Category Archives: Buying a home

Home Buying Myrtle Beach

Home Buying Guide: Contract For Deed?

Home buying on an agreement for deed might have some disadvantages to it, however, there are a lot of benefits specifically if you have poor or no credit rating. If you had some previous monetary concerns, like repossession, personal bankruptcy or foreclosure, you are less likely to be approved for a conventional home mortgage. This narrows down your choices of acquiring a home in the future. What you can do is you can either do a lease option/rent to have, an agreement for deed or think of a few other methods of creative funding.

Prior to checking out the benefits of home buying on an agreement for deed, you need to ensure you know all the drawbacks that come with it. We very recommend that you find a knowledgeable real estate agent who can help you comprehend all the advantages and disadvantages of acquiring a house on a contract for deed. In this short article, we will concentrate on the benefits of it and give you some basic pointers and suggestions concerning what to expect from a normal contract for deed purchase.

Advantages and Reasons To Acquire A House on A Contract for Deed

  • You can purchase a house with negative or no credit score! If you have an inadequate credit rating, no financial institution will give you a loan so your option is to purchase a home on a contract for deed.
  • You can be a homeowner once again. Reality is, renting is not a budget-friendly option. There are also limitations such as you can not repaint the wall with the color you want, you can not have family pets, bonfires, and some landlords drive their renters crazy.
  • Rather than tossing loan on a lease, you can begin developing equity in your very own home.
  • There is no need to fill out extensive applications, credit history checks, and authorizations. Some vendors will certainly ask for some credit rating or rental background – do not be fretted, they simply desire to obtain to understand you a little bit extra so they understand what your monetary circumstance is. Keep in mind, they are likewise running a danger, type of a sound judgment to do.
  • You literary can close a contract for deed within days of the deal. As long as you obtain everyone in line, have your assessment done and provide a day or two for the title firm to do title searches – you are good to go.
  • No lender fees at closing. When purchasing a residence with a home mortgage, you will certainly have financing pioneer charges, service charge, application costs, and so on. With a contract for deed,  you only get to pay the title company.
  • As opposed to renting out for a lengthy 5 years before you are qualified to acquire a residence once again, you can get a house immediately and deal with your credit history.
  • You can enhance the home and personalize it to your needs. As long as the vendor gets on board with you, you are good to go. Include decks, patios, and saunas and whatever you imagine.
  • Do not be limited by your rental arrangement like you would certainly be when renting out. It is your home – appreciate the possession of it!

Ideas To Consider When Acquiring a Home on a Contract for Deed:

  • Home buying on a contract for deed means to recognize fraudsters! Since there are not that many associated with the transaction – fewer regulations are involved which develops an ideal breeding place for fraudsters.
  • Ensure you are making use of a title firm!
  • See to it there is no home mortgage on the residential property, if there is – make certain there is no “Due for sale” provision
  • Obtain legal advice
  • Examine optimum allowed usury prices, do not overspend for interest!
  • See to it you are working with enhancing your credit history!
  • Do not authorize any type of documents prior to signing!
  • Do your research so you completely recognize what you are getting yourself into

These are simply a few of the significant benefits of buying a home on a contract for deed. See to it you know its negative aspects and see to it you have a backup strategy in case it does not turn out as planned. If you need to scoot, bear in mind that purchasing a house can be a headache, particularly when it pertains to a contract for deed.

Looking for a trained and licensed real estate professional to work with? Call Cheryl now.

Full Potential Real Estate, LLC
Myrtle Beach, SC 29577
843-492-4537
http://fullpotentialrealestate.com

homes for sale in Myrtle Beach

KEYS TO QUICKLY SELL HOMES IN MYRTLE BEACH

homes for sale in Myrtle BeachNot all homes for sale Myrtle Beach are sold quickly. Some stay on the listing for months. According to real estate experts, if a house is not sold in six weeks, there is something wrong with its location, price and/or condition.

Another factor that home sellers should look at is their collaboration with their real estate agent. If you are selling a house, it is extremely important that you work with a trained and highly experienced real estate agent, such as those from Full Potential Real Estate, LLC. You and your agent should always be on the same page and should always work together because you have the same goal – to sell the house quickly.

It is all about location, price and condition

What most home sellers do not realize is that homebuyers easily lose interest in a house that has been on a listing for a couple of months. This gives the house the impression of being flawed or overpriced. Generally, they will skip your listing and move on to the next house.

To avoid this from happening, you need to look at your listing and make necessary changes to the price and/or current condition of the house. The best way to do this is to remove the house from the MLS and make the necessary repairs and improvements to the house. Make sure you highlight these improvements as you create a new listing for the house.

