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Discover Nashville Real Estate with Shameka Britton, REALTOR®

Buyer

Why using a REALTOR® is important when buying new construction

Benefits of using a REALTOR® for New Construction

You’ve done your research and you’re finally ready to purchase a new construction home. Before you sign on the dotted line, you might want to consider enlisting the help of a real estate professional to assist with the transaction. While you might be tempted to go it alone, keep in mind that working with a REALTOR® comes with several benefits. Here are a few benefits of having your own real estate agent.

1. A real estate agent will have your best interests at heart.

When you work with a good real estate agent, they will help you find the perfect new construction community that fits your needs and budget. Remember that the sales agent in the model home works for the builder, not you. The builder’s agent is someone appointed by the contractor to sell houses and sign contracts in their favor.

2. A real estate agent will know about any potential red flags.

Your Real Estate agent can provide insights into potential Red Flags. Buying a new construction home can be a great experience—but only if you know what to look out for. Some potential red flags could be:

  • 1. Making sure the builder is reputable 
  • 2. Checking for customer satisfaction ratings 
  • 3. Watching out for hidden fees 
  • 4. Knowing what’s included in your warranty 

3. A real estate agent will be able to negotiate on your behalf.

In addition to being familiar with any potential red flags, your real estate agent will also be able to negotiate on your behalf—something that can be especially beneficial when buying new construction. They can negotiate price reductions, upgrades, and closing costs so that you don’t have to—and they’ll likely be able to get you a better deal than if you went it alone.

4. A real estate agent will be able to help you navigate the paperwork.

The paperwork involved in buying a home can be complicated, confusing, and downright overwhelming—especially if it’s your first time going through the process. On top of already complicated paperwork, the builder’s contracts often contain verbiage that benefits them. Your agent will be able to help you navigate all of the paperwork so that you don’t miss anything important or end up signing something that’s not in your best interest.

5. A real estate agent will be there for you after the sale is complete.

Once the sale is complete and you’ve moved into your new home, a realtor’s job isn’t done—they’ll still be there for you if you have any questions or need any help. They can help you find a good contractor if you need any repairs or renovations, and they can even help you sell the home down the road if you decide to move.

In Conclusion:

As you can see, there are several benefits to using a real estate agent when buying new construction. So if you’re in the market for a new home, be sure to enlist the help of a professional—it could save you a lot of time, money, and headaches in the long run.

If you’re thinking about buying new construction, be sure to download my free New Construction Guide. It’s packed with information that will help you through the process—from choosing the right builder to negotiating the best price. Click here to get your copy today.

Guide to Buying a New Construction Home!

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Hidden Fees to be Aware of When Purchasing a Home

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7 Unexpected Home Buying Expenses

When you’re buying a home, it’s important to be aware of all the potential costs – not just the obvious ones. In addition to your mortgage and down payment you’ll also have to budget for additional cost, such as: insurance, inspections, and title expenses. Here are seven unexpected cost associated with buying a home. You should keep these expenses in mind when budgeting for your dream home.

1. Home Inspection

Home Inspections are covered by the buyer at the time of the service. The cost can vary depending on the size and age of the home, as well as the location. However, homeowners can expect to pay between $300 and $500 for a standard home inspection. Based on the results of the standard home inspection, you may choose to pay for additional inspections, such as for radon or termites. These additional inspections can add a cost of $100 or more. Overall, the cost of a home inspection is a small price to pay to ensure that the home is safe and structurally sound.

2. Appraisal Fees

Many home buyers are surprised to learn that they are responsible for the cost of the appraisal.  The appraisal is an important part of the home loan process, as it helps to determine the amount of the loan. Typically, the property must appraise for at least the amount of the loan for it to be officially approved. The cost of an appraisal varies depending on the size and location of the property. It typically ranges from $400 to $700.

3. Mortgage Insurance 

If you’re putting less than 20% down on your home, you’ll likely have to pay for mortgage insurance. It may also be referred to as Private Mortgage Insurance. This insurance protects the lender in case you default on your loan. Mortgage insurance usually costs between 0.5% and 1% of your loan amount per year, and it’s paid as part of your monthly mortgage payment. 

