10 Common Homebuying Questions Answered

February 15, 2022/in Education /by Cara Chatellier

Whether you’re in the market for your first home or your tenth, buying a house is an exciting and sometimes, overwhelming time in your life. From your dream must-have lists to the ideal locations, school ratings, neighborhood amenities, and budget, there is a lot involved in the homebuying process. As you continue to navigate through your personal journey of purchasing your next home, many questions may arise throughout the process.

Today, we want to answer the ten most common questions that realtors get asked in the homebuying process. We hope our answers will give you some insight into the process and ease any anxiety about all that home buying entails. One thing’s for sure: buying a home may be a lot of work, but it is worth every list, question, and step in the process to get you into the home of your dreams to enjoy for years to come.

Here are the ten most common questions about buying a home.

1. What’s the first step in the home buying process?

Before you begin touring homes and popping into open houses, the first step is to obtain a mortgage pre-approval from a loan officer. This document outlines how much you can afford and how much you’ll get pre-approved for once finalizing your mortgage. This allows you to work directly with a realtor to search for homes within your budget and wishlist. Without it, you don’t have much ground to stand on or a solid number to work with on determining the best homes in your budget. The mortgage officer will run a thorough credit check, verify income, and review other financial documents to determine a max approval amount during the pre-approval process. You may also discuss what type of loan is best for you, downpayment requirements, and overall timeline.

2. How long does it take to buy a home from start to finish?

The timeline for buying a home varies by person and is mainly driven by how quickly you find a home you want to put an offer on. Some people go through 20 or more homes before finding their dream home, while others just visit a handful before submitting an offer. Once your offer is accepted, the standard timeline from approval to keys in hand ranges from 30 to 60 days based on the terms of the closing agreement.

3. How does a realtor help me?

Realtors are your go-to industry expert in the search for your next home. They help you schedule showing, provide detailed information on the neighborhood and home specifications, and are often well-versed in the area you are shopping in, giving you the insider scoop on what area, home size, neighborhood, and amenities are right for you and your family. Realtors also work with your mortgage company and other realtors to finalize documents once you’ve closed on a home. In short, realtors are your eyes and ears in the market during the buying process and your go-to expert throughout the entirety of the purchase transaction.

4. How much does a realtor cost?

In most instances, a realtor does not cost the buyer anything. During the home selling process, the sellers pay a fee to their realtor, which is typically split between the selling agent and buying agent at the time of closing. Buyers may opt into compensating their realtor as part of their realtor agreement.

5. Do I need to meet a minimum credit score?

Yes, you must meet and maintain a healthy financial status to qualify for a home purchase. Although different loans vary when it comes to credit score requirements, most require a score of at least 620 or higher. In rare instances, a score as low as 580 may work. During your preapproval process, speak with your mortgage specialist about your unique credit situation. If you do not currently meet credit score requirements, your mortgage lender will often provide you with a path to improve your score and qualify for the loan you need over a period of time.

6. How much does my down payment cost?

Down payment cost depends on the type of mortgage loan you use. However, in most cases, you can expect a down payment to range from 3% to 5% of the total cost of the home.

7. Besides the down payment, what else should I plan to pay for?

Planning out your financial path during the homebuying process is an essential part of setting yourself up for success. Although a down payment is typically the biggest chunk of the out of pocket expense you’ll face, there are other fees you should know about and save up to cover including:

Closing costs
Homeowners insurance
HOA fees (if applicable)
Property taxes
Home repair and maintenance

8. Are there any programs I could qualify for?

Yes, in some instances, you may qualify for special home buying programs such as:

VA Loans
USDA Loans
FHA Loans

Speak with your real estate agent and mortgage lender to determine what loans you qualify for.

9. What advice would you give first-time homebuyers?

Buying a home for the first time is a big feat, albeit exciting. There are plenty of things to consider before taking the leap on submitting an offer for your first home. Our advice is this:

Make sure you have a strong financial cushion to help pay for all costs associated with a down payment, closing costs, and other costs that may arise during the home buying process.
Keep an eye on your credit score and work with your mortgage officer to follow recommended steps to keep your finances in tip-top shape.
Use a realtor who understands the area and has experience working with first-time home buyers.
Don’t be afraid to ask questions.
Prepare to compromise on your dream wishlist.
Enjoy the journey!

10. Why buy a home in New England?

We may be biased, but New England has our heart. From the picturesque winters and crisp falls to the blooming springs and warm and welcoming summers, we couldn’t think of a better place to call home. There is nothing like experiencing all four seasons in the glory of your backyard. Not to mention, the schools are top-rated, the seafood is out-of-this-world and the history is all-encompassing. So whether you’re new to the area or have called New England home for a while, we couldn’t think of any reason not to consider calling this lovely side of the United States home.

