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3 Reasons Why the Lowest Mortgage Interest Rate Isn't Always Your Best Option
By Peta-Gay
August 3, 2015

One of the more common methods that home loan applicants use to find the best loan program available is to compare interest rates, but choosing the lowest rate possible is not always the best option available. In fact, in some cases, it may be one of the least advantageous options when all factors are considered. With a closer look, home mortgage applicants may decide to review other factors in combination with the interest rate to make a more informed decision when applying for a new loan.

The Closing Costs Impact The Rate

It is important to note that lenders can increase or decrease the interest rate with adjustments to closing costs, and this means that some of the lowest interest rates available may also have some of the higher closing costs. In some situations, choosing the lowest interest and paying more in closing costs is acceptable. However, a loan applicant should be aware of this and should compare interest rates along with closing costs in order to find the best loan program available.

The Loan Term Affects The Rate

Generally, a shorter loan term will have a lower interest rate. However, even with the lower interest rate, the mortgage payment may be higher due to the shorter term. A higher mortgage payment can impact affordability as well as loan qualification in some cases, and there are instances when the higher interest rate associated with a longer term is most desirable.

The Interest Rate May Adjust

Adjustable rate mortgages typically have lower interest rates than fixed rate mortgages, but the interest rate with an ARM may adjust higher in the future. For those who only plan to own the home or to retain the mortgage for a short period of time, this may be acceptable and even desirable. However, for those who plan to own the home or retain the mortgage for a longer period of time, the potential for a rate adjustment in the future may not be preferable.

For individuals who are shopping around to compare interest rates and to find the best deal on a mortgage, there may be a desire to opt for the lowest interest rate, but this is not always the best strategy. The interest rate can reflect many aspects of the loan, and each of these points should be ccoonconsideredanalyzed to find the best loan program.

About the Blogger - Peta-Gay Lewis, MRP is Owner and CEO of Property Locators, LLC™. She is a licensed REALTOR in DC, MD, and VA with Douglas Realty, LLC (8096 Edwin Raynor Blvd Suite C Pasadena, MD 21122). Her contact information is 202 683-0158 (c), 410 255-3690 (o) or agent@propertylocatorsllc.com

3 Reasons Why Your Closing Costs Will Vary Depending on the Type of Home You Buy
By Peta-Gay
August 4, 2015

Savvy home buyers who are preparing to make a real estate purchase may have done their research and may understand that they need to save money for both the down payment and the closing costs. The closing costs can account for as much as three to five percent of the sales price in some cases, so this can be a rather sizable amount of money. Some home buyers, however, may not realize that the amount of closing costs paid may vary considerably based on the home that is purchased. With a closer look at why this is, home buyers can make a more educated decision when selecting a home to purchase.

Prepaid Taxes And Insurance

One of the most significant closing costs relates to prepaid taxes and insurance, and both of these expenses are directly tied to the location and value of the property. Consider that the property tax rate can vary from neighborhood to neighborhood or county to county, and real estate insurance can vary based on the type of construction the home is or if the home is located in a flood plain. These are only a few examples of how the location and property type can impact these fees, and home buyers may consider paying close attention to tax rates and insurance costs when selecting a property to purchase.

Third Party Reports

There are several third party reports that are commonly paid for at closing, and these include an appraisal, a survey, a pest inspection and a property inspection. The third party reports may vary in cost based on the size of the home, the amount of land that is being purchased and even the condition of the property. Those who want to keep their closing costs lower may consider learning more about how these fees are calculated up-front before finalizing their plans to buy a specific home.

Title Insurance Fees

Title insurance fees are another typically sizable expense for home buyers, and this insurance offers protection to the lender if the title is not clean. Title insurance can increase based on the size of the property as well as different factors that are revealed with a title search. This information can be difficult to learn with an initial home search, but home buyers should be aware that title defects can increase closing costs.

The location, size, age and construction of a property all can impact closing costs. Those who are shopping for real estate may be inclined to make a decision that keeps closing costs down, and they can reach out to their trusted real estate professional for more assistance with their real estate selection.

About the Blogger - Peta-Gay Lewis, MRP is Owner and CEO of Property Locators, LLC™. She is a licensed REALTOR in DC, MD, and VA with Douglas Realty, LLC (8096 Edwin Raynor Blvd Suite C Pasadena, MD 21122). Her contact information is 202 683-0158 (c), 410 255-3690 (o) or agent@propertylocatorsllc.com

First-time Home Buyers: Why Splurging for a Larger Home Beats Condo Living
By Peta-Gay
August 5, 2015

Some first-time home buyers are on a tight budget when making their real estate purchase, and there may be an inclination by many to purchase a smaller property, such as a condo, rather than the home they truly want. While there may be some initial financial benefit associated with buying a smaller property, there are a few benefits associated with splurging and buying a larger home as a first purchase. By analyzing these benefits, first-time home buyers can make a more informed decision about how to proceed.

Costs Associated With Upgrading In The Future

Some people will purchase a smaller property initially with the goal of later upgrading to a larger property. This can provide the home buyer with the initial benefits of building equity, taking advantage of tax benefits associated with real estate ownership and more. However, there are costs associated with selling property, including closing costs, real estate fees, make-ready and improvement costs and more that should be considered.

Benefits Of Long-Term Ownership

For many, there will be a need to have a larger property over the years, such as when starting a family or when young children grow into teenagers who need more space. When the first property purchased is large enough for the family to grow into, the homeowner can enjoy long-term appreciation and equity growth. More than that, the higher value of the property may mean that there is more upside for property appreciation over the years.