4. Homeowners’ associations (HOAs) fees

If you’re buying a condo or a home in a planned development, you’ll likely have to pay monthly, quarterly, or yearly HOA fees. Most HOAs are managed by a professional company, but some are managed by volunteer board members. HOA fees are charged to all residents of the community. The funds are used to cover the costs of maintaining common areas of the property. The amount of the fee varies depending on the size and amenities of the community. For many people, HOAs provide an important sense of community and peace of mind. But for others, the fees can be a burden. Before moving into a community with an HOA, be sure to research the fee structure and budget to make sure it is something you can afford.

5. Title Expense

When buying a home, you’ll likely need to purchase title insurance. Title insurance protects the lender and homeowner from any financial losses that could result from challenges to the home’s title. The cost of title insurance varies depending on the value of your home, but it is typically a one-time fee paid at closing. Some lenders may require you to purchase an additional policy if you have a high-risk loan, such as a reverse mortgage. In addition to title insurance, you may also need to pay for other title services, such as a title search and expert opinion. These services help to ensure that there are no outstanding claims or liens on the property. The cost of these services can vary widely, so be sure to get several quotes before choosing a provider.

6. Property Taxes 

Property taxes are levied by local governments and are based on the value of your property. The amount of property tax you will pay is determined by your local tax assessor. When you purchase a property, the amount of property tax you will owe is typically paid as a part of your closing cost. The lender will also start an escrow account to pay your property taxes for the following year on your behalf. When your property taxes are due, the lender will use the money in the escrow account to pay them.

7. Homeowners Insurance 

When you buy a house, most lenders demand that you obtain homeowners insurance (hazard insurance) coverage. It protects you from financial devastation if your home is damaged or destroyed by fire, windstorm, hail, water damage, or another covered occurrence. The cost of homeowner’s insurance may range from $500 to $1,000 per year. At closing, the lender might require that the initial yearly premium be paid upfront. The following yearly payments will be paid by your lender from your escrow account, just like the property taxes mentioned above.

In Conclusion:

Buying a home is one of the most exciting—and expensive—milestones in life. First time homebuyers are often surprised about the additional cost associated with buying a house. But as any seasoned homeowner will tell you, there are plenty of hidden costs that can pop up throughout the process. By being aware of these potential costs ahead of time, you can avoid surprises down the road. Happy house hunting!

If you have any questions or would like more information, please contact me at [email protected]. I would be happy to help you with all your real estate needs.

Thank you for reading! I hope this was helpful.

Complete Home Buying Guide

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4 Tips for a Successful House Hunt!

4 Tips for a Successful House Hunt!

Hunting for a new home online is a great place to start your search, but it should not be your end all be all. Good listing agents are excellent at highlighting the best features of the home, but keep in mind there may be more than meets the eye. To make the most of your time and efforts and gather a well-rounded picture of home listings online, keep the following three things in mind.

  1. Stay up to date. When you start your search, make sure you find a site that pulls up-to-date listings directly from the multiple listing service (MLS). This is where real estate agents actively post their most current homes for sale. Many online resources update less often or fail to remove listings that are off the market, making it more difficult to sort through the clutter.
  2. Stay within your budget: It’s tempting to look at homes over your budget however doing so, may create unrealistic expectations. It creates a desire for the items in the home that was priced higher but without the higher price tag. This may lead to disappointed with the homes that are within their budget. As a result, it often extends the home search process or causes the buyer to stretch their budget too thin.
  3. Pictures can be deceiving. Real estate photographers are experts at showing a home in the best possible light. Many use tools and strategies to boost appeal, such as a fisheye lens to make areas look larger and creative editing to make colors and textures really pop. But, often listings will not contain photos of unappealing parts of the home, like small closets or outdated bathrooms.
  4. See it to believe it. Once you find what appears to be your dream home online, call up your real estate agent and schedule a showing. You want to take the opportunity to vet the home in person and explore every part of it before beginning the offer process. Your real estate agent will help you cover all your bases and will ask questions you may not have thought of.

