We are sitting in the middle of a seller’s market. If you are considering putting up that For Sale sign, now is the time. According to Zillow.com, on average, homes in Omaha have increased by 5.7% in the past year. With prices on the rise, here are a few tips that you should keep in mind as you prepare to put your house on the market.

1. Pictures will generate interest.

Unfortunately, posting a For Sale sign in the yard and kicking back will no longer lead to the influx of interested buyers you are likely looking for. Buyers are now turning to the internet more than ever, so posting pictures of your home is key to stay in the game.

We recommend starting with at least 30, but the more photos you have the better, especially if you are targeting millennials and first time homebuyers. If possible, hire a professional photographer that can take wide-angle images that will capture the whole room with a crisp and clear quality to generate extra interest. Try to capture your home on a sunny day when the grass is green and the trees are full of leaves and color. Remove, photos, books and other extraneous items in order to de-clutter and make the room look as big as possible. Lastly, take away personal items like your giant family portrait so that buyers can picture the house as their own.

2. REALTORS® can ease the process.

If you are not a seasoned pro, hire a professional REALTOR® to help you out and to avoid potentially selling yourself short. Despite the additional cost, realtors have more negotiating experience to determine a reasonable offer. Additionally, they can smoothly tackle your paperwork and professionally handle problems that arise when drafting the contract. You will save time by not having to directly interact with the potential buyers.

Find your perfectly matched CBSHOME REALTOR® at cbshome.com/agents. We have over 400 experienced and professional agents ready to help you find your dream home!

3. Overpriced homes do not sell.

When in doubt, do not be afraid to discount your listing. Lower prices generate more offers and interest, which could lead to a bidding war that will drive the price back up. Slightly underpricing your listing can be a method for generating more interest in your home. If you are still having trouble finding buyers, note that winter is a slow time of year for home sales. With the holidays and cold weather, fewer buyers are looking and it may take longer even if you list at a lower price. If possible, hold off until warmer weather.

5. Home inspections save you trouble.

Avoid unforeseen expenses that could be uncovered during the buyer’s inspection. By having your home inspected prior to putting your house on the market, you can identify and fix electrical, plumbing or roofing problems ahead of time. Plus, Pre-Inspected homes look more attractive to potential buyers. Alternatively you can opt to price your house below market value to account for these issues.

6. Clutter is the difference between cozy and crowded.

Easily avoid this common mistake and clean! De-clutter, trim the bushes and get rid of odors. Fix minor problems such as securing a loose tile or reattaching a missing cabinet handle because even minor remodeling can go a long way in the price and appeal of your home. Have a fresh set of eyes do a walk through before showing your house to your first potential buyer. Your sister or neighbor will identify small problems and quick fixes that you are used to and may have overlooked.

Many buyers search online for new listings through platforms such as the Multiple Listing Service (MLS). As soon as a new home that fits their criteria appears on the market, buyers are ready to come take a look. The majority of your showings will occur in the first 2-3 weeks, so be prepared. Be sure to have your pictures uploaded, your house cleaned and your lawn mowed.

Happy selling!

Buying a house is a significant task to begin with. House searching, negotiations, financing, the whole situation can be confusing and utterly stressful. However, having the right team to support you and walk you through any questions you may have will keep you on the right track. One particularly confusing piece of home buying is the escrow process, also known as closing. Once you find your new home, both you and the seller accept a purchase agreement and the escrow process begins.

First, you and the seller will need to sign a mutually acceptable purchase agreement. Once this is completed, you will deposit your earnest money check into a third-party escrow company outlined in the initial agreement. The escrow company will act as a neutral party throughout the entire process as they collect all necessary funds and documents.

Next, the bank responsible for the mortgage will conduct an appraisal of the property. Unfortunately, more often than not, the appraisal is lower than the offered price. This means that you as the buyer will have to cover the cost of the difference. If the amount does not fall within your budget, or the seller doesn’t adjust the price to the appraised amount, another option is to seek a second appraisal. At this point in the process, it is important to trust your realtor for guidance because he or she will be able to help you navigate the tricky waters of the appraisal process.

Generally, the next step in the escrow process is for the sellers to provide a written and comprehensive list of any issues that are currently affecting the house for the buyer’s review. While many of these issues are already discussed and reviewed during negotiations, it is always important to get everything in writing in case any recourse or further actions need to be taken once the closing process is completed.

Once all disclosures have been reviewed and approved, it is in the buyer’s best interest to obtain necessary home inspections. Inspections are extremely important because they can identify any dangerous home defects that may have been missed earlier. Types of inspections worth considering include pest inspection, foundation inspection and environmental inspections. Each inspection can potentially shed light on significant problems with the house and foundation that can affect the price. If there are any serious issues, this is right time to negotiate a lower price with the seller. Your realtor will be able to help you determine if the home is worth negotiating for or if you are better off looking for your new home elsewhere.

Next, it’s a good idea to start shopping for homeowners insurance. Once you have decided on the right policy for you and your family, you should acquire your title report and title insurance. The report ensures that the property title is clear and explicit. The insurance will help you out down the road if any legal issues are to arise regarding ownership of the home.

After a final walk-through, you should, at this point, be ready to complete and close the escrow account. This process involves signing a lot of paperwork. Each piece should be read through carefully (we know this may sound time consuming but it is imperative that you know exactly what you are signing). You will receive the new deed and the sellers will receive a wire transfer for the down payment and closing costs. As soon as this step is completed, pop your champagne because you are officially a homeowner!