Work with your real estate agent when planning for the repairs and renovations because sometimes, you do not have to go through major improvements. Keep in mind that some homes for sale Myrtle Beach are quickly sold after being re-listed simply because of staging and de-cluttering.

If you think there is nothing else to change and improve with regards to the appearance and condition of the house, you and your real estate agent should consider reducing the price of the house. Make sure that the new price you decide on is still competitive. Looking at the prices of other similar homes in the same area can help you decide on a competitive price for your house.

Obviously, you cannot change the location. What you can do about this is to highlight the strong points of the home’s location. Is it near public transportation? Is the neighborhood conducive and safe for small children? If there are nearby family attractions such as parks and farmers markets, make sure you mention them in the house’s listing.

Collaborating with your real estate agent

Homes for sale in Myrtle Beach that easily sell are those whose sellers and real estate agents are working collaboratively – from staging and de-cluttering to marketing and sales strategy. It is important that you and your real estate agent are on the same page with regard to all decision making. Of course, you should still make the final decision but you should listen to your real estate agent when discussing your available options. Keep in mind that the reason you hired a real estate agent is to seek professional guidance and assistance in selling a home. Note that they have years of experience in the industry; thus, they most likely have the solutions to all the challenges of selling a home.

Looking for a real estate agent to help you sell your home? Full Potential Real Estate, LLC has trained agents who have years of experience when it comes to homes for sale in Myrtle Beach.

Full Potential Real Estate, LLC
Myrtle Beach, SC 29577
843-492-4537
http://fullpotentialrealestate.com

Myrtle Beach real estate

Buy Your Dream Home Stress Free With These Tips

Purchasing Myrtle Beach real estate will in all likelihood will be the largest investment anyone makes in their lifetime. With that in mind, it only makes sense that you ensure that have the best information in order to make the very best decision possible.

Tips to Make Your Myrtle Beach Real Estate Dream A Reality

1.  Do your research on the neighborhood. There are certain aspects of the neighborhood you will want to investigate:

  • Are there good schools. Even if you are past the age of having children, you will want to consider this aspect for future resale value of the home. High test scores is a good indication that this is a good neighborhood for families.
  • Is there convenient shopping? In the Myrtle Beach area you will want to consider traffic patterns and the ease of getting to local grocery and drug stores.
  • What is the crime rate of the neighborhood

These are all things that indicate whether the home you are considering is a good Myrtle Beach real estate investment.

2. Hidden assets make your Myrtle Beach real estate investment a wise choice in the long run. Look for homes with good insulation, central heating and air conditioning, and energy-efficient windows. Not only will this improve the resale value of your investment, you will also save on your electric bill over the life of your Myrtle Beach real estate home. By paying a little more now for a home with these enmities, you will save money in the long term.

3. Never settle for less in your Myrtle Beach real estate investment. You want a home that is perfect for you and your family. You have dreamed of what you want in a new home and maybe you have even posted photos of what you want on Pinterest. This is huge decision that you will have to live with for several years to come. This purchase will have an impact on your lifestyle and your future finances. Do not compromise on your dream. If you settle for Myrtle Beach real estate investment that is not exactly what you want in order to speed up the process, you will regret your decision in the long run. Take your time and don’t be pressured into buying a “good deal” when it is not exactly what you want.

4. Factor in your living expenses. If you are currently renting, it is easy to look at the payment of the Myrtle Beach real estate investment and see that it is lower than your rent and assume that it is within your budget. You will also need to consider taxes and insurances that you are not currently paying if you are renting. Also, the utilities will usually run higher on a home than on an apartment or condo rental. Be sure and consider future repairs and upkeep.

You can’t pick up the phone and call the landlord when something goes wrong.

You will need to research the home owner association dues. The majority of homes and condos in the Myrtle Beach area fall under some HOA. You will want to factor these dues into your monthly expenses even if they are due only once a year. What restrictions do they place on your Myrtle Beach real estate investment? Can they assess your property for items that affect the area such as the upkeep of common areas? How much can they assess you? An unexpected assessment can really through a wringer into your budget.

5. What are the prices of other homes in the neighborhood? You don’t want to overpay for your dream home (even if it exactly what you dreamed of!) Ask your Myrtle Beach real estate agent what other homes in the area have sold for recently. You will want to take into consideration additions to the home, such a pool or a hot tub, but the offer you make on the home should be within the price range of others that have sold in the area.