Getting Established In A Community

In addition to the financial benefits associated with investing in a larger property initially, there are intangible benefits. Moving into a new home in a few years means that there is a need to get re-established in a community. When a home buyer settles down into a larger home that he or she plans to stay in for many long years or even decades, getting established and settled in the community can begin right away.

These are considerable benefits that can be enjoyed when a first-time home buyer makes a purchase that he or she plans to enjoy for many years to come, but there are other factors to consider. Each person needs to make a decision regarding a real estate purchase that is best for their needs, goals and financial situation, so there is not a best-fit solution that is right for everyone. Those who are thinking about buying their first piece of real estate may consider contacting a real estate professional for assistance with their home hunting efforts soon.

About the Blogger - Peta-Gay Lewis, MRP is Owner and CEO of Property Locators, LLC™. She is a licensed REALTOR in DC, MD, and VA with Douglas Realty, LLC (8096 Edwin Raynor Blvd Suite C Pasadena, MD 21122). Her contact information is 202 683-0158 (c), 410 255-3690 (o) or agent@propertylocatorsllc.com

Have a Weekend to Spare? Consider These Quick Renovations to Add Value to Your Home
By Peta-Gay
August 7, 2015

Homeowners who are thinking about listing their home for sale in the coming weeks or months may be focused on improving their home to help it sell more quickly, but there also may be a focus on adding value to the home in the process. While each home is unique, there are a few projects that most homeowners would benefit from. In fact, these are a few simple and easy projects that typically can be completed over the course of a weekend and that can add value and desirability to the home.

Replace The Front Door

The front door has an impact on curb appeal, and it also is one of the primary features that buyers will see when they approach your home to take a tour. Replacing an older door that lacks style or that is plagued with signs of wear and tear can improve property value and curb appeal alike. Many homeowners who have basic tools and some do-it-yourself experience with other projects will be able to replace the front door without extra help needed from a contractor.

Update The Kitchen Back Splash

A kitchen is a key selling point in a home, and the back splash is among the most visible features in this space. Replacing the back splash with stylish tile can improve the look and can instantly make the home more desirable. This is a relatively simple type of home renovation project that may be completed within just a few hours.

Repaint The Walls And Baseboards

Few things can improve the look of a home more easily than a fresh coat of paint. Whether walls are showing signs of wear or the colors do not have modern or universal appeal, applying a fresh coat of paint to walls and baseboards is a simple enough project to tackle. For the best results, initially focus on the rooms with the most undesirable paint colors, in the most visible rooms of the home or in areas where the paint is in generally poor condition.

Each of these projects can have a dramatic impact on home value and appeal, and each can be completed with minimal time and cost to the homeowner. Those who are ready to improve their home in a short period of time can consider which of these projects will yield the most significant results in their home. Consulting with a trusted real estate professional about improvements that may be desirable in a specific home can yield customized information for the homeowner.

About the Blogger - Peta-Gay Lewis, MRP is Owner and CEO of Property Locators, LLC™. She is a licensed REALTOR in DC, MD, and VA with Douglas Realty, LLC (8096 Edwin Raynor Blvd Suite C Pasadena, MD 21122). Her contact information is 202 683-0158 (c), 410 255-3690 (o) or agent@propertylocatorsllc.com

House Hunting? Watch for These 5 Red Flags when Viewing Potential New Homes
By Peta-Gay
August 10, 2015

From the sales price to the general layout of the home, there are numerous factors that home buyers will consider when touring homes. While there are specific factors that home buyers may be searching for in a new home, there are also a few warning signs that home buyers should keep their eyes open for. These are among the top red flags that may serve as warning signs for home buyers.

Signs Of Poor Home Maintenance

It is reasonable to expect all homes to have some signs of wear and tear unless they are new construction. However, it is also reasonable to expect that sellers have taken some steps to improve the condition and look of the property before listing it. When a home appears to be poorly maintained on a superficial level, home buyers should pause to consider what other aspects of the home that are not visible have also been poorly maintained.

The Grading In The Yard

When a yard grades toward the house, issues with erosion and even flooding may be concerns. Everything from a brief, torrential downpour to snow melt can result in water running toward a property when grading is a concern. Home buyers should take time to review the yard carefully to determine how water may flow when it rains or when snow melts.

A Foul Odor

It is common for sellers to try to make their home smell appealing, and different types of deodorizers may be used to mask everything from food smells to pet odors. However, it is important for home buyers to pay attention to the underlying smells in a home. Everything from a musky or mildew-y smell to sewage smells and gas odors should be warning signs.

Repairs To One Wall

Homeowners may repaint walls to make the space look cleaner, brighter and more appealing, so a fresh coat of paint in itself is not a warning sign. However, if the paint is on just one wall or if the area under the fresh coat of paint appears to have been recently textured or repaired, these are signs that water damage or other damage may have been addressed.

Signs Of Pests And Rodents

Another warning sign relates to signs of pests and rodents. Even if bugs and rodents are not visible during the initial tour, things like a can of bug spray, mouse traps and other related items may indicate that the seller has had an issue with bugs and rodents.

Some warning signs will be obvious during an initial home tour, but others may require more skill and experience to see. Because of this, it is best for all home buyers to consider ordering a property inspection to learn more about the condition of the home before finalizing their buying plans.

About the Blogger - Peta-Gay Lewis, MRP is Owner and CEO of Property Locators, LLC™. She is a licensed REALTOR in DC, MD, and VA with Douglas Realty, LLC (8096 Edwin Raynor Blvd Suite C Pasadena, MD 21122). Her contact information is 202 683-0158 (c), 410 255-3690 (o) or agent@propertylocatorsllc.com