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Category Archives: Buying a home

buy a home

How to Buy a Home When Inventory is Low

Today’s seller’s market is experiencing a lower inventory than ever, as the demand for homes continues to rise. There are only a few single-family houses that are for sale in the country, and two months’ worth of inventory is currently available in the 100 largest metro areas, marking a historic low. The question now is how do you buy a home in this condition?

Sellers may not be concerned by this market condition, but buyers can have serious concerns. It can be difficult to buy a home in Myrtle Beach in a low inventory market. Many buyers spend months making offers on multiple listings, only to lose out to other homebuyers in bidding wars.

How can one buy a home in Myrtle Beach when there is very little inventory? Let’s see how we can help you! These are some buying tips that will make it easier and more cost-effective so you can get settled in your dream home sooner than expected.

Expand your location preferences 

If you’re a resident of a particular area, expanding your geographic location can be difficult. You don’t have to live in your preferred neighborhood. Explore the other available homes to buy. You will find a wider range of homes that may be more suitable for your family’s needs and wants.

It is possible to find a deal that offers a great opportunity to invest in an emerging area. You might find a home to purchase that is further away but still has everything you need. You never know what you might find if your search is broader. Rather, you can look at other areas to help you determine your needs and desires for your future home.

You can offer a higher price (within reason)

Low inventory means high demand and high prices. You will be competing against other buyers who are making offers on the same houses as you. There are likely to be multiple offers on the table so it is in your best interest to make a winning offer. If you find a home that ticks all your boxes, this is especially important. You may be able to secure the home of your dreams by making an offer that is reasonable.

You don’t want a house you can’t afford to buy. It is crucial to be financially sound and have a clear understanding of your budget before you begin house hunting. Avoid homes that are too expensive. You will be able to make a higher offer, if necessary, and it will set you apart from other buyers.

Be patient with the process

You may feel tempted to compromise your standards and accept any offer on any home you find. You may be tempted even to abandon the idea of purchasing a home. Do not let today’s market’s crazy frustrations stop you from finding the perfect home. Be patient and resist the temptation to give up.

It is not easy to buy in today’s sellers’ market. But it can lead you to your dream house. It is important to be patient but also proactive. Keep active in your home search. Be ready to view a house as soon after it has been listed. It may mean that you have to be available at night or at weekends but this will allow you to stay ahead of the other buyers.

A professional real estate agent to work with if you plan to buy a home

It is important to work with an experienced real estate agent when dealing with low inventory. This type of inventory situation can be navigated by real estate agents who have market knowledge and experience. They are experts in real estate and can assist their clients with any questions.

Realtors can help clients find homes and make offers. They can also save clients money. Homebuyers have the option to buy any property and receive their agent’s commission at closing. This averages out to $5,000 that can be used towards closing costs, moving costs, and even savings account for the future.

It can be difficult to buy a home in a low inventory market. This will require patience, persistence, and flexibility. If you’re patient and persistent, you will find the home that you want.

Are you ready to tackle today’s market? To get started on your home search, contact Full Potential Real Estate, LLC today!

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Full Potential Real Estate, LLC
Myrtle Beach, SC 29577
843-492-4537
https://fullpotentialrealestate.com

How to Avoid Buyer Burnout When You Buy a Home

It has been difficult and challenging to buy a house. Many people who are looking to purchase a home have found it difficult over the years. Buyers are reluctant to buy a home due to the high-stakes bidding battles, skyrocketing costs, and lack of inventory.

There are ways to reduce stress during the home buying process. Here are some tips for homebuyers to reduce stress and avoid buyer burnout.

Tips When You Buy A Home

Set reasonable expectations

Homebuyers can help protect their mental health by setting realistic expectations and being realistic before they begin looking for homes. Know the market that you are entering. The number of active listings is still at 67% below pre-pandemic levels. Remember that more people are looking for homes available for purchase.

It is important to be familiar with the market and understand that finding the right home can take time, negotiation, and compromise. Although it may be difficult to accept at first, this will benefit your mental health over the long term as you search for homes.

