5 Mistakes First-Time Buyers Often Make
Buying your first home can be such an exciting time in your life yet without the proper guidance, accidents can happen! Do not make the 5 most common mistakes real estate buyers make. One of the aspects of my real estate career that I love is working with first-time home buyers here in Naples. It is incredibly rewarding to watch them sign the final document at the closing table and get handed the keys to their new home. Unfortunately, there are a number of mistakes buyers consistently make, which is why it is absolutely necessary to have the right agent when purchasing real estate. Not speaking to a local lender before going out to see property. I see this frequently. Buyers assume a certain price is in their budget and they venture off to see open houses or they have an unexperienced agent open doors to houses they cannot afford. Obtaining a pre-approval letter is absolutely critical before stepping foot in your first home. What if you are approved for a mortgage that is far less than you expected? All of those homes you’ve fallen in love with are now out of reach. Treating the home search as an emotional decision. I know this is extremely hard to do, but buying a home needs to be treated as a business decision. I often work with buyers that are approved for plenty of money but have a strict amount that they want to stay under. What inevitably happens is that they see a home far above the number that they wanted to stay at but emotions get in the way. “I know it is >way above what we said we wanted to spend but I love it.” Pick a purchase price that translates into a comfortable monthly payment and do everything you can to honor your own decision. Using a newly licensed friend (or worse, a stranger) as your Realtor®. Buyers are crazy to do this in my opinion. Buying a home will be the largest financial transaction you make, so why would you trust someone without any experience? I know that an agent would be upset to have a friend choose someone else, yet a true friend with the buyer’s best interests in mind can shake it off. It may be your first time buying a home, but it shouldn’t be your Realtor’s first time too. Not properly budgeting for expenses that arise. Buying a home comes with its fair share of costs other than the deposit. Appraisals, taxes, inspections, surveys and the general moving costs add up! If you are unsure if you have enough money to buy, [email me](mailto:chris@listingnaples.com) and let’s make sure you’re in a good position to buy. **Hint:** I can get the seller to pay the buyer’s closing costs! Not working with a local lender. Counties have their own grants and programs to help first-time buyers and local lenders will know about those programs. Many lenders work by you phoning into a call center and speaking to whomever answers. Avoid this! Ask me who I recommend for a mortgage and I will give you the answers you need. Have you made any mistakes in your search for your next home? Chances are, you’re in the process of buying if you’re reading this. I would love to earn the position as your trusted advisor. Please reach out by phone, text or email and let’s discuss your very important goals.
8 Things to Check Before Buying in a Neighborhood in Naples
Touring various homes for sale with your REALTOR® can be a lot of fun. Finding the perfect home is a thrill as well but what about the neighborhood the home is in? Trust me—the perfect home in a bad neighborhood will have you itching to move again before you know it. Avoid this common problem by doing your due diligence and checking into these 8 often-forgot aspects of your potentially new neighborhood. Homeowners Association The Rules of the HOA We all know that living in an HOA comes with a set of rules all residents must abide by. However, there are a few tricky rules that may greatly affect your enjoyment of your new home. Many HOA’s do not allow pickup trucks as one example. This odd rule can be especially burdensome if your job demands the use of a truck. Similarly, many neighborhoods limit the number of vehicles owned in a household. If you have a child turning driving age, make sure you select an HOA that will allow the three cars you will need parked. I commonly have buyers that say they want to fence in the yard for their pets. Here in Naples, that is often a problem! Most communities will not allow fences and those that do will have very detailed guidelines on the type of fence that can be installed as well as the height. Be sure you know this rule before moving your pup into a new neighborhood. How Financially Strong is the Neighborhood? When homeowners associations do not have necessary funding for projects around the neighborhood, special assessments will often be levied. These special assessments come in the form of a bill that you must pay, above and beyond your normal quarterly dues. By reviewing the reserve balances you can determine the level of risk that you will be required to pay a special assessment. Check on big ticket items such as roads, roofs, etc.. Readily Observable Neighborhood Traits How Noisy are Your Neighbors? I encourage my customers to visit neighborhoods again on a Friday or Saturday night to see if there are any late-night disturbances. I recently had a customer sell her home because the neighborhood was very noisy and the Board of Directors would not take action against the violators. It’s worth the time to drive through (perhaps more than once) and see for yourself if there will be a potential problem. When in Doubt, ask the Neighbors! Every neighborhood will have owners out and about so stop and chat about the community. Asking a current owner how they like living in the community; Although it may be disappointing to hear someone explain why they do not like the community, hearing that news will save you so much heartache down the road. How’s Your Morning and Evening Commute? I often encourage my customers, especially those new to the area, to wake up a bit earlier and drive to the neighborhood. Immediately turn back and drive to work! Doing the same leaving work in the evening is equally beneficial. Naples has many roads that flow very smoothly in the afternoon but become a standstill in the morning and evenings (here’s looking at you, Immokalee Road). Would your opinion of a neighborhood that you love change if it made your commute a bit painful? Don’t find out after you’ve purchased the home! Check School Zones (Even if you Don’t Have Kids) Buying in a great school zone is a fantastic choice whether you have children or not. I always tell my clients that they may not have children yet their buyer likely will. A good school zone is a factor that will keep values up in most cases and will give you another marketing tool when the time comes to resell. Crime Statistics Check for Frequency of Crime and Type Crime statistics are readily available online so there is no reason to miss this key bit of research. The Collier County Sheriff’s Office releases crime maps to show the type of crime committed that officers were dispatched to. Other sites, such as AreaVibes and NeighborhoodScout , can shed insight as well. The Sex Offender Registry The Florida Department of Law Enforcement has a great site for viewing sex offenders on a map. As a REALTOR®, I am actually not allowed to tell you where the sex offenders are or steer you away from neighborhoods with one. However, you can certainly check online and make your own educated decisions. What Did I Miss? Those are 8 of the factors that go into choosing a community. Are there more? Share in the comments below what other aspects of a neighborhood you look for when buying a home here in Naples, FL.
