Real Estate Information Archive

When you are searching for a new home, location is one of the most important factors to consider. You might love a house, but if it’s not in the right neighborhood, it may not be the right house regardless of how much it appeals to you.  So, before you start scrolling through home listings online, it is smart to have an idea of WHERE you want to live. 

Here are some things to consider when searching for the right neighborhood:

1. You may have heard this saying before: “It’s better to have the worst house in the best neighborhood than the best house in the worst neighborhood”. While nobody really wants to live in the “worst” house anywhere, there is some good logic behind this statement. If you ever plan to sell your home, its value will be impacted by the surrounding homes in the neighborhood.  For that reason, you will have better resale value if you are surrounded by homes that are like yours.  So, it is a good idea to research home values in the neighborhoods that appeal to you.
    
2. How important is convenience to you? Some people prefer living in more rural areas, but others desire proximity to things like major interstates, shopping areas, medical facilities, and schools. Before you start your home search it is important to decide how much convenience matters to you. In addition, you may want to think about the fact that having a home that is convenient to highways and such can have a positive impact on your resale value.
   
3. Are home values rising or falling in the neighborhood? If a neighborhood has home values that are climbing, that is a positive indication that it is a good place to buy.  However, if a neighborhood has stagnant or falling home values, it might not be the best place to look for a home. Many things can have an impact on home values; for example, if an area is growing with new businesses, the career opportunities involved can lead to rising home values in the area.
    
4. Does the neighborhood have an HOA? (Homeowners Association)?  Some people love an HOA. They appreciate how it protects home values by establishing rules for maintaining the appearance of the homes and neighborhood. They also enjoy perks such as a neighborhood pool and clubhouse, parks, and walking trails.  However, for other people, an HOA is a deal breaker. They do not care for the rules and regulations (and payments) that come with it. HOA regulations and costs vary from neighborhood to neighborhood, so it is important to research them before you decide to live in a community with an HOA.
    
5. How are the schools rated? Whether you have children or not, the school system is an important factor when choosing where to live. If you plan to send your children to public school, you will want to live where schools are highly rated. You may think that if you do not have kids in school, it doesn’t matter how the school system is rated. But that thinking is a mistake. The truth is that the rating of a school system can have a huge impact on your resale value; positive or negative.
    
6. How safe is the neighborhood? Safety is important to everyone. Nobody wants to live in a neighborhood that is not safe. You can research crime statistics for neighborhoods online. If you are relocating to a new state and you are not familiar with the area, an experienced local Realtor is a great resource to help you determine what areas are safe for you and your family.

There are so many factors involved in the home buying process, but determining the right location is a decision that requires thought and research. Once you have found the right place, then you can start searching for the right house!

If you are in the market to buy or sell a home (or both), let me Sandra Nickel and my Hat Team of Professionals assist you with all  your real estate needs! Call us today at 334-834-1500 and check out https://homesforsaleinmontgomeryalabama.com for more information.

Photo Credits: proptiger.com, foxroach.com, bendrelocationservices.com

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. 

Here are things to look for to get your house hunting 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.

• 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 there 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.

• 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 criterion. 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 provide 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 (or both), let me, Sandra Nickel and my Hat Team of Professionals assist you with all your real estate needs! Call us today at 334-834-1500 and check out https://homesforsaleinmontgomeryalabama.com for more information.

Photo credits: ramseysolutions.com, statefarm.com, verv.com, bobvila.com

When purchasing a home, the many different loan options available to you can be a bit overwhelming. With different names, various term lengths and many other factors on the table, it can be confusing trying to figure out which loan is best for you. While your mortgage lender and your Realtor can both answer questions you may have, it’s still smart to do your own research so that you have a basic understanding of mortgage loans.