Hire a Good Real Estate Agent

An experienced real estate agent will help you to understand the market and find homes that are right for you. Agents can help you find the right home for you within your budget.

These real estate agents in Myrtle Beach can also assist in negotiations, inspections, and contract support, which relieves some of the stress for homebuyers not as familiar with these procedures.

A low-commission brokerage is a good option if you need to manage finances, or just want to save money. These brokerages provide a simplified buying experience that offers all the same services and a half the price of traditional brokerages.

Flexibility with your time

Flexibility is essential when you’re entering today’s market. Sellers can close their homes within weeks, or even days after listing them on the market. Homebuyers will find it takes longer to close the deal due to high competition.

You want to be flexible as a buyer. You don’t have to be in a hurry to buy a home in Myrtle Beach. You will feel unnecessary stress if you do. Sometimes, you may buy a house just to make the purchase. This could cause buyer remorse and additional stress. Do it if you have the patience to wait for the right opportunity.

Set Up Strong Boundaries

It is important to set clear boundaries before you enter the homebuyer process. This will help protect your mental health. You should decide how much time you will dedicate to looking for homes. Then stick to it. You will need to be able to commit the time and may need to set boundaries.

Social engagements that may impede your home search should be declined. These extra activities can take away from your home search time, make you feel stretched, and increase stress during stressful homebuying season. You can prioritize self-care if you have the time. This will help you keep your mind and body energized and motivated.

Be financially prepared

When it comes to buying a house, finances are a major stressor. Financial preparation is the best way for you to reduce stress during the home-buying process. You should have a clear understanding of your budget and loan amount before you lock in your mortgage rate or get pre-approved for a mortgage. Your monthly mortgage payment should not exceed 30% of your income. This is a good rule to follow.

Pre-approval and locking in your mortgage will show sellers that you are a qualified buyer who will likely complete the home purchase. This will eliminate the need to secure a mortgage contingency or stress associated with securing at the last minute. It will save you time and reduce stress by taking the time to organize your finances before it is too late. Although it may not be the most exciting aspect of buying, it is essential if you want to make a smooth transaction.

Conclusion

It is crucial to be aware of your mental health before you buy a house. Your stress levels will affect your ability to manage them. These tips will help you find the right home for you, whether you’re looking to buy or sell.

Call Full Potential Real Estate, LLC now if you need help in buying a home in Myrtle Beach.

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Full Potential Real Estate, LLC
Myrtle Beach, SC 29577
843-492-4537
https://fullpotentialrealestate.com

buy a house

Fall Is The Best Time To Buy A House

Many people believe the best time to buy a house is spring and summer. The other seasons like fall are often overlooked. Many home buyers believe that fall is all about hunting for houses and Halloween.

Contrary to popular belief, fall is a great season to buy a house in Myrtle Beach. It might even be the best time to start looking for your dream home.

Buy a House: Find Affordable Homes

The real estate market becomes more stable as the days become crisper, much like the beach after Labor Day. Summer buyers are likely to have found their dream homes by now, which means that fall home buyers will be less competitive for houses currently on the market. Fall buyers will have more freedom to visit open houses because not many people leave the market before the New Year. With patience and perseverance, there are still many homes available.

Worn Out Home Sellers

People who put their homes up for sale in the fall are sellers who really need to sell their homes. If the seller has put their home on the market in the fall, it can be a powerful tool to negotiate a lower price. If you’ve been eyeing a property for a while, you will be in control of negotiating a price that the seller can’t refuse. A house that has been on the market for a while will give the buyer more negotiation power.

The Holidays Are Near

Many home sellers feel exhausted after the summer selling season. They are also caught between a rock and a hard place as the holidays approach. If they want to be able to move quickly and settle down in time for Thanksgiving and Christmas, they must close as soon as possible. If they offer you a great deal, consider offering to help them move out of their home in Myrtle Beach.

Year-End Credits for Tax

No one wants to buy a house just to make their accountant happy. There is an additional incentive that allows you to buy a house at the end of the fiscal years. You may be eligible for tax deductions, including closing costs and property tax. Mortgage interest can also be used to offset your taxable earnings.

