must come down and we are starting to see this in our Farmington Hills neighborhoods. As of today there are 221 properties for sale in Farmington hills of those, 92 have had price reductions, which could be a good sign for home buyers currently looking to purchase. It is my belief and my many years of experience is that the sellers market will begin to cool off somewhat this fall in Farmington Hills and more inventory will become available for home buyers as home sellers will head in the winter season needing to sell their homes.
I’m here to help you in all of your Farmington Hills and Oakland County home buying and selling needs, I’m realistic, dependable and know the market that I work in. If you need any help, advise or guidance please give me a call 248-790-5594
Read the Original Article Here: Case Shiller: Home prices continue to reach new highs