Setting Your Home Inspection Expectations

Photo of Home Inspector checking out a house on the nashvillefabliving.com blog post.

Once your offer is accepted, it’s important to get a home inspection before you close on the property. As a First Time Homebuyer, I stronger recommend never skipping this step in the process. A home inspector will look for any major problems with the property that could cost you money down the road. If they find any serious issues, you may be able to negotiate with the seller to have them repaired or ask for a lower purchase price. Let’s discuss exactly what a Home Inspection is?

What is a Home Inspection?

A home inspection is an examination of the condition of a residential property. It is usually conducted by a qualified professional who will evaluate both the interior and exterior components of the house. The purpose of a home inspection is to detect any potential problems that might affect the value or safety of the property and to give buyers an accurate assessment of the overall condition of the home.

Who should you hire for your home inspection:

When choosing a home inspector, it is important to find someone who is experienced and certified. They should also be knowledgeable about local building codes and have an understanding of what they’re looking for when examining the property. The home inspector will provide an inspection report detailing any issues that were found during their examination as well as photos or diagrams of any problem areas.

Average home inspection cost

Home inspections typically cost between $300 and $500 and take around two-to-four hours to complete depending on the size of the house. In addition to a home inspection, other types of inspections may need to be done such as a septic system inspection, a termite inspection, and/or a radon gas test. These additional inspections will depend on the area and your findings from the initial home inspection. Although the buyer is responsible for these costs, it gives you peace of mind about your home’s condition.

How to prepare for the Home Inspection:

Before the inspection, you should thoroughly review the property disclosure documents you previously received. Make a list of any questions or concerns you have about the documents and address any issues that the listing agent may have pointed out.

Common Issues found in home inspections:

A home inspection can reveal many things about a property. Structural damage, electrical problems, plumbing leaks, or moisture/mold are some common issues that may be discovered through this process. These can all have significant impacts on the value and safety of the property.

Graphic of a Home Inspection report on nashvillefabliving.com

What to do if there are major issues discovered the inspection.

No one wants to hear that their home has issues, especially major ones. But if you do find out that there are problems after an inspection, don’t panic. Here’s what you need to do.

    Step 1: Review the Report Carefully

    The first thing you need to do is review the report carefully. Don’t just skim it; take the time to read through it thoroughly so that you understand what the issues are and where they are located in your home. If there are things you don’t understand, be sure to ask your inspector for clarification. 

    Step 2: Prioritize the Repairs

    Once you know what needs to be fixed, you’ll need to prioritize the repairs. Some issues will be more pressing than others, and you’ll need to decide which ones need to be addressed immediately and which can wait. In general, any repairs that involve safety should be at the top of your list, followed by anything that could lead to further damage if left unaddressed. 

    Step 3: Get estimates from contractors

    Repairing major issues can be expensive, so you’ll want to get estimates from a few different contractors before making any decisions. Be sure to ask each contractor for a detailed breakdown of their estimate so that you can compare them side-by-side. And don’t forget to factor in the cost of any permits that may be required. 

    Step 4:Negotiate with the Seller

    If you’re buying a home, you’ll need to negotiate with the seller about who will pay for the repairs. In some cases, they may be willing to lower the price of the home so that you can cover the cost of repairs yourself; in others, they may agree to pay for all or part of the repairs themselves. It doesn’t hurt to ask—the worst they can say is no!  

    Conclusion

    A home inspection is an important part of the buying process and can help ensure that you are making a sound investment. Make sure to hire a qualified, certified inspector and have any questions or concerns addressed during your meeting with them. Depending on the condition of your home, you may need to get other inspections done before closing. Make sure you factor those into your budget when you are planning. If the inspection shows that there are some big problems with the house, don’t worry. Just follow the steps above to figure out what to do next. Setting your home inspection expectations will help you to avoid any surprises and ensure that your home is in good condition.

