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David Morris Group - The Reality of Real Estate Resolutions That Will Help First-Time Homebuyers Purchase a Home in the New Year - Best Reno Real Estate Broker - Best Reno Realtors - Remax Gold

The Reality of Real Estate: Resolutions That Will Help First-Time Homebuyers Purchase a Home in the New Year

David Morris Group - The Reality of Real Estate Resolutions That Will Help First-Time Homebuyers Purchase a Home in the New Year - Best Reno Real Estate Broker - Best Reno Realtors - Remax Gold

With the new year almost here, now is the perfect time to start setting goals and creating plans for how to achieve those goals. 2021 could be your year to become a homeowner, and we have some resolutions that will help first-time homebuyers purchase a home in the new year.

Set a monthly savings goal and a down payment goal

Start off by looking at what you already have saved and how much money you would like to have that goes towards a down payment for your home. Then begin to look at your expenses each month, current wages, and calculate how much you can reasonably save each month to meet your goal. This can also help you see if you may need to find a side hustle or cut expenses to help you increase the savings you’re setting aside each month to meet your goal.

Avoid big purchases

Every penny you have should go towards paying for the things you need and saving for purchasing a home. Even if you’ve met your down payment goal, you’ll want to have money set aside to cover closing costs, home inspection fees, moving costs, home repair projects, HOA fees, home insurance costs, etc. The latest iPhone will still be there when you’re a homeowner. Sacrificing a big purchase now will pay off in the long run!

Begin reaching out and making connections with real estate professionals

You want to build relationships with people who can help you achieve your goal of purchasing a home. Create a list of potential real estate professionals you’d like to work with and interviewing them to see which one will be a good fit for you.

Begin meeting with lenders to talk about what kind of loan you qualify for

Meeting with lenders is a very important part of the homebuying process. You need to know how much house you can afford to buy as well as the interest rate to pay back the loan. If the interest rate is too high, it may have something to do with your debt-to-income ratio, and your lender may be able to give you advice on how to pay down your debt while saving for a home to score you a better deal on your mortgage!

Get your credit score checked and contest anything that’s wrong

Your credit score can also have an impact on the mortgage rates you’re offered, so be sure to get a detailed report and contest anything that is wrong or fraudulent to have it removed from your credit history.

 

2021 is your year to become a homeowner, but you’ll have to work hard to stick to your resolutions to make it happen. If you need more tips on how to become a homeowner in the new year, contact the David Morris Group at 775-828-3292!

 

 

 

David Morris Group - The Reality of Real Estate Question Everything - Important Questions to Ask Throughout the Homebuying Process - Best Reno Real Estate Broker - Best Reno Realtors - Reno Homes

The Reality of Real Estate: Question Everything – Important Questions to Ask Throughout the Homebuying Process

David Morris Group - The Reality of Real Estate Question Everything - Important Questions to Ask Throughout the Homebuying Process - Best Reno Real Estate Broker - Best Reno Realtors - Reno Homes

If there’s one piece of advice we could give everyone, it’s to be inquisitive and question everything. That advice is especially important in the real estate world. As a home buyer, you’re making one of the most important and biggest financial decisions of your life, and you don’t want to go through the process confused or unaware of what you’re getting yourself into. Below are some important questions to ask throughout the homebuying process.

Questions to Ask Your REALTOR® About the Community:

  • How good is the school district? How do the schools in this neighborhood stack up against other schools in the area?
  • How close are the nearest hospitals, grocery stores, businesses, etc.?
  • Is there anything that would be considered a nuisance going on regularly in the area — construction, trains, planes flying overhead, etc.?
  • Is there an HOA, and if so, what are there regulations, dues, etc.?
  • How does the resale value of homes in the area do year over year?

Questions to Ask the Home Inspector:

  • Is there insulation in the walls and ceiling, and is it sufficient for the home?
  • Are there any foundation or structural issues?
  • Is there anything in your report that you think I should have an expert inspect or repair?
  • Was everything you saw normal wear and tear, or are there problems with the home?
  • If you were in my shoes, would you feel like you were making a good investment in buying this home, or are there areas for concern?

Questions to Ask Your Lender:

  • Do you know of any mortgage programs that I qualify for and could lower my costs?
  • Will a higher down payment improve the interest rate you can offer?
  • What do my projected monthly mortgage, property taxes, and homeowners insurance costs look like?
  • How much should I expect closing costs to be?