Let’s focus on the two major options that affect your mortgage: the term of the loan and the type of interest rate attached to it. The term of the loan is the amount of time you have to pay it off.  Two of the most common loan terms are 15-year and 30-year loans. There are pros and cons to both. In addition, there are two types of interest rates to choose from: a fixed-rate or an adjustable-rate. Each type of loan combination has perks that meet your specific needs and will determine your monthly payment and the total interest you will pay.

First we will look at a 15-year fixed-rate mortgage loan.

This is a loan that you pay back over 15 years with the same interest rate throughout the life of the loan. One of the biggest benefits of a 15-year fixed-rate mortgage loan is that you will pay it off in half the time of a 30-year loan. Obvious, right? But what you may not realize is that you will also be paying less toward interest AND you will be building equity more quickly.  Paying your loan off faster means being able to use your hard-earned money for other things like retirement savings, college tuition for children, travel etc. However, while having a shorter term will often garner a lower interest rate, it still likely means higher monthly payments. And that is something you need to think about when deciding what kind of loan to pursue. For example, say your loan amount is $184,000 and you have a fixed interest rate of 7%.  You will pay about $1,650 a month with a 15-year loan verses about $1,220 a month with a 30-year term.  Since your payment will be lower with a 30-year loan, you might be able to qualify for a larger amount if you choose the loan with the longer term.

Shorter term loans usually have lower interest rates. This is because the lender is taking on less risk when money is borrowed for a shorter amount of time and they are able to get their interest back sooner. Locking into an interest rate with a  fixed-rate loan means you will pay at that interest rate for the entirety of your loan term. Since rates fluctuate daily, this is a good thing. However, there is always a chance that interest rates could drop lower than your rate, in which case an adjustable-rate mortgage might be beneficial. Adjustable-rate loans are risky though, because your rate could also go much higher meaning higher monthly payments and more interest paid throughout the life of the loan. The main reason to think about getting an adjustable-rate mortgage loan is to get a lower monthly payment. Since you are taking on the risk of rates rising, the bank will often reward you with a low rate starting out.

Now, let’s look at a 30-year mortgage loan. 

This is a home loan that will be paid off completely in 30 years as long as every payment is made as scheduled. Most 30-year mortgages are fixed-rate loans, meaning the interest rate will stay the same throughout the life of the loan. When you take out a 30-year loan, you may qualify for a higher amount than you would with a 15-year term. In addition, you will have lower monthly payments, making a more expensive home affordable for you. You also will enjoy the flexibility of being able to pay the loan off faster by adding to your monthly payment or making extra payments. But you can always go back to your regular payment when you can’t afford to do more. It’s easier to qualify for a 30-year loan and with the lower payments, you might have money left over each month for other things like savings, travel, etc. Just keep in mind that with a 30-year mortgage you will likely be paying a higher interest rate as well as more interest over the years, and you won’t be building equity as fast as you would with a 15-year mortgage.

Choosing what mortgage works best for you is a personal decision based on your needs.  Again, your mortgage lender and Realtor can help you do the math to determine what type of loan is going to give you the best outcome.

If you are in the market to buy or sell a home (or both), let me, Sandra Nickel, and my Hat Team of Professionals assist you with all your real estate needs! Call us today at 334-834-1500 and check out https://www.homesforsaleinmontgomeryalabama.com for more information.

Photo credits: texasunitedmortgage.com, corbymortgage.com, totalmortgage.com, mortgagemoon.com

The thought of buying a house sight unseen may give you hives, but it is more common than you might think. A 2018 poll, conducted by Redfin, revealed 20% of home buyers made an offer on a home sight unseen.

In a 2017 survey, 45% of Millenial homebuyers said they had made an offer on a home without stepping foot in the home, followed by 30% of Gen Xers and 12% of Baby Boomers. These statistics were long before the Covid-19 pandemic turned our lives upside down. Can you image what current statistics would show?

Buying a home sight unseen can be done safely and intelligently if you are willing to do your homework and put a team of consummate professionals in place. Here are 5 hacks to help you do just that…

1. Become Friends with Real Estate Websites

You will want to spend lots of time on your computer researching not only individual homes, but neighborhoods, schools, crime statistics, transportation, and amenities nearby.