The key to making it through this process is to not be afraid to ask questions. Understanding the escrow and closing process can be quite difficult. However, working with your realtor will help make everything more digestible. See all of our CBSHOME agents here. Even though it may seem overwhelming, closing on your home should be a relatively smooth transition into starting your new life in your dream home.

Millennials (individuals aged 18-34) are sweeping the real estate market, but they’re not doing it in the traditional way their parents did. This generation is all about instant gratification and getting exactly what they want. How are millennials searching for homes, then? Here are five ways this generation’s house hunting strategy is different.

1. They took the romance out of home buying

Millennials typically are not looking for their forever home right off the bat. They are looking for a starter house, to stay in around 5-7 years. Unlike their parents before them, they know they probably won’t live in one house their entire lives. They’ve had a few apartments and are already used to the idea of moving again in their future.

2. Mortgage Before Marriage

According to a Redfin study, 38% of millennials would consider delaying a honeymoon or wedding in exchange for purchasing a home. This means homebuyers are becoming younger and this generation is ready to tackle a mortgage and all the responsibilities that come with owning a home.

3. Online Marketing Sells

Wondering where all the millennial homebuyers are? They’re not casually stopping by open houses or searching the newspaper. They’re online. On phones, tablets, computers, you name it, they’re on it. Listings that are advertised online are more likely to be seen by a younger buyer. Try featuring listings on Facebook, Twitter or Instagram to drum up even more interest.

4. Text is key

In a tech-savvy world, millennials like information and answers instantly. Stop the phone tag, and opt for a quick email or text message. This allows both parties to reply at their convenience and can hold much more information like photos, links or contracts.

5. Fixer Uppers Charm

Most starter homes come with their fair share of problems. This does not necessarily mean that a fixer upper home is out of the question for millennials. In this world of customization, project homes appeal to many buyers to create a unique and special home. Millennials like to take pride in their homes and feel satisfied when they have worked to make a house a home.

When it comes to selling a home, it’s hard to know exactly what to do. But when a house has been on the market for quite a while with no attention, it may be time to reevaluate what could be going wrong. Speaking with your real estate agent is the best course of action, but we have a few ideas about why houses might not be selling, too.

The first and most obvious thing to look at would be price of the house. Is it overpriced? Compare your home to other similar houses in the area and see how the price stacks up. If the houses are priced differently, look at square footage, renovations and other additions that may make the prices vary. If you decide to change the price of your home, talk to your agent to figure out the best number to put on the price tag.

Another common problem with houses trying to sell is the cleanliness. Sure, a new owner will probably come in and clean everything anyway, but make sure your house is sparkling clean especially when it’s on the market. Potential buyers want to see the house in the best possible light, so be sure to show off what you’ve got!

Along with cleaning, a house with a bad smell could be an omen for a home that just won’t sell. Many people get used to the smells in their home, so invite someone new over to do a sniff test on the house. If you have pets, children or like to cook a lot, consider getting carpet and linens cleaned and be sure to light candles before potential buyers visit. If the weather is nice, open windows and let fresh air flood the home.

The outside of a home is the first thing a potential buyer sees when the pull up. Make sure all the landscaping is taken care of: lawn mowed, leaves picked up, flowers pruned. Even if the house is vacant, make sure someone is stopping by once a week to tend to the landscaping. Also make sure the house is in good shape, no broken shutters or chipped paint and be sure to clean windows so they sparkle. Try to show off your house like it was being photographed for a magazine.

Inside the home, check for obvious repairs that need to be redone. Try to fix small projects that may look bad during showings like leaky facets or holes in the wall. For bigger projects, be sure to disclose the information on the seller’s disclosure form. Just be prepared to negotiate on big repairs when the home inspection comes back.

Everyone knows that buyers should look past the color on the walls, but sometimes if the walls are just too loud, it may be time to paint them a neutral color. This will be easier for the buyer to imagine themselves living in the house. Grays, tans and other neutrals are a safe bet. Ask someone at the paint counter to show you which neutrals are popular.

Has the house been marketed everywhere? Be sure to promote the sale everywhere you can think: social media, newspapers, flyers, etc. Talk to your REALTOR to see where else you can be marketing your house. Choosing the right agent ensures that they will do everything they can to sell your home. To find a dedicated and persistent agent, look at CBSHOME.com!

Purchasing a home is one of the biggest financial decisions you will make in your lifetime, but many people don’t consider the large down payment that is needed when buying real estate. We have some great tips and ideas to help you save your pennies for that down payment. Remember, the bigger the down payment, the smaller the mortgage payments!

1. Calculate an Estimated Down Payment

Once you decide you’re ready to buy a house, talk to a real estate agent or mortgage lender and calculate an estimated down payment. This will be decided based on your budget and pre-approval. Once you have a general number in mind, it will be easier to figure out what you need to work towards. This isn’t an exact amount, but will help you with an attainable goal.

2. Open Up a Savings Account

Setting your money aside in a separate account will be easier to detach the down payment savings from your normal savings and checking. Talk to a banker and try to find a savings account with a high interest rate so you can earn even more! Keeping your down payment money separate will help you visualize and see your money grow without being tempted to spend it.

3. Check Your Credit

If you don’t already keep tabs on your credit score, check in and see what your number is. If you think it is low or needs improving, try paying off credit cards first to build better credit. The better credit score you have, the better mortgage rates you will get.

