One of the first things you want to do when you think you might want to buy a home is talk to a mortgage loan officer. This is what is called "Getting Preapproved". The mortgage professional will obtain a lot of information from you and pull your credit report. Based on all of this information and assuming that everything you told them is correct, they can give you the price range for homes that you can afford. They can also tell you things that you should do to improve your credit score and secure a more favorable interest rate. A side note: Prequalified is not the same as preapproved. When you are prequalified, no credit report is pulled and the amount is based on information that you have supplied.
So, of course it is important for you to know what you can afford, but it is just as important for the seller to know that you can afford their home as well. A lot of time and money is wasted on buyers that just aren't qualified to purchase certain homes. If you don't know how much you can afford you might do the following. Call up your favorite realtor, me of course, find a neighborhood that you like, find a house that you love, write an offer on that house and then it gets accepted. The seller gets excited that they have sold their home. You spend money on getting a home inspection, about $300. You put down earnest money to secure the sale, about $500. Then you go talk to a mortgage officer and they say that they can't give you the loan because you don't have enough money!!!! You have then wasted your money for the inspection, possibly your earnest money and more importantly you have wasted the seller's time and took their home off the market for a while.
The moral of the story is, it is advantageous for everyone involved in the transaction if you go to the mortgage company and get preapproved before you make an offer on a home. You will potentially save money, you will feel more confident about your decision, and the seller is more likely to take your offer if they know that you have the funds to follow through with the sale.
If you are interested in buying a home, of course give me a call and let me know, but also call a mortgage loan officer so you can feel good about your decision. One of my favorite Mortgage professionals is Zack Lovett with Cornerstone Mortgage. His cell number is 501-681-7077. Feel free to call him anytime. He works 24hrs a day just like me!
Saturday, August 25, 2007
Saturday, August 18, 2007
How to make your home sell more quickly and for more money.
Selling your house can be an exciting time in your life. It can also be a nerve-racking time. Every seller wants to sell their home for the most money in the least amount of time. There are some things that I have learned over the years that usually will make you net more money and speed up the sale.
1. Price- In today's market, price is extremely important. Buyers are not willing to pay more than market value for a home anymore. Average days on the market have gone up and a guaranteed way to make sure that your market time is as small as it can be is setting your home at an attractive price. You want other agents and buyers to look at your home and think, "Wow, at this price I can't afford to not buy it." I know that sentence was a double negative, but you get my point.
2. Curb Appeal- After you get the price right, this is the next most important thing. You want buyers to drive by your house and want to go inside. You want them to think that it is so cute on the outside that it has to be just as cute on the inside. Some ideas: freshly planted flowers, a fresh coat of paint on the exterior, a new doormat, a clean yard, and trimmed bushes. This list could go on, but just look at your home as if you were a buyer and you will see what needs to be done.
3. Clear the clutter- This is so important. Almost every buyer at least opens up the closet doors and cabinets. You want them to feel like they have ample room for their belongings. You don't want them to open up the closet and purses and shoes are falling on them. Clearing the clutter will make your home more organized, look better, and gets you a head start on packing.
4. Staging- There are professionals that do this for a living, but you can do some of it on your own. Go through your house, room by room, and take a good look at the space. If there are two huge couches in your not so huge living room, you might want to get rid of one to create the illusion of a bigger space. The internet has a lot of resources and tips for staging. I will probably do a future blog just on staging.
5. Availability- Make your home easy to look at. When a buyer wants to see your house, try to fit it in on their schedule. They could only be here for the weekend and can really only do it that certain time. Allow your agent to hold the home open. Allow a sign in the yard and a lockbox.
6. List your house- Studies have shown that homes listed with a real estate professional will sell more quickly and for more money. That sounds good, huh?
If anyone else has any tips or tricks that worked them I would love to hear them.
1. Price- In today's market, price is extremely important. Buyers are not willing to pay more than market value for a home anymore. Average days on the market have gone up and a guaranteed way to make sure that your market time is as small as it can be is setting your home at an attractive price. You want other agents and buyers to look at your home and think, "Wow, at this price I can't afford to not buy it." I know that sentence was a double negative, but you get my point.
2. Curb Appeal- After you get the price right, this is the next most important thing. You want buyers to drive by your house and want to go inside. You want them to think that it is so cute on the outside that it has to be just as cute on the inside. Some ideas: freshly planted flowers, a fresh coat of paint on the exterior, a new doormat, a clean yard, and trimmed bushes. This list could go on, but just look at your home as if you were a buyer and you will see what needs to be done.
3. Clear the clutter- This is so important. Almost every buyer at least opens up the closet doors and cabinets. You want them to feel like they have ample room for their belongings. You don't want them to open up the closet and purses and shoes are falling on them. Clearing the clutter will make your home more organized, look better, and gets you a head start on packing.
4. Staging- There are professionals that do this for a living, but you can do some of it on your own. Go through your house, room by room, and take a good look at the space. If there are two huge couches in your not so huge living room, you might want to get rid of one to create the illusion of a bigger space. The internet has a lot of resources and tips for staging. I will probably do a future blog just on staging.
5. Availability- Make your home easy to look at. When a buyer wants to see your house, try to fit it in on their schedule. They could only be here for the weekend and can really only do it that certain time. Allow your agent to hold the home open. Allow a sign in the yard and a lockbox.
6. List your house- Studies have shown that homes listed with a real estate professional will sell more quickly and for more money. That sounds good, huh?
If anyone else has any tips or tricks that worked them I would love to hear them.
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