Navy Fellas Realty Group

Real Estate, Residential sales and purchase

How Do You Actually Write The Check To Buy A House?

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How Do You Actually Write The Check To Buy A House?After you have found the right house to meet your needs, you need to make the down payment to complete the transaction. Can you show up at the closing table with a suitcase full of cash? Of course, that would be a bit suspect, so that is not actually how it happens. What do you need to do to actually hand over the funds to buy the house? 

The Down Payment Is Verified Beforehand

First, understand that the down payment is usually verified before you agree to the deal. Your real estate agent will work with you and the seller’s agent to ensure that you actually have the funds needed to buy the house. For example, you might need to send screenshots of your bank balance or investment portfolio as proof that you have the money. Your agent will work with you to ensure your confidential information remains so.

The Funds Are Typically Given Using A Wire Transfer

When it is time for you to complete the actual transaction, the real estate attorney will handle just about everything. The attorney will be responsible for collecting the money from the sale and ensuring that everyone gets the money they are owed. The attorney will provide you with the account information for where you need to wire the money. Prior to the closing date, you need to go to the bank and work with one of their experts to ensure the money is in your account and wired to the correct account destination.

The Real Estate Agent Will Confirm The Process Is Done

It is best not to wait until the last minute to wire the money into the account. Try to do this process ahead of time, and make sure either the attorney or your real estate agent says that the process has been completed. You do not want to run the risk of missing your closing date. If you have questions about the process, make sure you give the attorney’s office plenty of time to respond to you.

Determine Your Budget With The Help Of Your Real Estate Agent

This process is important for making sure you can afford the house you want. Work with your real estate agent to ensure you have the necessary funds for the down payment.

 

An Often-Overlooked Trick Can Help You Afford A Second House

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An Often-Overlooked Trick Can Help You Afford A Second HouseThe whole idea of investing is to use a portion of your money now to get more down the road. It is important for everyone to diversify their investments, and you might be thinking about buying a second house to do so. Investing in real estate is a goal that a lot of people have, but how can you get started? It was challenging enough to buy your first house, so how can you afford a second one? 

Use A Cash-Out Refinance To Buy Your Second House

One trick that many people overlook is that they can actually conduct a cash-out refinance to purchase a second house. In general, your lender will allow you to cash out up to 80 percent of the value of your home during a cash-out refinance. This can give you a tremendous amount of flexibility that you can use to purchase a second house. For example, if your house is worth $300,000, you may be able to withdraw tens of thousands of dollars in equity.

What To Consider When Using A Cash-Out Refinance

When you apply for a cash-out refinance, there is a chance that the interest rate on your new loan might change. This might mean that you end up with a higher interest rate than before. You must make sure you can afford this new interest rate. Furthermore, you will be required to pay closing expenses. You need to have enough money set aside to cover those closing expenses. Keep in mind that the term of the loan might change as well. If you were close to paying off your house, this type of refinance might reset that clock. It might take you longer to pay off your mortgage than it did before. Consider these factors carefully before conducting a cash-out refinance.

A Cash-Out Refinance Might Be Right For You

In the end, a cash-out refinance could be a great way for you to withdraw equity from your home, using it to purchase an investment property. On the other hand, you need to ensure you can still afford the new loan after you take that equity out of your home. Work with an expert who can help you find the right option to meet your needs.

 

What’s Ahead For Mortgage Rates This Week – January 9, 2023

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What's Ahead For Mortgage Rates This Week - January 9, 2023Last week’s economic reporting included readings on minutes of the most recent Federal Open Market Committee meeting and its customary post-meeting press conference, labor-sector data on public and private-sector jobs, and the national unemployment rate. Weekly readings on mortgage rates and jobless claims were also released.

FOMC Meeting: Policymakers seek a balance between high inflation and rising rates

The minutes of the Federal Open Market Committee meeting held on December 13 and 14 reflect committee members’ concern over controlling rapidly growing inflation while avoiding a recession. While committee members said that they made “significant progress” in raising rates to cut inflation, members said they needed to avoid raising rates too fast and creating a recession. Policymakers asked for “flexibility” from investors and consumers.

The Fed’s monetary policy actions depend on economic developments; if high inflation persists, policymakers will likely continue raising the Fed’s target interest rate range. If inflation eases, so will the Fed’s pace of raising its target interest rate range. The Fed re-asserted its goal of achieving two percent inflationary growth. The meeting minutes emphasized that the Committee’s decision to slow the pace of interest rate growth did not indicate any changes to the Fed’s goal of two percent inflation.

Mortgage rates rise, jobless claims fall

Freddie Mac reported higher mortgage rates last week as the average rate for 30-year fixed-rate mortgages rose by six basis points to 6.48 percent. The average rate for 15-year fixed-rate mortgages was five basis points higher at 5.73 percent.

204,000 new jobless claims were filed last week, which fell short of the expected reading of 223,000 initial claims filed and the previous week’s reading, also of 223,000 first-time claims filed. Continuing jobless claims fell to 1.69 million claims filed as compared to the previous week’s reading of 1.72 million ongoing claims filed.

The national unemployment rate fell to 3.5 percent in December as compared to 3.6 percent n November and the expected unemployment rate of 3.7 percent.

