Real Estate • September 10, 2017

Buying A Home with Bad Credit

by Valerie McKean

When it comes to buying a home, having bad credit is not the end of the world. Your future doesn’t have to be defined by your past. Whether you have suffered from a bankruptcy, foreclosure or some type of financial hardship that resulted in late or missed payments, there are lenders who specialize in financing for those with less-than-perfect credit. You will likely have to produce a larger down payment and/or pay higher interest rates than someone who has good credit, but the important thing to know is that buying a home is an option for you.

Bankruptcy & Foreclosure

If either a bankruptcy or foreclosure is on your credit report, it could take some time before you can qualify for a good interest rate on a mortgage. FHA loans, which are especially desirable for those with past credit problems and first-time home buyers, are backed by the government and offer a low down payment and interest rate option for those who qualify. Although the notation remains for up to 10 years, individuals with a bankruptcy or foreclosure on their credit report may qualify for an FHA loan after two years. Some mortgage lenders may approve a loan sooner, but the interest rates will be higher and the required down payment may be as much as 35 percent of the purchase price of the home.

Cleaning Up Your Credit

Even if you have bad credit, it’s important to check your credit report from each of the three major credit reporting agencies – TransUnion, Equifax and Experian – before applying for a loan. If anything is inaccurate, file a dispute with the reporting agency and request a correction. You can request a free copy of your credit report every 12 months from each agency. Go to www.AnnualCreditReport.com. Spread it over the year, apply for one every 4 months, for example in January get Experian, in May get TransUnion and in September get Equifax. Doing it this way you get a picture throughout the year, not just a snapshot once a year. This report will not give you your credit score, however that can be obtained from www.CreditKarma.com for free.

In addition to correcting any inaccuracies on your credit report, it’s important that you know what can help or hurt your chances of obtaining a loan. You can start improving your credit by avoiding the temptation to apply for new credit right before submitting a mortgage application. Multiple inquiries will cause your FICO score to drop, and lenders will rely on this information when deciding whether or not to issue your loan and how to calculate your interest rates. With past credit problems, most lenders will
want to see that you have rebuilt your credit history with 1-3 major credit cards and timely payments over a two-year period.

Money Matters

When it comes to obtaining a home loan, a healthy bottom line will help the lender to see you as being creditworthy. It’s important that you have sufficient income, along with the ability to prove steady employment for at least one year (longer is better) preceding your loan application. Most lenders will request a copy of your tax returns for the two most recent years, along with current pay stubs. If you have money for a down payment, this will also work in your favor.

Creative Financing

In some cases, a conventional mortgage loan may not be available no matter how hard you try. Owner financing is one way that individuals, who may not otherwise qualify for a traditional mortgage loan, can purchase a home. This type of financing is offered by the owner and may include interest rates comparable to other loans, flexible down
payment options and no credit check. Your REALTOR® can assist you in finding homes that offer alternative financing options.

The following websites have additional information and offer help and advice:

www.hud.gov – The US Government website for Housing and Urban Development. Find out what programs may be available in your state.

www.annualcreditreport.com – Get your free annual credit report from each of the 3 agencies.

www.creditkarma.com – Get your free credit score.

www.OptoutPrescreen.com – Is the official website for the Consumer Reporting Industry. Opt in or out of credit companies sending you offers.

www.mint.com – Get help organizing and keeping track of your finances.

Valerie McKean GRI, ABR

Owner/Broker
Century 21 Sterling Real Estate

REALTOR®

www.pinehursthomes.com

valerie@pinehursthomes.com

Tel: 910-430-9494

September 10, 2017

Real Estate • September 2, 2017

Getting Your Home Ready to Sell

by Valerie McKean

You would never dream of inviting guests to your house without making certain preparations, so don’t invite potential buyers without first making the necessary updates by preparing your home to sell. If you are like most sellers, you want to get as much as possible for your home and you want to do it as quickly as possible.

Letting Go

After you’ve lived in a house, it becomes much more than four walls and a roof. It’s a home and it has a lot of good memories. Your first step to preparing your home to sell is to realize that you will take these memories with you wherever you go, but you won’t be taking the house. It can be difficult to let go, but the task will be much easier if you start to think of it as a new beginning rather than an ending.