 

There are no dumb questions, and it’s important to have everything laid out on the table when you’re buying a home. These are some important questions to ask throughout the homebuying process, but if you have more questions about buying or selling your home, contact the David Morris Group at 775-828-3292!

 

 

 

David Morris Group - The Reality of Real Estate Nevada First-Time Homebuyer Loan Programs What Do They Offer and Can They Help Cover Upfront Costs - Best Reno Real Estate Broker - Best Reno Realtors

The Reality of Real Estate: Nevada First-Time Homebuyer Loan Programs – What Do They Offer and Can They Help Cover Upfront Costs?

 

David Morris Group - The Reality of Real Estate Nevada First-Time Homebuyer Loan Programs What Do They Offer and Can They Help Cover Upfront Costs - Best Reno Real Estate Broker - Best Reno Realtors

As a leading real estate broker in Northern Nevada, we’ve worked with buyers and sellers with a variety of needs, wants, and tools at their disposal. While we are not mortgage brokers and can’t give you loan information that is specific to your circumstances, we have come to learn that there are some great first-time homebuyer programs available to help you cover the costs and secure financing for your dream home.

National Programs

  • FHA Loans – Popular amongst buyers with low credit scores and those that can only afford a small down payment. The Federal Housing Administration allows down payments of 3.5% for those with credit scores of 580 or higher. The FHA will insure loans for borrowers with scores as low as 500. Mortgage insurance is also required for an FHA loan.
  • VA Loans – Military members, veterans, and surviving spouses can qualify for loans with no minimum credit score and no down payment or mortgage insurance, but be prepared to pay a VA funding fee.
  • USDA Loans – Eligible rural and suburban homebuyers can receive a zero-down-payment mortgage through the USDA Rural Development Guaranteed Housing Loan Program. There are very specific limitations and guidelines you’ll have to meet to qualify.

Nevada Programs

  • Home Is Possible (HIP) – First-time and repeat homebuyers can receive up to 5% of the loan amount to pay the down payment, closing costs, or a combination of both. The money doesn’t have to be repaid if you keep the home as your primary residence. There are a variety of limitations that must be met, and you will need to complete a homebuyer education course.
  • Home Is Possible for First-Time Homebuyers – Down payment and closing cost assistance up to 4% of the loan amount that is strictly for first-time home buyers. There are limitations you will need to meet, but the money doesn’t have to be repaid if you stay in your home for 15 years.
  • Home Is Possible for Heroes – Active-duty military, honorably discharged veterans, members of the National Guard, and surviving spouses are eligible for below-market interest rates with a one-time fee of $755. Again, there are specific limitations you’ll need to meet, and an education course is required.

There are great programs at your fingertips to help you with the purchase of your first home. If you’re worried you can’t qualify for a great loan or won’t be able to secure financing, meet with an established mortgage lender to talk through your options. They have the tools and resources to find you the best program and can educate you on how to become a homeowner.

 

If you’d like some recommendations on great lenders in the area to contact for more information or you’re simply curious about the tools, resources, and knowledge we have for first-time homebuyers, contact the David Morris Group at 775-828-3292!

 

 

 

David Morris Group - The Reality of Real Estate-Buying a Home Can Take Weeks or Months, So Be Prepared for a Lengthy Process - Best Reno Real Estate Broker - Best Reno Realtors - Reno Homes

The Reality of Real Estate: Buying a Home Can Take Weeks or Months, So Be Prepared for a Lengthy Process

David Morris Group - The Reality of Real Estate-Buying a Home Can Take Weeks or Months, So Be Prepared for a Lengthy Process - Best Reno Real Estate Broker - Best Reno Realtors - Reno Homes

Many first time homebuyers fall for the illusion that buying a home will be as simple as picking out a dream home, signing on the dotted line, and then being handed the keys. Unfortunately, that’s not how it works. It can take anywhere from 30-60 days just to close on a home in a normal market, so let’s break down the home buying process with a realistic timeline of when you can expect to move into a new home.

Getting Pre-Approved for a Mortgage – 1-2 Weeks

After researching lenders and deciding on the best type of mortgage for you, it usually only takes about five business days to get mortgage pre-approval. Make sure to do your due diligence and shop around for the best deal and the best lender.

Creating a Wants and Needs List and Browse Listings – 5 Days

Your first list of things you need and want in a home may take you only an hour to create, but once you begin looking at the current listings, you may think of things you need, like specific neighborhoods to be in, school districts you like, and style of homes you’re drawn to.

