Real Estate Information Archive

The idea of purchasing your first home is exciting, but can also feel overwhelming.  Before starting your home search, you need to figure out how much you can afford.  If you’ve been hesitant to move forward because you’re afraid you won’t have enough cash for a down payment or that you won’t qualify for a loan, you shouldn’t despair.  There are programs available that can help you!  So, stop padding your landlord’s pockets and take advantage of programs that will assist you in making a sound financial investment in a home of your own.

The Alabama Housing Finance Authority has two programs designed to assist people with purchasing homes:

1.Step Up - Step Up is a homeownership program designed specifically for moderate-income home buyers who can afford a mortgage, but need help with the down payment.  With this program, the money for the down payment is secured by a 10-year second mortgage and is combined with a 30-year, fixed-rate first mortgage.  Since the loans are serviced by ServiSolutions, a division of AHFA, homeowners have only one check to write each month.  Program participants must complete a homebuyer education course to qualify…a small price to pay to become a homeowner!  People who earn less than $97,300 are eligible for the Step Up program, regardless of household size or location.

Step Up+ is a new, temporary program that was just announced by the AHFA in June, 2017.  This mortgage enhancement will pay the upfront split private mortgage insurance premium (up to $1,500) for homebuyers who earn less than 80% of the area median income.  This way, homebuyers will pay a lower monthly premium as part of their mortgage payment. Information and qualifications:

• HFA Preferred conventional loans only
• 3% down payment assistance available through Step Up
• For new or existing homes in Alabama
• Homebuyers must have a credit score of 620 or higher
• Must complete homeownership education course
• Must apply for loan through a participating lender
• Private mortgage insurance will be underwritten by Genworth or ARCH (no delegated options)

All Step Up+ loans must close by September 30, 2017.

The Step Up program’s standard $97,300 household income limits will NOT apply for Step Up+.

For more information, contact a participating lender.

2.Mortgage Credit Certificates - The Mortgage Credit Certificate (MCC) program gives homebuyers another savings option.  MCCs are available with conventional fixed-rate, FHA, VA, Rural Development and privately insured mortgages.  Applications are accepted on a first-come, first-served basis by a statewide network of participating lenders.  Participants must meet federally established income and sales price limits.

MCCs provide a tax credit to reduce the amount of federal taxes owed by a percentage               of the annual mortgage interest paid each year.  The remaining annual interest may be claimed as a mortgage interest deduction on the homebuyer’s federal tax return.

Qualified homebuyers pay lower federal income taxes or benefit from immediate savings by updating the withholdings on their W-4 form.  MCCs may be paired with AHFA’s Step Up program or any other 30-year, fixed rate, amortizing mortgage offered by a participating lender.

Mortgage credit rates are based on the loan amount:

• 20% MCC for loans of $150,001 or greater; no cap
• 30% MCC for loans of $100,001 to $150,000; $2,000 per year cap
• 50% MCC for loans of $100,000 or less; $2,000 per year cap

The real estate professionals at Homes for Sale in Montgomery Alabama can explain these programs to you and answer any questions that you have.  Contact them and start your home search today!

http://www.homesforsaleinmontgomeryalabama.com/Blog/First-Time-Home-Buyers-and-Unexpected-Expenses

http://www.homesforsaleinmontgomeryalabama.com/Blog/Apartment-Hunting-for-College-Graduates

http://www.homesforsaleinmontgomeryalabama.com/Blog/Home-Buying-Made-Easy

Buying your first home is exciting.  After getting approved for a mortgage loan, working with a professional REALTOR and finding your dream home, it’s time to settle in and start enjoying your new digs.  Then BAM!  The shock of an unexpected expense slaps you in the face.  Don’t let that happen to you.  Being informed about the possible expenses of being a homeowner will not make spending the money any more fun, but at least you will be prepared.  Here are some ancillary costs of homeownership that you should be aware of:

