The American Dream!

One of the great freedoms we enjoy in America is the opportunity to pursue the American Dream of owning a home. On July 4th 1776 the Declaration of Independence was adopted declaring our freedom from Great Britain. We continue to enjoy those freedoms today because of the sacrifices made by the men, women & families of our armed services. Now is the perfect time to pursue your dream of owning a home, interest rates are at historic lows and home inventories are up. Have a safe & fun 4th and show your support for our troops!

Home Insurance

Buying a home is more than likely the single biggest purchase you will make in your lifetime. Therefore, it only makes sense to protect that investment by insuring it. There are four types of coverage that are contained in a homeowner’s policy: dwelling & personal property, personal liability, medical payments, and additional living expenses. Make sure to read over each section carefully and know what is or what is not included for each type of coverage. When you are shopping around for your insurance, make sure your values and deductibles are all the same so you can compare apples to apples and pick which insurance company is providing the best deal!

Buyers Wants vs. Needs

Buying a new home can be an intense & time consuming process. When looking to buy a home, create a “shopping list” of what you are looking for in your new home. Next you will want to determine if the items on your shopping list are a must have or a would like item such as a ranch home vs. a 2 story or an attached garage vs. a detached garage. By creating a check list of your needs & wants for a home, you can more effectively evaluate the home. Another big mistake buyers make is mistaking a want for need when they are looking at different features.

Bonus Tip:

Click on the link below to download a Home Shopping list.

Buyers-need-vs-wants

Why get a home inspection?

Buying a home is one of the most important purchases you will make in your life, so you should be sure that the home you want to buy is in good condition. A home inspection is an evaluation of a home’s condition by a trained & certified expert. During a home inspection, a qualified inspector takes an in-depth and impartial look at the property you plan to buy from top to bottom. After the inspection you will receive a copy of your home inspection report and that is a good time to ask your inspector any questions you might have. Remember a home inspection in not a pass or fail test. It is an observation of the existing condition of the home.

Bonus Tip:

A list of local home inspectors in the Kenai & Soldotna area, Kenai Peninsula

• RS Inspection Services, Robert C. Springer, 907.283.3969
• Carpenter Inspection Services, David Carpenter 907.776.7542
• Central Alaska Engineering Co, Jerry Herring 907.260.5311
• Highpoint Inspections Inc, Mark Hanson 907.262.7944
• National Property Inspections, Larry Cobb 907.567-1054
• Triple M LLC, Duke McGee 907.283.4732
• Wisdom & Associates, Steve Wisdom 907.283.0629

What is earnest money?

What is earnest money and why do you need it? Earnest money is the money that you put down when you are making an offer on a piece of property to show your good faith. If your offer is accepted, then the earnest money becomes part of your down payment or closing costs. If your offer is rejected then your money is returned to you. If your offer is accepted and then you decide to back of out of the contact, you may lose your earnest money. Consult with your REALTOR® to discuss your options & potential liability before making an offer.

Right time to Buy?

I’m frequently asked when is the best time to buy or sell? And the answer is always the same, now! If you are sitting on the fence and thinking you will wait and see what happens with the market, you could be waiting a long time. Our local Kenai Peninsula market is still in good shape and hasn’t seen the decreases we hear so much about elsewhere. Interest rates are still near all time lows and the market has shifted from a seller’s market to buyers market. The best time to buy is when everybody else is selling!

Got Credit?

A bad credit score can mean the difference between getting a loan or not getting a loan! If you have bad credit it’s better to start working on it early and get it fixed before you try buy a home. Start by obtaining a copy of your credit report. Once you have a copy of your credit report, review it carefully and look for mistakes. If you find some problems, make sure to dispute them with all 3 credit agencies. Not paying your bills on time is a very common cause of poor credit. Make sure you are caught up on all of your bills and keep paying them on time to increase your credit score.

Bonus Tips!

Why should you be concerned about your FICA score? Your FICA score plays a major role in the interest rate your lender is going to give you.

Click here for your FREE copy of your credit report available from AnnualCreditReport.com. This is the only approved source for your yearly free credit reports. You can receive a report from all 3 credit agencies at once or spread them out over the year.

Skip the toys & new car until after you have closed on your new home. Buying big ticket items before you close on your home can have a drastic effect on your credit and could affect your loan approval.

Credit cards also carry weight when it comes to your credit score. Don’t go open a bunch of new cards in hopes that it will boost your score; it will more than likely have the opposite effect. If you carry a balance each month, try paying those amounts down instead of transferring it to another card. They also like to see your balance between 30 & 50% of your credit limit. If you have a $10,000 credit limit, your revolving balance should be between $3,000 and $5,000 to maximize your credit score. A higher balance will have a negative impact on your FICA score.

Closing Cost & Down Payment

You have found your dream home. Now it’s to see if you can make it a reality.  Can you afford the monthly payment & closing costs? Make sure your lender provides you a copy of your Good Faith Estimate (GFE) and you fully understand all of the costs & expenses on it. A GFE provides you with a breakdown of your expected closing cost and how much of a down payment you will be required to have.  You will also want to clarify if your total monthly payment is going to include your property taxes and insurance.  These can add several hundred dollars onto your monthly payment.  If you get to your closing and your closing costs differ greatly from your GFE, contact your lender immediately and ask for an explanation. 

Getting your Low Ball offer accepted!

So, you’ve decided to make an offer on a property that is substantially lower than the listing price, often called a “low ball offer”.  Before submitting your offer, there are several things to consider which might help you get your offer accepted.  Do you have specific data that shows your offer is in line with recent sales?  Are there contingencies in your contract?  Fewer contingencies increase your chances of getting accepted.  Make your offer as appealing in other areas of your contract as possible.  For example, offer to close within a very short time frame, allow the sellers to stay in the home for a month or two until they find a new home.