View Houses – 1 Week-5 Months

Depending on the list of wants and needs you have for your home and the current market, you could find your perfect home quickly, or it could be a couple of months of searching. It’s not uncommon to spend 4-5 months searching before your offer is accepted on a home that meets your needs and some of your wants,

Make an Offer and Negotiate – 1-5 Days

Depending on the seller and how speedy they are to respond to your offer, this may be a quick period in the timeline or take a few days. If they reject your offer or make a counteroffer, this can also draw out the process.

Get Loan Approval – 1-2 Months

If you’ve been pre-approved for your mortgage, your real estate agent will gather the paperwork needed for your lender to approve your loan. On average, this takes about 45 days to come through, but it could be faster or slower, depending on the market.

Have Your Home Appraised – 1-2 Weeks

Your lender will hire an appraiser to evaluate the true value of your home. Once the appraiser comes out, it usually takes about three days to get the report back.

Get a Home Inspection – 1-3 Weeks

The home inspector will determine if there are any unexpected surprises and things of note that may need to be addressed before buying the home. You usually have about a 10-day period to conduct an inspection, and you’ll have the report back within 24 hours. It could take a few weeks to renegotiate the contract if any unexpected problems arise from the inspection report.

Closing – 1 Day

After all of those steps have been completed and you’re ready to close, you’ll have one long appointment to hand over your down payment and closing costs and sign a ton of paperwork. Seriously, you may leave with a hand cramp after all the signing, but you’ll officially be a homeowner!

 

Now, this is just a general timeline of how long it takes to buy a home, but it can certainly be sped up or more drawn out depending on what you’re looking for and what the current market has to offer. If you’re curious about what the Reno real estate market looks like currently and how we can help you buy your dream home, contact the David Morris Group at 775-828-3292!

 

 

 

David Morris Group - The Reality of Real Estate_ Winning Your Dream Home in a Multiple Offer Situation - Best Reno Real Estate Broker - Best Reno Realtors - Reno Homes - Reno Real Estate

The Reality of Real Estate: Winning Your Dream Home in a Multiple Offer Situation

David Morris Group - The Reality of Real Estate_ Winning Your Dream Home in a Multiple Offer Situation - Best Reno Real Estate Broker - Best Reno Realtors - Reno Homes - Reno Real Estate

In a real estate market with more buyers than sellers, buyers can often be more competitive and put sellers in a position to receive multiple offers. How can you make your offer stand out and help you win your dream home in a multiple offer situation? If you play your cards right, it may not come with a higher price tag either!

1. Appeal to the owner’s reasons for selling.

Something as simple as understanding why the seller has put the home on the market, can help you appeal to the problems they may be facing. Taking the initiative to understand the seller’s point of view and being empathetic to their situation will often win you points and gain you a good first impression from the seller.

2. When it comes to closing, don’t dilly dally.

A quick closing is appealing to many sellers. It’s why many will be enticed by a cash buyer or anyone that is working with a lender that can fast-track the financing. Offering little to no waiting period for closing can make any offer standout.

3. Personalize the offer.

Sellers can drown in a sea of paperwork, especially in a multiple offer situation. Add a personalized note to the seller that pulls at their heartstrings and highlights what you find so special about their home. Many homeowners are sentimental about their house and would like to sell to someone that sees its worth just as much as they do.

4. Be flexible and easy to work with.

In a high-stress situation, the seller is looking for someone that is a breath of fresh air. Be willing to work with the seller and make compromises and concessions. Don’t negotiate over superficial repairs and only sweat the big stuff.

5. More earnest money can sweeten your offer.

Showing serious interest and commitment to buying the home can come in the form of offering more earnest money. You will immediately differentiate yourself from other offers.

 

Think outside the box and having creative solutions at your fingertips can help you win in a multiple-offer environment. Have questions about how we can help you win your dream home in a multiple offer situation without paying the highest price? Contact the David Morris Group at 775-828-3292.

 

 

 

David Morris Group - The Reality of Real Estate_ What are Home Inspectors Looking for, and How Can it Save You From Making a Bad Investment - Best Reno Real Estate Broker - Best Reno Realtors

The Reality of Real Estate: What are Home Inspectors Looking for, and How Can it Save You From Making a Bad Investment?

David Morris Group - The Reality of Real Estate_ What are Home Inspectors Looking for, and How Can it Save You From Making a Bad Investment - Best Reno Real Estate Broker - Best Reno Realtors

Before closing, you’ll want to hire a professional home inspector to identify any underlying problems and the overall condition of the home. It saves you from making a bad investment, gives you an idea of the maintenance and repairs you may need to make the home, and may even give you some leverage to make negotiations on the asking price if there are things that will need to be fixed. Let’s take a look at what home inspectors are looking for.