    If you have additional questions regarding the Home Buying Process. Please feel free to contact me.

    4 Mistakes That Could Delay Lender Approval

    Avoid these 4 Mistakes When Buying a Home

    It’s no secret that buying a home can be a complicated process. Unfortunately, many first-time buyers make costly mistakes in the loan process that delay or even torpedo their loan approval. Here are four of the most common mistakes to avoid if you want to make your mortgage process as smooth as possible.

    Not including all relevant information in your financial profile.

    One mistake that many first-time homebuyers make is failing to include all relevant information in their financial profile. Lenders will want to see a complete picture of your finances, including your income, debts, and assets. Leaving out any key information could lead to a delay in your loan approval.

    It’s important to be completely honest with your lender about your financial situation. Lenders need to know everything to make an informed decision about whether or not to approve your loan. If you’re not truthful, you could end up being denied the loan.

    Assuming pre-approval is equal to actual approval.

    The second mistake that could delay a first-time homebuyer’s loan approval or even cause a denial is assuming that the pre-approval is final. The pre-approval for a mortgage means that you talked to a potential lender or maybe even provided some documentation that gave the impression that you will be approved for a certain amount. Don’t be confused – this is not an actual approval. To obtain the final loan approval, your file will be reviewed by an Underwriter. When you are “underwriting approved” you will be able to get final loan approval.

    Items the underwriter will review.

    Employment History: First-time homebuyers may not have a long employment history to show. Lenders like to see at least 2 years of consistent employment. If you have had any gaps in employment, be prepared to explain them.

    Income: Be prepared to provide the documentation to the underwriter. They will request your most recent pay stubs, W2 and/or tax returns. The underwriter will want to verify that your income is sufficient to cover the new mortgage payment.

    Assets: You will need to provide bank statements for the past few months to verify that you have the funds necessary for the down payment and closing costs. The underwriter will also look at your debt-to-income ratio to determine if you can afford the new mortgage payment.

    Credit Score: Your credit score is one of the most important factors in determining whether or not you will be approved for a loan. Avoid making any major purchases and/or obtaining any new credit lines during this process.

    Not providing all the required documentation.

    Another mistake that could delay lender approval is not providing all of the required documentation. When you apply for a loan, the lender will request a variety of documents. If you don’t provide all of the requested documentation, the lender won’t be able to approve your loan.

    Your lender may request the following documentation:

    • W2 forms from the past two years
    • Pay stubs from the past month
    • Bank statements from the past two months
    • A list of all debts and financial obligations
    • Proof of income (such as a 1099 form)
    • Proof of assets (such 401K)
    • A copy of the sales contract for the home you’re buying

    In addition to the documentation mentioned above, You will be responsible for ensuring the underwriters knows where funds for the down payment and closing cost are coming from. Do not move money around to different accounts or receive large deposits from friends or family. A good documentation trail helps during the mortgage approval process.

    Not only do you need to provide all of the requested documentation. Remember that time is of the essence. To ensure all deadlines are met, provide the requested documentation to the Lender as soon as possible.

    Not knowing enough about mortgage rates.

    Not understanding how interest rates work is the fourth mistake that many first-time homebuyers make. The lender cannot lock your interest rate until you have an accepted offer. Until then, if interest rates increase, it could jeopardize the pre-approval. Let’s discuss why that’s the case. When interest rates climb, the buyer’s borrowing capacity decreases. For example, A buyer pre-approved to purchase a home for $350,000 at a 3% interest rate, could only be approved for $275,000 at 5%. As you can see, that’s a major difference in the approval amount. 

    In Conclusion:

    First-time homebuyers need to be aware of a few potential mistakes that could delay lender approval. These include: not being honest on the loan application, providing insufficient documentation, not knowing enough about mortgage rates, and making large deposits during the loan process. By avoiding these mistakes, you will be well on your way to successful mortgage approval.

    ADDITIONAL BUYER’S TIPS