10.27.10
Posted in Ridgeland MS Real Estate tagged Ridgeland MS real estate buyers at 7:00 am by Mississippi Real Estate Agent
Buying a new home takes a lot of preparation. Without knowing what you are walking in to, you are bound to run into road blocks. A good Ridgeland MS real estate agent can help you understand the intricacies involved in purchasing your new home. Some of the most common problems that buyers run into are avoidable.
Buying the Best is Nice… but
If you’re looking at the most expensive house in the neighborhood, in the city or in the state, you’re asking for problems. The chance that it will go down in value, be difficult to make payments on if anything changes in your lifestyle, or be hard to sell in the event of a foreclosure is high, which makes it tough to get a mortgage.
If you must have the most expensive home, pay the most you can as a down payment. That will lower the risk and make it more likely your loan will be approved. If you can’t afford a big down payment, you’re probably looking at a formidable roadblock to a loan.
Being Unprepared
Walking into a mortgage lender unprepared is like shooting yourself in the foot. Have your financial information in hand. If there are any problems with your credit, be prepared to explain them. Have a good budget including the estimated new mortgage to show you can handle the loan. Think like a Boy Scout and be prepared.
Not Taking All Costs into Consideration
A big mistake many prospective home buyers make is not realizing there are many costs associated with buying Ridgeland MS real estate besides just a new mortgage. There are closing costs, legal costs, insurance costs, property taxes and deed and recording fees. All of these have an impact on your wallet and most need to be paid at closing.
Want to know more about how to prepare to purchase Ridgeland MS real estate? I’d be happy to walk you through the entire process. Give me a call today at 601-942-3392 or email me at Paula@PaulaRicks.com.
Paula Ricks
Coldwell Banker Nell Wyatt, Inc.
443-A Northpark Dr, Ridgeland, MS 39157
Office: 601-956-8533
Call Direct: 601-942-3392
www.PaulaRicks.com
Paula@PaulaRicks.com
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Ridgeland MS real estate buyers
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10.07.10
Posted in Ridgeland MS Homes for Sale tagged Ridgeland MS real estate buyers at 7:00 am by Mississippi Real Estate Agent
Buying Ridgeland MS homes for sale can be scary, especially for first-time buyers. One of the things that makes it scary is that the home buyers have to make a lot of decisions.
Both first-time home buyers and veteran buyers have to make decisions about whether to buy Ridgeland MS homes for sale that are new or pre-owned. Which is right for you? Well, that depends on your particular situation, but knowing some of the differences between the two will help you make the best decision.
Home Warranties: New Homes vs. Pre-Owned Homes
Home warranties vary, but essentially cover mechanical breakdowns, such as furnace failures and clogged pipes, not usually covered by home insurance.
• New Homes: For new homes, the warranty begins from the moment you close the deal. Normally, appliances have a years’ warranty, which can be extended. As well, the builder’s warranty covers things such as structural or roofing systems. However, new home warranties are precise about what they cover. For instance, if you have a bunch of kids and a couple of animals, you’ll have a hard time saying the carpet should be covered if it starts pulling up.
• Pre-Owned Homes: With pre-owned homes, you have the option to negotiate on the warranty and what it covers. It could cover appliances, the air conditioning system, dishwasher or any home component. However, if you end up with a shady seller who cosmetically covered up mold (for instance) and you don’t know there’s a mold problem, the warranty may not cover it. Note: this is one of the reasons I always say, “Get a home inspection before buying.”
Out of Pocket Costs: New Homes vs. Pre-Owned Homes
• New Homes: Developers often offer home buying incentives to close the deal. In slow markets, they may add bonus cash incentives, upgrades or other things to entice you. However, if the market picks up, developers may reduce those incentives. Rather than offering you a dishwasher and other appliances for free, developers may charge you a premium for them. Another big out of pocket expense to keep in mind is landscaping. It’s an expensive proposition today for the cost-conscious home builder.