1. Signs of mildew and mold

Inspectors will look closely at basements and crawlspaces for mildew odors. They may also use a meter to determine how much moisture is present, as moisture can deteriorate building materials and attract insects. They will also look closely at the walls and floors for patches of mildew and signs of dampness.

2. Problems with the roof and chimney

Any loose or deteriorated roof shingles will be notes in the inspector’s report, as well as if there are any moist or rotted elements beneath the shingles. They will also check that the chimney is watertight and that mortar and bricks are in good condition.

3. Plumbing functionality

Each toilet will be flushed, faucet turned on, and dishwasher ran in order to check the water pressure and see if there are any leaks. If there are any signs of water damage or concerns for the health of the septic system, it will be noted.

4. Problems with electrical systems

Inspectors will make sure that the home is up to code and that circuits are running properly. They will ensure that the electrical system isn’t being overloaded and is safe to live in.

5. Structural integrity

Over time water can cause the soil around the foundation walls to expand, and when the water goes away, the soil shrinks, and the foundation settles. This creates cracks and pathways for water to enter the structure. This is a big item that inspectors will be looking for. They want to make sure the home is structurally sound.

6. Pest infestations

Carpenter ants, beetles, termites, and rodents can be some of the most damaging pests to a home. Inspectors will look for signs that there is an infestation or if there have been previous problems with these pests.

7. Trouble with the HVAC system

As a homeowner, you’ll want to ensure that your home has proper heating, ventilation, and air conditioning. Home inspectors will check to make sure all basic functioning of the HVAC system is in working order, and they’ll note if there’s anything that could be troublesome in the future like rust around the unit, cracked ductwork, etc.

 

Home inspections give you a great overview of the home as well as another unbiased opinion on if the house is a good investment. Don’t skip out on getting a home inspection to save yourself a few bucks now. You could be putting yourself in a tough financial position in the long run.

 

As a first-time homeowner, it’s crucial to have an idea of what to expect and how to handle the responsibility of owning your own home. The David Morris Group is always happy to show you the ins and outs of owning a home and help you make the transition from renter to homeowner seamlessly. Give us a call at 775-828-3292.

 

 

 

David Morris Group - The Reality of Real Estate_ Are Home Warranties Worth It or an Unnecessary Cost_ - Best Reno Real Estate Broker - Best Reno Realtors - Reno Homes - Reno Real Estate

The Reality of Real Estate: Are Home Warranties Worth it or an Unnecessary Cost?

David Morris Group - The Reality of Real Estate_ Are Home Warranties Worth It or an Unnecessary Cost_ - Best Reno Real Estate Broker - Best Reno Realtors - Reno Homes - Reno Real Estate

As a new homeowner, you have a lot on your plate to figure out. From mortgages to insurance and property taxes, there’s a lot of money being taken out of your account, legal jargon being spewed at you, and paperwork to sign. Now you have a new term being thrown at you — home warranty. What is it, and do you need it? Let’s take a look.

What is a home warranty?

Put simply, a home warranty is a one-year service contract that covers the repair of home system components and appliances.

How is a home warranty different than home insurance?

Home warranties cover the repair of home systems like kitchen appliances, A/C, and plumbing from normal wear-and-tear damage. Home warranties are also optional, while home insurance is usually required to secure financing for your mortgage. Home insurance generally covers damages caused by fires, theft, storms, and natural disasters.

Does having a home warranty ensure I will not have to pay for repairs?

NO! Many homeowners believe that a home warranty is a flat fee for unlimited repairs and no out of pocket costs, but that’s not the case. Every time you make a claim with your warranty provider and a technician is sent out, you will be charged a deductible that usually costs anywhere from $50 – $125. You will be charged that deductible for every appliance that needs to be repaired.

 

Also, home warranties often include escape clauses to deny coverage. For example, some repairs will not be covered if they can be chalked up to a “pre-existing condition” or if the cost of repairs is more than the set amount laid out in your contract. Many warranties give the issuer the right to deny the customer repairs if they can’t show proof that they’ve maintained the appliance or system on a regular basis. Be sure to read the fine print!

What if I have a manufacturer’s warranty?

Items that are covered under a manufacturer’s warranty are usually not covered under a home warranty. If you’re buying a new construction home or new appliances, you’ll likely have a manufacturer’s warranty, so if you purchase a home warranty, you’ll be doubling up on coverage and spending money you may not need to.