While you are in the market of a new home, you will want to visit open houses frequently. This is a great opportunity to take a look at other Myrtle Beach real estate properties and learn about what makes them a good purchase. This will also give you some great home decorating ideas. The listing agent that is hosting the open house will point out the special features of the property and give you ideas on what to look for in other Myrtle Beach real estate properties.

Purchasing Myrtle Beach real estate is truly a part of the American dream. It is huge investment and something that should not be taken lightly. Selecting the right home that also has the right price can be overwhelming. You will want to work with a Myrtle Beach real estate agent that has your best interest at heart and understands exactly what you need. Take the tips in the article and their great advice and you will soon be living in your Myrtle Beach real estate dream!

Full Potential Real Estate, LLC
Myrtle Beach, SC 29577
843-492-4537
http://fullpotentialrealestate.com

Myrtle Beach Real Estate Agent

Buying A Myrtle Beach Home For Sale: The Final Walkthrough

When buying homes for sale in Myrtle Beach, visiting the house once is often not enough for you to sign the contract and seal the deal. Many real estate professionals recommend visiting the house several more times throughout the home buying process to ensure that you are buying the right house for you and your family.

In fact, a lot of the real estate agents you work with will suggest going back to the house at different times of the day and different days of the week. This will allow you to see how the house looks and feels at different times. Also, it will give you a glimpse into the days and times when the neighborhood tends to be busy and noisy – an important factor if have small children.

Aside from these, however, Full Potential Real Estate also suggests doing a final walk-through even after everything has been finalized and agreed upon.

Why do a final walk-through when buying Myrtle Beach homes for sale?

A final walk-through is necessary for buyers to ensure that nothing has changed in the house since your last visit. Remember what things you saw in your first visit that prompted you to pursue buying the house. This may include things like the new or recently repaired kitchen and bathroom fixtures or the spacious closet under the stairs. Doing a final walk-through will help ensure that what you saw in the house the first time you visited stays in the house until you move in.

Aside from this, you also need to do the final walk-through to ensure that the seller has completed his part of the deal, particularly regarding repairs that you have discussed during the negotiation process. The house might need some minor repairs that the seller has agreed to do before closing and you will need to confirm their completion during the walk-through.

The walk-through will also allow you to verify that the terms indicated in your contract have been met. Walk-through’s can be informal where you go through the house one last time checking off items on your list of things to check and confirm. It can also be in a formal set up where you go through the house with the seller or his representative checking each item off your list. Once done, you and the seller or his representative will both sign a contract to indicate that the results of the final walk-through.

What you need to know about the final walk-through

The final walk-through is an important aspect of the entire process of buying Myrtle Beach homes for sale. This is often what seals the deal and establishes a stronger relationship between seller and buyer. It helps ensure that both parties are doing their end of the deal.

You should know, however, that a walk-through is different from a home inspection. Although you will need to do some checking and inspecting to make sure all the previously agreed repairs have been completed, you will not have to check every single fixture and test every single plug and switch as you go through the entire house. A walk-through often takes a shorter time than an overall home inspection. Plus, you do not need to hire a professional for the walk-through as you can do this on your own or with the assistance of your real estate agent.

It is important that you take a copy of the contract with you when doing the final walk-through. This can serve as your list of things to check as you go through the house. Alternatively, you can also make a list of things that you want to check.

Here are some ideas on what to include in your list:

  • Exterior damage to the home due to strong winds and storms that happened since your last visit.
  • Fixtures and furniture that the seller has agreed to leave behind or as part of your purchase.
  • Properly working outlets and light switches.
  • Plumbing leaks that were not there when you first visited.
  • Status of the repairs that the seller has agreed to do.
  • Unwanted items or trash inside closets and cabinets.
  • Disturbed lawn due to dug up trees or shrubs in the backyard.

The final walk-through should not take too long. It often takes 1 to 2 hours. Remember that this allows you to ensure that you are getting the house that you paid for. For professional assistance when buying Myrtle Beach homes for sale, call Full Potential Real Estate today and speak with their representative.

Full Potential Real Estate, LLC
Myrtle Beach, SC 29577
843-492-4537
http://fullpotentialrealestate.com

real estate agent

Guide To Getting Your Home Ready For A Profitable Open House

real estate agentAre you planning to put your home for sale? Did you know that in some areas, conducting an open house is one way of generating a lot of potential customers within a short amount of time? There is also a higher chance that one of these people will offer you a deal you cannot turn down. This is why it is important to plan and prepare for an open house when selling a home.