4. Stop Large Spending

Saving money can be strenuous, but a big help would be to stop spending money on large items like cars, electronics or other big-ticket items. Instead, put the money you would have spent on those things into your savings!

5. Create a Budget

Figuring out how much you absolutely have to spend each month or week is a great way to find new ways to save money. Seeing how much you spend on certain areas might help you to cut down on unnecessary spending. A few ways to cut down on your spending are to stop ordering drinks and appetizers at restaurants or rent movies instead of going out.

6. Put Money Away Each Week

After you figure out your budget, consider how much you can put away each week into your savings account. Set this up as an automatic transfer so you don’t have to even think about it or worry about missing a week. If you keep up this habit for a couple of months, you’ll be surprised how much you can save!

7. Use Money-Saving Tricks

There are many ways to trick yourself into saving big bucks. Start putting all of your change in a jar to collect, or every time you receive a five-dollar bill, set that aside for saving. Check your bank and see if they have any programs like rounding every purchase up to the next whole dollar and putting that money in your savings. After a while, these little saving tricks accumulate!

8. Collect Cash-Back Rewards

Many credit cards offer cash-back rewards for spending money and paying off the card each month. Start collecting this money as cash into your bank account and add it to your savings. Consider any other rewards you receive like bonuses or birthday money as a part of your savings.

9. Find a Part-Time Job

If you want to make some quick money, or just aren’t the best at saving, consider getting a second job and use the profits to pay for a down payment. This could mean retail, food service or even selling crafts or homemade items online. If you have a hobby or passion, now is the time to jump on this and start turning your hobby into a money maker.

10. Try Selling Old Stuff

You know you have old stuff collecting dust in your home that hardly ever gets used anymore, yes, I mean that old Nintendo. Instead of leaving them be or donating them for free, try selling some of your old stuff online. Any old handbags, jewelry, electronics or decorations could mean big bucks for your down payment.

What money-saving tricks do you have? Was saving for a down payment as hard as you thought it would be? Join the conversation, we’d love to hear from you!

Rent prices in Omaha have been creeping up in price for a long time. This trend, along with lower home prices and lower mortgage rates, has been driving more and more Omaha residents to purchase homes instead of renting. The real estate market in Omaha is thriving right now; low inventory and a surplus of buyers means houses are not staying on the market very long.

High Rent Driving More People to Invest in Real Estate

Rent in Omaha has been rising in price an average of $16 per month, or about $384 a year. On the other side, the sale prices of homes are at an average of $139,000, which is 36% lower than the average home price in the United States. New construction homes have been sweeping the market as well. In 2015, the number of building permits went up 17% in comparison to 2014.

The Omaha market is a great place to start your real estate relationship. Omaha has so many different types of homes in different price ranges – there is a house for everyone! You can find older, smaller homes in Dundee, Benson and Midtown that are perfect for starter homes for young couples or families. Larger and grander homes can be found throughout Omaha as well in a variety of price ranges. Start searching for a home in Omaha at cbshome.com.

Compared to renting, real estate is truly a beneficial investment – one even Warren Buffett endorses! Yes, the sticker price may be shocking compared to a monthly rent check, but most mortgages are similar in price to monthly rent prices. To see how much an mortgage payment might be, check out this mortgage calculator.

Are you looking to dip your toes in the real estate market in Omaha? Find a great real estate agent from CBSHOME on our website!

Saving for a down payment could be seen as a daunting task for many people. But what if we told you there are 101 ways you could be saving money that could go towards your down payment? If you’re serious about becoming a homeowner, you can’t afford not to make some of these easy and painless changes to start saving money!

