Thinking of purchasing a home in Tamaqua in the future?

 

Plan ahead for mortgage approval.

 

Before you shop for that new home, it’s smart to get pre-approved for a mortgage loan. But that’s not enough. Once you’re approved, you’ll need to STAY approved.

 

Here are the primary reasons why responsible people have their mortgage applications denied:

 

You didn’t use your credit cards. You might think that not having bills to pay would make you a great credit risk, but the lenders don’t see it that way. They want to see you use those credit cards and make your monthly payments on time. This shows that you’re responsible with money. Other loans, such as a car loan or personal line of credit with your bank also help boost your credit scores.

 

A Caution: Overuse is as bad as no use. Keep your credit card balances under 30% of your credit limit.

 

You missed a medical bill. Unpaid medical bills go on your credit report just like unpaid loans, so get them paid up. If the balance is too high to handle, ask the doctor or hospital to work with you on a payment plan. Regular payments show that you’re being responsible.

 

You “forgot” to mention an obligation on your loan application. Lenders really frown on this one – calling it mortgage fraud. It’s also considered fraud to exaggerate your income. Tell the truth, because there is no such thing as privacy today – the lender WILL find out if you lied, and the consequences could be unpleasant.

 

If you’re thinking of making application soon, or if you’ve already been pre-approved…

Do not change jobs. The only acceptable change is a promotion with your current employer. Other than that, lenders want to see two years’ stability in your current job.

 

Do not apply for a new credit card, or credit of any kind. Don’t give your Social Security number to any retailer for any reason. Those credit inquiries will lower your credit scores, even if you don’t actually take out a loan.

 

Do not miss a payment deadline. Be safe, pay everything well ahead of the due date. If you pay bills on line, print the payment as proof, just in case there’s a bookkeeping error.

 

Do curb your spending on non-essentials, and set aside as much as possible for your down payment.

 

Do check your own credit report to make sure there are no mistakes. Correcting them can take a while, so it’s best to get started long before you find the Tamaqua house of your dreams.

 

Before you shop:

Do your own calculations and decide how much you can comfortably pay on a monthly mortgage payment. Your lender knows your obligations, but not your wants. He or she has no idea if you want to send your kids to an expensive summer camp, take in a concert every few weeks, or have a weekly date-night at an expensive restaurant.

 

Leave room in your budget for those things that make life more enjoyable.

If you don’t know a mortgage lender – call me. I’ll be glad to give you the names of a few who have served my home buyers well in the past.

 

And of course, when you begin to search for your new Tamaqua home, call me again! I’ll help you find a house you love that fits within your budget.

Tips for Divorcing Homeowners

If you’re facing divorce and own a house here in Tamaqua with your soon-to-be ex-spouse, you have no choice but to address what will happen with regard to the house.

 

The basic issues are almost the same whether you own the house free and clear or have a mortgage.

• You need to establish the home’s value.
• You must decide whether the house is to be sold or if one of you will keep it and try to “buy out” the other.

Heed these tips to make it easier on both of you:

Work hard to set aside your emotions and communicate calmly and respectfully.

 

Save money by sorting out what you want to do/can do about the house before you begin paying an attorney to help you negotiate your settlement.

 

Determine value by hiring a fee appraiser or by asking an experienced REALTOR® to prepare a comparative market analysis.

 

Don’t choose a REALTOR® who is a friend. This is an emotional time, and friends don’t deserve to be drawn in to that. In addition, you need someone who is completely impartial, both in determining the price and in dealing with each of you.

 

Do NOT look to Zillow for the value of your home. Their values have been shown to be as much as 30% off. The same could be said for any computer-generated value. This is one function that needs to be performed by an experienced person who actually views your home and compares it to similar homes that have sold recently.

 

Order a title report to make sure there are no liens you’ve forgotten about.  

 

If one of you wants to keep the house, sit down with paper, pen, and calculator and see if it is feasible. Can you afford it? Remember that if you’re buying out your ex-spouse, you’ll need a new loan for a larger dollar amount. Can you even qualify for that loan? If so, can you also afford the utilities and maintenance?

 

Once you’ve done your own calculations, visit a lender to see if you can become pre-approved.

 

Also consider – will keeping the house be emotionally good for either of you? A house holds memories, both good and bad. You might be better off to sell it and start fresh.

 

What if one of you wants to keep the house and keep the current mortgage?

That might turn out to be the easiest way to settle your finances, but it does come with risk for the non-occupying ex-spouse.

 

Unless only one of you signed the loan documents, you’re both liable. It doesn’t matter if a judge awarded the house to one of you. If you both signed the mortgage loan documents, you will both remain liable until the loan is paid in full – either through a refinance or a sale.

 

Banks don’t care if a judge gave ownership of the house to one of you. They care about who is legally obligated to pay them. A default on that loan will show up on both of your credit reports – lowering credit scores for both of you.