Cleaning House

An important part of getting your home ready to sell is in staging the decor for potential buyers. When you stage a home, you create an environment that is free of any personal items, such as photos and/or anything that stands out as being customized for you or your family. When a potential buyer walks through your home, they need to envision their belongings and decor without being distracted by yours. While these items may be special to you, they could possibly prevent the buyer from being able to imagine their own style complimenting the home.

In addition to removing any personal items, make sure that you remove any clutter from the home. A clean home seems larger and more inviting,
whereas a lot of stuff lying around could give the impression that the home is too small or cramped for storage. Pack up any knickknacks, remove your children’s drawings from the refrigerator and clean up your counter space in both the kitchen and bathrooms.

Staging Your Home

Now that your house is clean, it’s time to put the finishing touches on the staging process. A solid, neutral shade in a tablecloth should be selected for the dining room table. Depending on your decor and wall coloring, a solid white, sand or ivory covering will work well. In the center of the table, a vase with fresh cut flowers (or silk, if you have allergies) will add a nice accent. Did you know that the kitchen and bathroom are two of the main selling points to any home? Keep this in mind when preparing your home for potential buyers.

The living room should have one focal point, whether it be a fireplace or breathtaking view of the outside world. If you have too many features
screaming out at potential buyers, they may feel overwhelmed, so focus on one aspect and make it shine. If you have a mantle, line it with three candles that match your decor in color. Place a large candle in the center with one smaller one on each end, which will be reminiscent of a perfectly matched bookend set. A home with a stunning view should have window dressings that accent the positive, instead of hiding it. If your furniture has a design of any kind, mask it with a solid slipcover to compliment the flooring or wall color. Some homeowners also add a fresh coat of paint to their home, which will bring life back into a fading color. Turn on the lights and open the blinds and draperies to create a bright and inviting environment throughout your home.

Where To Store Your Stuff

Now that you know how important it is to remove any clutter and oversized or bulky furniture, you need to know where to put it. If you already have a new home, you can simply move it there. Otherwise, you can put it into storage until you are ready to move. It’s important to leave some essentials in
your former home for potential buyers to see, such as a dining room table, a sofa and chairs, bed, etc. Any additional furnishings that seem to interrupt the flow of your home, or make it feel cramped, should be removed. You do not want potential buyers to feel as though the house is too small.

Details, Details, Details . . .

As a final strategy to prepare your home to sell, make sure that you have any carpet stains removed, windows cleaned, fresh linens placed in the bedrooms and bathrooms, etc. Is the grout in your tile grimy? If bleaching it doesn’t work, replacing the grout and caulk is a cheap yet effective way of freshening up a kitchen and bathroom, don’t forget a nice new shower curtain as well. New faucets can also provide a relatively cheap facelift and give a good impression of a house well maintained. You would be surprised how many people pay attention to even the smallest of details, so be sure to fix any small repairs that could be a turnoff for buyers. Last but not least, make sure your home looks just as good on the outside as it does on the inside. This means that your lawn should be cared for, flower beds must be maintained and any outdoor clutter must be removed.

Valerie McKean,
Owner/Broker
Century 21 Sterling Real Estate
95 Market Sq. Suite 2B
Pinehurst, NC 28374
Tel: 910-430-9494
valerie@pinehursthomes.com
www.pinehursthomes.com

Real Estate • September 2, 2017

Avoid The Most Common Mistakes When Selling Your Home

by Valerie McKean

Here are the most common mistakes people make when selling their property.

The Home Is Priced Too High

This will certainly turn buyers off, and you may have to make several contingencies or offer incentives in order to get buyers even interested in making an offer. While you may feel your home is special, asking more than the fair market value will usually get you nowhere. If the buyer needs a mortgage, the house may not appraise for the inflated price, therefore the buyer may not be able to get a mortgage and the sale will potentially fall through.

Today’s buyers access the internet to search for property within a broad price range and large geographical area. Many homes included in the search may not be directly comparable, but will however be competition for your home.

Poor price positioning will make a property linger on the market, appear shopworn and reduce the ability of the seller to negotiate. If a house has been on the market for a long period of time, clients will always ask me “What is wrong with it”? It immediately casts doubt into their mind as to the suitability of the house.

Consider also the way people search on the internet. It is often in increments of $25,000 or $50,000. So, let’s say you list your house for $199,500, that would mean that anyone searching in the $150,000 to $200,000 range would find your home. But, what about the people searching in the $200,000 to $250,000 range? They won’t find it, therefore you effectively just reduced your potential buyer base by half.

