Category Archives: Home Buying

Home Buying, Interesting Facts, real estate, Realtor

Leading Real Estate Companies of the World®

Leading Real Estate Companies of the World® is a network of over 500 of the very best real estate firms that are located in over 50 countries. These firms have 3,500 offices with 120,000 sales associates. In 2014 these firms had sales of $321 billion dollars representing over one million transactions, which placed Leading Real Estate Companies of the World® #1 in sales volume in the United States.

Leading Real Estate Companies of the World®  outperformed all other networks by over 40% among the top 500 U.S. real estate firms.

When buying or selling property, select a member firm such as Ferguson Realtors to assist you.

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Home Buying, Home Staging, housing, Interesting Facts, real estate

12 Most Popular New-Home Amenities in 2015

Master bedroom walk-in-closets and a laundry rooms are the top features that builders are most likely to include in a new home this year, according to a survey of builders conducted by the National Association of Home Builders.

“Both features speak to improving organization and storage characteristics of new homes,” according to NAHB on its Eye on Housing blog.

Read more: The Room Millennials Say Is Essential — and Why You Should Stage It

Greater energy efficiency amenities also were ranked more important, with low-E Windows coming in No. 3 on the most likely amenity list on new homes. Energy-Star rated appliances and windows as well as a programmable thermostat also rated high.

The following were ranked as the most likely features and amenities to be included on an average single-family home in 2015:

  1. Walk-in closet in master bedroom
  2. Laundry room
  3. Low-E windows
  4. Great room (kitchen-family room-living room)
  5. Energy-Star rated windows
  6. Ceiling height on the first floor of 9 feet or more
  7. 2-car garage
  8. Programmable thermostat
  9. Granite countertop in the kitchen
  10. Central island in the kitchen
  11. Bathroom linen closet
  12. Front porch

On the other hand, the features identified in the survey as the most unlikely to be included in new homes this year are:

  1. Outdoor kitchen (cooking, refrigerators and sinks)
  2. Laminate countertops in the kitchen
  3. Outdoor fireplace
  4. Sunroom
  5. Two-story family room
  6. Media room
  7. Two-story foyer
  8. Walking/jogging trails in the community
  9. Whirlpool in the master bathroom
  10.  Carpeting as the flooring on the main level

Source: “What Builders Are Building,” National Association of Home Builders Eye on Housing Blog (May 13, 2015)

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Financial, Financing, Home Buying, Home Selling, Interesting Facts, real estate

Is Your Buyer Qualified?

Unless the buyer who makes an offer on your home has the resources to qualify for a mortgage, you may not really have a sale. If possible, try to determine a buyer’s financial status before signing the contract. Ask the following:

  1. Has the buyer been prequalified or preapproved (even better) for a mortgage? Such buyers will be in a much better position to obtain a mortgage promptly.
  2. Does the buyer have enough money to make a downpayment and cover closing costs? Ideally, a buyer should have 20 percent of the home’s price as a downpayment and between 2 and 7 percent of the price to cover closing costs.
  3. Is the buyer’s income sufficient to afford your home? Ideally, buyers should spend no more than 28 percent of total income to cover PITI (principal, interest, taxes, and insurance).
  4. Does your buyer have good credit? Ask if he or she has reviewed and corrected a credit report.
  5. Does the buyer have too much debt? If a buyer owes a great deal on car payments, credit cards, etc., he or she may not qualify for a mortgage.

Source: National Association of REALTORS®

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Home Buying, Interesting Facts, real estate

Closing Documents You Should Keep

On closing day, expect to sign a lot of documents and walk away with a big stack of papers. Here’s a list of the most important documents you should file away for future reference.

  • HUD-1 settlement statement. Itemizes all the costs — commissions, loan fees, points, and hazard insurance —associated with the closing. You’ll need it for income tax purposes if you paid points.
  • Truth in Lending statement. Summarizes the terms of your mortgage loan, including the annual percentage rate and recision period.
  • Mortgage and note. Spell out the legal terms of your mortgage obligation and the agreed-upon repayment terms.
  • Deed. Transfers ownership to you.
  • Affidavits. Binding statements by either party. For example, the sellers will often sign an affidavit stating that they haven’t incurred any liens.
  • Riders. Amendments to the sales contract that affect your rights. Example: The sellers won’t move out until two weeks after closing but will pay rent to the buyers during that period.
  • Insurance policies. Provide a record and proof of your coverage.

Sources: Credit Union National Association; Mortgage Bankers Association; Home-Buyer’s Guide

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Financial, Home Buying, Interesting Facts, Mortgages, real estate

Loan Types to Consider

Brush up on these mortgage basics to help you determine the loan that will best suit your needs.

  • Mortgage terms. Mortgages are generally available at 15-, 20-, or 30-year terms. In general, the longer the term, the lower the monthly payment. However, you pay more interest overall if you borrow for a longer term.
  • Fixed or adjustable interest rates. A fixed rate allows you to lock in a low rate as long as you hold the mortgage and, in general, is usually a good choice if interest rates are low. An adjustable-rate mortgage is designed so that your loan’s interest rate will rise as market interest rates increase. ARMs usually offer a lower rate in the first years of the mortgage. ARMs also usually have a limit as to how much the interest rate can be increased and how frequently they can be raised. These types of mortgages are a good choice when fixed interest rates are high or when you expect your income to grow significantly in the coming years.
  • Balloon mortgages. These mortgages offer very low interest rates for a short period of time — often three to seven years. Payments usually cover only the interest so the principal owed is not reduced. However, this type of loan may be a good choice if you think you will sell your home in a few years.
  • Government-backed loans. These loans are sponsored by agencies such as the Federal Housing Administration or the Department of Veterans Affairs and offer special terms, including lower down payments or reduced interest rates to qualified buyers.

Slight variations in interest rates, loan amounts, and terms can significantly affect your monthly payment. For help in determining how much your monthly payment will be for various loan amounts, use Fannie Mae’s online mortgage calculators.

Source: National Association of REALTORS®

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