• CLOSING COSTS - When closing on your mortgage you will be presented with a long list of costs: mortgage taxes, lender application fees, attorney’s fees, title insurance, recording fees and any potential real estate tax reimbursements if the seller has paid them up front.  Altogether, closing costs are an average of 2 to 5 percent of the total cost of the home.  They will vary state to state.  Closing cost information for Alabama can be found here.
• HOME MAINTENANCE - Now that you are a homeowner, you are solely responsible for the maintenance and upkeep of your property.  Everything from yard work to cleaning; pressure washing to clearing the gutters…it’s all in your hands and on your dime.  Oh…and fixing things.  Yeah.  When the AC isn’t working or there is a leaky faucet, you will be footing the bill for repairs.  This all sounds a bit scary, but the key is to be prepared.  Go into your home purchase knowing that you will likely be spending about 1% of the purchase price of your home on maintenance annually.
• PROPERTY TAXES - Property taxes vary by state and can also vary based on city, ordinance, and even specific house.  You can utilize a Property Tax Calculator to get an idea of what your taxes will be when planning for your expenses.
• UTILITIES - If you’re coming from a rental where your utilities were included with the rent, you may not have considered how much you will need to set aside to pay for electricity, gas, water and sewage costs.  Added to internet, cable and phone bills, it can be quite a chunk of change.  Planning for utility costs is crucial to making sure you can afford to live in a home of your own.
• HOMEOWNER’S INSURANCE - When you get a mortgage, you must get homeowner's insurance as well.  Be sure to do your homework and shop around for the best possible price.  You can get discounts for things like security systems, working from home or bundling coverage for your home with your auto insurance policy.  Educate yourself on what your insurance policy covers so that you’re not left disappointed when you have to pay for something you thought would be taken care of.

Don’t let these expenses scare you off from purchasing a home.  Again, the key is to be aware of them going in so that you won’t be caught unawares when they come up.

http://www.homesforsaleinmontgomeryalabama.com/Blog/3-Mistakes-First-Time-Buyers-Make-and-How-to-Avoid-Them

http://www.homesforsaleinmontgomeryalabama.com/Blog/Home-Buying-Made-Easy

http://www.homesforsaleinmontgomeryalabama.com/Blog/4-Common-Real-Estate-Myths-Debunked

Electricity is a beautiful thing.  It provides warmth in the winter and cools you off during hot summer months. It gives you light in the dark and makes chores like washing/drying clothes and doing dishes so much easier.  You take it for granted because you’ve always had it and you certainly can’t even imagine what life would be like without it.  Because it is such a normal part of your life, you probably don’t stop to think about how dangerous it can be.  It is important to be educated about possible electrical problems in your home so that you will know how to deal with them before they happen.

1. Do you know how old your home is?  Often older homes don’t have the capacity for electricity that current technology uses.  If you have never had an electrical safety inspection by a professional, now is the time to do so.  If your home’s electrical wiring has not been updated to safely handle all the current that your family uses, it is crucial to have it done .
2. Is your electrical panel hot to the touch?  It shouldn’t be.  Check the brand of your panel. Several brands are outdated or faulty and should be replaced.  A faulty electrical panel can lead to a fire.  That is not something anyone should risk.
3. Outlets should not be hot either.  If you feel an electrical outlet and it is warm or hot, it means there could be a problem.  There are dangerous issues indicated by a warm/hot outlet. Whether it’s too much demand on the outlet, faulty or melting wiring, or other precarious situations, you don’t want to ignore it.
4. Keep plugged in appliances away from water.  This seems obvious, right?  But sometimes limited space forces us to use electrical appliances near sinks or bathtubs.  Whether you are blow-drying your hair at your bathroom vanity or your kitchen only has one plug for your toaster and it’s right by the sink, be extra careful.  If a plugged-in appliance gets wet, don’t unplug it. Go to your electrical panel and unplug the power source for the outlet you’re using.  Then you can unplug it.
5. Make sure you are using the correct wattage light bulbs.  Using a higher wattage than can safely be accommodated by a lamp or light fixture may overload its wiring, which is a fire hazard.  It’s ok to use a light bulb with wattage equal to or less than that called for on the lamp’s socket.  If you want brighter light, look for a lamp that uses a higher wattage bulb.
6. Use an experienced, licensed electrician to handle your home’s electrical repairs and/or replacements.  Professional electricians are well-trained and have years of on-the-job experience before being granted a license.  They will know current codes and regulations and can safely navigate any problems they might come across.

It’s easy to prevent electrical hazards if you are informed and educated about what to be aware of.  So, don’t take electricity or your family’s safety for granted!

http://www.homesforsaleinmontgomeryalabama.com/Blog/Organizing-Your-Home-Made-Simple

http://www.homesforsaleinmontgomeryalabama.com/Blog/Tips-for-Remodeling-Your-Home-and-Where-to-Start

http://www.homesforsaleinmontgomeryalabama.com/Blog/Things-to-Accomplish-Soon-After-Moving-Into-Your-New-Home

1. 1. If price is an issue for you when looking for a new place to live, going for one with some age on it instead of a new one may be something to consider.   If you can find one that was built in or around the 1970’s you may find a diamond in the rough.  Keep an open mind when looking for a house to purchase and you may just find the place of your dreams.   