A good REALTOR® will know the local market and will be able to provide you with all the current market data to help you make an informed decision as to where to position your home for sale relative to all the other properties available for sale in your area.

The Home Is In Bad Condition

While your home in its current condition may work for you and your family, if there are obvious repairs that need to be made, or it is terribly outdated, fixing these problems will not only make it easier to market your home, but will also increase its value. In most cases this increase will be
considerably greater than the money you put into making the changes. Not everyone wants a “handyman special” and the condition may also affect an appraisal.

Your REALTOR® will be able to offer you sound advice as to what needs to be done to showcase your home to the best possible advantage. It may be something as simple as a new coat of paint for your front door, or it could be shampooing the carpets, weeding the flower beds or a new shower curtain and tile grout.

Packing away all your personal items has two effects. Firstly, it allows potential buyers to visualize their personal things in the house without any distraction and secondly it allows you to start the emotional journey of saying goodbye to your home.

The Home Is Being Marketed Incorrectly

When selling your home, there are no guarantees that the ultimate buyer will simply walk through the front door. In most cases you will have to
bring your home to the buyer. Effective marketing will help ensure that your property receives maximum exposure to attract a ready, willing, and able buyer in the shortest period of time.

Your REALTOR® should be able to provide you with a good 30 day marketing plan that will bring in qualified buyers, and include at least some of the following:

Market to other active REALTORS® via a multiple listing service.

Conduct an Open House Tour for other brokers.

Conduct at least one Public Open House

Market to other active REALTORS® via regular
e-blasts to ensure front of mind.

Distribute full color fliers.

Send out just listed postcards.

Global marketing on Company website.

Custom website for property.

Video tour of home for website.

Aerial photography/video for website.

By adhering to the advice in these simple tips, you can avoid the biggest mistakes homeowners make when selling their homes, and the
process will be smoother and more profitable in the long run.

Valerie McKean,
Owner/Broker
Century 21 Sterling Real Estate
95 Market Sq. Suite 2B
Pinehurst, NC 28374
Tel: 910-430-9494
valerie@pinehursthomes.com
www.pinehursthomes.com

September 2nd 2017

Real Estate • September 2, 2017

What a REALTORⓇ Can Do For You As A Buyer

by Valerie McKean

When we think of selling a home, the services a REALTOR® can provide usually seem worth the cost of their commission, but what about as a buyer? What can a REALTOR® do for you as a home buyer? Here are five great reasons you should hire a REALTOR® when you are in the market for a new home!

1. REALTORS® Can Help You Determine Your Budget. With a few simple pieces of information, a REALTOR® can help you pre-determine what kind of budget you may be looking at for your new home, and can match you with potential lenders that are right for you.

2. REALTORS® Have Access To Resources You Don’t. While a lot of real estate listings are available online, there are still resources and listings that are only available through a REALTOR®. If you are looking for something very specific, having their insider knowledge may be crucial to finding that perfect home.

3. REALTORS® Can Read Between The Lines Of Listings. There are a lot of catchy phrases that often appear in home listings, and your agent cantell you what they really mean.

4. REALTORS® Increase Your Negotiating Power. A REALTOR® cannot only increase your ability to negotiate things like price, they can also give you advice and help guide you though the contracts and required paperwork. A good REALTOR® should assist you with all aspects of purchasing a home, whether it is helping to co-ordinate inspections and surveys or working closely with you and your mortgage provider to ensure everything is ready by your closing date.

5. A REALTOR® Can Help You Navigate Through The Closing Process. The closing process can be complicated and a REALTOR® can make sure all the details are addressed.

Purchasing a home is a huge financial investment, and having a professional REALTOR® looking after your interests through the process is important.

Valerie McKean
REALTOR®
Sandhills Luxury Homes
valerie@pinehursthomes.net
www.pinehursthomes.net
Tel: 910-420-0505
August 20th 2017

Real Estate • September 2, 2017

The Benefits of Home Ownership

by Valerie McKean

The decision to purchase a home is exciting and a major investment for your future. Because there is only so much of it to go around, real estate is the top choice for many investors and the desire for most families. This article is designed to highlight some of the many benefits of home ownership and how buying a home can often turn the
American Dream into a reality.