101 Ways to Save Money for a Down Payment

1. Brew your own beer.
2. Make coffee at home – no more Starbucks runs!
3. Order off the dollar menu at fast food restaurants.
4. At restaurants, order water instead of tea or soda.
5. When you’re shopping at a large store, remove one item from your cart before checking out.
6. Don’t buy books – go to the library!
7. If you don’t have a full load of laundry, hand wash the items you do have.
8. Bring your lunch to work every day.
9. Coupons can be found in every Sunday issue of the Omaha World-Herald. Clip them for savings at the grocery store.
10. Don’t buy clothes, shoes or accessories unless you have a coupon or discount code.
11. Pay off credit cards every month and avoid paying any interest.
12. Fix leaky faucets to stop water from dripping.
13. Set up your bank to automatically put 10% of your paycheck into your savings account.
14. Cook meals at home and avoid eating out.
15. Buy fruits & vegetables that are in season.
16. Turn out lights in rooms when you’re not using them.
17. Wash your car at home instead of taking it to gas stations.
18. Many stores like HyVee and Baker’s offer gas rewards. Sign up for these cards and gas up at their pumps.
19. Instead of buying new clothes, swap outfits with a friend, relative or coworker with same size.
20. Stop buying alcohol at restaurants; it is considerably marked up.
21. Pack your own snacks when going to a movie.
22. Cancel either Netflix or cable – you don’t need both.
23. Make your own cleaning products. They’re cheaper and usually more natural.
24. Put every single coin you get into a jar – never spend them! Work your way up to saving coins and single dollar bills.
25. Bring sodas and snacks to work instead of buying them from vending machine.
26. Don’t donate your clothes – sell them online at a store like ThredUp.
27. Sell unwanted items on ebay for a profit.
28. Put your money in a bank account that will earn you a good interest rate.
29. Only use your bank’s ATM to avoid fees from competitor’s ATMs.
30. Turn down your heat or A/C when you’re gone.
31. Finally quit smoking and save around $2,000 a year on cigarettes!
32. Take shorter showers to save on water.
33. Quit paying gym fees and work out at home or your company gym. You can even find free workout videos online.
34. Turn off water while brushing teeth.
35. Carpool with a neighbor or friend when you can. If you’re going to the same place or work, figure out a schedule and cut down on your gas costs.
36. Only run dishwasher when it’s full.
37. Make your own greeting cards with supplies around the house instead of buying them at the store.
38. Cancel magazine or newspaper subscriptions you don’t read.
39. Hang items to dry outside when the weather is nice.
40. Don’t wash every item every week. Here is a list of how often to wash clothing items.
41. Don’t have computer save credit card info; it’s too easy and tempting to shop online.
42. Cancel monthly subscription boxes.
43. Buy generic brands at the store. Many are made with the same ingredients and at the same factory.
44. Use the 30 Day Rule. Write down what you want to buy, then wait 30 days. Chances are you’ve forgotten about it or can live without it.
45. Grow fruits, vegetables and herbs in your garden. You can sell your surplus to a stand at the farmer’s market.
46. Rent movies and stay at home instead of going to the theater.
47. Stop ordering appetizers and dessert at restaurants. Either pick one or none!
48. Buy pantry items like toilet paper, paper towels and soap in bulk.
49. Bring your own reusable bags to stores that will give you money back like Target, Lowe’s, HyVee, Baker’s, Whole Foods and Trader Joe’s!
50. Recycle aluminum cans for money in Omaha either at Scrap Central or Can Pac.
51. Stop adding more items in your cart at the store when you’re waiting in line. Those items are meant to be attention grabbing, but most likely you don’t need them.
52. Drink more water! Not only is it great for your health, but it stops you from drinking soda, alcohol and tea. It also fills you up so you don’t snack as often.
53. Take part in Meatless Mondays. Meat is so expensive so replace your protein with beans or eggs.
54. Save on gas and walk or bike around when you can.
55. When traveling by airplane, always pack a carry-on and don’t check your luggage. There are lots of fees for doing so.
56. By planning a menu, you won’t be tempted to go out if you know what you’re eating for the week.
57. Cut sponges in half – you get twice as many!
58. Create a budget so you know where you can cut back. Once you visualize where your money is going, it’s easier to find ways to save.
59. Take advantage of cash rewards programs like at Walmart, ibotta and Walgreens.
60. Shopping at the Dollar Tree is great for decorations, gifts, batteries, etc.
61. Energy saving light bulbs help save money on your electric bill.
62. Mend worn clothes by learning how to sew instead of throwing them out.
63. If you have lots of extra produce from your garden, learn how to can it and save it for later months.
64. Make your own bread instead of buying it at the store.
65. When shopping online, keep things in your cart for 24 hours before checking out. Then go back and see what you can remove.
66. Compare your insurance prices with other companies and see if you can get a better deal.
67. Use cloth diapers for kids. Even switching for a couple days a week will save money.
68. At restaurants, share an entrée or immediately push half to the side for another meal. You get two meals for the price of one!
69. Most people use too much laundry soap. Cut the amount you use in half.
70. Stop buying lottery tickets. It’s money down the drain.
71. Pay bills online and save yourself the money for a stamp and envelope.
72. Refill ink cartridges instead of buying new ones.
73. Many game stores will sell pre-owned games and let customers trade in their used games. Take advantage of this system to save money.
74. Turn off water while washing dishes.
75. Pack your lunch for a road trip instead of stopping at restaurants.
76. Don’t turn on your washing machine unless you have a full load of laundry.
77. Buy regular floss instead of floss with handles; it’s much cheaper.
78. Wash your hair every 2-3 days if you can. You’ll save money on shampoo and conditioner.
79. Rent a carpet cleaner instead of paying a company to come in and clean your carpets.
80. Mow your own lawn throughout the summer.
81. Use cash back bonuses from credit cards to pay off your bill, not spend more money.
82. Try to sell things local so you don’t have to pay for postage. Craigslist is a great place for this.
83. Open windows when it’s nice out to cool your home instead of using the air conditioner.
84. Install a low flow shower head to save on water.
85. Turn your computer off at night to save energy.
86. Get the longest life out of your razor or spend less on razor heads with Dollar Shave Club.
87. Pay with your rewards credit card instead of using debit or cash. This way you earn money for what you’re spending.
88. Paint your own nails instead of going and getting a mani-pedi.
89. Don’t buy flowers, cut them from your own garden!
90. When hosting a party, make it a potluck to cut down on food costs.
91. Find fun and free things to do around the Omaha by looking online.
92. Install a programmable thermostat in your home.
93. Rent out your home when you leave for vacation using a service like Airbnb.
94. Eating breakfast prevent snacking or cravings for bad food later in the day.
95. Give your pets baths at home and stop paying high prices for a groomer.
96. Embrace leftovers – they’re great for lunch or a smorgasbord dinner.
97. Buy food in bulk – then freeze the surplus. This is great for beef, pork and chicken.
98. Don’t go to the grocery store hungry; you end up buying way more food.
99. Pay all bills on time and avoid late fees to pay!
100. Use public transportation when available.
101. If none of those are working for you, just start saving money the old-fashion way. Use a plan to save a certain amount of money each month.

When you’ve saved enough for a down payment, be sure to contact a real estate agent to start your home search!