Five Easy Guide To Make Your Open House A Success

Develop a total list

A real estate agent equates marketing your home to a business endeavor where you should take inventory of all your assets. List down all your residence’s current upgrades and also all its advantages. Aside from the good things, you need to also be aware of the things which might interest your buyers such as a three-car garage or a cellar which might be quickly renovated right into extra space.

Include visual charm

A tiny financial investment will surely result in huge profit. Ensure your entrance light and residence numbers remain in outstanding form, so customers could locate your residence easily. Fix any kind of split or missing out on pathway pavers. Enhance your landscape design and also plant flowers around the entry or in pots on the front veranda.

Organize your home

You know the drill– give away, reuse, throw, repeat. This moment, however, goes a number of actions even more. Hide important antiques or fashion jewelry in a safe. After that, remove other items or furniture if they make your residence really feel jammed. The substantial coffee table or your children’s comprehensive rock collection could be hidden in the garage until the open house is done.

Clean up

Your real estate agent will ask you to make sure that your home is tidy, your windows are clean, and it smells fresh and wonderful. Do a deep cleaning prior to arranging your first open residence. Afterwards, routine fast touch-ups will certainly maintain it in fantastic form throughout the revealing and marketing procedure. Particularly crucial: gleaming tidy home windows, as well as mirrors, will certainly make the most of the light in each area.

Make your home really feel comfortable

Before the open house, readjust your cooling or heating to a comfortable temperature level. Open up the drapes or allow the sunlight shine in. Set the table with appealing tableware, paper napkins, and also flatware. Present a lovely arrangement of flowers as a centerpiece.

Determine from your home buyers Myrtle Beach real estate agent exactly how the open home went. What type of responses did she or he get? Exactly what did audiences like or do not like? Just what should you boost in order to market your house? This way, you learn from the feedback and improve your next open house.

If you need help in setting up an open house in Myrtle Beach and its surrounding areas, you can call Full Potential Real Estate, LLC.

Full Potential Real Estate, LLC
Myrtle Beach, SC 29577
843-236-0203
http://fullpotentialrealestate.com

real estate agent Myrtle Beach

Demystifying The Process of Home Appraisal

So you’ve found a piece of real estate that you like and put in a good offer. Sound like the deal is about to go through, right? – Wrong! The home appraisal process has just begun. Having your offer accepted doesn’t take you across the finish line just yet. There’s still a lot of things that you need to look into and understand. It’s best to talk to your real estate agent Myrtle Beach about this and dig into the details.

Your prospect home still needs to go through a comprehensive appraisal even after you’ve applied for a mortgage. If the appraisal isn’t favorable, that could spell the end for the deal. It isn’t the most pleasant experience. You should always get to know the process so you would know what to expect. Read on and we’ll demystify what goes behind home appraisal.

Lenders are in it too!

So, you and the seller have settled on a price. Does this mean the deal is closed? Is it already a done deal? Unfortunately, it’s not quite over yet. It’s only just starting. The lenders will be appraising the value of the property too. When you’re buying a home, you’re not only dealing with one or two entities. You’ll be doing transactions with a number of people before everything will be finished. Lenders are among them. After all, your investment is theirs as well. For you to be able to get a mortgage, the lenders must appraise the value of the home. The property will serve as collateral. If you don’t manage to pay your mortgage, the property will be foreclosed and will be sold to get their money back plus interest.

Appraisers are on the lender’s side, not yours

In the process of buying a home, you’ll the paying for the appraisal of the property of your choice. The appraisal process will set you back anywhere from $300 to $400. However, paying any amount does not mean that you’ll get special favors from the appraiser and get a lower appraisal for the home. Nobody is allowed to put any pressure on the appraisers just to get to a certain mark. In fact, it is illegal to do so.

Home appraisal adds protection to the buyer

You read that right. Although appraisers will not help you get a home for the price that you want, they will give you the protection that you need. Home appraisal isn’t only there to give clear value to your prospect home, it’s also a way for you not to end up with a bad deal. For example, the agreed amount between you and the seller is $125,000. However, the appraisal came in at just $105,000. That leaves a $20,000 deficit.

There are a couple of things that buyers can do at this point. Do note that appraisals coming in low isn’t a bad thing – at least not entirely. Here are the steps that a buyer could take:

• The buyer could walk away from the deal and find another property
• Continue with the deal by coming up with the difference or have the seller cover it
• Get a second opinion from another appraiser (although this isn’t always the best option)

When you do seek another opinion, you need to consider that the results may still come in the same. Do make sure that you consult experts first. Talk with your real estate agent to know more about the process.

Give Full Potential Real Estate a call today and get the home of your dreams!