What’s Ahead

This week’s scheduled economic reporting includes readings on month-to-month and year-over-year inflation and weekly readings on mortgage rates and jobless claims.

Staging Tips: How to Make a Small Backyard a Great Selling Feature

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Staging Tips: How to Make a Small Backyard a Great Selling FeatureSmall backyards are not the detriment that sellers seem to worry about. By putting in some work, any homeowner should be able to turn the smallest backyard into a selling feature by highlighting its assets.

Here are some surefire ways to change a cramped backyard into a cozy, outdoor paradise:

Invest In Size Appropriate Outdoor Furniture

Too many people with small backyards make the mistake of picking out patio furniture that is meant for a larger space. While this may not matter for the people living in the house, it will make a world of difference to anybody looking to buy.

Large furniture will make the yard look even smaller and cramped by comparison. Patio furniture is made in all shapes and sizes, and picking out smaller pieces to use in the backyard will make the space look larger and help play to its strengths.

Open Spaces Ignite The Imagination

Too many sellers go overboard in the staging process and end up with a result that has the exact opposite effect. While a fire pit or a water feature will add value to the home, in a small backyard these features can be cumbersome if they are all used simultaneously.

Focus on one or two signature areas, a seating area, water feature or barbeque are good examples, and keep the rest of the yard open and clear so that it looks larger and the buyers can imagine what they could do with the space. Many young couples are looking for a home to raise kids in and a clear backyard helps them visualize the space children have to play.

Treat The Backyard The Same As The Front

While curb appeal is important, it’s easy to forget that the same rules should apply to other outdoor areas of a house. Considering a yard is high on the list of criteria buyers look for in a new home, especially those starting a family, the backyard should be given the same treatment as the front yard.

Remove clutter, weed the gardens, trim the trees and put away any toys, tools or grills that are not part of the staging to keep visitors’ eyes drawn to the actual yard and not lingering away to something unsightly that wasn’t cleaned up.

With enough work and imagination, there are ways to make any perceived drawback into a selling point. Any real estate professional will be able to look through your home and help identify trouble areas and how to fix them.

Lower Your Interest Rate During The First Couple Of Months With A Buydown

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Lower Your Interest Rate During The First Couple Of Months With A BuydownIf you are thinking about purchasing a house today, you have probably realized that mortgage rates have increased significantly. This has made it much harder for people to afford home loans, and these higher rates have had an impact on the lender’s business as well. In an effort to make it easier for people to afford a home, you might be able to access something called a buy-down loan or a buy-down mortgage. It could help you save a significant amount of money during the first few months or years of your loan.

How A Buydown Mortgage Works

If you decide to go with a buydown mortgage, your interest rate will be lower for a temporary period of time. For example, it might be two percent lower for the first year, 1.5 percent lower for the second year, and then one percent lower for the third year. It will normalize for the rest of the loan. Because the interest rate is lower, your monthly payments will be smaller for the first few years. This could be an attractive option for a buyer who expects his or her income to go up in the future. Or, this option could be provided by a custom home builder to get more people through the door. 

Who Funds The Buydown Account?

There are different ways a buydown account might be funded. It could be provided by a home builder, or it might be provided by the seller if you are purchasing the house from somebody else. It might even be offered by a mortgage lender that is having a difficult time getting people to sign mortgages. Depending on the current interest rates, there are different options available. For example, some buydowns give you a one percent break for two years, while others might start with a three percent break the first year, dropping by one percent each year until it normalizes.

Is A Buydown Mortgage Right For You?

Like any option, there are pros and cons. If you lower your monthly rate during the first few years, it is possible that the rest of your mortgage might have higher payments than it would otherwise have had. Be sure to talk to a professional who can help you figure out if this is the right option for your needs. 

Why Your Kitchen Features Matter

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Why Your Kitchen Features MatterIf you are interested in purchasing a house in the near future, you need to pay close attention to your kitchen. The kitchen is considered to be the heart of the home, and you need to make sure the kitchen is laid out appropriately. You need the kitchen to match your expectations, but you also need to pick a kitchen that will help you maximize the value of your home if you decide to sell it down the road. What are a few of the most important examples of kitchen features you need to pay attention to?

The Cabinets 

Always take a close look at the cabinets. Look at the inside of the cabinets for signs of water damage, and make sure the cabinets are aligned appropriately. If the cabinet doors do not open and close properly, it can be a significant problem when you are trying to cook in the kitchen. Cabinets are often the most expensive part of a kitchen remodel. 

The Backsplash

You should also pay close attention to the backsplash. You need the backsplash to completely cover the area between the counters and the cabinets. You do not want the backsplash to be too short. Otherwise, you expose the wall to additional stress when you are cooking. 

The Kitchen Island

A kitchen island is often the gold standard when it comes to a kitchen. This additional feature can significantly increase the value of your home, but you need to make sure the island is in the right location. For example, you need the island to be close enough to the workspaces in your kitchen, such as the stove and refrigerator. You also want it to be centered in the kitchen itself.

Think About These Key Kitchen Features

These are just a few of the most important examples of kitchen features that you need to think about when you are interested in purchasing a house. Remember that these features need to match your needs, but you also need to think about how much money you can get for the house if you sell it down the road. Pay close attention to these kitchen features when you are looking for a new house.