 

If you’re considering getting a home warranty, be sure to read the terms and conditions closely and ask questions. Compare rates and coverage and make the right decision for you. If you decide not to purchase a home warranty, we recommend setting aside a few hundred dollars a month for any unexpected costs and repairs that spring up.

 

As a first-time homeowner, it’s crucial to have an idea of what to expect and how to handle the responsibility of owning your own home. The David Morris Group is always happy to show you the ins and outs of owning a home and help you make the transition from renter to homeowner seamlessly. Give us a call at 775-828-3292.

 

 

 

David Morris Group - The Reality of Real Estate_ Homes Need Continuous Maintenance - The Ultimate Seasonal and Monthly Improvement Checklist - Best Reno Real Estate Broker - Best Reno Realtor

The Reality of Real Estate: Homes Need Continuous Maintenance – The Ultimate Seasonal and Monthly Improvement Checklist

David Morris Group - The Reality of Real Estate_ Homes Need Continuous Maintenance - The Ultimate Seasonal and Monthly Improvement Checklist - Best Reno Real Estate Broker - Best Reno Realtor

It’s no secret that homes need continuous maintenance, but you may be surprised to learn about some of the improvements that should be included on your running to-do list. As a homeowner or even a potential homeowner, it’s important to know about what the maintenance looks like. Use our checklists as a great foundation.

Monthly Maintenance Checklist:

  • Clean the furnace filter and A/C filter.
  • Check the water softener and replenish salt if necessary.
  • Clean faucet aerators and showerheads to remove mineral deposits.
  • Inspect tub and sink drains for debris; unclog if necessary.
  • Test smoke alarms, carbon monoxide detectors, fire extinguishers, and all ground-fault circuit interrupters.
  • Inspect electrical cords for wear.
  • Vacuum heat registers and heat vents.
  • Check that indoor and outdoor air vents are not blocked.
  • Flush out hot water from the water heater to remove accumulated sediment.
  • Clean the garbage disposal.
  • Inspect roofing for missing, loose, or damaged shingles and leaks.

Fall Maintenance Checklist:

  • Rake leaves and aerate the lawn.
  • Check fireplace for damage or hazards, and clean fireplace flues. Have your fireplace professionally inspected.
  • Seal cracks and gaps in windows and doors with caulk or weather stripping; replace if necessary.
  • Touch up exterior siding.
  • Power-wash windows and siding.
  • Clean gutters and downspouts.
  • Mend cracks and gaps in the driveway and walkway.
  • Drain and winterize exterior plumbing.
  • Drain and store hoses, and drain in-ground sprinkler systems.
  • Wrap insulation around outdoor faucets and pipes in unheated garages.
  • Check water heater for leaks.

Winter Maintenance Checklist:

  • Cover your A/C unit.
  • Check basement for leaks during thaws.
  • Vacuum bathroom exhaust fan grill.
  • Vacuum refrigerator and freezer coils and empty and clean drip trays.

Spring Maintenance Checklist:

  • Clean window and door screens.
  • Polish wood furniture, and dust light fixtures.
  • Refinish the deck.
  • Power-wash windows and siding.
  • Remove leaves and debris from gutters and downspouts.
  • Inspect sink, shower, and bath caulking for deterioration.
  • Vacuum lint from the dryer vent.
  • Repair or replace caulking and weather stripping around windows, doors, and mechanicals.
  • Remove insulation from outdoor faucets and check sprinkler heads.
  • Have A/C system serviced.
  • Fertilize your lawn.

Summer Maintenance Checklist:

  • Oil garage-door opener and chain, garage door, and all door hinges.
  • Remove lint from inside and outside washer hoses and dryer vents.
  • Clean kitchen exhaust fan filter.
  • Clean refrigerator and freezer coils and empty and clean drip trays.
  • Check dishwasher for leaks.
  • Check around kitchen and bathroom cabinets and around toilets for leaks.
  • Replace interior and exterior faucet and showerhead washers if needed.
  • Seal tile grout.
  • Prune trees and shrubs.

As a first-time homeowner, it’s crucial to have an idea of what to expect and how to handle the responsibility of owning your own home. The David Morris Group is always happy to show you the ins and outs of owning a home and help you make the transition from renter to homeowner seamlessly. Give us a call at 775-828-3292.