When you’ve finally found the home you’re looking for at the right price, it’s easy to think that the hard part is over; however, there’s still a lot to do in order to ensure your purchase goes through without a hitch. If you’re tying up the loose ends on your home purchase, here are some things you should do to avoid any unnecessary delays.

Hire A Legal Professional

However much research you may have done in regards to buying a home, there’s still a lot of legal jargon in the closing documents that can be difficult for most people to understand. Instead of doing guesswork, you may want to use an attorney who will take the difficulty out of the documents for you so there will be no holdups with the paperwork.

Arrange A Home Inspection

A home inspection is a necessary step before the sale of a home, but this is an important one to get out of the way because it can seriously impact your home purchase. Because major problems can often be discovered during inspection, getting this out of the way and deciding if an item should be fixed or the total price knocked down will ensure there are no delays at the last minute.

Acquire Title Insurance

In order to make sure your property really belongs to you, it’s a good idea to have a title search completed to see if there are any claims to your future property that could invalidate your purchase. As this is a legal safeguard for your claim to your home, it will help you avoid unnecessary issues in the event of an unknown property claim.

Determine The Closing Costs

An escrow company is responsible for holding the funds until all aspects of a home sale are complete, but there are fees that go along with this service. Before you get to the end of the process, determine what exactly the company will be charging so that you can be prepared for the final total. While fees are legitimate, if you see a higher tally than expected, you may want to negotiate for a reduced cost.

Purchasing a home is a significant investment full of hurdles you might not be aware of, but by acquiring title insurance and having a legal professional look through your documents, you can make your home purchase go a little smoother. If you’re planning on purchasing a new home soon, contact your local real estate professional for more information.

Making the decision to purchase a home is one of the most significant investments most people will make in their life, and this automatically means there are a lot of questions that need to be answered before putting any money down. If you’re considering making the leap, here are some insights into some of the common questions you might have.

How Much Should You Put Down?

While many homebuyers have the option of putting as little as 3% down in order to purchase a home, there are benefits to saving up for a down payment and putting in 15 or 20%. Because your interest rate will be higher on a lower down payment, putting more down can mean a lower overall price tag and monthly payment.

Fixed or Variable Rate Mortgage?

While a fixed rate mortgage can be good for homeowners who are new to the market due to its stability, a variable rate can be hard to rely on because it can change all of the time. Fixed rates can end up costing more than variable rates in the event of low interest rates, but it’s important to determine your comfort level with the market is before deciding on your mortgage type.

How Will The Lender Assess You?

There are a number of different factors that lenders will assess you on including your income, personal debt load, employment and credit history. While it’s important to be in the good books for these reasons, a lower credit score does not mean you will not be able to qualify for a mortgage; it simply means that you may need to provide a higher down payment.

What Will The Monthly Payment Be?

One of the conundrums of home ownership is being able to determine what you’ll actually be paying per month to purchase your home, but this number is dependent on the size of your mortgage, your interest rate, and the frequency of your payments. There are also many handy online tools you can use to provide some estimates but it’s best that you consult your mortgage specialist about this.

Most homeowners, particularly those that are new to home ownership, have many questions when it comes to purchasing a home, but by being aware of what a lender looks at and what you should put down, you’re well on your way to a healthy attitude towards ownership. If you’re currently considering buying a home, contact your local real estate professional for more information.

For many homebuyers who are new to the market, it can be very comforting to be on a fixed rate mortgage where fluctuating interest rates cannot have an impact on your monthly payments. While a variable rate mortgage can sometimes lead to significant savings at the end of the day, there are a few ways you can tell if your monthly payment is on the upswing.

An Increase In Your Home’s Value

A marked increase in a home’s value is ideal for most homeowners who consider their home an important investment. However, the downside of an increase in the price of real estate is that your property taxes will probably be bumped up along with it. According to Josh Moffitt at Silverton Mortgage, “If your home value increases because of market conditions, taxes will follow, and it will cost more to insure the home.” In order to determine if a higher payment is on the horizon, you may want to take a look at the listings in your neighborhood.

A Miscalculation

Most people hope that a re-assessment of the value of their home will lead to a bump in its price, but if your monthly mortgage payments were calculated at a specific time during the transaction, this bump may mean a higher monthly payment for you. If there was some overlap between the assessment and the property transfer, or other fees were included in your payment, your tax professional should be able to advise you on the best course of action you can take come tax time.

Insurance Renewal Is Up

In the event that the homeowner’s insurance on your home is about to expire, there’s a possibility that you’ll be paying a bit more following renewal. Instead of leaving this to chance, ensure that your insurance company is communicating with you and keeping you abreast of changes. After all, while insurance is important to protect your investment, you have the option of looking into other insurance providers who may be able to give you a better rate.

It can be hard to plan for the increase in rates that can go along with a variable rate mortgage, but if your insurance is up for renewal and the value of the homes in your area has increased, a higher monthly payment will likely follow. Contact your trusted real estate professional for more information.

There was a time when it was possible to acquire a mortgage shortly after filing for Chapter 7 bankruptcy, but with the shifts in the financial sector, the timeline on such a mortgage approval has changed in recent years. If you’re currently undergoing a Chapter 7 bankruptcy and are wondering how this will impact home ownership, here are the basics on this type of bankruptcy and what it may mean for you.

What Is Chapter 7?

While a Chapter 13 bankruptcy is the kind of financial situation that requires debt repayment, Chapter 7 is different in that it involves the liquidation of an individual’s personal assets to pay back the debt that is owed. A trustee will be designated to take care of the bankruptcy process, but a Chapter 7 bankruptcy will remain on your credit report for 10 years and have a negative impact on your credit score, which can mean increased interest rates on a mortgage down the road.