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2. 2. They just don’t build em’  like they use to.  Likely you have heard this statement before.  You may have wondered whether or not it is true and in fact it is.  Houses built in years past typically were built with old hard wood trees.  These trees were usually allowed to grow to an old age without being disturbed unlike trees today.  These old hardwoods are much less likely to have any warping issues and resist rot.   Instead of dry wood for walls, many older homes have been built with plaster and lathe.  These materials are superior to dry wall because they provide better insulation as well as sound proofing.   

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3. 3. Many times new houses are built in newly established neighborhoods.  While this is not a bad thing in itself, it leaves unknown factors like crime rates, school districts and the general population of a certain area.  Older homes tend to be in areas that are well established so you won’t have any questions left unanswered.   

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4. 4. If character in a house is important to you then buying a home with some age on it is a great way to get what you are looking for.   Crown moldings (which add a lot of character) are many times found in older homes.   

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5. 5. If having a bit of a yard is something you wish to have then you may want to choose a place with some age on it. Newer homes come with less acreage.  

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1. 1. If you already have landscape lighting, why not purchase a few fun colored lightbulbs to use in them for different holidays.  This will definitely make your outdoor space a lot more fun.  

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2. 2. If you are getting tired of mowing your grass then, you may want to replace your grass with a garden.  You might want to add a garden of flowers or a garden of vegetables or even put in a koi pond.  Any of these ideas will help to keep you from spending your summer evenings mowing the grass all the time. This will make your outdoor space more fun. 

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3. 3. If your patio furniture is old and outdated, now is the time to go out to purchase some that allows you to show your style more effectively.  Outdoor furniture always makes outdoor spaces more inviting and fun. 

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4. 4. Adding a new doorbell to the outside of your home may seem like a small thing.  However, if you find a nice one that lights up the front door, it can do wonders towards making your home seem more inviting at night.   

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5. 5. If you don’t already have a swimming pool, summertime is a great time to add one.  Not much can make your outdoor space more fun than a swimming pool for all to enjoy.   

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6. 6. If you do add a swimming pool, why not go out and make it really fun and cool by adding an outdoor shower to the mix.  This type of thing is pretty rare unless your home is at the beach, so your outdoor shower may quickly become the talk of the neighborhood.   

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There are a few mistakes that many first-time home buyers make. Here are three of the most common mistakes and how you can avoid them when purchasing your first home.

Mistake #1: Assuming your credit is good.

The information in your credit report determines whether you can get a loan — and how much interest you will have to pay – so it pays to be certain your credit reports are accurate.

Check your credit reports for free from all three credit reporting companies — Equifax, Experian, and TransUnion — to make sure everything is correct. If you find errors, contact both the credit reporting company and the information provider (the person, company or organization that provided information about you to a credit reporting company) involved in the errors and ask them to fix the credit report errors.

Mistake #2: Getting pre-qualified, not pre-approved, for a loan.

It’s far better to be pre-approved for a loan than to be pre-qualified. Here’s why…

With pre-qualification, your lender does a preliminary evaluation of your ability to pay for a home and gives an estimate of the mortgage amount they’ll give you. The lender does not verify the information you provide.

Mistake #3: Allowing emotions to influence your decisions.

Buying a home is an investment. It needs to be treated as any other investment. You don’t buy stocks because they are pretty and you shouldn’t pick your home that way either. Make sure the home you buy fits your needs and allows you room to grow over the next few years. As with any sound investment, time is the key to a good return.

If you are a first-time home buyer, I would be happy to help you find (and get the best price for) your first home.

Courtesy of Montgomery AL Real Estate Expert Sandra Nickel.   

It is that time of the year again, spring has sprung. As you begin thinking about spring cleaning, don’t forget to include the homes exterior in your plans. Whether you are selling your property or plan on calling it home for awhile, every house could use a boost in curb appeal. Curb appeal creates the first impression of your home. If selling your home, curb appeal reflects how well the property is cared for and intrigues buyers to take a look inside. Curb appeal is also a way to showcase your personality and create welcoming scenery for your guests. Spring is the perfect time to spruce up your home’s exterior. The following tips will help you attain enchanting curb appeal.

Start With A Checklist

The first step to enhancing curb appeal is to determine what needs improvement. Take a walk around the outside of your home pretending that you are a potential buyer and take note of things that could possibly impair your first impression. Be sure to consider all factors from possible missing shingles on the roof to rotten wood around windows or doors.