If you’re in the market for a home this year, it’s always important to stay up-to-date on the latest market trends, understand the entirety of the buying process, and connect with professionals who are willing to travel the entirety of the home buying process with you to make all aspects of this next chapter easier on everyone. To learn more about buying a home, or to begin the process contact us today. We would love to help you get into the home of your dreams this year.

Top 5 Real Estate Myths Debunked

August 17, 2021/in Education /by Cara Chatellier

Whether you’re in the market for your first home purchase or consider yourself a seasoned professional when it comes to house hunting and closing on properties that make your heart sing, you may have come across some common real estate myths in the process. Buying a home can be complicated for anyone. From a pre-home search checklist to a comprehensive closing guide, it can be overwhelming to ensure you’ve nailed everything down before move-in day. So don’t let common misconceptions about the real estate world send you into a tizzy.

Read on to learn about the 5 most common real estate myths- debunked.

1. Myth: You should pick out a house you love, then get a pre-approval.

Although the ultimate goal in any home search is to secure the home you love and live there for countless years after a seamless real estate transaction process, you must follow specific steps to get there first. It is beyond tempting to jump onto a home buying site in search of the perfect home that fits your criteria, but how can you know exactly what you can afford without a pre-approval? You can’t. It is always best to speak with a real estate professional and lender first, then proceed to home searching after you’ve received a pre-approval letter.

2. Myth: Open houses are a waste of time when you’re trying to sell.

There is no such thing as a waste of time when it comes to finding creative ways to sell your home. Open houses are the perfect opportunity to reach a broader group of potential buyers in the current seller’s market. Without requiring showing appointments, the amount of foot traffic you could receive on your home increases astronomically, which will ultimately turn into more offers on your property. Nix the worry that comes with hosting an open house and let your realtor take care of the details to increase the demand on your property.

3. Myth: Home inspections don’t matter.

Although it sounds incredible to save a couple hundred bucks after you’ve spent a lot of money securing your new home, don’t skip the home inspection. During this process, a specialized home inspector reviews your home from top to bottom, looking for over 1,500 things throughout it. From electrical and plumbing to the home’s foundation and ventilation system, a thorough inspection is completed that is worth its weight in gold. It is much better to know the ins and outs of your potential home upfront rather than discovering issues down the road post-purchase.

4. Myth: You’ll save money when you sell your home without a realtor.

It’s tempting to try and take on the sale of your home on your own. Unfortunately, many first-time sellers believe that a “for sale by owner” option is the best way to make the most bang for your buck. Although this may be true to an extent, having a real estate professional on your side to help you sell your home is invaluable. In these scenarios, buyers often overpay, or sellers undersell their property because they do not have a complete picture of the market. Realtors are trained to understand the full extent of the industry better than anyone else; trust them with your purchase or sale.

5. Myth: The only cost of buying a home is the down payment amount.

Often, when first-time homebuyers decide on buying a home, they don’t realize the costs associated with the large purchase outside of the price of the actual property. Along with the down payment cost, buyers often incur other costs such as a home inspection fee, termite inspection, and closing costs which typically range from 3% to 5% of the total purchase price. Make sure that you are in a healthy financial state with substantial savings to cover all costs associated with a home purchase. If you are unsure of what other fees may be involved, don’t hesitate to talk with your lender or realtor to learn more.

We understand that navigating the real estate market can feel like driving for the first time. A lot of uncertainty comes with diving headfirst into a home purchase, whether it’s your first or tenth time. We are here to help you understand the process from start to finish and guide you through the entire journey, allowing you to make informed decisions and secure the home of your dreams. Contact us today if you’re in the market to sell your home or want to take the next step in your homebuying journey. We can’t wait to help you.

5 Tips for Building a Home

December 4, 2020/in Housing /by Cara Chatellier

There is nothing more fulfilling than creating something from the ground up. When you decide to take the leap and opt for a new build, there are numerous decisions you have to make, from the layout of your kitchen to the stain on your wood floors, the list can feel overwhelming. Now that you’ve secured your piece of land and decided on an out-of-this-world floorplan fit for your family, there are helpful tips to consider as you check the boxes on your new home to-do list.

Lean into extra patience and have a plan

The first thing you want to do when you decide to build is to understand the full process that is involved in creating the custom home you envision. With all of the features you dream of comes time. Prepare yourself for the amount of time it will take you to decide on each aspect of your new home and allow yourself hours each week to visit your new build site. This is likely the largest investment of your life, so you will want to spend hours at your home site making sure the design is what you imagine, and the build is getting completed based on a pre-planned timeline. Allow yourself patience and time to consider and decide on design elements, too. Not all decisions will be easy or quick, which is normal, but may slow the construction process. Have a plan in place for your current living situations and allow it to encompass the next several months. You don’t want to find yourself caught between your previous residence and a home that is still under construction. Likely, this new home build will take between 7 to 12 months from start to finish.

