Real Estate Information Archive

House hunting can be overwhelming sometimes, especially when beginning the search for your first home. Chances are you might get caught up in the process and important details might slip by you. While the number of rooms, condition of the kitchen, and size of the yard are important, there are other things to consider before you make an offer.  This list of things to look for can help get your search off to the right start.

Location

They say that the 3 most important things to look for when buying a home are location, location, location! While a home might not be perfect, loving your neighborhood and neighbors can make all the difference in living with imperfection.  And face it…you can change almost anything about your house, but you can’t change its location or the people living nearby.  When you go house hunting, make sure to consider the home’s proximity to your work, the appeal of the neighborhood, where in the neighborhood the home is situated, ease of access, noise from neighbors, traffic, pets and access to parks, shopping, schools and public transportation. The 5 Factors of a "Good" Location

Home Placement

Beyond location, look at how the home is situated.  If the home is on a hill does it have a view, a walkout basement, or lots of stairs to climb? Do neighbors' windows look directly into the home? Is the yard suitable for kids, pets, gardening, or other uses? Is their safe access to the home? These are all important questions to ask yourself when determining if it is the right property for you.

Check Out the Neighborhood

While it’s important for your house to meet your expectations, it’s equally important that the neighborhood meets them too. Take a drive around the development you are interested in on weekdays and weekends, during the day and in the evening.  Are the homes in good repair? Are yards kept clean and tidy?  Is the neighborhood safe enough for people to walk, run or bike?  Are there children playing outdoors?

Consider a Home’s Curb Appeal

You want a home that is going to reflect your lifestyle. Do you live a    casual, laid-back life? Then you probably won’t want a formal Victorian or Tudor style home.  A simple, contemporary home might better suit you.  Pay close attention to exterior features.  Think about maintenance.  For example, a brick home is easier to maintain than one with siding.  Do you like working in the yard?  If not, you might not want a house with extensive landscaping.  Is the roof in good condition?  Attention to detail will help you choose the home with the best curb appeal for you. The Importance of Curb Appeal

Size and Floor Plan

You may be thinking about buying your dream home. But is your dream home practical?  Do you need 4 bedrooms and 4 baths when you live alone? A spacious home may provide the extra room you've always wanted for a home office or a theater room, but you'll pay higher heating bills and have higher taxes. Additionally, it will take more furniture to furnish and money to decorate. Think about how the new home space will be used and whether it will fit your lifestyle now and in the future.

Bedrooms and Bathrooms

Decide how many bedrooms and bathrooms you will need and only    look at homes that meet that criteria.  You don’t want to fall in love with what is otherwise a perfect house if it doesn’t provide the space needed for your family.  It is smart to consider counting an extra bedroom in that number so that you have extra space for a home office or guest room. If you think you might add on to the home later, make sure you consult an architect who can advise you on space planning and regulations.

The Kitchen

For many people, the kitchen is the heart of the home. Don’t settle for a home with a kitchen that doesn’t work for you.  Yes, you can remodel later, but at great expense.  If it is an easy fix like replacing cabinets or countertops, get a price quote before committing to the house so that you will know if it is within your budget to take that on.

Closets and Storage

Older homes often have small closets and lack storage space.  As you’re looking at a home ask yourself where you will store your belongings. Tiny closets don’t have to be a deal breaker.  There are ways to maximize storage without renovations. Newer homes tend to have lots of storage and you may sacrifice living space while having more closet space than you need.

Windows and Lighting

While looking at a home keep in mind your preferences regarding light and privacy.  Do you want a lot of windows to provider bright, sunny rooms?  Pay attention to the locations of electrical outlets and fixtures to make sure they will meet your lighting needs.

Finishing Touches

Even a simple home can look spectacular with the right moldings, hardware, and a fireplace.  If elements like these are important to you, look for them while house hunting. 

You may not find everything you want in one house, but keep this list handy and you are more likely to find the home that best suits your needs and desires.  Happy House Hunting!