Visiting Open Houses in your current community will help you get a feel for the size home you want and zero in on features you want in a home.

2. Find a Realtor You Trust

Buying a home sight unseen is not possible without finding a Realtor you trust implicitly! Do online research on Realtors working in your new community and then interview a few of your top picks by phone. Be sure to ask for references from previous clients that you may talk to.

3. Take a Video Tour

Many homes listed for sale on the internet include a virtual tour. These tours can give you a feel for the property, but also do a walking tour with your agent. Being able to talk with your agent as he or she walks through the house allows you to ask questions about details a photo can’t discern. Is the floor wood or laminate? Are the countertops granite or quartz? This tour can also reveal problem areas the photographer may have overlooked.

4. Hire a Well Qualified Home Inspector

Having a top notch home inspection is even more important when you are buying a home sight unseen. Having all the major systems checked out and having a report itemizing any problem areas along with recommendations how to how they can be corrected in invaluable.

5. Don’t Sweat the Small Stuff

No home is perfect. This is true whether you are buying a home you choose in person or one you are buying sight unseen. No matter how well qualified your team of experts is, minor discrepancies will occur. Maybe a wobbly ceiling fan will be missed but this is just part of buying a home.

There will be some surprises. Doing your homework and putting an expert team in place will help you eliminate big surprises and handle the smaller ones.

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!

Buying a home in the midst of the holiday season might sound like a crazy idea, but the truth is this time of year can be a great time to buy!  Here are 5 good reasons to purchase a home during the holidays:

1. Less Real Estate Market Activity:  Because fewer people are looking for houses this time of year, there is less competition for buyers. And with less competition, buyers have more leverage when negotiating purchases. People selling homes during the holidays must often lower asking prices or make other concessions to sell. So, if you buy this time of year, you might get a bargain! Montgomery AL Real Estate Market
    
2. Highly Motivated Sellers:  If someone is selling their house at the end of the year, it’s because they need to. Usually sellers avoid the end of the year due to shorter days and cold weather, so if they are selling this time of year they are likely under pressure and motivated to make a deal.
    
3. Lower Interest Rates: Because of limited demand during the holiday season, there is greater competition among lenders so there is a general trend of lower rates. Current Mortgage Interest Rates
    
4. Tax Perks: Buy a house before the end of the year and you can deduct any points you paid upon closing.  You can also deduct property taxes and mortgage interest. Learn about the tax benefits of buying a home and find out if it is to your advantage to buy before year’s end. While your decision to buy a home shouldn’t be made solely for tax reasons, you certainly want to take advantage of the perks that exist!
    
5. Faster Closings: Everybody involved in the home buying/selling process has incentive to complete transactions before the end of the year.  Lenders want to close their books, Realtors want to receive their commissions before the new year and sellers are anxious to move on.  Since everyone is so motivated, and there is less real estate activity, closings should happen quickly and efficiently.

So, if you’ve been thinking about buying a home, but thought you should wait until the new year, think again! NOW just may be the right time for you to find a new home for the holidays!

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!

Photo Credit: irishtimes.com

Buying a house is a HUGE decision, but once you have made it, it is easy to get caught up in the excitement of choosing your new home. Do not let that excitement overshadow common sense. Do your homework and be sure you know what you are doing so that you can avoid costly mistakes. Also, take advantage of the expertise of an experienced Realtor like Sandra Nickel and allow her to guide you through the process.  Here are some common home buying mistakes that you will want to avoid:

• Falling in love with a photo. Don’t do it. Pictures are worth a thousand words, but they do not tell you everything! Keep in mind that online real estate tools are great and keep improving. And home sellers work hard to show their home in the best possible way to impress potential buyers. So, if you see what you think is your dream house online, don’t get attached until you see it in person!
   