Be mindful of your budget

When building, it is always a good rule of thumb to budget more than you plan for. Allowing yourself to have a little bit of extra wiggle room on your finances will diffuse any unexpected costs throughout the process. Your builder will include a majority of the cost in their initial estimate, then finalized in the contract, but it will most likely not include everything. Separate items may be cable and internet hookups, landscaping, decking, or fencing. It is also important to keep your budget at the forefront of your plan, especially when making design decisions.

Hire the right companies

This is the most important aspect of your entire home building process. Do your research early on and hire the right people for the job. Throughout the entire process the builder will be the person you work most closely with, so, make sure they are fit for the job. Reach out to others you know who have built or redone their existing home to get referrals and strong testimonials. Talk to local realtors for suggestions and have sit-down chats with potential builders. It is so crucial to interview various builders in your area to decide on the right fit for you. Communication, reputation, and industry knowledge should be key factors in your final decision. Remember: a builder can look amazing on paper, but if you don’t mesh well your process will not be as smooth as you hope for. Aim to find a builder with a great track record and a personality that you can build a relationship with during the home building process.

Make big decisions ahead of time

Time is money when it comes to new home construction, so, planning ahead is crucial to your budget, success, and sanity. Consider mapping out what you want your interior to look like for the bigger pieced items in advance. Think kitchen cabinets, flooring, fixtures, appliances, and lighting. Create a home building binder (physically or digitally) that is organized by room. Add in the pieces you know you want in that specified area to avoid drowning in design questions in the middle of your build. Yes, there will still be questions as you proceed with your build but preparing ahead of time for the bigger items allows you to have a bit more breathing room when it comes to making decisions on the fly. Preparation is key to getting the home you want from the foundation up.

Consider an independent inspector

It’s always a good idea to have an independent source as a check and balance system in your home building process. Throughout each step in your home building process use an inspector to ensure all building and material practices meet specified codes and regulations. Even if your builder has an amazing reputation and an outstanding building record to boot, an independent inspector will put your mind at ease and ensure everything is flowing, in your process, as it should.

Building a home is the beginning of an exciting new chapter in your life. Understanding the full process, sticking to a budget, and hiring the right people are key elements to building the home of your dreams. To learn more about building a home contact us today. I would love to provide recommendations and help start you on your path to new homeownership.

The Benefits of a Home Inspection

August 12, 2020/in Education, For Sale, Resources /by Cara Chatellier

So, you think you’ve found the home of your dreams! All that stands in the way of your dream home becoming a reality is some paperwork, a plethora of signatures and a few meetings, right? How exciting! Before you decide to dive headfirst into this impending purchase, you need a home inspection. The benefits to this extra step far outweigh the small additional time it may take to secure your home. Not to mention the peace of mind that comes with knowing the full ins and outs of your potential purchase.

Inspections save you money and unneeded surprises

Home inspections, based on the findings, can pay for themselves. Home inspectors detect things such as water leaks, roof damages, foundation issues or unseen safety hazards that could be extremely costly, for the new buyer, once noticed. Knowing, up front, what potential problems lie ahead allows you to plan for repairs or, even, ask the sellers to chip in for or make repairs prior to your purchase agreement.

You may be able to bid less on your prospective home

Once a home inspection is complete the potential buyer receives a full, and thorough, list of suggested repairs and findings. Depending on the size (and number) of repairs proposed by a home inspector’s report, you may be able to negotiate a lower price on the cost of the home should you agree to take on the issues and fix them yourself once purchased.

Sellers can make needed repairs

As part of your home buying agreement, you may ask the seller to make the outlined repairs noted by the home inspector. You can negotiate on having them handle the larger repairs while you agree to take care of the smaller, less hazardous issues. If they agree to make the repairs, you may have to agree to asking cost for the home (or higher) to appease them based on the additional out-of-pocket money they have to fork over for the repairs. The good news with that is it should still be within your purchasing budget, so don’t stress it too much!

Confidence in your purchase is established

There is nothing quite like reassurance when making a large life-changing purchase. Knowing the intricate details of your potential home is priceless when it comes to buying power. This is, most likely, the largest purchase of your life, so details definitely matter. Review the report with the home inspector, in detail, and ask any questions you have for clarification. It is important to understand the report in its entirety so you can make sound decisions on the next steps in your potential purchase.

When it comes to buying a home, it is vital that you understand the full scope of your purchase, even if that includes some not-so-great but needed repairs. Knowing details from the structural makeup to the appliances current standings helps you make an informed decision on your purchase. Working alongside the home inspection and seller will, more than likely, lead you to a collaborative decision on closing. If you are in the midst of house shopping and want more advice on home inspection don’t hesitate to reach out to me. I would love to discuss this more with you!