Re-Building Your Credit Score

The most important step to obtaining a mortgage following a Chapter 7 bankruptcy is keeping on top of your credit. Because your credit score will be lowered and bankruptcy will remain on your report for a long time, paying all of your bills on time in full and ensuring every aspect of your financial health is in check is of primary importance. Since most lenders will not even consider your application if you’re delinquent with payments, impeccable form is necessary in this case.

The Timeline On A Mortgage

According to the Federal Housing Administration (FHA), anyone applying for a mortgage must wait a minimum of two years after the discharge date of their Chapter 7 bankruptcy, which is the date they are cleared of obligation to their debt. While this is good news for those who want to apply for a mortgage in the near future, it’s important that a good credit history is developed and all FHA requirements are met to ensure approval.

Filing for Chapter 7 bankruptcy can be a hard financial pill to swallow, but by keeping your credit history in check for the duration of the 2-year period, you can be well on your way to a mortgage approval. If you’re planning on being in the market for a home in the near future, contact your trusted real estate professional for more information about opportunities in your community.

A good credit rating is built on a number of financial factors including paying your bills on time and the length of your credit history, but loans can also be a source of bolstering your credit score in a positive way. While this means that loans can actually be a good thing, there are also the kinds of loans that can have a damaging impact on acquiring a mortgage. If you’ll soon be pursuing your own home purchase, here are some loans that may have a negative impact.

Borrowing For Education

When you are young, student loans are an ideal means of paying down your debt and developing a positive credit history. However, if these loans are left to linger they can have a marked effect on your chances of a mortgage approval. Since paying back your student loans will be one of the first times in your financial life that you’ll be able to prove your reliability, you should ensure you pay them on a consistent basis in order to lower your overall debt-to-income ratio.

Credit Card Debt

Many people don’t think of the purchases that go on their credit card as loans, but the money on your credit card does not really belong to you until it’s paid off. While credit cards can be a great boon for establishing your credit in the early days, if you rack up a lot of credit card debt and do not pay your minimum payments by the due date, it will cause a considerable dip in your credit score. In addition, taking on too many cards can be a negative signal to lenders.

Payday Loans

In recent years, payday loans have sometimes been broken out separately from other loans on a person’s credit report. However, unlike many other types of loans, payday loans can be seen in a bad light by lenders because they can be indicative of someone who’s experienced significant financial setbacks, which would negatively impact their ability to pay a mortgage. While some mortgage lenders will not decline an application due to payday loans, some have already started to take this step.

Acquiring loans can be a good means of developing a credit history, but there are types of loans that may look bad on your mortgage application and won’t be of service if you can’t pay them off consistently. If you’re considering submitting a mortgage application, contact your local real estate professional for more information.

In an effort to boost the value of their property, many homeowners invest in renovations that will help them sell at a higher price. However, with all of the renovation options, it can be hard to know what kind of fix-ups are really worth investing time and money into. If you’re looking at all of your options for home improvements, here are some surefire fixes that won’t stress the bank and will probably bump up the offering price.

Add In Stainless Steel

The look and functionality of the kitchen is one of the deciding factors for many homebuyers, and this means that if you have old appliances or an outdated look, you should definitely spend some money on a little upgrading. Since kitchen renovations can be a significant expense when it comes to knocking out walls and adding an island, you may want to stick with smaller stuff like a stainless steel appliance replacement or even renovating your cabinets for a more up-to-date look.

Increase Energy Efficiency

With the push towards reducing overall housing costs and being environmentally sustainable, making your home more energy efficient can be a huge selling feature for the kind of buyers who will be able to save money as a result of renos. While there are many financially taxing overhauls that can seriously bust the bank, try simple fixes like adding extra insulation where drafts exist, and installing LED lights for lowered energy costs and longer light bulb expectancy.

Prep For Paint

It may require a little bit of work to get the job done, but re-painting your home can be one of the best, and most economical, means for upping the value of your home. While painting can still be an economical option even with professional painters, a shiny new coat can take years off the look of your house and instantly improve its appearance. You just need to make sure you choose a neutral color and a high-quality paint for maximum effect.

While taking on home renovations will require a bit of spending, it can be a great idea if you’re re-financing your home and are looking to boost its value. The only thing to keep in mind is making sure you choose the kind of fixes that will be inexpensive and popular on the market. Contact your trusted real estate professional for more information.

Most people who have been on the market for a home are familiar with what the term ‘mortgage’ means, but many have not heard of a reverse mortgage and aren’t aware of how this product can benefit them. If you’re nearing retirement and are contemplating a new home or even relocation to another community, here are the details on a reverse mortgage and how this option may benefit you.

What Is A Reverse Mortgage?

While many homeowners may not have the net worth to be able to buy another home without selling their current one, a reverse mortgage enables the buyer to borrow money against the value of their home. Created in 2009 as the Home Equity Conversion Mortgage for Purchase (HECM), this type of mortgage can enable those older than 62 to relocate to a new house or move closer to their family without having to sacrifice the money they’ve saved or their fixed monthly income.

What Are The Requirements?

Beyond the minimum age requirement of 62 years of age, those who would like to utilize a reverse mortgage must either own the current property they are living in or have a high amount of equity in the property. They must be able to pay all of the costs associated with ownership of the home and the property they are purchasing must be able to pass the standards held by the Federal House Administration (FHA). In addition, applicants will have to go through a financial assessment to ensure they can make insurance and property tax payments.

