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Deal Realty, Inc.
451 Center Street
Lewiston, New York 14092
Phone:
(716) 754-3301
Fax: (716) 754-4649

The Big Deal Blog

First Time Home Buyer Mistakes To Avoid

It's tough being a first-time buyer in today's housing market. Home prices are hitting record highs in many parts of the country, often selling for more than the asking price, and going from list to contract in a record 37 days. Don't make it even harder (or more expensive) for yourself by making these common mistakes:

1. Assuming you won't get approved for a mortgage Ideally, you'd like to have as little debt as possible, an impeccable credit score, and a 20% down payment before borrowing money for a home. However, even borrowers with less can get loans in today's market, thanks to options like Federal Housing Authority loans, which are meant to help out low-income and first-time buyers.

2. Interviewing only one lender The fees and rates offered by lenders may vary substantially, and they all offer different service levels and different loan products. Be sure to at least chat with a big bank, a regional bank or credit union, and an online lender.

3. Not getting pre-approved early on Getting pre-approved for a mortgage serves two important purposes: First, it gives you a realistic understanding of how much you can spend on the house. Second, it shows sellers that you're serious and gives you slightly more standing if you're competing for homes with all-cash buyers. Make it less stressful by gathering up relevant financial documents like bank statements, tax returns, and pay stubs, and by checking your credit report for errors in advance.

4. Maxing out your mortgage limit Just because a lender says that you can borrow a certain amount, doesn't mean you should borrow that much. Staying below that limit will give you more financial flexibility to cover the added expenses that come with purchasing a home, as well as long-term changes to your income. Create a budget that includes how much money you can spend on housing costs each month, and then use those numbers to figure out what your "real" limit should be.

5. Letting your emotions control your decisions Buying a home can be a long and frustrating process. These days, starter homes go quickly, and it's common for first-time buyers to experience rejection on the first offers they make. In that kind of environment, it's easy to fall in love with a house that's out of your budget, or get caught up in the heat of a bidding war and end up paying more than you expected.

6. Waiving contingencies without understanding the risks In highly competitive markets, it's becoming increasingly common for buyers to make offers that aren't contingent on financing or inspection. While waiving contingencies can make your bid more desirable to a seller, it can make the transaction much more risky for you. Have a conversation with your realtor and a lawyer before opting out of contingencies in your contract. In a worst-case scenario, you may end up losing your deposit.

7. Allowing your credit score to change before the close A pre-approval letter is not a guarantee of funding, and if your credit score or income levels change drastically between the pre-approval and the closing of the loan, lenders may change their terms or rescind the offer entirely. While you're home shopping, be sure to pay all your bills on time and steer clear of new credit accounts, even if that means you have to wait to pick out your furniture. If possible, try not to switch jobs until after you close, particularly if you're moving into a new industry.

Holiday Home Selling Tips!

The holiday season from November through January is often considered the worst time to put a home on the market. While the thought of selling your home during the winter months may dampen your holiday spirit, the season does have its advantages: holiday buyers tend to be more serious and competition is less fierce with fewer homes being actively marketed. 
 

Deck the halls, but don’t go overboard.
Homes often look their best during the holidays, but sellers should be careful not to overdo it on the decor. Adornments that are too large or too many can crowd your home and distract buyers. Also, avoid offending buyers by opting for general fall and winter decorations rather than items with religious themes.

Seek out motivated buyers.
Anyone house hunting during the holidays must have a good reason for doing so. Work with your agent to target buyers on a deadline, including people relocating for jobs in your area, investors on tax deadlines, college students and staff, and military personnel, if you live near a military base.

Price it to sell.
No matter what time of year, a home that’s priced low for the market will make buyers feel merry. Rather than gradually making small price reductions, many real estate agents advise sellers to slash their prices before putting a home on the market.

Make curb appeal a top priority.
When autumn rolls around and the trees start to lose their leaves, maintaining the exterior of your home becomes even more important. Bare trees equal a more exposed home, so touch up the paint, clean the gutters and spruce up the yard. Keep buyers’ safety in mind as well by making sure stairs and walkways are free of snow, ice and leaves.

Take top-notch real estate photos.
When the weather outside is frightful, home buyers are likely to start their house hunt from the comfort of their homes by browsing listings on the Internet. Make a good first impression by offering lots of flattering, high-quality photos of your home. If possible, have a summer or spring photo of your home available so buyers can see how it looks year-round.

Create a video tour for the Web.
You'll get less foot traffic during the holidays thanks to inclement weather and vacation plans. But shooting a video tour and posting it on the Web may attract house hunters who don't have time to physically see your home or would rather not drive in a snowstorm. 

Give house hunters a place to escape from the cold.
Make your home feel cozy and inviting during showings by cranking up the heat, playing soft classical music and offering homemade holiday treats. When you encourage buyers to spend more time in your home, you also give them more time to admire its best features.
 

Offer holiday cheer in the form of financing.
Bah, humbug! Lenders are scrooges these days, but if you've got the means, then why not offer a home loan to a serious buyer? You could get a good rate of return on your money.
 

Relax — the new year is just around the corner.
The holidays are stressful enough with gifts to buy, dinners to prepare and relatives to entertain. Take a moment to remind yourself that if you don't sell now, there's always next year, which, luckily, is only a few days away.

Still Time!!

There is still time to take advantage of the historically low interest rates.  The 30-year fixed-rate mortgage averaged 3.42% in the September 29 week, down from 3.48% in the prior week. The 15-year fixed-rate mortgage averaged 2.72%, down four basis points.

The average rate for the 5-year Treasury-indexed hybrid adjustable-rate mortgage rose one basis point to 2.81%. That’s still 10 basis points lower than its level a year ago.  Those rates don’t include fees and points associated with obtaining mortgage loans.  Increased investor interest in bonds comes despite some encouraging signs from economic data.

Give Deal Realty a call today @ 754-3301 and let us help you get your deal done!

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