Buyers: 10 Questions You Need to Ask Your Lender Right Now
When purchasing a home, obtaining a mortgage is often a crucial step in the process. To ensure you make informed financial decisions and secure the best mortgage terms, it's essential to ask your banker the right questions. In this blog post, we will highlight ten important questions that homebuyers should ask their banker. By seeking clarity on rates, pre-payment options, fees, penalties, guarantees, appraisals, line of credit, mortgage types, sale contingencies, and deposit requirements, you can navigate the mortgage process confidently and make informed choices. Question 1 - Is that your best rate? It's crucial to inquire whether the rate provided by the bank is the best available option. Understanding the current mortgage market and comparing rates from different lenders can help you secure the most favorable rate for your mortgage. Question 2 - Can I pre-pay my mortgage? If you have the financial capacity to make extra payments towards your mortgage, it's important to ask about pre-payment options. This will help you determine if you can accelerate the repayment process and potentially save on interest. Question 3 - Are there any additional fees I should know about? Aside from the interest rate, there may be other fees associated with your mortgage, such as origination fees, appraisal fees, or legal fees. Understanding these costs upfront will help you plan your budget accordingly. Question 4 - What will the penalty be if I sell my house before the end of my mortgage? Life circumstances may change, and you may need to sell your house before the mortgage term is up. Inquiring about prepayment penalties will help you understand the financial implications if you decide to sell your home early. Question 5 - Can you guarantee me that rate in writing? Mortgage rates can fluctuate, so it's important to ask if the bank can provide a rate guarantee in writing. This will help protect you from potential rate increases during the mortgage application process. Question 6 - Will you be performing an appraisal, and if so, who pays for it? Appraisals are often required by lenders to determine the value of the property. Understanding whether the bank will conduct an appraisal and who will bear the cost is important information for budgeting and planning purposes. Question 7 - Can I get a line of credit at the same time as my mortgage? If you have additional financing needs, such as a line of credit, it's essential to ask if it's possible to secure both a mortgage and a line of credit from the same lender. This can streamline your financial arrangements and potentially provide more flexibility. Question 8 - What are the advantages and disadvantages of fixed-rate mortgages and variable-rate mortgages? Understanding the pros and cons of fixed-rate and variable-rate mortgages will help you choose the mortgage type that aligns with your financial goals and risk tolerance. Asking your banker to explain these differences can provide valuable insights. Question 9 - If my condo doesn't sell before I get possession of my new house, what happens? If you're selling a property to purchase a new home, there may be a chance that your current property doesn't sell before you take possession of your new house. Inquiring about possible scenarios and contingency plans will help you prepare for such situations. Question 10 - My down payment is locked up in RRSPs—how can I provide a deposit? If your down payment is in Registered Retirement Savings Plans (RRSPs), you may need to access those funds to provide a deposit. Asking your banker about the process and requirements for utilizing your RRSPs for a deposit will ensure a smooth transaction. Wrapping up on questions to ask your lender Asking the right questions when dealing with your banker is essential to make informed decisions and secure favorable mortgage terms. Inquiring about rates, pre-payment options, fees, penalties, guarantees, appraisals, lines of credit, mortgage types, sale contingencies, and deposit requirements will provide clarity and enable you to navigate the mortgage process confidently. Remember, your banker is there to help, so don't hesitate to seek their expertise and guidance throughout the mortgage application process. Ready to Buy a Home in Naples? We are here to help you in any way you can and with absolutely no obligation. If you want advice on getting a mortgage or you're ready to start seeing properties, feel free to give us a call or send us an email.
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