 

I'll be happy to provide a market analysis for you, and of course I'd be happy to help you get the highest dollar for your Tamaqua house if it is to be sold.

 

Give me a call at 570-640-8109- I'll be glad to help.

Which should you choose – an existing Tamaqua home or new construction?

Take a look at the pros and cons.

 

First, the initial price: Research on homeadvisor.com, Realtor.com, Zillow, and others tells us that nationwide, the average price of a newly constructed home in June 2018 was $316,500. The average for resale homes was $279,300. Reduced to price per square foot, new was $150 while resale was $123.

 

Of course, this varies depending upon location. The price of existing homes in Detroit averages $24, and in San Francisco, averages $810. New construction also varies widely, due to the difference in lot prices, permit fees, and labor costs.

 

Next, consider home maintenance and repairs: If you buy “used,” will that home need work in the immediate future?

• Does it need new flooring or paint before you move in?
• Will you want to remodel the kitchen or bath?
• How are the roof, the water heater, and the heating and air conditioning systems?

A newly constructed home will probably have a builder’s warranty to carry you through the first few years. And yes – you can purchase a home warranty for any house you buy, but like most insurance policies, those do come with deductibles.

 

New homes have older homes beat hands-down when it comes to energy efficiency:

One survey reported that homes built after 2000 consume 21% less energy than older homes. This seems to be true for the house itself and for the appliances.

 

On the flip side of that – older homes might have mature landscaping and shade trees. Shade trees, according to the U.S. Forest service, can cut air conditioning costs by 56%.

 

If you build new, you can install “smart” features as part of the construction.

For instance, you might choose the new “Learning Thermostat,” which can be controlled by a smartphone and programmed to adjust the home’s temperature to coordinate with your daily routines. Its sensors track when a home is empty and adjust accordingly. Promoters say it can save on heating and cooling bills by up to 20%.

 

If you’re worried about security, you can have monitors and cameras installed during the build, and have your electrical system constructed to use a smartphone app to control your home's lighting, temperature, and even the position of window shades.

 

Back to the landscaping:

If you love having a beautiful yard, an established home might be best for you. It does take several years and / or big dollars to create a beautifully landscaped yard.

 

A new home allows you many choices, which may or may not be a good thing.

When you buy an existing home, you’re stuck with the layout, and you’ll decide how to use each of the rooms in the house.

 

When you build new, your first task will be to choose the floor plan. Do you want a big, eat-in kitchen, or an efficiency kitchen? Do you want the master bedroom at the other end of the house from the kids/guests rooms? Do you need extra rooms such as an office, studio, or TV room?

 

Then there are the finishes – you’ll choose both style and color for floor coverings, counter tops, and wall treatments. What kind of windows and doors do you want?

 

What about fixtures and appliances? Will a standard shower be fine, or do you want a new one with shower heads all around you?

 

Be careful. It’s easy to get carried away and destroy your budget. If you cook and bake from scratch, adding a pantry is a good idea. If you drink wine only occasionally, adding a wine cellar or even cabinet space dedicated to wine bottles is a poor idea.

 

If you and those who will share your home can easily come to agreement, making these choices can be fun. If not,  the choices can lead to unwanted stress.

 

Whether you’re looking for an existing Tamaqua home or want a new one, I’ll be glad to help. I’ll be happy to show you what’s on the market today, including the builder models for new homes. If you want to start from scratch and design your own home, I’ll help you find a suitable building lot.

 

Call today and let’s get started!

Does Your Tamaqua Agent's Reputation Matter?

 Yes, absolutely. Everyone has a reputation – and your agent's professional reputation with other agents has a definite bearing on your success as a Tamaqua home buyer or as a Tamaqua home seller.

 

If you're selling a home, your agent's good reputation for dealing fairly with buyers' agents means your home will be shown.

 

On the other hand, if your agent makes it difficult to arrange showing appointments or if he or she has a reputation for failing to present offers immediately, your home will go to the bottom of the list.

 

If you're a home buyer, your agent's good reputation is also an asset, because other agents will be apt to encourage their sellers to look closely at the offers you present.

 

And what constitutes a good reputation in a buyer's agent?

• Offers that are always filled out properly and completely.
• Honest representation of a buyer's ability to purchase.
• Willingness to get in and work when there's a glitch between agreement and closing.

When buyers' agents have a poor reputation, listing agents know that getting from the offer to the closing might be difficult, if not impossible. As a result, they’re apt to encourage their sellers to consider other offers first.

 

For both listing agents and selling agents, a reputation for returning phone calls or emails properly is a plus. So is a pleasant manner. No one wants to deal with someone who is hard to reach, or who is confrontational when they are reached.

 

I'm pleased to enjoy a good reputation with other agents here in Tamaqua.

 

In fact, due to transactions we've done together, many of them have become friends. As a result, buyer's agents show my listings, and listing agents welcome offers from my clients.

 

If you're thinking of buying or selling a home here in Tamaqua, get in touch. My reputation will smooth the way to your successful transaction.