If you are in the market to buy or sell a home, let Sandra Nickel and her Hat Team of Professionals assist you with all your real estate needs!  Call them today at 334-834-1500!

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Perhaps you are ready to buy a home, but you think you can’t because of a low score on your credit report.  Bad credit can present challenges when purchasing a home, but it doesn’t have to keep you from moving forward with your dream of becoming a home owner.  With interest rates still low, now is a great time to buy, so don’t let bad credit hold you back! Here are some tips for how to buy a home even when you have bad credit:

• Get your credit score.  Take a deep breath and do that search.  There are several places you can get your credit score for free. Just keep in mind that you will have three credit scores - one each from Equifax, Experian, and TransUnion. These are the three major credit reporting agencies, so it’s a good idea to get scores form all of them. Get Your Credit Scores
   
• Make sure your credit report is accurate and up to date. Your credit report is like a history of how you have handled borrowed money.  There may be errors in it and if so, that could damage your credit score.  You can get a free credit report from each of the three major credit reporting companies annually. When you get the reports, look over them carefully to make sure all the information is correct. If you find any errors, you can dispute them with the reporting companies. How to Dispute Credit Report Information
   
• Prepare yourself to pay a higher interest rate.  Qualifying for a mortgage with a lower credit score is possible if you are willing to pay a higher interest rate.  That’s why it’s a good time to buy when rates are relatively low to begin with.  Lenders charge more to protect themselves should the buyer make late payments or fail to make payments altogether. Unfortunately, bad credit means that you likely have a history of doing just that.  While a higher interest rate does mean a higher mortgage payment, it may be worth it to become a homeowner investing in your own home rather than paying rent to a landlord.
   
• Apply for an FHA loan. Loans insured by the Federal Housing Administration (FHA loans) have lower credit requirements.  With a credit score of at least 580, you can qualify for an FHA-insured mortgage with a down payment of just 3.5 percent of your home’s final purchase price.  However, there are some catches.  First, FHA loans are insured by the Federal Housing Administration, but they are originated by traditional mortgage lenders.  Even though they can originate FHA-insured loans for borrowers with scores as low as 500, it doesn’t mean they are obligated to do so.  They can choose to require higher credit scores.  Secondly, FHA loans come with a financial penalty.  With traditional mortgage loans, you can cancel your private mortgage insurance (PMI) after building up enough equity.  With an FHA loan, you must maintain private mortgage insurance for the life of your loan. Let FHA Loans Help You
   
• Make a larger down payment. If you can come up with a larger down payment, lenders may be willing to take a chance on you. While it’s possible today to get a mortgage with as little as 3 percent down, people with bad credit may find that making a larger down payment is what will get them the mortgage loan they seek. When you put down more money up front it shows the lender that you are willing to take on the risk of a home loan. The lender also will feel you are less likely to walk away from a large financial investment.  If you can come up with a down payment of 20 percent or more, you will increase your chance of getting approval on a mortgage loan. Top 10 Ways to Save For a Down Payment
   
• Rebuild your credit. If your credit is so bad that a mortgage is not feasible right now, don’t despair. It just means that it is time for you to start rebuilding your credit so that you can become a home owner in the future.  To do this, you simply need to start paying all your bills on time every month so that you can build a better credit history.  Also, pay down as much credit card debt as possible to raise your score.

If you are in the market to buy or sell a home, let Sandra Nickel and her Hat Team of Professionals assist you with all your real estate needs!  Call them today at 334-834-1500!

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The idea of buying your first home is exciting and it would be easy to jump the gun and start looking right away.  But before you start your home search there are some steps you should take to prepare:

• Educate Yourself

It is crucial that you understand the steps involved in buying a house before you get started in the process.Going into it blindly will only lead to confusion and frustration down the road.When you are familiar with what happens after you find your dream home, you will feel more comfortable when it comes time for home inspections, making offers, shopping for home-owners insurance etc. Homebuying Process: 7 Steps to Buying a House

• Hire a Top-Notch Realtor

The best tip I can give a first-time home-buyer is to hire a Top Realtor.An experiencedagent like Sandra Nickel will be your go to person for advice throughout the process of finding and purchasing a home.She will provide advice on everything from loan officers to talk to, types of inspections to choose from, how much you should offer for a home and more.Being familiar with the local area, she will know about neighborhoods and houses that will suit your needs.