Full Potential Real Estate, LLC
Myrtle Beach, SC 29577
843-236-0203

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buying a home in Myrtle Beach

Mistakes To Avoid For First Time Homebuyers

buying a home in Myrtle BeachBuying a home can be a very exciting experience especially for first time buyers. However, it could also be a daunting task especially if you don’t know what you are doing. The excitement that you have felt initially could easily turn into regret after making serious often costly mistakes when choosing a home in Myrtle Beach. So, here is a list of the common errors that you need to avoid at all cost when buying a home in Myrtle Beach.

Refusing To Confide In A Pro

One of the most common mistakes that you need to avoid is not confiding in a professional like a real estate agent. In most cases, home buyers withhold information from their advisers because of fear, irrational belief, and lack of confidence. Don’t forget that these professionals, if chosen correctly, can represent your best interest. They are the best people to turn to especially if you are having doubts about the property transaction that you are intending to make. Your realtor, for instance, can help you walk through anxieties and help determine if the deal is worth closing or scrapping.

Changing Financial Pictures Prior To Closing

As a homebuyer, you should remember not to buy anything using your credit card when you have filed a loan application because you might end up not being qualified. Don’t buy any of these things: automobiles, refrigerators, dryers, washers, costly computers or electronics, and home furniture. Keep in mind that making even the slightest alterations can cause your loan application to be denied and forfeit your chance of getting that home that you have always desired.

Purchasing The Wrong Property

As a potential homebuyer, you need to come up with a list of priorities and your objectives as you look for your desired property. Find out what features and benefits you consider as the most important. Don’t forget to review this list because disregarding it could lead to bigger problems in the long run.

You should also avoid purchasing a Myrtle Beach home that is above your pay grade. Do not be lured into the trap of having to pay a monthly mortgage that you cannot afford. You have to understand the costs of owning the property you want and make sure that your income can cover it as well as the lifestyle that you wish to want. Be realistic. You would not want to live in your dream home but have to face financial hardships because nearly all of your monthly salary goes to covering the purchase.

Buying a home is a very important decision and a significant financial investment. Invest time into learning everything before agreeing and signing anything if you wish to avoid stress and surprises. By working with a real estate agent, you will understand all aspects of the purchase and make sure that you purchase the home that you have wanted without having to worry about any problems in the future.

Call Full Potential Real Estate, LLC if you need help in purchasing your first home.

Full Potential Real Estate, LLC
Myrtle Beach, SC 29577
843-492-4537
http://fullpotentialrealestate.com

buying a home

How To Buy Your Dream Home During The Holidays

buying a homeMoving to a new home during the holidays can be a headache considering all your seasonal obligations and activities you have to attend to, not to mention the unpleasant weather conditions in several locations. However, there are several positives when it comes to buying a home during the holiday season making the hassle of moving well worth it.

Less Competition

The exact concerns that make holiday moving inconvenient tend to prevent people from searching for homes during that period. Although there may be fewer houses available at this time, there are also lesser number of home buyers and that means decreased competition for any house that meets your needs.

Motivated Sellers

Home sellers do not enjoy moving during the holidays any more than home buyers do. It is most likely that those who are selling their houses during the festive season have high motivations to do so. Maybe they have to relocate for a new job or perhaps their house has been on the market for way too long and they need to have the money from the sale before the year ends. Combine decreased competition with motivated sellers and you have an excellent leverage to obtain a better deal.

Lower Prices

Prices of houses have been increasing rapidly and this can be partly attributed to a general shortage in the number of homes in the market today. But, December has always been a month of lower house prices. Although it is not sure that this year will follow the same trend, you should still check out the home prices within your local market if you are looking to buy a home.

Faster Closings

All those involved in a real estate transaction during the holidays want to close the deal before the year is out. Buyers would like to settle in their houses and sellers, if they are moving, want to get it all done before the holidays. Lenders also want to include the loan on the books for the current year. Real estate agents, as well as brokers, would like to include their common on their income for the current year as well. Motivated parties need to make the closing process go as seamlessly as possible. However, you need to make sure that you do your part in terms of having all the necessary paperwork in order.

Better Interest Rates

Interest rates are near the all-time low. Although the average rate on a thirty year fixed mortgage has been increasing throughout the year, it is still well below 5%. As of date, interest rates are gradually decreasing as we near the holiday season, after reaching its peak at 4.8% in October. You can use online calculators to check how much you can save over the period of your mortgage with even a slight reduction in interest rates. You might be surprised at the amount you get to save. Keep in mind that your credit score will affect your mortgage rate and even prevent you from qualifying for a mortgage. You need to check your score and credit report.

