Many times, so many of us think things are common knowledge, but instead they are just a mere misrepresentation of the truth. Like when we were little and grandma would tell us that if you keep crossing your eyes like that they will get stuck. However, as we get old and wiser we realize this not to be true. This could be the same for a lot of things we hear through the grapevine about buying a home, just because someone says it to be true doesn’t always make it so. Here is a little breakdown of a few of those home buying myths that we have either heard from a friend of a friend, or those close to you that might not be an expert.

Prequalified Means an Automatic Loan: One of the first few steps to purchasing a new home is getting prequalified from a bank, as this point you have given them a brief description of your income, debt, and finances. Once you decide on a home, the heavy lifting takes place. There is a list of documents they will need to look closer into regarding the money side of things. Than there are several things such as the appraisal and inspection that could throw things off course. Being prepared and organized will help make the whole process go so much smoother.

Your Accepted Offer Is Set in Stone: You have found a home, put in an offer, and the seller has accepted your offer. Congratulations, but it’s not set in stone yet. Once the inspection happens, there may be house related issues. You may be able to trim off hundreds or even thousands from the price to take care it, or include these things getting fixed before the closing.

Skip the Buyer’s Agent and Go Straight to the Internet: This is something that has become popular in the last several years, but may not be the best way to go. Though this may be an option for few, going with a real estate agent is usually the better option. They do more than just show you homes, they also give you a lot of important information as well as guidance through the negations. Like having a loan officer to help you with getting the mortgage, it’s better to have an agent to help with the buying process.  

Start Looking for Homes in the Spring: Yes, buying and selling a home in the spring is the most opportune time for many people. Weather plays a big part in this. Fall and winter may also be a great time to house hunt, since there is less traffic so you may have more bargaining power; this in turn will save you money.

A House Inspection Is Optional: I know with your big purchase that you are looking for ways to cut cost, but this is one mistake that could cost you hundreds or thousands in the long run. This is a vital part to purchasing a new home. Don’t rush this. If you do, this could leave you with a laundry list of things wrong with your new home and you footing the bill.

Buy the Worst House in the Best Neighborhood: There are certain circumstances that this could work, but a few questions to ask yourself are: how long can you live with a renovation, is the cost worth it to make it livable, and are the things that make it the worst major, like being next to a loud business or a busy road.  So, weigh out your options and decide if the it’s worth it in the long haul.

Choose Only a 30-Year Fixed Mortgage: With the trend of buying a house with Millennials starting to increase, the trend of 30-year mortgages is decreasing. I’m sure your parents had one, and may have lived in it long enough to pay it off. Just keep in mind that there are other options that might better your investment. You could end up paying more for your 30-year mortgage than you would for a 15-year mortgage, borrowing the same amount of money but taking twice as long to pay it off. There is no right or wrong answer here, just keep an open mind.  

Always Make a 20 Percent Down Payment: Obviously the more you put down the better off you will be, but this doesn’t mean it’s your only option.  To avoid having you pay a private mortgage insurance, yes, the 20% down would be your only route.  If you qualify, there are government loans that can go as low as 3.5% down, or programs that can assist with the down payment.

Buyers Without Kids Don’t Need to Pay Attention to the Schools: The biggest thing to think about here is not whether you want to have kids someday, but If you plan to sell your house in the future. Homes in neighborhoods with a well sought-after school district can get a premium payout when selling.  So, a little research will pay off big!

The only upfront cost is your down payment:  Inspection, insurance, appraisal, taxes, and several other fees are just the beginning of the upfront cost of buying a home. Closing costs alone can range from 3%-6% of the purchase price.  Having an extra chunk saved up will help you in overall process, ensuring you’re not stuck at the end.

The ones that have the best home buying experience are the ones that go into it being prepared and organized, as well as a clear understanding of what you are comfortable with. Working with peoples that are experience and educated and can help separate myth from truth, and can make buying a new home a lot smoother. If you think this is you give, us a call at (802) 863-2020 or visit us on our website to start the application process. We look forward to hearing from you!

Greetings from all of us here at your local Vermont Mortgage Specialists! We hope you’ve had a lovely week, and are as excited as we are for the weekend. With work out-of-the-way, many will take to the streets to once again search for a dream house to move in to. We wish you the best of luck! This week’s blog is more geared towards those who may be having a bit of trouble getting their offers accepted. As we all know, it is currently a seller’s market, meaning housing inventory is tight. Any house will probably have a good few offers, so you need to stand out! But that doesn’t necessarily mean having the highest offer…

While this may be old news to many of our veteran readers, we cannot stress this enough: get pre-approved! Going through the legwork of being pre-approved for a mortgage shows the sellers that you are considered more trustworthy in the eyes of the bank. This tool is more powerful than just a higher offer, as it gives the sellers confidence that they aren’t gambling with the funds for their new home. This is where they created memories for years, and they want to make sure they sell to the right buyer. As always, we are here to pre-approve you when you want to start your journey!

Once you have begun your journey, move quickly! Again, this is a seller’s market. A house you see on Tuesday could be sold by Saturday. Make sure you have everything in order so you can go into an open house with an offer that is strong. Being able to jump on a house right away can give you a huge lead over those who prefer to mull it over, or chose to do the work AFTER seeing the house. We don’t want you to make a knee-jerk decision that lands you with a house you don’t want, but we caution thinking it over for a few days. The quicker you can come to a decision, the better.