• Get Pre-Approved

Before your start searching for your home it is vital that you get pre-approved for a mortgage loan.Not only will this let sellers know that you are serious about buying, it will also give you an advantage over buyers who are only pre-qualified.A pre-approval will help you get an accurate idea of what you can afford, so it will make it easier for you to determine what your budget will be. Pre-Qualified vs Pre-Approved: What's the Difference?

• Be Prepared

Buying your first house is a new adventure.It takes time, patience and persistence. There will be many new tasks to add to what is likely an already full schedule in your life, but they will all be worth it when you are enjoying your new dream home!

If you are in the market to buy or sell a home, let Sandra Nickel and her Hat Team of Professionals assist you with all your real estate needs!  Call them today at 334-834-1500!

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If you are in the market to purchase a home right now, I am sure you would like to be moved in and settled by the time the holidays arrive.  Does that sound too good to be true?  Well, no promises, but there are steps you can take to buy a home fast.

Whether you are buying a house for the first time, or you have navigated the home buying process before, chances are you know that it can be lengthy and complicated.  But there are certain strategies you can use that will speed things up. Here are some tips to help you get started:

• Chose the right type of house.  There are certain types of homes you will want to avoid if you’re in a hurry.  Co-ops, for example, can be problematic because it can take six to eight weeks to get a board interview scheduled, finalized and approved.  You should also avoid bank-owned homes or foreclosures, which generally take much longer to close.  The fastest way to go is to focus on condos or new developments. Closings for condos and new developments can take as few as three to four weeks to happen.
   
• Get pre-approved for a mortgage.  This is a strategic move that will give you a head start so that when you do find a house you want to purchase; you will already be approved for a mortgage loan and can make an offer right away.  This will also help you to stay within your budget when looking at homes because you won’t want to waste time looking at properties that cost more than what you are pre-approved for. How to Get a Mortgage Pre-Approval
   
• Have your documents in order and ready to go.  Get all the paper work that you will need organized so that it is ready and waiting when you find the right home.  Generally, a home buyer will need the following: federal tax returns for the past two years, supporting information such as W-2, 1099, or other tax forms for the past two years, two months’ worth of bank statements for your checking, savings, 401K, retirement and other accounts, and pay stubs from the past month. Homebuyers: What to Bring to Your Closing
   
• Find the right Realtor to guide you through the process.  You will want an experienced, professional Realtor like Sandra Nickel who knows the area well and can use their expertise to get you into a home quickly.
   
• Offer to shorten contingency deadlines.  Don’t risk waiving home inspection or financing contingencies, but consider a shorter time frame to effect a faster closing.
   
• Be prepared for your move.  Don’t wait until you have closed on your new home to start packing and preparing for your move.  Start early so that as soon as you close, you are ready to go!

If you are in the market to buy or sell a home, let Sandra Nickel and her Hat Team of Professionals assist you with all your real estate needs!  Call them today at 334-834-1500!

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When you are purchasing a home, especially if you are a first-time homebuyer, it’s easy to become overwhelmed by all the things you need to think about.  Something like title insurance is probably not even on your radar. It’s a fee that will appear on your closing document and chances are you don’t even know what it’s for.  If that’s the case, we’ve got you covered.  Here are five things you need to know about title insurance:

1. Like other insurance policies, title insurance is something that protects you financially should there be a loss.  In this case it protects you with regard to property ownership. It not only ensures that the property you are purchasing will be legally transferred to you from the previous owner, it also protects you from possible future Title Defects.  There isn’t a monthly premium with title insurance; it is a one-time fee paid at closing.  This one-time payment will protect the insured from title defects for the life of the loan.
2. Title insurance is important because while a title research company will look into the history of ownership of the home to be sure there are no title defects, there is always a possibility that an issue could arise later due to several reasons such as improperly recorded documents, mistakes in ownership history or other legal matters that occurred prior to your purchase of the home.
3. There are two types of title insurance; one that protects the home owner and one that protects the mortgage lender.  Your lender will require that you purchase the lender’s policy to protect them from any loss should a problem arise.  The owner policy protects you and will cover legal fees or other losses that occur due to a title defect. You are not required to get an owner policy, but it’s well worth it to have it in place just in case something goes wrong in the future.
4. It can be frustrating to pay for insurance that you might never use, but it is risky to not have it in place. Think of it as paying for peace of mind.  With title insurance, you will be protected from catastrophic circumstances should a title defect be found.  You could not only lose a lot of money; you may even lose your home.
5. Title insurance is purchased when closing on your home. You have the option of buying it from whatever company you choose, but if your lender has a preferred company, you may find it less expensive to add your owner’s policy onto your lender’s policy. Average Cost of Title Insurance 2019

If you are in the market to sell or buy a home, let Sandra Nickel and her Hat Team of professionals assist you with all your real estate needs!  Call them today at 334-834-1500!

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Congratulations! You are a first-time home owner!  Now it’s time to furnish your new space.  While you may already have furniture from your previous home, if you are moving into a larger place, chances are you will be looking to add to it.  When deciding what to purchase, it will pay to think long-term so that you can choose pieces that will last, both in quality and in style. Here are 5 pieces of furniture that will stand the test of time;

1. A SIMPLE BUT STURDY DINING TABLE

A small, well-built table is a great starter piece for your dining room or eat-in kitchen.It doesn’t have to be ornate; you can use table cloths to spruce it up.What’s nice about it…and what makes it lasting…is that when you upgrade to a larger dining room table down the road, you can use this table in your breakfast room, sunroom, craft room, or even as a desk in your office.

Photo Credit: etsy.com

2. INDOOR/OUTDOOR CHAIRS

When looking for chairs to go with your dining table, avoid upholstered ones and instead look for durable materials that are suitable for both indoor and outdoor dining. Why? Because your dining set of today can be your patio furniture in the future.Look for chairs made of metal or with slats in the seat or back so that they can withstand being outdoors in the rain.

Photo Credit: pinterest.com

3. A KING-SIZED HEADBOARD

An elegant headboard can dress up a bedroom. It might not be a priority to have one right away, but if you choose to purchase one, go big.Maybe you are sleeping in a double bed right now and you are wondering why you would buy a king-sized headboard for that.Well, down the road when you upgrade to a queen or king-sized bed, you will already have a headboard ready to go! So, choose a wall-mounted or freestanding headboard that will give your double bed a luxurious look now and you will still be able to use it when you get that king-sized bed later!

Photo Credit: pitus.info

4. A SMALL LEATHER SOFA

You don’t necessarily need a large sofa right away, but it’s still important to have a quality, comfortable one.The family room is often the heart of the home and you will spend a lot of time sitting on your sofa. So, it should not only be comfy, but also made to last.The nice thing about a leather sofa is that while providing a cozy lounging spot for one or two people now, it will age well and become a great accent piece as part of a larger family room later.It will coordinate easily with colors and patterns in a larger seating arrangement.

Top 7 Benefits of Leather Furniture

Photo Credit: livingspaces.com

5. A CLASSIC SIDEBOARD

A sideboard may not provide a lot of storage, but it adds a lot of style and function to just about any room in your home.Choose a warm, wood unit that will last through years of style and décor changes.It is such a versatile piece that can be used as a storage space/server in a dining area, as a media stand in a family room, as a bedside table in a bedroom, or as the perfect place to display treasures in a foyer or living room.

Photo Credit: pinterest.com

If you are in the market to sell or buy a home, let Sandra Nickel and her Hat Team of professionals assist you with all your real estate needs!  Call them today at 334-834-1500!

Are you planning to become a home owner in 2019?  If so, it’s important that you educate yourself about the real estate market so that you know what steps to take to successfully find and purchase the right home for you.