• Pre-Owned Homes: Landscaping is a big plus to buying a previously owned home. Mature trees, hearty shrubs, rose bushes and lush well-watered lawns are some of the rewards of a pre-owned home. Additionally, very seldom do the sellers take their dishwasher and other appliances with them when they move. You also have the ability to negotiate with the sellers about furniture and other amenities. However, you don’t always know the condition of these amenities. They may end up costing you more on upkeep than if you had just bought new appliances.
Whether you’re looking at new or pre-owned Ridgeland MS homes for sale, I can help. Call me at 601-942-3392 or email me at Paula@PaulaRicks.com for more information.
Paula Ricks
Coldwell Banker Nell Wyatt, Inc.
443-A Northpark Dr, Ridgeland, MS 39157
Office: 601-956-8533
Call Direct: 601-942-3392
www.PaulaRicks.com
Paula@PaulaRicks.com
Tags:
Ridgeland MS real estate buyers
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08.19.10
Posted in Ridgeland MS Homes for Sale tagged Ridgeland MS real estate buyers at 7:00 am by Mississippi Real Estate Agent
Are you tired of looking for a Ridgeland MS home for sale? Have you found any that had everything you wanted, but cost too much? Are you dissatisfied with the selection?
A while back, I had a buyer tell me he didn’t want to spend more than $100,000 on a Ridgeland MS home for sale. He gave me a long list of features he felt the house must have – a pool, a big kitchen for his wife, four bedrooms, etc. With it being his market (a buyer’s market), he said, I should have no problems finding a home with those qualifications and that price. He refused to budge on any of it. That buyer is no longer my client.
You May Have to Compromise
The buyer had read tons of material about it being a buyer’s market. Prices, while not particularly great for the sellers, are great for the buyers. “Thar’s gold in them thar hills.” In other words, there are deals to be had.
It’s all true, but there are limitations to what your money can buy, even now. If you’re getting frustrated due to a lack of fully automated homes with pools and fallout shelters for $35,000, it’s time to ask yourself, “Do I really need a pool?”
Okay, so that’s an exaggeration, but there is a legitimate question in all this. Can you compromise? If you want a pool, can you buy a home with a big backyard where a pool can be built later? Do you have to have a pool right now?
Consider that a home is a long-term acquirement. Think about what you want versus what you need. For example, maybe you want a big kitchen. What you’ve found are smaller kitchens with big dining rooms. Can the two rooms be opened up to create a dining/cooking area? Again, can you compromise?
Before you go house hunting again, examine your expectations. Are they realistic? If not, create a list of needs, and then create a list of wants. Think about where you can compromise on the two lists. Of course, you should be able to get some of your “wants,” but you may not be able to get all of them.
When you look at a Ridgeland MS home for sale that you can afford, also look at the possibilities. Can the affordable home be remodeled over time into the dream home you want?
If you’re looking for a home with great potential, I can help. Call me at 601-942-3392 or email me at Paula@PaulaRicks.com.
Paula Ricks
Coldwell Banker Nell Wyatt, Inc.
443-A Northpark Dr, Ridgeland, MS 39157
Office: 601-956-8533
Call Direct: 601-942-3392
www.PaulaRicks.com
Paula@PaulaRicks.com
Tags:
Ridgeland MS real estate buyers
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04.15.10
Posted in Ridgeland MS Real Estate tagged Ridgeland MS real estate buyers at 7:00 am by Mississippi Real Estate Agent
Good credit is more important than ever, if you want to get a Ridgeland MS real estate loan. Knowing what’s on your credit report and how lenders view various aspects of your report is crucial.
First Things First
Get a copy of your credit report from all three of the credit reporting companies: Equifax, Experian, and TransUnion. You are entitled to one free report every year from each of the three credit reporting companies. Whether you’re considering getting a loan or not, you should always take advantage of that opportunity to make sure your credit reports are accurate.
Range
FICO® scores range from 365 to 840. While the standards for what lenders consider a “good” FICO® score changes constantly and varies by lender, here’s a general breakdown of today’s standards:
- Over 750 is excellent and should get you the best terms and rates.
- Under 600 might get you a Ridgeland MS real estate loan, but you’ll want to shop for the lender who’ll give you the best rates and terms.
- Under 500, you need to brace yourself for waiting until you get your credit in better condition.