The Benefits And Drawbacks Of Reverse Mortgages

A reverse mortgage can be a great benefit in that it enables those who are in their senior years to purchase a new home without having to utilize a portion of their fixed monthly income. However, because a reverse mortgage includes this benefit, it also comes in tandem with a higher loan balance and this higher balance means that interest will accrue more quickly. Dependent on this amount, this can actually diminish the equity in the home.

While the opportunity for a reverse mortgage has been around for a number of years, this alternative for purchasing a home has not been utilized by many homeowners since its inception in 2009. If you’re approaching your senior years and are considering the benefits of purchasing a new home, you may want to contact your local real estate professional for more information.

If you’re just getting into the real estate market, you may have heard that 20% down is the ideal percentage in order to lower your monthly payments and get your mortgage application approved. However, while 20% is often suggested, many people struggle to come up with this amount of money. If you’re staving off home ownership, here are some reasons you may not need to hold off as you long as you thought.

Minimizing Your Insurance Costs

Putting down 20% of the total purchase price of your home is often suggested, but it doesn’t definitively mean that your application won’t be approved if you don’t. If you have a good credit score and are in good financial standing, putting less than 20% down means you’ll have to pay Private Mortgage Insurance (PMI); however, it can be worth paying the extra funds in order to get into the real estate market sooner and start paying into your most significant investment.

Mortgage Programs For Less Than 20%

It may seem less possible to buy a home if you only have 5 or 7% of the purchase price, but there are many programs in the United States that enable those with limited funds to apply for a mortgage. From the Federal Housing Administration (FHA) to Fannie Mae and Freddie Mac, there are many lenders that can offer you mortgage programs that will work for your situation. While higher rates come in tandem with a lower down payment, there are options out there for those who haven’t saved quite enough.

Why Put Down 20%?

Putting down 20% is not a necessity for mortgage approval or purchasing a home, but it can be a great means of saving money in the long run and reducing your interest rates. If you’re raring to get into the real estate market and don’t want to wait for the bills to stack up, that’s OK, but if you want to hold off and save up additional funds before diving in, this can mean more money and a more solid investment in the future.

20% is often the magic number when it comes to a down payment on a home, but you don’t require this percentage of your home’s price in order to get approved for a mortgage. If you’re currently considering diving into home ownership and would like to know more about the opportunities in your area, contact your local real estate professional for more information.

There are few things more exciting than finding your ideal home, but with the rising cost of housing, a person’s dream home can often come with a very high purchase price. If you’re wondering how much home you can truly afford and how your cost of living will fare for your mortgage approval, here are some of the details on what you can expect when it comes to finding a home at an affordable price.

What Is Your Debt-to-Income Ratio?

Before deciding if a home is right for you, it’s important to calculate what your debt-to-income (DTI) ratio is to determine how much house you can afford. The debt amount will include any credit cards, existing mortgages and other loan payments that you pay down each month. To determine your maximum monthly payment, multiply your gross income by 0.36 and divide it by 12. This will give you the expenditure of debt, including your housing payment, that you should not exceed each month.

Determining Your Down Payment

There’s a lot of talk around the ideal amount you should put forward for a down payment, but this percentage can directly impact the amount of the house you can afford. If you are able to put down 20% of the purchase price of your home, this means your monthly mortgage payments will be minimized and this will decrease your DTI ratio. While a home may be out of your reach if you can only put 10 or 15% down, 20% down will ensure a higher amount of disposable income on a monthly basis, making your application more feasible.

Determine Your Lifestyle

While a lender may not reject your application outright if your debt-to-income ratio is higher than suggested, it’s important to know what kind of spending choices make sense for you so that you can make your monthly payments. If you have limited expenses above your mortgage and enjoy a Spartan lifestyle, it’s entirely possible that you’ll be able to manage a higher monthly amount. However, if you don’t have stable employment and are struggling each month, it may be a good idea to consider a less expensive property.

The monthly mortgage payment for your dream home may look like it’s manageable on the surface, but if your DTI ratio exceeds what is suggested, there may be issues with acceptance of your application. If you’re currently in the market for a new home, contact your local real estate professionals for more information.

With approximately one million people having purchased vacation homes in the last year, this type of residence is gaining popularity for those who are interested in a home in a beach setting or a vacation hot spot. However, while a second home can seem like a great purchase and solid investment opportunity, there are different requirements that go into this type of purchase. If you’re considering a vacation home, you may want to be aware of the following financial factors.

The Down Payment Amount

If you currently have a primary residence, you may be aware that you don’t need to put down 20% or even 10% in order to make a home purchase, but things are different when it comes to a vacation home. Because you will be taking on an additional mortgage, there is greater risk involved, and this means you will likely have to put in at least 10 percent. Because of this, many homebuyers utilize the equity they have in their first home to make up the down payment.

About The Credit Score

Most people that have a credit score of more than 500 have the ability to use a mortgage product and purchase a home, but if you’re buying a second property, you’ll need a higher credit score in order to facilitate the purchase. Because there is more risk involved, lenders will want to make sure you’re a good bet. In addition, if you do have a lower credit score, lenders like Fannie Mae may also expect you to put more down to decrease the risk involved for them.