Spend more time with your real estate team

With fewer buyers, you’ll have more time with your real estate agents and mortgage broker as well as all other members of your house hunting team. All questions regarding earnest money and title transfers, due diligence, etc. will be answered.

Home Improvement Deals

You might consider upgrading your appliances when you close on the house you bought in fall. December is a great time to buy big appliances like washers, dryers, stoves and refrigerators at their lowest prices. There will be great deals on cookware and TVs.

If you need the assistance of a professional agent in real estate, please call Full Potential Real Estate, LLC.

Like our Facebook page for more great info about selling or buying homes.

Full Potential Real Estate, LLC
Myrtle Beach, SC 29577
843-492-4537
https://fullpotentialrealestate.com

 

Myrtle Beach Real Estate Agent

Buying A Myrtle Beach Home For Sale: The Final Walkthrough

When buying homes for sale in Myrtle Beach, visiting the house once is often not enough for you to sign the contract and seal the deal. Many real estate professionals recommend visiting the house several more times throughout the home buying process to ensure that you are buying the right house for you and your family.

In fact, a lot of the real estate agents you work with will suggest going back to the house at different times of the day and different days of the week. This will allow you to see how the house looks and feels at different times. Also, it will give you a glimpse into the days and times when the neighborhood tends to be busy and noisy – an important factor if have small children.

Aside from these, however, Full Potential Real Estate also suggests doing a final walk-through even after everything has been finalized and agreed upon.

Why do a final walk-through when buying Myrtle Beach homes for sale?

A final walk-through is necessary for buyers to ensure that nothing has changed in the house since your last visit. Remember what things you saw in your first visit that prompted you to pursue buying the house. This may include things like the new or recently repaired kitchen and bathroom fixtures or the spacious closet under the stairs. Doing a final walk-through will help ensure that what you saw in the house the first time you visited stays in the house until you move in.

Aside from this, you also need to do the final walk-through to ensure that the seller has completed his part of the deal, particularly regarding repairs that you have discussed during the negotiation process. The house might need some minor repairs that the seller has agreed to do before closing and you will need to confirm their completion during the walk-through.

The walk-through will also allow you to verify that the terms indicated in your contract have been met. Walk-through’s can be informal where you go through the house one last time checking off items on your list of things to check and confirm. It can also be in a formal set up where you go through the house with the seller or his representative checking each item off your list. Once done, you and the seller or his representative will both sign a contract to indicate that the results of the final walk-through.

What you need to know about the final walk-through

The final walk-through is an important aspect of the entire process of buying Myrtle Beach homes for sale. This is often what seals the deal and establishes a stronger relationship between seller and buyer. It helps ensure that both parties are doing their end of the deal.

You should know, however, that a walk-through is different from a home inspection. Although you will need to do some checking and inspecting to make sure all the previously agreed repairs have been completed, you will not have to check every single fixture and test every single plug and switch as you go through the entire house. A walk-through often takes a shorter time than an overall home inspection. Plus, you do not need to hire a professional for the walk-through as you can do this on your own or with the assistance of your real estate agent.

It is important that you take a copy of the contract with you when doing the final walk-through. This can serve as your list of things to check as you go through the house. Alternatively, you can also make a list of things that you want to check.

Here are some ideas on what to include in your list:

  • Exterior damage to the home due to strong winds and storms that happened since your last visit.
  • Fixtures and furniture that the seller has agreed to leave behind or as part of your purchase.
  • Properly working outlets and light switches.
  • Plumbing leaks that were not there when you first visited.
  • Status of the repairs that the seller has agreed to do.
  • Unwanted items or trash inside closets and cabinets.
  • Disturbed lawn due to dug up trees or shrubs in the backyard.

The final walk-through should not take too long. It often takes 1 to 2 hours. Remember that this allows you to ensure that you are getting the house that you paid for.

For professional assistance when buying Myrtle Beach homes for sale, call Full Potential Real Estate today and speak with their representative.

