It’s time for first-time homebuyers to turn their dream into a reality and own their very own home. Most first-time buyers have the same questions, which is why I’ve put together this down-and-dirty answer guide for the most common questions home buyers have.

1. What kind of credit score do I need to have? Generally, 630 or above is what you’ll want to have. The better your score, the better the terms will be on your loan. Some lenders may give you wiggle room on this, but it all depends on the circumstances. A loan professional can help you navigate this as you go.
2. How much of a down payment is required? Some loans will let you in for as low as 3% – 5% of the home’s value, but I would consider 5% to be the floor. More is better, especially if your credit isn’t as optimal as you’d like it to be. Working with a loan officer will help. Now, if you can put 20% down, there are benefits. You will have a smaller monthly mortgage payment, lower interest rate, and you will not need private mortgage insurance.
3. What’s the first step to home buying? The next step is getting pre-approval for a mortgage. Don’t shop for a home until you know what you can afford. There’s no use in falling in love with a $300,000 home in your dream neighborhood if the banks will only write you a loan of $150,000.
4. How much do I have to pay my real estate agent? As a buyer, you don’t have to pay your real estate agent, the seller is responsible for listing fees. Don’t worry, your agent receives a portion of those fees for helping with the transaction.
5. Why should I use a real estate agent? Like a lawyer, doctor, or other professional hired to represent your interests, the agent will not only advise you about the transaction but will protect and facilitate the process.
6.  How long does it take to buy a house? After you find the home you want to buy, it generally takes between 30 and 45 days. However, the home search can take longer, so have a clear idea of what you’re looking for and able to afford. (Your agent can help you with this. Another reason to have one on your side!)

Jumping back to down payments, here is a list of a few tips that can help you conquer saving for a down payment:

• Find out where your money goes. Track each expenditure, no matter how small. Where are you spending cash?
• Setup a separate savings account. Don’t let your dream home money mingle with your regular checking or savings account. Have a different account with a “hands-off” attitude.
• Pretend you already have a house payment.  Once you determine the approximate amount of a new house payment, start making that payment now. Instead of paying the bank, pay your savings account.

Naturally, there’s more to buying a home, but this covers the essential introduction to the process. As your agent, I will walk you through the rest, guiding you along the way. When you’re ready to make a move, reach out to me:  928-830-6976

If you’re home hunting in a competitive market, you’ve probably had the heartbreaking experience of losing out on the perfect house. It can be incredibly frustrating to find out the seller rejected your offer in favor of another buyer. How can you do your best to make sure it doesn’t happen again?

When a seller entertains multiple offers, it’s essential to understand that many different factors are in play. If you’re an all-cash buyer, you tend to have an advantage, as cash removes potential financing roadblocks. But if you’re like most people, paying cash for a house isn’t an option. What do you do then to make your offer competitive?

First and foremost, make sure you have 100% of your financial house in order. When you are financially prepared, you have pre-qualification for a mortgage as well as proof of funds. Being organized and ready to go will help give you a small edge from the start. Also, be sure you work with an agent who is highly responsive to requests. Sellers don’t need to wait around for agents to provide necessary information when multiple offers are landing in their inbox.

Beyond these factors, there’s another way to boost your offer’s profile: Personalize it.

While most sellers want to go with someone who will pay the most for their home, you should never discount the emotional dynamic to the home selling and buying experience. Though sellers are ready to move on, they often want to feel like their home is going to someone who genuinely appreciates it and needs it.

Work with your agent to craft a personal letter as to why you love the seller’s home. What features do you love? How will this home help you personally, professionally, or with your family needs? Include a photo of yourself and your family. Putting a human face on the offer can transform your offer from one more name in a pile of numbers into a genuine person worthy of living in the seller’s home. Have pets and kids? Bring them into the picture!

Tips to Keep in Mind While Writing Your Letter

• Build a Connection: Look for a connection that you and the seller share. This connection could be being in the same line of work or noticing a hunting sign. Build on that connection.
• Keep it Short: Don’t write a novel. Share your point, build a connection, and add a few reasons why you’re the best buyer.
• Leave Out Remodeling Plans: If you plan on remodeling, be mindful of the seller’s protectiveness over their home. While they are selling their house, they still have emotional attachments to different areas of their home. They may not be fond of knowing that you want to destroy parts of it.

Have your agent personally deliver the offer. Most of the offers are going to be electronically transferred, dumped into a crowded email inbox. An electronic offer can be convenient, whereas delivering a beautifully prepared package complete with a personalized letter and picture can impact the seller.

I will go the extra mile in helping you attain your dream home. Get in contact with me today: 928-830-6976

It is hard to miss all of the Flip/House Make-Over shows on television. Some of the transformations are incredible, but some transformations seem ‘too good to be true.’ Okay, maybe they are ‘true,’ but are the make-overs good enough to last long-term?

When inventory is tight and newly renovated homes are wooing prospective buyers, you need to take a step back and remember that the home you’re hunting for is a long-term investment. While futuristic appliances and gleaming hardwood floors may seduce you into making a quick offer, understand that there’s much more to a home than what lies on the surface.

Investors who renovate homes want to maximize their profit as quickly as possible. While many are upstanding folks, there are those out there who will cut corners to boost their return. Sometimes when a home is renovated, an investor will do a “lipstick flip.” This means fixing up what’s cosmetic and leaving the rest as-is. Paint, flooring, appliances, fixtures –all may get a tune-up. But this doesn’t necessarily take into account foundation issues, leaks, plumbing problems, and work performed without permits.

Foundational and mechanical problems are a significant concern, but I would like to caution buyers that cosmetic changes need to be inspected for quality. It doesn’t take much to have a new DIY floor that is installed quickly to present problems. Just take a quick look at the quality of the products used and the renovation details before getting ‘wowed’ by the fresh new paint.

Once buyers close on a home, they’re responsible for the home. This includes issues that may be costly to repair or remain simply unsafe for habitation. This is why it’s vitally important you take the necessary steps to protect yourself before signing off. Here are some tips to prevent the headache and heartache of a bad “lipstick flip” home:

• Do not waive the inspection. In addition to the usual areas, have inspections for exposed wiring in the attic and mold. Include a termite inspection.
• Ask for a complete list of all work done with receipts for the work.
• For all work done, make sure the seller used a licensed contractor.
• Ensure the work on the home passed inspection and is up to code. Request a copy of the certificate of occupancy.
• Ask the seller for a current disclosure statement, as required by law.

If the seller balks at these requests, it may be necessary to pass on the home. If issues come up during inspection, you may change your mind about the house, or you may negotiate for repairs or closing credits, depending on your agent’s advice.

Don’t worry, not all flipped homes are money pits. Prescott has many homes to offer. Some are recently renovated, some are simply beautiful. But as a trusted real estate advisor, I like to be certain my clients don’t get burned! Let me use my years of experience and help you look for your next home: 928.830.6976