Thomas Murphy - Pine Shores Real Estate

Posted by Thomas Murphy on 2/11/2018

Buying a home is a complicated process with a lot of opportunities to make costly mistakes. There’s no high school class to prepare you for buying a home but there probably should be. If you’re a first time homebuyer and you came across this article looking for advice, congratulations--you’re already doing the most important thing you can when making a big financial decision: the research.

In this article, we’ll cover some of the most common mistakes that first time homebuyers make when entering the real estate market. We’ll break it down by the three main phases of home-buying: saving for a home, hunting for a home, and signing a mortgage.

Saving for a home

One of the first lessons that all first time homeowners quickly learn is that being able to afford your monthly mortgage payments doesn’t mean you can afford a home. Many first time buyers are often coming from living situations where certain utilities are included (water, heat, electricity, etc.). Aside from those obvious expenses, there are also things like property tax and home insurance to budget for, both of which may increase. Finally, when you’re living in an apartment and your faucet breaks, you simply call the landlord. When you own a home, especially an older home, be prepared to spend on repairs and to start learning basic maintenance skills that will save you money.

The hunt for your first home

Now that you’re aware of the costs, it might be tempting to jump in and start looking at homes. Another common mistake first time homebuyers make is to waste time looking at homes before they’ve met with a real estate agent or have gotten pre-approved for a loan. Start there, then once you know the scope of your home search, you’ll have a much more relaxing hunt for your new home.

Another mistake that first time homebuyers make is to underestimate the time and commitment it takes to find a home. When you work with a real estate agent, make sure you are available at all times. Keep your phone nearby, stick to your schedule for viewing homes, and keep a list of each home you’re considering. Showing initiative and dedication won’t just help you stay organized, it will also show your agent and the home seller that you are worth their time.

Mortgage mistakes

One of the most common mistakes that buyers make when it comes to their mortgage is to fail to shop around for a lender. In fact, the Consumer Financial Protection Bureau found that only half of all buyers considered more than one lender for their home.

Buyers, first time and repeat, often think their credit report is set in stone. What they don’t realize is that the three main credit Bureaus (Experian, Equifax, and TransUnion) can all make mistakes on your credit. Check your detailed credit reports and fix any errors long before applying for a mortgage to increase your chances of getting a good rate.

If you avoid these common mistakes and continue to do your research along the way, you should be able to save yourself some headaches and some money in the long term.

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Posted by Thomas Murphy on 12/31/2017

As a homebuyer, it is easy to envision finding the perfect house, submitting an offer on it and acquiring it right away. However, it is important for buyers to consider the worst-case scenarios as well.

A buyer who understands the worst-case scenarios that he or she may encounter during the homebuying journey can plan accordingly. That way, this buyer will be better equipped than others to avoid various homebuying worst-case scenarios altogether.

Now, let's take a look at three common homebuying worst-case scenarios, as well as how buyers can avoid these situations.

1. You find your dream home, but it falls outside your price range.

If you enter the housing market without a mortgage in hand, you may need to act quickly to acquire the necessary financing to purchase your dream house. But once you kick off a search for a mortgage, you may find that the cost to acquire your dream home falls outside your budget.

When it comes to getting home financing, it often helps to be proactive. Fortunately, if you meet with banks and credit unions before you launch a home search, you can determine exactly how much money you can spend on a residence.

Banks and credit unions employ friendly, knowledgeable mortgage professionals. With these mortgage experts at your side, you should have no trouble getting pre-approved for a mortgage at your convenience.

2. You discover a wide range of problems during a home inspection.

A home inspection likely will be completed in the days after a seller accepts your offer on a residence. And in some instances, an inspection may force you to reconsider whether you want to purchase a house.

If you encounter problems during a home inspection, you still have lots of options. You can ask a seller to perform assorted home repairs or reduce your offer. Or, you can walk away from a home sale and restart your home search.

For homebuyers who are worried about any problems that they encounter during a home inspection, it is paramount to look closely at all of the aforementioned options. By doing so, you can make an informed decision about whether to proceed with a home purchase or reenter the housing market.

3. You employ a real estate agent who fails to help you achieve your homebuying goals.

Many real estate agents are available in cities and towns nationwide. But if you fail to conduct an extensive search for the right real estate agent, you may struggle to accomplish your homebuying goals.

When choosing a real estate agent, you should learn about this housing market professional's industry experience. It also helps to meet face-to-face with a real estate agent and discuss your homebuying goals with him or her. This will enable you to determine whether you're comfortable working with a particular real estate agent.

Enjoy a quick, stress-free homebuying experience – consider the aforementioned worst-case homebuying scenarios, and you can minimize the risk of potential pitfalls throughout the homebuying journey.

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Posted by Thomas Murphy on 12/24/2017

In certain states, attorneys are almost required in order for you to purchase a home. In many states, real estate matters can be handled completely by the real estate agent themselves along with a title company. An attorney’s presence is not required in these states. This is when hiring a real estate agent is most important. 

Buying A Home With An Agent

You can either get your own buyer’s agent to represent you, or you can use the seller’s agent to help you seal the deal. It’s a good idea to have your own agent to represent you, but you have the right to use either option. A buyer’s agent has a duty to keep the buyer’s best interests in mind and to keep all of the buyer’s information private and confidential.