Full Potential Real Estate, LLC
Myrtle Beach, SC 29577
843-492-4537
http://fullpotentialrealestate.com

buy a house

Home Remodel or Buy A House?

You may be considering reevaluating your housing situation in light of rising home prices and increasing interest rates across the country. Should you use your equity from your home to finance a renovation or should you take advantage of the seller’s market? Should you buy a house or consider a home remodel?

This is a major decision that will be affected by your financial situation and lifestyle. These are some things that will help you make this difficult decision.

Home Remodel

Are you happy with your current neighborhood? Do you find it difficult to imagine living elsewhere? A home remodel might be the best choice for you.

Pros

There are many financing options available: Personal loans, cash, securities-based lending,  home equity loans, construction loans.

It’s sometimes less expensive to remodel than buying a house in Myrtle Beach. If you were to purchase real estate, you could avoid broker commissions and selling fees, which can reach as high as 6%.

You have more control over your space: You can choose the floor plan, appliances and paint colors.

These improvements can increase the value of your home. If you decide to sell, you might be able to recover the cost of these improvements.

Cons

Existing property may have physical constraints. Remodeling the kitchen can be a viable project for most homeowners. However, adding square footage to properties in dense areas may prove impossible.

Remarkable surprises and delays in construction: Rules and regulations can increase the cost of your project, and/or slow down the timeframe. Remodelers often discover hidden problems that can complicate the process and increase the cost.

Disruption to everyday life: Converting your home into a construction site can cause disruptions in your daily life. You may need to move elsewhere depending on the scope and size of your project.

Buy a House

Selling your home and moving to a better neighbourhood might be the best option for you.

Pros

If your new home is located in an area that is more desirable than the one you currently own, it may be a better long term investment.

You can get tax benefits such as mortgage interest deductions, provided your mortgage balance does not exceed the value of your home. Capital gains tax is not applicable if you reinvest the proceeds from the sale of your house in your next home purchase.

A new home is more likely to fit your lifestyle.

Cons

Rising interest rates: After a period with historic lows, mortgage interest rates are experiencing a steady increase, which can adversely affect your purchasing power.

It is expensive to buy a home.

Illiquidity: If you purchase a larger home, your money is more likely to be tied up in an asset that can’t be sold quickly for cash in an emergency.

How to finance the right option for you

Finance is an important part of the decision-making process. There are many options available, regardless if you decide to remodel or purchase.

Cash savings: This is a popular way to finance a bigger down payment or a project renovation.

Home equity loan, or HELOC: A lump-sum, fixed rate loan that lets you borrow against the equity in your home. HELOCs are similar to a home equity loan, but the interest rates can fluctuate making them less attractive in today’s rising rates environment. Both can be used to preserve cash and to finance home improvements.

Securities-based credit: This option allows you to use your nonqualified assets as collateral to obtain financing. It allows you to receive the funds you need to make a cash offer or earnest money, while still remaining invested in the markets.

Mortgage loans: Mortgage loans might be the right option for you, whether you are looking for a primary or vacation home, as well as an investment property.

What does it mean to remodel or buy a house?

A major decision in your life is whether you are buying a home new or remodeling an existing one. We can help you to find the best way to balance your financial goals with your long-term objectives and provide guidance on financing options to make your dream house a reality.

Like our Facebook page for more great info about home selling or home buying.

Call Full Potential Real Estate, LLC now if you are thinking of buying or selling a house in Myrtle Beach.

Full Potential Real Estate, LLC
Myrtle Beach, SC 29577
843-492-4537
https://fullpotentialrealestate.com

 

buying a home

Secrets to Buying a Home

If you’re buying a home, there are a few things you need to remember. These will help you make an informed decision before you make a huge investment

Tips When Buying a Home

Keep your money where it is

It is not a wise decision to make large purchases or to move your money for more than three to six months prior to purchasing a home. Credit scores are not something you should take lightly. Lenders want to see that your credit history is solid and that you are reliable. They also need a full paper trail in order to get the best loan for you. Lenders will not approve loans if you have too many credit cards, accumulate excessive debt, or purchase large-ticket items.