• Starting your home search before getting pre-approved for a mortgage loan. You will be so disappointed if you find the perfect home but lose out on it because another buyer with a pre-approval was more enticing to the seller. Sellers want a sure thing and know that someone who is pre-approved, and knows how much they can afford, will likely have no problems obtaining a mortgage loan. Five Things You Need to Be Pre-Approved for a Mortgage
   
• Neglecting to budget for home maintenance. If you are going to be a first-time homeowner, you might not realize how expensive a house can be. With furnishing, decorating, landscaping and maintenance you can spend a big chunk of change. That doesn’t even take into account repairs you may need to make. So, keep that in mind when creating a budget to determine how much house you can afford.
   
• Going over budget. Being house poor is no fun. You will feel trapped in your home if you have to use too much of your income to pay for it. Be sure to set a budget for yourself that will allow you to maintain an enjoyable lifestyle…then stick to it!
   
• Failing to negotiate. This is one area where having a Professional Realtor on your side will pay off. They are expert negotiators and understand the nuances of real estate transactions. 
   
• Assuming a listing agent is your agent too. A listing agent will certainly assist you in purchasing a home they have listed, but remember, they represent the seller’s interest, not yours. Listing Agents and Selling Agents - What's the Difference?
   
• Skipping the inspection. Big mistake! It is imperative that you hire an insured, professional inspector. They might discover a flaw in the home that could cost you a bundle down the road.
   
• Buying the “biggest and best” house in the neighborhood. If you fall in love with a neighborhood, consider purchasing a smaller or more modest home because it will be more challenging to sell and get a good return on investment on the biggest, fanciest 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!

Photo Credit: nerdwallet.com

Negotiation is important in the world of real estate because the truth of the matter is, if you do not ask…you do not get. While sellers want the highest price and buyers want a bargain, they must meet somewhere in the middle for the deal to close. Negotiating is a vital part of selling or buying a home because it is the largest asset people own and there is a lot of money at stake. Here are some guidelines for what sellers and buyers might ask for in real estate negotiations:

• Price

Negotiating the best price means different things for sellers and buyers.  The seller wants the highest price and the buyer wants to pay as little as possible.  For a successful transaction, they must compromise and come up with a price that is acceptable to both.

• Closing Costs

Prepaid closing costs are paid by buyers for their mortgage. These are funds that the mortgage lender holds in escrow for expenses like taxes and insurance.  A buyer may ask a seller to cover some or all their closing costs either with a flat dollar amount or up to a percentage of what is an allowable contribution for a lender. If a buyer asks the seller to do this, they are likely going to pay a higher asking price. Escrow:  What is it and How Does it Work?

• Closing Date

Sometimes sellers want to get out of a home quickly because they need the capital from that house they are selling to put toward a new real estate purchase. The closing date will also affect the buyer’s monthly cash-flow because when a buyer closes on a house, they skip the next month’s mortgage payment. Therefore they may want to negotiate to close at the beginning of a month.

• Financing Contingencies

When there is a financing contingency in place for a real estate transaction, it can tie up a seller’s property for a required 30 to 60 days.  For this reason, many sellers prefer buyers coming to the table with cash offers. If you are competing with cash buyers, you may want to figure out if you can drop the financial contingency, which will shorten the closing time line. You can do this by getting pre-approved for a home loan prior to making an offer.  Mortgage preapproval shows that your finances are in order and you can afford the home. 5 Things You Need to be Pre-approved for a Mortgage

• Home Warranty

As a buyer, you can request a home warranty. As a seller, you can offer one. This home protection plan covers things like appliances and systems such as the hot water heater or air conditioning, in the event they need repair or replacement.

• Leaseback

The moving process is stressful and labor intensive.  Sometimes a seller will need extra time to get into their new home. When this happens, buyers can offer a zero-cost rent-back for 30 to 90 days to persuade the seller to accept their offer over others. 