With the continued shortage of homes for sale, buyers need to be prepared for competition with other home buyers as homes will likely get many offers.  That being the case, it is vital that serious buyers put their best foot forward from the very start.  Their first offer will need to be their best one in a situation where there are likely to be multiple offers, because they may not have an opportunity to negotiate.  Unless you intend to pay cash, the best thing you can do is to get Pre-approved for a Mortgage Loan before you start shopping for your new home.  This will let buyers know that you are serious and that you can afford the purchase price.  Remember that in a seller’s market, homeowners are calling the shots and it’s not a time to take risks.  It’s also worth mentioning that the best offer might not be the offer of the most money.  Sellers will take into account the financing and likelihood of a successful closing. The more cash in the offer, the more likely the loan will close.

As a buyer in this market it benefits you to be flexible when it comes to a closing date. The best strategy is to have your Realtor find out from the sellers when they would like to close.  If they need to close by a certain date, they may pass on an offer if those buyers can’t close by that date.  Being flexible about when you want to take possession of the house will help you stand out to sellers as well. Sometimes sellers might need a little extra time to move out and if you can work with them, they might accept your offer over someone who needs to move in right away.

Be ready to make an offer right away. When a house comes on the market that you would like to bid on, have your pre-approval letter ready.  Take a look at the home as soon as possible and if it’s right for you, have your Realtor make an offer as soon as possible. This is not a time for a low-ball offer. A Realtor who is very familiar with the market can help you decide on the right amount to offer. In fact, one of the most important things you need to do to prepare to buy a home is to hire a professional, experienced Realtor like Sandra Nickel to assist you in the home buying process.

Finally, don’t wait!  Home prices are rising, as are interest rates. So, if you’re planning on becoming a home owner this year, now is the time to start your home search! 2019 National Housing Forecast

If you are in the market to sell or buy a home, let Sandra Nickel and her Hat Team of professionals assist you with all your real estate needs! Call them today at 334-834-1500!

You are ready to purchase your first house.  Your credit score is great.  You know you can afford a monthly mortgage payment based on your budget.  You are sure you will be approved for a mortgage loan.  But that down payment!  How the heck are you supposed to come up with 20%?  Don’t despair, because the truth is, you don’t need a 20% down payment to purchase a house!

Saving for a down payment on a house can seem overwhelming for many people.  Keep in mind that it can come from various sources.  Funds can come from bank accounts, stocks or mutual funds, an inheritance, or a gift from a family member.  Some people will even use assets from their retirement portfolio.  Requirements regarding where the money comes from for your down payment depend on the loan type.  Also, purchasing a primary residence usually requires a lower down payment than if you are purchasing a second home or buying an investment property. The Different Types of Mortgage Loans in 2018, Explained

The myth about down payments is that 20% is the norm. While that may have been true in the past, it’s not anymore.  The fact is that per the National Association of Realtors, a majority of homebuyers purchased their home with a down payment of 6 percent or less. Unfortunately, a lot of people don’t even consider buying a home because they still think they need 20% down.  The NAR'S Aspiring Home Buyers Profile 2018 found that 36% of non-owners believed that saving for a down payment would be very difficult. Chances are they still believe in the 20% down myth and it is just not the case anymore!

So, now that you know you don’t have to have 20%, perhaps buying a home seems more within reach.  But there are still some things you should be aware of before taking that first step toward homeownership.  Various factors are at play in determining if you should take on a mortgage with lower down payment.  For example, the less you put down, the larger your mortgage payment will be each month.  That is because you will have a larger loan amount, possibly a higher mortgage interest rate, and the added cost of Mortgage Insurance.  So, while you don’t have to come up with more cash, your monthly costs go up.

Once you have educated yourself about the requirements, you can make informed decisions about your budget and how much you can afford.  Don’t let the 20% down payment myth stop you from pursuing your dream of home ownership! 

If you are in the market to sell or buy a home, let Sandra Nickel and her Hat Team of professionals assist you with all your real estate needs. Call them today at 334-834-1500!