 

 

 

David Morris Group - The Reality of Real Estate_ Crucial Tips for New Homeowners - Best Reno Real Estate Broker - Reno Realtor - Reno Homes - Reno Real Estate

The Reality of Real Estate: Crucial Tips for New Homeowners

David Morris Group - The Reality of Real Estate_ Crucial Tips for New Homeowners - Best Reno Real Estate Broker - Reno Realtor - Reno Homes - Reno Real Estate

You’ve found your dream home, made an offer, gone through inspections and negotiations, and are finally being handed the keys, but what’s next? You’ve just made one of the largest financial decisions of your life, and while there’s a lot of excitement and relief to have the keys in your hand, your job is just beginning. Below are some crucial tips for new homeowners to take care of.

Before you move in:

  • Change the locks – Before you move in, you’ll want to change all of the locks and reset the passcodes to any and all points of entry. You never know who the previous owners have given keys to or passcodes to, so to make sure you keep your new home secure, it’s best to switch out the locks.
  • Paint the house – Trying to paint rooms while you’re living in the home and have furniture and items in your home to avoid is an inconvenience to put it lightly. Take care of painting projects before bringing in your home items.
  • Deep clean the home – It’s likely that in the midst of showings and moving out, the previous owner had little time to hire a professional cleaner. Consider hiring a team to make sure you’re starting off your time in your home on the right foot.

After you move in:

  • Find a handyman – At some point, you’ll need something repaired or a project to tackle, and it’s always nice to have someone you can rely on for those things. Find a trustworthy handyman you can rely on to help you with a variety of home service needs.
  • Get to know your neighbors – You never know when you’ll need to ask them to water your lawn or grab the mail for you, so establish a good relationship with your neighbors from the start. It will also help to know who your neighbors are when it comes time to work on things together like trimming trees, replacing fences, etc.
  • Put important paperwork together – As a homeowner, you’ll inherit manuals, warranties, and a variety of other paperwork. It’s important to keep these things together and organize them in a folder for when you need them. Be sure to add to that folder as you make updates to your home – they will come in handy when you sell your home!

As a first-time homeowner, it’s crucial to have an idea of what to expect and how to handle the responsibility of owning your own home. The David Morris Group is always happy to show you the ins and outs of owning a home and help you make the transition from renter to homeowner seamlessly. Give us a call at 775-828-3292.

 

 

 

David Morris Group - The Reality of Real Estate_ Market Update - Best Reno Real Estate Broker - Best Reno Realtor - Reno Homes - Reno Real Estate

The Reality of Real Estate: An Inside Look at the Costs of a Home Mortgage

David Morris Group - The Reality of Real Estate_ An Inside Look at the Costs of a Home Mortgage - Best Reno Real Estate Broker - Best Reno Realtor - Reno Homes - Reno Real Estate

There’s no substitute for talking with an experienced lender to give you all of the important details about your home mortgage and the rates they can give you, but that doesn’t mean we can’t give you the inside scoop on the costs and general factors associated with a home mortgage. Check out some of the important contributions you’ll have to understand and contend with as a homeowner.

 

  • Principal – The amount of money you borrowed to finance your home. If you’re looking to purchase a $300,000 home and made a $60,000 down payment, your principal would be $240,000.
  • Interest – The fee that lenders charge in exchange for the loans they give to homeowners. Mortgage interest rates fluctuate wildly and also depend on your debt-to-income ratio. The better your credit, the better you will look like a sound financial investment to lenders, and the better your interest rates.
  • Property tax – The taxes your local government levies on your property in order to pay for community amenities like snow plowing, street sweeping, funding public schools and fire departments, etc. Many lenders will have you build an escrow account that saves money for the property tax payment by charging a little extra for your mortgage payment each month and setting aside those extra funds into a separate account. When it’s time to pay your property taxes, your lender will take care of it from the funds you’ve set aside. Property taxes are a percentage of your home’s value.

There may be other costs associated with your home mortgage that your lender will outline for you. Before choosing a lender, be sure to ask questions about if they set aside an escrow account to help you pay for your property taxes and home insurance, along with the interest rates you qualify for.

 

Remember that you not only want the best deal, but a lender that communicates with you and is ready and willing to answer any and all questions and concerns you have as they arise. Who you partner with can have a meaningful impact on how you feel about purchasing and owning a home.

 

As a first-time homebuyer, it’s crucial to understand the responsibility and costs associated with owning your own home. The David Morris Group is always happy to show you the ins and outs of owning a home and help you make the transition from renter to homeowner seamlessly. Give us a call at 775-828-3292.