• Home Repairs

With a home that needs a lot of updating there comes ample opportunity for negotiation. Buyers need to consider the cost of bringing the home up to current standards and use the estimate of that cost to request a lower asking price. The seller, on the other hand, can specify that the house is being sold “as is” and not offer any repairs.

• Appraisal Contingency

A seller can push for a buyer to waive the appraisal contingency,  however, if for some reason the appraisal falls short of the expected amount, they need to be prepared for the amount of cash they might have to pay should the bank only be willing to lend them money based on the appraised value. Understanding the Appraisal Contingency

• Furniture

Personal property such as patio furniture, window treatments and chandeliers is all up for grabs. The buyer can ask for these things to be included in the contract. Sellers need to determine what they are willing to leave behind. And any exclusions need to be specifically listed in the contract as well.

• Appliances

Depending on the market, sellers don’t always leave every appliance for the buyer.  They may include the dishwasher, stove and built in microwave in the contract but not the refrigerator, washer and dryer. Sometimes they don’t want to give everything away up front so that they can use these as items for negotiation.

• Condo/Co-op Assessments

These are fees that are used to maintain common areas in a community. If there is an open assessment, it can become a negotiation between the buyer and seller as to who will pay for it.

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!

Photo Credit: grenadabroadcast.com

When you make an offer on a home and it gets accepted, you have every reason to be excited. Becoming a homeowner is making an investment in your own future; likely the largest financial investment you will make. However, it is prudent to be aware that there are other costs involved in purchasing a home other than your down payment and monthly mortgage payments.

Closing costs are an expense you may not be aware of if you are a first-time homebuyer. These costs must be paid prior to closing on the home. They include property taxes, homeowner’s insurance, title search fees, and appraisal fees. In addition, the closing costs provide the funds that pay the people who have performed services throughout the loan process, like the appraiser and your real estate agent.

Your closing costs will be itemized for you and provided at your closing. But it is important that you look over them closely and take the time to ask any questions you may have before you sign any documents. If there is something you do not understand, your mortgage banker or Realtor can explain it to you.

The homebuyer can negotiate with the seller to determine who will cover the closing costs, but every loan has different guidelines about how much a seller can pay.  Your mortgage banker can provide you with your options. How to Negotiate Your Mortgage Closing Costs

Whether you end up paying for all or just some of your closing costs, it is crucial for you to include the amount you will have to pay into your budget. You can estimate the cost by calculating 2% to 6% of your purchase price. For example, if your loan is $200,000, your closing costs will range anywhere from $4,000 to $12,000. You will also receive a document from your mortgage banker after you apply for your loan that will list the anticipated closing costs. They may change a little during the process, but it will give you a good idea of what to expect.

So, while saving for a down payment is an obvious necessity, you may want to also set aside some cash each month to go toward other expenses associated with buying a new home. 5 Expenses That Shock First-Time Home Buyers

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!

Photo Credit: foxbusiness.com

So, you’ve decided to buy a house. Chances are you have a good idea of what you want, and an even better idea of what you don’t want.  With all these ideas in your mind, looking at houses can become overwhelming.  While there are a lot of things that can be deal breakers for buying a home, there are some things that are not as bad as they seem. If you have found a home that is otherwise right for you, here are some things to look past when making your decision to buy:

• FUNKY WALLPAPER AND UGLY PAINT - A house that is move-in ready is great, but sometimes the perfect house just needs a little TLC.  Wallpaper can be removed and a new coat of paint can do wonders to improve the look of a home that has good bones.  These small cosmetic changes do not have to break the bank. So, try to ignore the weird wallpaper and unfortunate paint jobs and keep in mind that this is a DIY project you can handle! How to Remove Wallpaper
   