The Homebuying Wrap-up

December 15, 2019/in Community, For Sale, Housing /by Maura Allard

Thank you all!

As we wrap up 2019 (and the decade!), I’d like to express my sincere gratitude to all of my clients. By the end of the year, I’ll have helped 50 families buy, sell, or lease their homes!

Many years ago, I was a single mom with two young beautiful boys struggling to make ends meet. I could never have imagined then the way my life would look now. When I think about how far I’ve come, I’m humbled and grateful to the clients whose trust in me allowed me to build such a successful business.

I try to show my gratitude in simple small ways – every year I deliver cupcakes to all clients who bought or sold with me during the year, and to clients who have referred their friends, family, neighbors, and co-workers to me. I also make a trip to my clients in assisted-living and bring along some extra cupcakes for their new friends to enjoy.

Luckily, my talented cousin does the baking! She runs “One Little Cake” from her home in Beverly, ever since leaving her corporate job to stay home with her son with Cystic Fibrous. I highly recommend her baking, especially at this time of year!

Cupcakes for everyone!

Let’s Talk!

If you’re thinking about buying or selling a home in the North Shore in 2020, we should talk!

CHECK OUT SOME OF THE GREAT PLACES TO LIVE IN BOSTON’S NORTH SHORE

Buying a Home in Peabody • Living in Beverly • Homes for sale in Danvers

Life on the River

January 5, 2019/in For Sale, Housing, Open House /by Maura Allard

Living on 9 Endicott Rd.

Welcome to life on the river. Can you imagine loving your home? Having direct access to a river deep in your backyard? I ask my sellers to complete a form listing what they absolutely LOVE about their house. The seller of this listing at 9 Endicott Street, Unit A in Danvers said, “Location, Location, Location”. What a great location is to one buyer, may be a nightmare for another.

This townhouse has direct access to the Crane River in the backyard allowing you to enjoy a cup of coffee or a glass a wine on your deck/patio while watching the sunrise/set over the River; drop your kayak in and paddle off to Beverly or Salem for a weekend excursion. Oh, the possibilities!

9 Endicott is also located less than a mile from supermarkets, BJs, the Liberty Tree Mall, movies, restaurants, medical facilities and Route 128. My seller is a busy executive who travels extensively, having highway access under a mile from her front door has made her commuting to the airport less stressful.

If you are in the market for a spacious townhouse with serene water-views out your windows, but also the ease and convenience of having shopping and highway access close by, this could be the home you are looking for! Open houses start the weekend of 3/3 and the list price is 479,900!

To view this listing please click on the link below:

http://9EndicottStA.c21.com

Welcome to Life on the River.

The Process of Buying for First-Time Buyers

April 16, 2018/in For Sale, Housing /by Maura Allard

I enjoy working with first time home buyers. Homeownership is a wonderful investment, but choosing the right house can be daunting and the process can feel overwhelming to many.

When working with my first-time buyers I make sure we have an in-person meeting to go over the specifics of what they will need, make sure they are pre-approved and know what they can afford PLUS go over the myriad of forms they will be asked to sign when they go to make an offer.

Once you find THE house, everything can move quickly. I work hard to prevent the overwhelm. If buyers have readily seen the disclosure forms beforehand then they know how the process will unfold and will have realistic expectations. This can leave you in a place where you feel far less overwhelmed and more settled about buying your first home.

If you have questions about getting pre-approved or what the home buying process will look like; please email, call or text and I would be happy to chat with you.

Listing your Home for Sale

March 5, 2018/in For Sale, Housing, Resources /by Maura Allard

It’s time to think about Decluttering!

Spring is on the horizon, has the thought of selling your home crossed your mind recently? As a Realtor, I have the pleasure of seeing many houses, and yes professionally staged houses look amazing! You want to move right in, you can see yourself living in the house, the problem is not everyone can afford to hire a professional stager. If you can, terrific, it is worth every penny and it definitely has the potential to fetch you higher offers. But what if you can’t afford a stager??

The number one thing I believe a seller can do to get their home ready to sell is to declutter. Adopt the mindset you are moving and start packing. Head off to the Container Store and buy boxes and plastic totes. Banish your collectibles, personal photos, magazine collections, overflowing toys (that includes dog toys). Strip your fridge of magnetic calendars from your insurance agent and the town recycling schedule. Put away the Kitchen Aid Mixer and blender and keep your countertop appliances to a coffee maker and toaster. Your personal belongings make your house a home, but now that you have decided to move your home now needs to become a house.

I’m always happy to provide a free decluttering consultation for anyone interested in selling.