What Determines Your Score
There are many things that can affect your score. Magically (or not), each of the three companies tend to view things just a little differently, which means your score will not be the exact same for all three. That’s why it’s so important to get copies of your report from all of them. However, the two main things that all companies consider in rating your credit score are delinquencies and debt-to-income ratio.
What You Can Do To Immediately Improve Your Score
- Check the entries: Make sure any debts or delinquencies listed are true. Report any errors.
- Pay off debts: But do not close accounts. Having available credit is good as long as it doesn’t look like you’re over-extended by having your credit maxed out. The lender may worry that you’re living off your credit and can’t afford your bills.
If you would like more tips on how to improve your chances of getting a Ridgeland MS real estate loan, I can help. Call me today at 601-942-3392 or email me at Paula@PaulaRicks.com for more information.
Paula Ricks
Coldwell Banker Nell Wyatt, Inc.
Ridgeland, Mississippi
www.PaulaRicks.com
Paula@PaulaRicks.com
Call direct: 601-942-3392
Tags:
Ridgeland MS real estate buyers
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04.09.10
Posted in Ridgeland MS Real Estate tagged Ridgeland MS real estate buyers at 7:00 am by Mississippi Real Estate Agent
Whether you’re looking at Ridgeland MS homes for sale, homes across the nation or homes abroad, there’s always the possibility of getting caught in a scam.
Many potential homebuyers and renters choose to go it alone and find the home of their dreams without professional help. While this method of house hunting works for some it definitely doesn’t work for all, and the consequences often far outweigh the benefits. Yes, the same can apply for home sellers as well!
Real Estate Scams
Here are a few real estate scams to watch out for:
- Down Payment Assistance Programs are wonderful gifts for potential buyers of Ridgeland MS homes for sale. However, there are certain rules that have to be followed for this down payment gift to be legal. For instance, as a gift, the homebuyer doesn’t have to pay it back. Some unscrupulous companies offer Down Payment Assistance Programs but expect the money back. This isn’t a gift; it’s a loan, and illegal if the program is listed as “down payment assistance.”
- Property flipping scams happen when a con artist buys a home and sells it as an investment opportunity with zero down payment, no closing costs, low interest rate, etc. Although it sounds like a great deal, it becomes a scam when the house is severely overpriced and the buyer pays way more than the house is worth.
- Craigslist is an excellent resource for those wanting to buy or sell something. However, it is also a great source for con artists, who have turned their eyes to the real estate market. The scammers take information from legitimate listings on other websites (such as REALTOR® websites) and post it as their own on Craigslist. They often mention that they had to move for some reason, but can still rent/sell the home. All the buyers or renters have to do is send them their personal information and the first month’s rent or down payment.
It’s easy to get caught up in the excitement and forget to protect yourself. Be cautious when looking for Ridgeland MS homes for sale or selling them. Always check references and backgrounds. As well, if the home seller is in another country or another state, ask them if they’d be willing to use a local real estate agent. Then be sure to verify the agent’s credentials.
If you want to buy or sell a house and need a professional, I can help. Call me at 601-942-3392 or email me at Paula@PaulaRicks.com for more information.
Paula Ricks
Coldwell Banker Nell Wyatt, Inc.
Ridgeland, Mississippi
www.PaulaRicks.com
Paula@PaulaRicks.com
Call direct: 601-942-3392
Tags:
Ridgeland MS real estate buyers
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03.01.10
Posted in Ridgeland MS Real Estate tagged Ridgeland MS real estate buyers at 7:00 am by Mississippi Real Estate Agent
The FHA, or Federal Housing Administration, has helped many a homeowner buy a Ridgeland MS home for sale by providing mortgage insurance through FHA-approved lenders. However, a change in policy, announced in January, may make it harder for those with poor credit.
Before we talk about FHA’s change in policy, let’s cover a few of the basics about the FHA and how it might help you buy a Ridgeland MS home for sale.
What is the FHA?
The FHA is a government agency that provides mortgage insurance to approved lending institutions. It assists homebuyers by providing mortgage insurance to lenders to cover most losses that may occur when a borrower defaults. This encourages lenders to make loans to borrowers who might otherwise not be able to get a loan.