It’s important to find your own buyer’s agent before you even start the house hunting process. Your agent can be a valuable resource in helping you to choose the right home for you and your family. If you decide to use the seller’s agent, their loyalty will be divided between the sellers and you. This is a fine choice as it will be balanced. However, you may want an agent who is completely dedicated to you so that your needs and interests are adequately represented.

If you have a question as to whether an agent is actually representing you as a buyer, the seller, or both, it should be clearly stated in writing for you. This way there will be no questioning as to whom is being represented by who. 

Buyer’s Agent Duties

Having a buyer’s agent is a great resource for you. An agent will be able to help you search for properties. The agent can help you to see properties in person if you are unable to make it to an open house. Buyer’s agents also can provide market analysis to help discover a home’s value. They’ll also strategize with you on negotiating. Other things that the buyer’s agent can assist you with are:

  • Presenting your offer
  • The home inspection
  • The application for a mortgage
  • The completion of the purchase and sales agreement
  • Attend the final walkthrough at the closing

Finding a buyer’s agent is an important part of buying a home. The agent can help you throughout the entire process from finding a home to closing on a home. Your agent can even give you recommendations on everyone who may need to be involved on the road to home ownership including attorneys, inspectors and contractors. It’s important to have someone around who knows all about real estate and can understand every step of the home buying process.

Posted by Thomas Murphy on 10/22/2017

When you’re searching for a house, the location is often key. Maybe you have found homes in your desired city or town. Yet, all homes are not created equal. Locations aren’t created equal either. There’s advantages and disadvantages to the type of street that a home is on. If you’re on a main road, you may have more accessibility to what you need, but traffic noise could be a negative aspect of this living situation. Living on a cul-de-sac gives you the best of both worlds. You can be in your desired location, but also enjoy some peace and quiet. Your kids will even have a fairly safe space to play on without worry on your part about traffic conditions. Here’s some of the best reasons to find a property on a cul-de-sac:

There’s No Through Traffic

No one will be using your street as a shortcut for anything, since it’s a dead end! This provides a safety net for you as you’ll know the types of vehicles that should be on the street at any given time. Neighbors can be mindful if they happen to see strange people or vehicles lingering in the neighborhood. This allows streets with dead ends to have lower crime rates. Everyone is more alert, because there’s generally so little happening on the street that any activity is noticeable. Criminals also tend to shy away from these types of neighborhoods due to the fact that people are much more aware.  

It’s Better For Children

You always need to watch your children and teach them basic safety rules. Living on a cul-de-sac may actually help relieve a bit of the burden in allowing your children to play more freely. Cars that are traveling down the street won’t be doing so as fast. Your children will be visible right form your home as well.  

Also, since everyone lives so close together and basically in a visible range of one another it’s easier to develop neighborhood friendships. Children will be able to play with other kids their own age and have a common meeting spot- at the end of the street! Even as a parent, you’ll have a better opportunity to get to know other parents and meet up with those in the neighborhood. There’s just something about living on a dead-end street that allows for a more tight-knit community.

Home Values Rise

All of the positive things that we have emphasized here about living on a cul-de-sac are part of the reason these properties keep their high values. With better curb appeal, more safety, and a strong sense of a community, it’s hard to pass up a chance to live on a cul-de-sac.

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Posted by Thomas Murphy on 10/15/2017

Applying for a mortgage is one of the biggest decision that an individual can make in his or her lifetime. As such, it is important for a first-time homebuyer to dedicate the necessary time and resources to employ the best mortgage lender – without exception.

So what does it take to hire the ideal mortgage lender? Here are three tips to help a first-time homebuyer quickly and effortlessly choose the right mortgage lender.

1. Consider a Variety of Lenders

There is no shortage of top-notch lenders in cities and towns across the United States. Thus, a first-time homebuyer can meet with a variety of credit unions and banks to explore all of the mortgage options at his or her disposal.

Spend some time learning about lenders in your area. Look at each lender's experience and reputation, and you may be better equipped than other homebuyers to select the ideal lender based on your individual needs.

Furthermore, conduct face-to-face meetings with lenders. These meetings will allow you to learn about a wide range of mortgage options and will make it easy for you to make an informed decision.

2. Ask Plenty of Questions

When it comes to getting a mortgage for the first time, there is no need to leave anything to chance. Instead, ask plenty of questions as you consult with assorted lenders, and you can gain the insights you need to pick a lender that matches or exceeds your expectations.

Remember, there is no such thing as a "bad" question, particularly when it comes to mortgages. If you meet with various lenders, you can get all of your mortgage concerns and queries addressed without delay.

A first-time homebuyer who asks lots of questions may be able to avoid potential financial pitfalls down the line too. In fact, this homebuyer should have no trouble selecting a great lender who can fulfill his or her mortgage needs for years to come.

3. Consult with a Real Estate Agent

Let's face it – selecting a lender may prove to be exceedingly difficult. Fortunately, a real estate agent is happy to provide honest, unbiased advice to help you find the right lender in no time at all.

A real estate agent understands the challenges of obtaining a terrific mortgage, and as a result, will do everything possible to help a homebuyer discover a lender that can provide outstanding support day after day. Plus, a real estate agent can even help a homebuyer alleviate stress as he or she searches for the right lender.

Let's not forget about the support that a real estate agent can provide throughout the entire homebuying journey, either. Typically, a real estate agent can keep a homebuyer informed about new residences as they become available, set up home showings, negotiate with a home seller on buyer's behalf and much more.

Get the right mortgage any time you choose – use the aforementioned tips, and a first-time homebuyer can streamline the process of selecting the ideal lender.

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