Motivated Agents

Decreased activity in the real estate market implies that Myrtle Beach real estate agents are working with fewer clients. They have a lot more time to help you and with decreased sales commission available, they might be a bit more motivated to help you complete your purchase.

Related Seasonal Sales

Do you need a new furniture or perhaps other things for your new house? There are several seasonal clearance sales during this time of the year and you will surely find one that will help you give your new home a personal touch. Just be sure to avoid overspending.

These tips are not always applicable in every market and every year. However, the holidays commonly offer these advantages to potential homebuyers. Know the conditions in your local market and determine if you can find your dream home and get a chance to obtain a great deal during the process.

Call Full Potential Real Estate if you are considering to buy a home during the holidays.

Full Potential Real Estate, LLC
Myrtle Beach, SC 29577
843-236-0203
http://fullpotentialrealestate.com

buying a home

Is A Buyer’s Market Forming In The US Housing Market 2019?

buying a homeThe economy of the United States is expected to grow between 3% and 5%. With employment going strong, wages rising, and house construction intact, an increasing number of Americans are buying a house. For buyers, it will be their first house. Uncertainty remains but that Millenial buyers will have a persistent demand for new houses in areas within between New York, Los Angeles, and Miami. Even Houston, Cleveland, Philadelphia, Pittsburg, and Chicago can turn out to be the darlings of 2019 as well as 2020 with several people seeking to buy a home.

Economy in California is growing health as well as in areas like Florida, Texas, New York, and Massachusetts. The return of high paying jobs next year will play a great role in the improvement of the US economy. This will encourage the housing market since Millennials in particular, will discover themselves having lasting high paying jobs.

Housing Prices

Many experts predict a flat housing market or a buyer’s market for the year 2019 and 2020. Taking into account the lack of housing availability, it may sound crazy to imply a buyer’s market is on the horizon in San Diego, Los Angeles, and the Bay Area. But things are actually changing. With an impeccable growth in home construction, this can make it the best time to purchase a house and a wonderful time to sell your house. In case mortgage rates grow a little, you must be considering buying in 2018.

Buyer Market Signals

  • Flattening house prices
  • Growing home construction
  • Stable US economy
  • Sales to active listings ratio well under 12%
  • Trade issues eases inflation

But because of the geopolitical uncertainty, 2020 election, trade transitions, rising mortgage rates, high home prices, and higher housing construction prices, home buyers will find it hard to buy in 2018/2019.

But with US companies getting a huge boost in sales in their own country and with lesser imported products, Americans will get to enjoy low unemployment, more access to home financing, and higher wages. It is all optimistic and positive for a strong housing market and maybe the best time to buying a home.

Millennials Hope To Purchase A House

An increasing number of US millennials, that large demographic group, are into their home buying years, with bigger budget, eager to make their first purchase and that will make sure you have plenty of competition. This demand from millennials can make 2019 the best time to sell your house.

When To Buy A House?

2019 is probably the best time for buying a home in Myrtle Beach or a condo. Housing stock on the US market now is not so hot right now but availability is expected to improve over the next few years. Mortgage rates as well as construction costs will increase however this may not be too painful up until 2020 where financing qualification and inflation may hurt prospective buyers.

In case the world moves into recession by 2020, that will just ease inflation problems in the US. The country’s economy will remain solid as more jobs move from China and back to the U.S. Overall, the prices of houses are not expected to grow that much and market crashes are quite unlikely to happen. That will make it a safer purchase for buyers and harder for sellers to obtain the best possible price.

Call Full Potential Real Estate if you are looking to buy a home in Myrtle Beach.

Full Potential Real Estate, LLC
Myrtle Beach, SC 29577
843-236-0203
http://fullpotentialrealestate.com

first time home buyers

Tips For Qualifying As A First Time Homebuyer

first time home buyersCountless potential first time home buyers put off getting a mortgage because they think it is a long and cumbersome process. In 2018, a lot of new mortgage programs have become available so first time home buyers can qualify for a loan much easier than before. FHA loans are a commonly used first time home buyer loan for buying a home.

The primary reason why FHA loans are very popular is due to their low credit and down payment requirements. Borrowers who have a bad credit score of 500 can still qualify for an FHA loan with a 10% down payment. But, if the FICO score is below 580, no lender will approve a borrower.

In case you have a score of less than 580, you need to improve your credit score first before you apply for a mortgage. If you have a credit score of exactly 580, you will be required to pay a 3.5% down payment for an FHA-insured mortgage loan.