Get Pre-Approved For Your Home Loan

It is important to know the difference between pre-qualified buyers and those who have pre-approved mortgages. Anyone can be pre-qualified for loans. Pre-approval means that a lender has reviewed all your financial information to determine how much money they can lend you. Pre-approval will help you save time and money so that you don’t waste your time looking at houses that you cannot afford. Pre-approval allows you to compare rates and find the best deal.

Avoid Border Disputes

A survey of your property is essential in order to know what you are buying. It may be possible to avoid a dispute with neighbors by knowing exactly where your property lines are.

Don’t try to predict the market

Do not obsess about trying to predict the market or when the best time is to buy. It is impossible to predict the housing market. When you are able to afford your dream house, it is the best time to purchase. Real estate is always changing. It goes up, it drops, and then it goes back up. You’ll likely miss out if you wait for the right time.

Bigger isn’t always better

Everybody is attracted to the most beautiful, largest house on the block. When it comes to houses, bigger is not always better. Real estate agents have an old saying that you shouldn’t buy “the biggest and best house on the block”. A big house appeals to a small number of people who will not be able to buy it again. Your home will only increase in value if it is comparable to the houses around it.

You are Buying a Home – Not Dating It

It is a mistake to buy a house solely on your emotions. You might make poor financial decisions if you fall in love. Your emotions and your instincts are two different things. You should follow your instincts to recognize that you are getting a great home at a great price. You shouldn’t be obsessed with the backyard or paint color. This is an investment so be calm and wise.

Inspection is a Must

Hiring a home inspector before you buy a home is a must. This will cost you about $200, but it could save you thousands. The sole responsibility of a home inspector is to give you information that will help you make an informed decision about whether to purchase the house or not. This is the only way to obtain an impartial third-party opinion. You can use the inspection report to lower the home’s price if there are any problems.

Talk to Neighbors

Get the lay of the land before you buy. Many homebuyers are devastated when they find the wrong neighborhood and feel they have lost their dream home. To see the happenings in the area, drive by the house at any hour of the day. To make sure that it’s something you can handle on a daily basis, do your daily commute to and from the house. Locate the closest grocery store or other services. Even if you don’t have children, it is important to research schools as they can impact the value of your house.

Call Full Potential Real Estate, LLC now if you need the help of a real estate agent when purchasing a home.

Full Potential Real Estate, LLC
Myrtle Beach, SC 29577
843-236-0203
http://fullpotentialrealestate.com

home buying

A Checklist When Buying A Home

It can seem like a full-time job to find, buy, and move into a new home. A checklist of the most important and essential “to-dos” items will help you stay organized when you’re buying a home.

Tips To Know When Buying A Home

Pre-approved for a mortgage

Knowing what a lender is willing to let you borrow and at what interest rate will give you a better idea about what you can afford. Keep in mind that longer amortization periods, such as a 30-year or a 15-year mortgage, will result in higher interest rates over the course of time. If you believe rates will drop over the term of your mortgage, only choose a variable rate.

Find the right broker

While the top seller in your area might be great for buyers, it’s not enough to work with the best real estate agent. You need someone who listens to what you want and can help you find it. Do not waste your time looking at homes that aren’t right for you or your budget. Follow your instincts.

Get in touch with an insurance agent

It is important to have homeowner’s insurance. Your agent, just like your realtor should be consulted about any potential home purchase. They can help you choose the right insurance policy for your new house by providing advice about factors that could affect your insurance premiums.

Calculate your monthly expenses

You should consider not only your mortgage payments but also taxes and insurance, as well as utilities, maintenance, and cleaning costs. You should include semi-annual and annual expenses such as cleaning gutters and maintaining heating and cooling systems. While you don’t know the extent of major repairs that may be required, you can estimate how much each month will cost and whether your budget can support it. You should always leave yourself some leeway and save money for any unexpected costs when buying a home in Myrtle Beach.