Landscaping

If your home does not receive routine yard maintenance, a through clean up can make all the difference. Start by removing debris, giving the grass a fresh cut, eliminating weeds, and trimming over grown bushes or trees. Keep in mind that bushes should never exceed the height of window sills or extrude growth beyond the threshold of sidewalks. Use a pressure washer to clean the exterior of the house, making sure to leave all windows sparkling. Replace any rotten wood and touch up chipped paint.

The Front Door

Establishing a welcoming entry can really improve the first impression of a visitor or potential buyer. Make sure the pathway and porch leading to the front door is well lit. Use decorative porch fixtures that compliment the color of the house and other hardware. Lining walkways with solar powered garden lights gives the yard a vivid glow after dark. Make the front door a focal point by repainting it a warm, inviting shade that contrasts from the siding and shutters. Use a classic shade of red or go bold and try yellow. 

Courtesy of Montgomery AL Real Estate Expert Sandra Nickel.   

1.  The first and most important thing you need to do before looking for a home to buy is to find an agent.  The reason this part is the most important is because buying a home is a huge financial obligation and you want to choose the right person to help you with such a big decision in your life.  A good way to find an excellent Realtor is to talk with your friends and family members that you trust to see whom they have used in the past.  Once they give you a few suggestions, you can meet each one and see which one best matches your personality wishes.  You will be spending quite a bit of time with this person so you want to make sure that you get along beautifully with them.   
    

2. The next step in home buying made easy  is to find a lender.  Many times you can find out from your Realtor about what lenders they tend to use or who they think can be the best match for you and your particular situation.  If your Realtor doesn’t lead you to the best match, again you can talk to your friends and family for suggestions.   
    

3. You then need to make sure your credit is as clean as it can possibly be.  Lenders can many times give you a bit of guidance in this area so that you can get approved for a loan.   
    

4. It is important that you get pre approved for a loan before you go out searching for the home of your dreams.  The lender that you choose will help you to know exactly how much of a house you can comfortably afford before you get your heart set on one.  
    

5. Lastly, figure out exactly what you are looking for in a house.  Make a list of your wants and desires in order of their importance.  This will help to guide you in your home buying  adventure and will help avoid wasting precious time.   
    

1.  Springtime means it is time to start mowing your lawn again.  If your lawn mower has been outside all winter due to lack of storage space you may need to do a bit of maintenance on it before you get it going.  Sharpening the blade is always a good idea before a new season so that you get a nice clean cut on the grass.  It’s also a good idea to check the oil on your lawn mower before beginning to use it for the warm season.   

2. Spring is a great time to check your house for worn paint areas such as your shutters.  If you find worn or chipped paint on your house what better time to fix that than in the typically perfect weather of spring.   

3. Be sure to check your crawl space vents for any debris that may have accumulated there over the winter months.  Also you want to keep your eye out for any animals such as snakes or rodents that may have made their home in your crawl space over the last few months.  Get rid of anything that doesn’t belong and repair anything that may be broken such as the vent covers.   

4. Get your flower beds and any garden areas ready for spring by cleaning out any debris that may have accumulated and trimming back any old growth.  It is also a good time to add mulch to your flower beds and fertilizer to your garden.  
    

When buying a home various factors come to mind immediately-location, price range, home style, home condition, wish list for the interior and exterior, number of bedrooms and bathrooms desired; just to name a few. One component which can be overlooked by some but is extremely essential to many would be the local school system in the neighborhood. I highly value my communities’ school system.

Studies have found that home buyers would give up one aspect of their home to have their children attend a ‘better’ school district; this speaks volumes to how important education is for parents’. For some parents there are alternatives such as private schools but that is not the case for many. Even if buyers don't have or plan to have school-age children in the house, the quality of nearby schools can have an impact on how much you pay, and how much a home sells for down the line.

Montgomery public schools  have succeeded in the improvement to maintain outstanding schools for all of our children. Through strategic planning and organizational development our schools continue to advance! Here are the top rated schools in Montgomery, showing that good local schools are amongst us in high numbers and will provide our children with the learning and education they should receive but with the type we wish for them to obtain as well.

For additional information on our school systems please visit Alabama State Department of Education.

If you are you thinking about buying or selling Real Estate give me a call 334-834-1500 or send me an [email protected]!

Courtesy of Montgomery AL Real Estate Expert Sandra Nickel.