One of the most profitable markets in real estate is rentals, which means that many families are paying to live in a home that isn’t their own. In some cases, renting a home is necessary. For all others, the money that would be spent on rent could instead be used to pay a mortgage. In fact, monthly rent payments often exceed that of a typical
mortgage payment. One of the greatest benefits of home ownership is putting money into something that you can call your own and knowing that the monthly payments are going toward your home’s equity.

Speaking of equity, many properties experience a growth in value as more development moves into the area or the economy strengthens through an increase in job opportunities. If this happens, home values soar and owners can bask in the glory of their newfound profit. When you purchase a new car, it depreciates the moment that you drive off of the lot. When you buy a home, however, it has the potential to appreciate year after year. There are few things in life that can offer you a return above and beyond your original purchase price, but a home can.

When you own a home, you will enjoy the freedom of decorating and making any changes that you choose without needing the permission of a landlord or property owner. In addition, you may even be able to use your home’s equity to finance some needed improvements and/or repairs. In some cases, these changes may even increase the value of
your home. An upgraded kitchen or bathroom, hardwood flooring or an additional room are examples of changes that could result in added value.

Another advantage of home ownership is the tax benefits that are available. The interest paid on a home mortgage as well as most property taxes paid are tax deductible. For additional information on deducting mortgage interest and property tax, consult the IRS or a tax professional. In addition to providing yourself and your family with a feeling of stability and permanence, home ownership can also help strengthen your credit profile through timely mortgage payments and a steady financial history.

Valerie McKean,
Owner/Broker
Century 21 Sterling Real Estate
30 Chinquapin Rd
Pinehurst, NC 28374
Tel: 910-430-9494
valerie@pinehursthomes.com
www.pinehursthomes.comAugust 13th 2017

Real Estate • September 2, 2017

Buying vs Renting a Home

by Valerie McKean

When it comes to a home, you have two options: buy or rent. What is right for one person may not be right for another, which is why it’s important to know which is the best option for your individual situation.

Why People Rent

There are a number of reasons why someone may either choose or be forced to rent, including sporadic or unpredictable income, a high debt-to-income ratio, a bankruptcy or foreclosure within the last six months, unpaid collection accounts or judgments, frequent relocating for employment or the inability to save enough money for a required down
payment on the purchase of a home.

Maintenance Matters

As a homeowner, you will be responsible for any maintenance or repair issues that arise. This is a big consideration when choosing whether to rent or buy. When you rent, the property owner is responsible for repairs and it may not always be obvious that these issues can be very costly.

How To Know When It’s Time To Buy

If you have steady income with a good employment history, can provide a down payment of at least 5-10 percent of the purchase price and are current with all debts, it may be time to consider buying a home instead of renting. In some cases, the cost of rent may even exceed that of a typical mortgage payment.

When deciding to buy, job stability is a big factor. If your job does not require frequent relocation and you plan to live in the home for at least 5-10 years, you may want to consider making the purchase. If you need to relocate after that, you may have enough equity from the sale to use as a down payment on another home.

Home Buyer’s Checklist

If you can answer yes to the following questions, you may be ready for home ownership. Your REALTOR® can help you to find the perfect home based on your individual needs.

Have you been steadily employed for at least one year, but preferably two years?

Do you plan to live in the home long enough to build equity?

Can you provide a down payment and still have enough money left to pay for closing costs, utilities and home furnishings?

Are you current on all debts, including auto loans, credit cards, etc.?

In addition to any current debts that you may have, can you afford a monthly mortgage payment which will likely include property taxes and
insurance?

Do you have the time to devote to shopping for a home and comparing interest rates from various lenders?

Have you checked your credit reports for inaccuracies and disputed anything that needs correction with each of the three major credit reporting agencies?

The decision to buy or rent is a very personal one that can only be determined after a careful evaluation of your situation. A REALTOR® can show you the perfect home and a lender can tell you whether or not you can afford it, but it’s up to you to make the choice as to whether or not you are ready to make the move.

Valerie McKean,
Owner/Broker
Century 21 Sterling Real Estate
95 Market Sq. Suite 2B
Pinehurst, NC 28374
Tel: 910-430-9494
valerie@pinehursthomes.com
www.pinehursthomes.com
August 17, 2017

Buying A Home with Bad Credit

Getting Your Home Ready to Sell

Avoid The Most Common Mistakes When Selling Your Home

What a REALTORⓇ Can Do For You As A Buyer

The Benefits of Home Ownership

Buying vs Renting a Home

Home

Properties

About Me

Blog

Neighborhood News