Concentrate on a home inspection

Hire a reliable home inspector and take your time. The home inspector will inspect the roof, cooling and heating systems, foundation and other details. You can also take measurements and think about where you would like to place the furniture. You should be ready to think about how much you love the house, in case of the inspection results in costly repairs down the line. Depending on whether your offer was inspection-contingent, you may need to negotiate.

Trusting a mover

Talk to as many people as possible, especially family members, friends, and neighbors who have recently moved. Before you start packing, make sure you take a detailed inventory. This is especially important if you have movers to pack your stuff for you. You are giving everything to them and putting it on their truck. As is moving insurance, trust is crucial. Make sure you have insurance that covers loss and damage.

Customizing your insurance policy

After you have placed a bid on a property you will need to consult your agent about the best coverage for you. Make sure you take an inventory of all your belongings. You may also want to consider adding coverage for your home’s features like water heaters and HVAC systems. If you’re taking out a mortgage, your policy must be in place before the closing date.

A declarations page will be required by your lender to show proof of payment for the first year’s premium. Your insurance could be added to your monthly house payment along with taxes. Ask your agent about any discounts and make sure you review your policy annually to ensure that you are adequately protected in the event of unexpected life changes.

Call Full Potential Real Estate, LLC if you need the help of a professional when buying your dream home.

Full Potential Real Estate, LLC
Myrtle Beach, SC 29577
843-492-4537
https://fullpotentialrealestate.com

buying a home

Things to Do When Buying A Home

Buying a home is a major financial and personal decision for many. You can make it happen with a little knowledge. All it takes is three steps: Get ready to go, get set, and get ready!

Tips For Buying A Home

1. Get ready

Are you ready to become a homeowner? If you are motivated, you can easily find the time and energy required to buy your first home. Money is not the only thing that matters. You might not find it as daunting as you think. When you have a budget, you will know how much you can borrow and what you can afford. Then you are on your way to homeownership. These are the three steps to get you started on your journey to homeownership.

Be sure you’re credit-worthy

Your credit score is the first thing you need to know. Your credit score is a key factor in determining the amount you can borrow and what interest rate you might be eligible for on your mortgage. Make sure your credit scores are as high as they can be before you apply for a mortgage. A lack of credit history and high credit card balances may make it difficult for someone just starting out. Credit cards and unsecure debt should be paid first. Student loans and car loans are usually less problematic. This can be a huge advantage when you establish credit history by paying your student loans on time. The amount of down payment that you will need to make can be affected by your credit score.

Establish a Budget

Next, calculate how much you can borrow and what you will pay each month for a mortgage. You should create a budget that is based on your income, even if you expect an increase, and all your monthly expenses including student loans, car payments, and health insurance. Understanding that monthly mortgage payments are only a part of monthly housing expenses is important. Additional costs such as homeowners insurance, maintenance, utilities, and property taxes will need to be estimated. These will only be estimates until you find your dream home. However, accounting for these costs first will allow you to set a realistic price range.

Make a down payment

Consider your down payment. You should consider paying a downpayment of 20% of your total purchase price if you can. There are also more affordable options, which can be as low as 3.5%. The options available to you will depend on your financial situation. Consider the closing costs. You will usually pay the first year’s homeowners insurance one year in advance. The closing costs include title insurance, title fees and recording fees as well as loan origination fees. To find out how much down payment you can afford, consult a mortgage advisor as soon as possible.

2. Get set

Once you have a good idea of your budget and your borrowing power, it’s time to start making your next moves.

Get a mortgage preapproval

The first step to applying for a mortgage is to contact a lender. After you have done your budgeting, you will need to be preapproved for a mortgage. You could lose your chance of buying the house of your dreams if you wait to apply for a mortgage until you have found it. You can get a mortgage preapproval to determine how much house you can afford, what your interest rate is and which loan programs you are eligible for. Lenders will only give you the amount you can afford to make monthly payments towards your mortgage. This will help you to set your price range and speed up the mortgage application process. You can then make an offer quickly. Before you start this process, take the time to gather all of your financial documents (such as tax returns) and track mortgage rates. This will allow you to spot a good deal and get the best loan possible.