The Income Required

Since you’ve been through the mortgage process for your first home, you’re probably aware that you debt-to-income (DTI) ratio needs to be a certain amount in order to qualify for a mortgage. While your DTI for a primary residence may be a little bit higher since it’s your only payment, this ratio will be lower for your vacation home since it’s higher risk. This means you’ll require a slightly higher income than for your primary residence in order to get approved.

Deciding to purchase a vacation home can be a very exciting concept for many people, but there are a number of different financial requirements that go along with buying another residence. If you’re in the market for a vacation property and are curious about what’s involved, contact your local real estate professional for more information.

Buying a home is an ideal investment for many people because not only is it a place that belongs to them, it can also be very beneficial financially. While you may be strongly considering buying a home for these reasons, it’s also important to be in good financial health so that your ideal home purchase is within reach. If you’re currently perusing the market for prospects, here are some reasons you should pay down debt before taking the leap into home ownership.

Good Credit History

The amount of your debt load and whether or not you’re paying off your minimum monthly payments has a considerable impact on your mortgage approval, so ensuring that you have good credit history going into the process is important. If you’ve had hiccups with your credit, make sure you go through your credit report prior to submitting your application to determine where you’re at.

Lowering Your Debt-to-Income Ratio

Whether or not you’ve heard the term, your debt-to-income ratio (DTI) has a significant impact on how much house you can afford. Made up of the amount of your monthly debt payment and current house payment, your DTI should be below a certain percentage as this will enable you to afford a higher home payment each month.

Shifting Interest Rates

Getting a mortgage is one thing, but interest rates add more to the monthly amount you’ll owe. A fixed-rate mortgage can seem like a good idea, but if interest rates are low you may end up paying more than you would on a variable rate, which can be hard to predict. As interest rates are a part of home ownership, having lower debt will enable you to deal with these additional costs.

Finding The Right Home

Putting your money into a home can be one of the best purchases you’ll make, but if you’re unable to afford the home you love, it can be a disappointing fact to face. While there are no assurances that paying down debt will enable you to afford your dream home, it can go a long way towards giving you more options that will fit your budget.

Buying a home can be a money saver in the long run, but if you’re struggling to keep up with your debt payments buying into the market can be more of a burden than anything else. If you’re currently paying down debt and considering a home purchase, contact your local real estate professional for more information.

It’s often the case that people will opt to postpone home ownership until the best rates are available or it’s a more stable investment, but in an ever-shifting market it may not be the best decision to put such a sizeable investment off. If you’re wondering whether or not you should put off investing in a home, here are some reasons you may want to start putting your time into searching for a home.

Interest Rates Always Fluctuate

While interest rates are constantly changing and have certainly risen since the economic recession of 2008, they still remain relatively low and this can make investing in a home an even better financial decision. There are no certainties that market rates will remain low, but given a lower monthly payment and the easier qualifications nowadays to acquire a loan, the present may be the best time to start investing in your own place.

Investing Early Reaps Financial Rewards

It’s easy enough to wait for a lower home price or even improved interest rates, but there is no guarantee that the market will shift down. In the meantime, you may be spending at lot of your monthly paychecks on rent. If home ownership is one of your goals in life and you’re living month to month with a high rental payment, investing money into a home is a sure way to gaining equity for the future, even in the event that the market shifts up.

It’s A Good Time To Buy

When it comes to the market, there may always be a time coming when you’ll get a better deal, but the fact remains that homes tend to remain on the market a lot longer these days and it’s largely a buyer’s market. There are no guarantees that you’ll be able to find the house you want at the price you can afford, but there are a lot of good deals to be found these days and investing sooner is an opportunity to reap financial rewards down the road.

Many people hold off on home ownership because they are waiting for prices to come down or interest rates to change, but the sooner you invest in a home, the more you can benefit from investing into something that is entirely your own. If you’re currently perusing the market for a home at a price you can afford, contact your local real esatate professional for more information.

It can be a bit of a surprise if your home turns out to be valued at less than the purchase price offered, but this is the type of thing that can occur in an appraisal situation. While this can change everything from your contract to the amount of your down payment if your home has been appraised at less than you envisioned, here are some options you may want to consider.

Review The Appraisal Contingency Clause

If an appraisal contingency clause is built into the terms of your contract, this means that the terms of your contract can be re-evaluated and re-negotiated if an appraisal happens to come up short. While this is meant primarily to protect the homebuyer against a lower appraisal, it doesn’t mean that the terms of a new deal can’t be met for the good of both parties.

Get A Second Appraisal

It’s entirely possible that the initial appraisal is accurate, but it doesn’t necessarily hurt to get a second opinion in the event that the first appraisal seems too low. While you can work in conjunction with your lender to get a second appraisal, you may need to pay for it the second time around in order to get your initial purchasing price. Whether it happens to be good news or bad news, it can be worth the peace of mind to know how to proceed.

Consider A Lower Price

It’s less than ideal when your home is appraised for less than the purchase price, but this doesn’t have to be a deal breaker when it comes to selling it. While you may be able to get away with a higher price for your home in a hot real estate market, if things have cooled off, this can be an important time to re-negotiate the deal you’ve got. If a potential buyer likes your home and has already made an offer, they may be happy to decide on new contract terms.

It can be quite disappointing if your home is appraised at a value that is less than the offer you’ve received, but this doesn’t necessarily mean that you’ll have to put your home back on the market. Whether you and the potential buyer decide to re-negotiate or get a second opinion, there are options that can be beneficial for both parties. If you’re currently going through the appraisal process, you may want to contact your local real estate professional for more information.