The decision to purchase your first home is not one that should be made lightly.  It is an important, life-changing decision that should be given serious consideration.  So, before you take the plunge into searching for the prefect home, here are some questions you should ask yourself to make sure that you are ready.

- Can I afford a home?  The first step is to determine if you can afford to buy a home based on your current financial situation.   Using a Home Affordability Calculator will help you figure out how much you can afford by plugging in your income, debt and the amount of a down payment you will be able to make.   You will now have a number for the highest amount you can afford and what the monthly payment will be.

 - Is it better for me to rent or buy?  Using a Rent vs. Buy Calculator will allow you to crunch the numbers. You can enter the current amount of rent you’re paying (or how much you would be able to pay) and the zip code where you want to live. The calculator will provide a comparison of the cost of buying a home versus renting in that area.  You will also be able to see which option is more cost effective over time.

 - How long will I live here?  If you plan to stay in a home for a long time, it is generally better to buy versus rent. If you’re going to be living somewhere for a short term, renting might be the better option.  The reason is that when you buy a home you will likely have to pay closing costs which can total in the thousands of dollars.  In addition, most of your early mortgage payments go toward interest rather than paying down the principal, which is the actual amount you owe on the home.  A good rule of thumb is that home buyers should stay put for at least five years.  Otherwise, renting may be better.

 - Are you saving for retirement?  Retirement may seem a long way off to young home-buyers, but it is important to start saving early.  It’s not a good idea to neglect your retirement accounts to “save” money to put down on a house.   Consider meeting with a financial counselor who can help you find a balance in saving for retirement and saving for your first home at the same time.

 - Am I ready for the responsibility?  Owning a home is a huge responsibility.  With rentals, you can call your landlord to fix things that aren’t working in the home, but as an owner, it’s all up to you.  You need to be sure that you have the time, willingness and resources to keep up with home and yard maintenance.

Sandra Nickel and her Hat Team of professional Realtors at Homes for Sale in Montgomery AL can assist you in the process of determining if you are ready to purchase your first home.  Give them a call at 334-834-1500 and get started today!

With interest rates still relatively low, buying a house right now is less expensive than renting in many places, including Montgomery, AL.  Now is a great time to lock into a rate.

Buying is often considered to be financially better than renting over the long run because your mortgage payments build equity in your home, which you will eventually own, while rent only goes toward the upkeep of your home and the pocket of your landlord. That is just one reason buying is better than renting.  Here are some others:

• You can do what you want with your property. Making home improvements will be your choice…from colors to paint the walls to light fixtures to types of floors, you won’t need permission from a landlord to make changes.
• Tax benefits. Tax Deductions are a great perk of home ownership.
• Stable monthly payments. Rents can go up, but with a fixed-rate mortgage, your monthly payments won’t change.
• Forced savings.  Renting might seem less expensive, but would you actually save the money you don’t spend on rent?  Since your mortgage payments are building equity in your own home, which you can later sell for profit, it’s like a forced savings.

Using a Rent vs But Calculator you can see how buying is a better financial option right here in Montgomery.  For example, after 4 years, the cost of homeownership (down payment, mortgage, taxes, etc.) for a $150,000 home in Montgomery would be $94,094.  The total cost to rent the same house for that period would be $52,193.  Renting would leave you with $41,901 in your pocket (including the money you didn’t spend on a down payment).  So, it looks like renting would be better financially, right?  But wait…not so fast.  Let’s look at what you gain over the same 4-year period if you buy.  After 4 years, your home will have $70,371 in equity. However, if you instead rent and invest your down payment and the other money you save at a 6% return rate, it will earn around $8,351 in 4 years.  So, if you look at your gross costs, equity and investment potential, it’s better for you to buy than rent if you plan to live in your home more than 3 years and 3 months.

The bottom line is, if you’ve been thinking about buying a home in the Montgomery area, don’t wait!  Start investing your money in your own home vs that of a landlord today!

Contact Sandra Nickel and her Hat Team of professional Realtors at 334-834-1500 and let them help you find your dream house today!