Select a mortgage lender

Find the best way to get a mortgage and secure the right option for you. Consider your current credit score, time frame, and type of home.

Find the Right House for You

Check the internet to find the right home for you. Many real estate websites will connect you with the brokers who can arrange times for you to see the homes that interest you. You will need to trust your real estate agent to guide and teach you as a first-time buyer. They will be familiar with the area and can help you negotiate a fair price for your house.

3. Go

This is the right time to move forward. After you have found the house that suits your needs, it is time to meet with your broker and make an offer.

Make an Offer

Once you have found the perfect property, make an offer to purchase it. Your real estate agent in Myrtle Beach can help you decide what price to offer. To help you make an acceptable offer, they will compile sales data and compare other local property values. The agent will also prepare an offer letter that you can submit to the seller or seller’s representative.

Closing On Your First Home

A closing date will be set once this has been completed. The closing is usually scheduled within one month of your offer being accepted. However, it may take longer to schedule the closing (which your agent can help you with). To ensure that all fees and upfront expenses are covered, it’s a good idea to consult your mortgage broker as well as your realtor before closing.

Call Full Potential Real Estate, LLC now and let us help you find your dream home.

Full Potential Real Estate, LLC
Myrtle Beach, SC 29577
843-492-4537
https://fullpotentialrealestate.com

home buyers

How Rising Fed Interest Rates Impact Home Buyers and Homeowners

After the Federal Reserve raises its rate, interest rates on mortgages and home equity loans could rise. How will this affect home buyers and homeowners?

What The Federal Reserve Did, And Why

The Federal Reserve raised its bedrock interest rate. Mortgage interest rates are likely to rise, as well as home equity line of credit rates.

The Fed increased its target rate for federal funds by 0.25% or one quarter of a percentage point. The federal funds rate is not the only interest rate. Large banks often charge a prime rate on corporate loans. It will also rise by 0.25%.

As an inflation-fighting measure, the Fed is increasing its interest rates. The Fed will likely raise the federal funds rates multiple times this year, as inflation is significantly higher than the central bank’s target.

How the Fed Rate Hike Affects Home buyers

Because mortgage rates tend to move in the same way as the federal funds rate, they are likely to increase. Mortgage rates could trend up throughout the year due to anticipated increases.

You’re good if you have signed a contract to purchase a home and locked in an interest rate. Your rate cannot be increased by the lender.

However, if you are shopping for a home right now or have plans to do so in the future, your mortgage interest rate might be higher once you receive a purchase offer. A contract is required to purchase a home. You cannot lock the interest rate.

You may find yourself shopping at a lower price if mortgage rates increase significantly well before you purchase your dream home. Higher interest fees can reduce your purchasing power.

You shouldn’t rush to purchase a home just because the mortgage rates are increasing. You should seek the help of a professional real estate agent to help you out. The rates shouldn’t be the sole driving factor in deciding whether someone should purchase a home. Rates are a factor, but financial and personal factors are more important.

How Does The Fed Rate Rise Affect Mortgage Refinancers

As interest rates rise, fewer homeowners will be able to refinance to a lower rate to reduce their monthly payments.

Not everyone refinances to cut back the payments they make per month. Many go for cash-out refinances. They refinance much more than what they owe and then take the difference in cash. This cash can be used to pay for renovations, debt consolidation or tuition.

Interest rates that are higher can reduce the amount of cash-out refinancers could afford since higher interest rates lead to higher monthly payments.

The home equity line is another option to cash out refinances. However, HELOC rates are expected to increase. Fixed-rate home equity loans will likely experience the same fate.

How the Fed Rate Hike Affects Home Sellers

If you’re a home seller, you may be taking offers seriously if they come from home buyers with a preapproved mortgage. But in order to be more comfortable and confident in the ability of a buyer to afford the house you’re selling, you need to make sure that the preapproval is based on the existing interest rates.

Why? If you accept an offer from someone who is not qualified for a mortgage loan, you will lose valuable time.