Get A Copy Of Your Credit Reports

The first thing you have to do is to obtain copies of your credit report from all three major credit card bureaus. You can also visit annualcreditreport.com, which is a government operated site, to get a free copy of your report. You can only do this on this site once per year.

You also need to know what your credit scores are. Go to the websites that provide you your reports and scores for free. A few good sites to visit are Credit Karma, Credit Sesame, and Wallet Hub

Check Your Report For Errors

When you have obtained all three reports, go through each of them to make sure that there are no errors. In case you find some, get in touch with the credit bureau right away and file a dispute.

What To Look For:

–    Incorrect employers

–    Previous and current addresses and phone numbers

–    Incorrect account information

–    Accounts that you do not own

–    Late payments that shouldn’t be there

–    Unauthorized credit injuries

You can argue incorrect information regarding your credit report by getting in touch with the credit bureau in writing, by phone, or online.

Check Your Credit Score

One of the deciding factors when it comes to securing a mortgage approval is your credit score. It is crucial to make sure that you have a high score before you submit an application. Credit Karma and Credit Sesame are some of the sites where you can check your credit score for free.

Increase Your Credit Score

Settle credit card balances – the amount of available credit that you are using is referred to as your credit utilization ratio. It is responsible for 30% of your FICO score. It is important that you pay down your balances to less than 15% of your credit card’s limit.

Don’t Apply For A New Credit – avoid applying for new lines of credit, loans, or credit cards. Once you apply for a credit, a hard credit inquiry will be conducted and reported to the credit bureau, which may lower your credit score. Additionally, you are adding debt to your credit report, which can affect your credit score negatively.

Pay Your Bills On Time – you have to pay your bills in a timely manner at all times. If you are going to be applying for a mortgage sometime soon, you have to make sure that you don’t make late payments. If it helps, set up auto pay for your bills payments.

Get Preapproved Before You Go House Hunting

Before you start your house hunting, you have to get preapproved for a mortgage first by speaking to a lender. A loan officer will evaluate your credit and confirm your income as well as your assets with your W2’s, bank statements, tax returns, as well as paycheck statements.

The majority of realtors won’t begin show you houses unless you have a pre-approval letter in hand. Furthermore, most sellers will not accept offers without the preapproval letter. Getting a preapproval is fast and simple. It can be done in just a matter of minutes. Be sure to bring with you important documents like 2 years of tax returns, 2-3 months of bank statements, proof of down payment, and W2’s and paycheck stubs.

Find Out If You Qualify For An FHA Loan

FHA loans have less strict requirements, making it perfect for first time home buyers who are looking for a loan that they’ll qualify for. The maximum loan to value ratio of an FHA mortgage is 96.5%, which means you just require a 3.5% down payment.

FHA Loan Benefits

–    Minimum credit score of 580

–    Low down payment of 3.5%

–    Down payment can be a gift

–    Down payment assistance programs are widely available

–    Low-interest rates

–    Accepts higher debt to income ratio

–    Fixed rate and adjustable loans are available

Determine Your Down Payment Options

The amount you need for the down payment when you buy a house will be based on the type of mortgage you get.

First time home buyers usually have less cash savings which make low or no down payment home loans extremely popular. FHA loans just need 3.5% of the purchase price as the down payment, making it a very attractive option for those who are buying a home for the first time.

You can avoid mortgage insurance if you don’t have 20% down payment by getting a conventional mortgage. Listed below are a few down payment requirements for every kind of home loan:

–    FHA Loans – 3.5% and a 580 credit score

–    VA Loans – No down payment required

–    USDA Loans – No down payment required

–    203k Loans – 3.5%

–    Conventional Loans – 5% – 20%

–    Conventional 97 – 3%

Hire A Reputable Real Estate Agent

There are a few first time home buyers who think they are doing themselves a favor by not hiring a real estate agent. Don’t be one of them. Always remember that the realtor is paid by the buyer, and the cost is already included in the price of the home. An experienced and reputable realtor will not just help you through the home buying process but also negotiate a good price on your behalf. He or she will always be looking out for your best interest.

Budget For All Home ownership Cost

There are several costs invoiced when it comes to getting a mortgage apart from the house. There’s the mortgage insurance, homeowners insurance, closing costs as well as the HOA fees.

MIP or mortgage insurance is required for FHA loans regardless of the amount you paid for your down payment.

MIP on FHA loans costs between 0.80% to 1% based on the size of the loan as well as the down payment.