What is an FHA Loan?
An FHA loan is a loan provided by an FHA-approved lender and insured by the FHA. In other words, the FHA guarantees that a lender won’t have to write off a loan if the borrower defaults – the FHA will pay. Because of this guarantee, lenders are willing to make mortgage loans.
An FHA loan might help you get a mortgage by providing:
- Lower down payments
- Lower closing costs
- Easier credit qualifications
Now let’s talk about the changes FHA is making…
The Future of FHA Loans
Until recently, the FHA has managed to weather the real estate turmoil rather well. In fact, the turbulence surrounding other lenders had potential homebuyers flocking to take advantage of FHA loans. However, even FHA’s bank account is starting to suffer. In order to shore up capital reserves and keep 34 million families in their homes, the FHA is changing the rules.
Before the changes, borrowers were required to pay a down payment of 3.5% of the cost of the home. Now, borrowers with a credit rating below 580 will be required to pay at least a 10% down payment. As well, the good upfront mortgage insurance premiums of 1.75% are increasing to 2.25%. The FHA is now trying to get Congress’ approval to raise the annual premiums from 0.55%, although the amount it will seek is still unknown.
What This Means for You
If you’re interested in buying one of the Ridgeland MS homes for sale, but haven’t because you’re waiting for the market to bottom out, you may end up losing out on a great deal. With almost record low mortgage rates, home values lower than they’ve been for eight years, the first-time and upgrade homebuyer tax credits and a wide selection of homes, there may never be a better time to buy.
Whether you want to use an FHA loan or a traditional loan, I can help you cash in on this great buyer’s market. Call me today at 601-942-3392 or email me at Paula@PaulaRicks.com.
Paula Ricks
Coldwell Banker Nell Wyatt, Inc.
Ridgeland, Mississippi
www.PaulaRicks.com
Paula@PaulaRicks.com
Call direct: 601-942-3392
Tags:
Ridgeland MS real estate buyers
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06.08.09
Posted in Ridgeland MS Real Estate tagged Ridgeland MS real estate agents, Ridgeland MS real estate buyers at 8:31 am by Mississippi Real Estate Agent
Most people are familiar with the new stimulus plan that helps many get tax rebates for buying a home. The incentive is centered on first-time home buyers and a lot of people automatically assume they aren’t eligible because they have owned a home in the past. This incentive shouldn’t be dismissed so quickly. It is worth as much as $8,000 during the calendar year of 2009 and is a great reason to consider entering or re-entering the Ridgeland MS real estate home buying market. Yes, that’s right “re-entering” the market.
Three Year Rule
If you have not owned a home (or condo) in Metro Jackson or Ridgeland MS real estate in the past three years, for tax purposes you are considered a first-time home buyer and are still eligible for the tax credit. This, however, includes you and your spouse if you are married so neither of you can have purchased a home in the last three years.
Principle Residence Rule
Even if you have owned a home in the last couple of years, if it has not been your primary residence, you may still be eligible for the tax break. This means that if you own property that you use as rental or other investment real estate such as flipping or reselling, you may still be able to get the tax incentive if you purchase a new home for you and your family to actually live in. Search for Ridgeland MS homes for sale now!
The new stimulus plan rules may be confusing but a qualified real estate professional can guide you through the possibilities.
If you are entitled to the tax rebate, 2009 should be the year you buy your new home. The tax rebate on a new home purchase is only good for the year.
If you purchased a Ridgeland MS home any time during the 2009 calendar year and didn’t know you might be entitled to the rebate, now is the time to check into it.
If you have any questions regarding the new stimulus tax breaks for first-time home buyers, please give me a call at 601-942-3392 or email me at Paula@PaulaRicks.com. I’d be happy to help.
Paula Ricks
Coldwell Banker Nell Wyatt, Inc.
Ridgeland, Mississippi
www.PaulaRicks.com
Paula@PaulaRicks.com
Call direct: 601-942-3392
Tags:
Ridgeland MS real estate agents,
Ridgeland MS real estate buyers
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