You may sell your home to someone who belongs to a higher income bracket than the one you marketed your house to initially.

Call Full Potential Real Estate, LLC if you’re looking to buy your dream home in Myrtle Beach.

Full Potential Real Estate, LLC
Myrtle Beach, SC 29577
843-492-4537
https://fullpotentialrealestate.com

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7 Steps in Buying Homes For Sale In Myrtle Beach

Buying a home for sale in Myrtle Beach should not be a long and difficult process. The home buying process should be fun and exciting for the buyer, especially if this is his first time to buy a home. Although the real estate market varies depending on the location where you are buying, there are general steps that you can follow to help make your home buying process smooth and successful.

Your Guide To Buying Homes For Sale in Myrtle Beach

1. Make an offer
As soon as you have found the best among the many homes for sale in Myrtle Beach, it is important that you immediately make yourself known to the seller. The seller should know that you are interested in buying. And you could do this by making a purchase offer and signing a legally binding real estate contract. These documents will tell the seller that you are not only interested in buying the house but that you are also committing to a home purchase transaction with the seller.

You should note, however, that the real estate contract legally binds you to commit to buying the house. Therefore, you should only do this when you are very sure about the house that you are buying. On the other hand, there are also contingencies that you can include in the contract to allow you to opt out when necessary. Some of the contingencies you may want to include are property inspection, loan approval, disclosure review, and appraisal.

2. Request disclosure documents from the seller
These disclosures will include everything that you need to know about the house you are buying and the neighborhood it belongs to. Even if you already signed and submitted a legally binding real estate contract, you can always opt out of the contract after reviewing the disclosures and finding out that the house is not that suitable to your needs.

Disclosures should include reports on problems and issues on the entire property, improvements and repairs are done on the house and necessary repairs that need to be accomplished. Often, most issues will also be discussed by the seller’s agent even before you sign the contract.

3. Have a third-party appraiser to confirm contract price
However you plan to pay for the house – whether you are considering buying it with cash or via a mortgage loan, you will need to have the house appraised to confirm the contract price. If you are buying the house through a mortgage loan, the financial institution that granted your mortgage loan will send out an appraiser to confirm the home’s contract price. Note that the appraisal value will usually affect the approved amount of your mortgage loan.

4. Prepare for the property inspection
Aside from the appraisal, you should also have the entire property inspected by a licensed and trained inspector. All buyers looking to buy homes for sale in Myrtle Beach are entitled to have that house inspected from top to bottom. Consider this as your last chance to learn everything about the house and decide whether it’s suitable for you and your family.

When having an inspector go through the house, come along and take note of the areas or parts that need repair or replacement. You can use these to further negotiate the price of the house or arrange to have the seller pay for or do the repairs before you close the deal.

5. Wait for the bank’s review of the property
The financial institution that granted your request for a mortgage loan will need time – usually about 30 days – to review the property and assess your loan application. What they will generally look at is the house’s title report and any liens recorded against or associated with the property.

6. Walk through the house for the last time before closing
This is important to make sure the house is still in the condition that you last saw it. Plus, this will also allow you to confirm whether or not the seller has appropriately completed the repairs that you have both agreed on after the inspection. You should also jot down any modifications and changes made to the house that was not there when you first inspected the house. Keep in mind that this step is necessary to ensure that you are getting the deal that you will pay for.

7. Schedule the closing
This is the last aspect of the entire home buying process. Both buyer and seller will have to sign the closing documents, either together or separately depending on how you schedule it. As the buyer, you are required to make payments on the closing day. Your real estate agent will help you to confirm how much you are required to pay before the date of the closing. This will prevent any surprises and unexpected fees to pay.

The home buying process will become much easier and less stressful if you work with a real estate agent. Give Full Potential Real Estate, LLC a call today and inquire about their professional assistance and learn more about homes for sale in Myrtle Beach.

Full Potential Real Estate, LLC
Myrtle Beach, SC 29577
843-492-4537
http://fullpotentialrealestate.com

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