In case you have a minimum of 20% as down payment, you must consider a conventional loan, which does not need private mortgage insurance or MIP if you pay at least 20% down payment.

Determine Your Debt To Income Ratio

Your debt-to-income ratio or DTI is the amount of monthly income compared to your debt payment obligations on a monthly basis. This will include things like car loans, credit card payments, and so on.

Front-end DTI ratio is the ratio of your income to debt payments, excluding the mortgage loan. For instance, if you have a gross income of $5,000 per month, and your total payments reach $1,000 per month, then your front-end ratio is 20%. The maximum front-end DTI ratio is 28%.

Back-end DTI ratio is the income compared to your debt payments after including the mortgage payment every month. For instance, if you have a pre-tax income of $5,000 and your mortgage loan and debt payments reach $2,000, then your back-end ratio is 40%. The maximum is 41%. But in some cases, this ratio can reach up to 50%.

Check Programs and Grants For First Time Home Buyers

There are several down payment assistance grants and programs for first time home buyers. HUD has several local state programs that provide first time home buyers help with their down payment when purchasing a home.

You will also find local programs on your counties or city website. A few of these programs might need you to take a home buyer education class for eligibility.

HUD Programs

Good neighbor next door program or GNND – was created by the U.S. Department of Housing and Urban Development to assist law enforcement, teachers, medical and emergency technicians to become homeowners by providing them 50%the list price of HUD homes that are found on hudhomestore.com

One Dollar Program – is offered by HUD allowing local government to buy HUD homes listed at $25,000 or below that have been for sale for at least 180 days for one dollar. These houses can be offered to families with low income in an effort to revitalize their neighborhood.

Know What Loans Are Availble For First Time Home Buyers

People who are buying homes for the first time have several loan options other than the FHA loan. Based on your current situation, you might be eligible for a few other loan programs that provide advantages compared to FHA home loans.

Conventional Loan – in case you have a minimum of 20% down payment then you have to consider a conventional mortgage. FHA will require mortgage insurance regardless of your down payment. If you have a 20% down payment, then you will not be asked to carry PMI, which will help you save thousands of dollars annually.

Conventional 97 Loan – this type of loan was created by Fannie Mae so as to compete with the low down payment offered by FHA loans. With only a 3% down payment and a credit score requirement of 680, you can be eligible for the conventional 97 programs.

VA Loan – if you are a Veteran, you can get a VA loan. It does not need mortgage insurance or down payment, which means this option is the easiest type of mortgage today.

USDA Loan – this program was created by the US Department of Agriculture to assist low-income home buyers in rural places of the country save money on their mortgage. If you are in a location that is eligible for a USDA loan, then you might be eligible. It does not need any down payment and its mortgage rate is just 0.35%.

203 Loan – in you are considering the purchase of a fixer-upper then there’s a renovation FHA Loan referred to as a 203k loan. You can purchase a home that requires repairs and obtains a loan for the purchase of the house and the cost of the home improvements and repairs required.

Fannie and Freddie 3% Down Loan – the two biggest buyers of mortgage loans are Fannie Mae and Freddie Mac. They launched a 3% down payment program referred to as the conventional 97 mortgages so they can compete with the FHA loans.

FHA Energy Efficient Mortgage or EEM – assists borrowers in financing the home purchase and provides extra cash to for energy efficient improvements on the property.

Other Important Information

Who Is Considered As First Time Home Buyers?

In order to be considered as a first time home buyer, you should not have any homeownership over the past 3 years.

Do You Need A Down Payment?

There are programs that do not require down payment like USDA and VA loans. However, they can also be obtained by existing homeowners. There’s no kind of loan specifically for first time home buyers that do not need a down payment.

Which Loan Is Best For You?

First time home buyers have different needs when it comes to home loans. A certain type of loan may be ideal for one but not suitable for another.

However, the most popular home loan that are used by most first time home buyers these days are FHA loans. They have low down payment requirements and less strict qualification guidelines.

What Credit Score Qualifies For An FHA loan?

The Federal Housing Administration requires a credit score of at least 500 and a 10% down payment. If the borrower has a higher credit score, at least 580, then they will insure the loan with only a 3.5% down payment.

Key Takeaways

Purchasing a house for the very first time does not have to be a scary experience. Just follow the tips discussed above, work with a reputable Myrtle Beach real estate agent and loan officer and the process will surely run seamlessly.

Call Full Potential Real Estate, LLC  if you need the professional assistance of a real estate agent in buying a home. 

Full Potential Real Estate, LLC
Myrtle Beach, SC 29577
843-236-0203
http://fullpotentialrealestate.com

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