• HOW A ROOM IS USED - The people currently living in the home might be using rooms in ways that you do not care for.  For example, maybe they have converted their formal dining room into a playroom for their children. Or perhaps they needed and office more than a guest bedroom.  Just because they have the home arranged that way, does not mean that you must keep it that way.  Try to overlook the way they have the rooms set up and picture the way you would use them.  It might be challenging for you to “see” it, but if this is your dream house, you don’t want to let something this minor stop you from buying it. 25 Smart, Inspiring Ways to Use a Spare Bedroom
   
• DIRTY CARPET -  Ugh…there is nothing worse than nasty, worn out carpeting in a house. But if you love everything else about a home, do not let dirty carpet be a deal breaker for you.  Like wallpaper and paint, it is easily replaced.  Often, you can even negotiate for new carpet (or the cost of it) in your offer.  If the owner is anxious to sell, they just might be willing to replace the carpet for you.
   
• THE OWNERS’ BELONGINGS - While many Realtors recommend that sellers remove as many personal items as possible before showing their home, not all sellers comply. A lot of “stuff” can be very distracting and make it difficult to really see the house as your own. But if the house is everything you are looking for - right location, right size, right style etc., do not let all that stuff ruin it for you. Look past all their clutter and try to picture the space with your furniture and belongings. 

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!

Photo Credit: thehouseshop.com

A couple does not have to be joined in matrimony to buy a home together, but it is important to understand that you are still making a huge commitment.  And being unmarried does present some challenges for home buyers.  So, before you begin your home search, here are some important things for you to consider:

SHARING FINANCIAL INFORMATION

If you’re going to buy a home together, then you need to be transparent with each other regarding your finances.  You do not want to meet with a lender only to be blindsided by something that your partner did not share with you.  So, it is vital that you review all of your financial history with your partner, including your Credit Score, income, and any debts that are tied to your name.  By doing this, you will not only be able to determine if you both have good credit, but you will also get an idea of how much house you can afford together.

HOW YOU ARE GOING TO SPLIT EXPENSES

You might already be living together, in which case you may have a system in place for who pays what living expenses.  But things can be more complicated with a mortgage in the picture.  You need to discuss this before you start the home buying process. The first thing you need to figure out is how you are going to split the down payment and closing costs when you buy a home together.  And if you will be living together for the first time, it would be smart to discuss how you will split the monthly bills including your mortgage, utilities, and home maintenance. What if there is need for a costly, emergency repair? You may want to consider opening a joint bank account that exists only to cover home expenses.  It is also a good idea to meet with a real estate attorney so you can get everything in writing and have a legally binding contract just in case things do not work out down the road. Unmarried Couples and Property: Basics

EDUCATE YOURSELF ABOUT OWNERSHIP OPTIONS

You are buying a home together and splitting the expenses, but whose name is going to be on the title?  This is something that requires serious thought because it can have a significant impact on your future. There are three options to choose from:

• Joint Tendency - Property is owned equally and if something happens to one owner, the second owner automatically inherits the other’s stake and becomes sole owner of the property.
• Tendency in Common - Each partner owns a pre-determined percentage of the property. Should something happen to one or the other, the ownership interest would go to whomever is specified in a living will, will, or trust. If none of those are in place, the interest in the property would go to the next of kin and not to the significant other. Living Will vs Living Trust
• Sole Owner - For some couples it might make more sense for one person to have full ownership of the home even though you are splitting expenses. For example, if one person has poor credit and will not qualify for a mortgage loan, then the person getting the loan would be the sole owner of the home.

Determining ownership should not be taken lightly.  It is probably the most important decision you will make when buying a home with someone you are not married to.  Keep in mind that if you are splitting the costs of the home, but you are not on the title, you probably won’t be able to enjoy the tax perks of being a home owner.

LOOK FORWARD

Whether you are married or not, everyone should think about where you see yourself in 3 to 5 years.  There is a lot to consider.  Do you have job stability?  Is it possible you will need to move soon?  Do you want to start a family?  These are just a few questions to ask yourself before taking on the commitment of home ownership.  It is crucial that you have a heart-to-heart talk with your partner about your future before you start your home search!

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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