Finally, don’t expect your first offer to be accepted right away. Negotiating isn’t a bad thing, in fact you should expect it! The sellers probably have several offers, and want to make they get the best (and safest) deal for their home. Ensure you have the wiggle room to barter and find a middle ground that works with everyone. Again, ensuring all of your documentation and pre-approval is in order can make these negotiations as short as possible.

Now, all of this is necessary to win in the seller’s market of today, but it is a lot. Therefore, we offer this last nugget of advice: get yourself the best realtor and mortgage team you can find. This is where you do not want to cut corners and save money. Find and assemble the best team you can – this will ensure everything will run as smoothly as possible. There are people who dedicate themselves to this line of work, so why not use them as a resource to make your job that much easier? Who knows, they may even find something special that your competition missed because they didn’t make the same effort?

We are your local mortgage specialists, and will ensure you get the best service possible. While we aren’t realtors, we have a wide network that we can personally vouch for as being the top of their class. We want you to get your dream home, so assemble your dream team to make it happen! Give us a call at 802-863-2020 for pre-approval and realtor suggestions, or find us online!

And as always, happy house hunting!

Good day from the Vermont Mortgage Company! We hope you’re as ready as we are to tackle this new week. Having been revitalized from the weekend and last weeks holiday. Today we will be looking at what happens after buying a house. You went through the process, paid for the closing, and now have the keys in your hand. Great! But don’t think you’re out of the woods of spending just yet.

Even if it may be your dream house, you may want to add your own flare. Maybe you saw a fancy new stove or refrigerator that would look perfect in the kitchen. Or, chances are you new house may not have one! About a third of all houses come with no fridge, and two thirds may not even have a washer and dryer! These numbers come from a survey done by Home Innovation Research Labs, which shows you may not get all the appliances you expect. Naturally, you would know what is missing when buying the house.

After buying a new home, you can expect to pay a few thousand more dollars the first year. New appliances, tools, furniture, you name it. Especially if you’re coming from an apartment, you will be buying many essentials you may not have needed before. Budgeting and buying what’s most needed first will be essential during your first year in your new home.

Homes that are a few years older may not need as much in terms of new appliance purchases. Instead, you should expect to pool your money elsewhere. Renovations and repairs could eat up most of your savings, from a complete kitchen revamp to having to replace roofs or HVAC units. Even a house that was built in the past 5 years could require some repairs.

While these new expenses may be thought about, they are rarely discussed. Usually, budgets and debt are factored into monthly mortgage payments and closing costs, not life in your home that comes after. Make sure you have a small pool of savings to prepare for emergency costs or renovations. It will be difficult to enjoy your new home without a refrigerator!

However, we must throw in a word of caution: While we know it will be exciting to buy a new set of furniture, it is important to not make any big purchases that could affect your credit profile. Credit is checked right before closing, so any new debt will be seen. While unlikely, it could cause a hiccup right at the end of the process. Waiting a few days after the closing dust settles to see where you are financially, and what needs to be done, can really help you out in the long run.

If you have questions about anything home related, or how to effectively budget your new home, feel free to contact us! Your local mortgage gurus are waiting to answer any and all questions or concerns you may have. As always, we are reachable at 802-863-2020, or on our website.

Greetings from the Vermont Mortgage Company! As always, we hope you’ve had a pleasant weekend and were able to enjoy the gorgeous weather on Easter Sunday!

Our homes are probably the most valuable things we own. But how is that value calculated? There are a lot of factors, some of which you may not consider when buying a home. In this blog we’ll delve into how your value is calculated, and what factors greatly increase your home appreciation.

To begin, one must find out what a house is worth. Often a home buyer will use an appraisal to determine how much a house is worth. This is to determine that the value of the house matches the loan amount. A qualified appraiser will visit the home and look at a number of things:

-Size, age, and condition of the house

-Other features

-Location

-Value compared to nearby houses

-Possible areas in need of renovation

After this is determined, you will have an official value of the home. But even though you’re still in the process of buying the home, you should also keep in mind something else: maximizing appreciation for when you come to sell the house. This is an important thing to keep in mind for the future.

Again, there are several factors that pertain to appreciation. There are also many things that one can take into account in order to make sure you have the most house appreciation when the time comes to sell. Currently in the market, these are the highest appreciating assets for a property:

-Smaller houses: For baby boomers and millennials alike, smaller houses are becoming more popular. These appreciate the most over time, compared to large houses. 1 or 2 bedrooms and a 2 car garage are also the golden amount for better appreciation.

-Open Floor Plan: Buyers are loving more open homes. High ceilings, large windows and more space are highly sought after nowadays.

-Modern Design: Simple modern designs are now the most popular and highest appreciating architectural style. Styles like Victorian or Colonial may still be popular with the history buffs, but won’t see as much.

-Proximity: Houses that are closest to public transport hubs such as train stations and bus stops appreciate highly, as many new home buyers are more likely to take public transport than cars. Being closer to good schools also helps with appreciation.

-Location: Probably one of the most important aspects of a home is the location and view. The views with the most appreciation are parks, as many home buyers like being near communal spaces. Luckily for Vermonters, views of a lake and mountains also appreciate a lot.

 

We hope this blog has been informative to those thinking of starting the home buying/selling process! We want to make sure you get the most value from your most prized possession! If you have any questions about these, or want to get the process started, give us a ring at 802-863-2020, or visit our website!