Tag Archives: home buying & selling

Tips for Buying a Home in the Current Housing Market

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If you are currently in the market for a home, you are probably well aware that the nationwide housing inventory is at a record low, and the shortage is causing a problem for many prospective buyers. The current market can even create problems for sellers, because sellers still need to live somewhere after they sell their home. Between bidding wars, cash purchases, and low available inventory – here are a few strategies to help you navigate the current housing market.

Know where you stand. Being aware of your credit score, borrowing power, and housing budget is the key to security in today’s market. Sit down with your lender, financial planner, or real estate agent to talk about realistically, what can you afford. It’s especially important to know exactly how high you can go in a bidding war, because homes are often selling above value and at record speed.

Get expert advice. A real estate agent familiar with the current housing market conditions can advise you when homes you’re looking at are priced too high, and provide tips and leads you normally wouldn’t be able to get on your own. Agents who are familiar with your target neighborhood may know of possible pocket listings too – homeowners who may want to sell without putting their house on the market. In these instances, you may be able to get a home before the competition ever finds out.

Be first in line. The competition is definitely heating up these days. If you want a home badly enough, you’ll have to be ready to put in an offer as soon as the home is listed. Even if the seller decides to let the public bid on their home, if you’re prepared – you’ll get a chance to tour the home as soon as it’s listed if your buyer’s agent is active in the local area, and be one of the first bids in.

Get pre-qualified by your lender before you shop. Having pre-qualification paperwork to present when you place your offer is impressive to a seller and will get you a step ahead of the process in normal market conditions. In today’s market, having proof that you can afford the home you are bidding on is the bare minimum. Right now being pre-approved for a certain amount is very important in terms of competing offers. You’ll also want to be sure you can provide proof of where the down payment is coming from too.

Show that you want it, but don’t get too caught up in a bidding war. It’s tempting to keep placing higher counter offers if you’re outbid on a house that you love, but don’t let your emotions get the best of you. Stick to your budget and it’s okay to bow out if bids increase drastically above value. You can also send a letter to the owner as well. This tactic frequently works. Sellers are often emotionally attached to their homes and memories they’ve made in it, so it may help your offer get selected by letting them know just how much the home would mean to you and your family.

In the end, you may just have to be patient and try not to get discouraged. You don’t want to get stuck with a mortgage you can’t afford either, and eventually – the housing market will normalize again. When that does happen, you’ll be happy you held out for a home you could comfortably afford.

When you’re ready to take that leap – come talk to First Financial. Take advantage of our great mortgage and refinance rates, easy application process, and we’ll help you get pre-qualified before you shop.* Give our lenders a call, they’ll be happy to answer your questions with no commitment required!

*Subject to credit approval. Credit worthiness determines your APR. Rates quoted assume excellent borrower credit history and are for qualified borrowers. Your actual APR may vary based on your state of residence, approved loan amount, applicable discounts and your credit history. Higher rates may apply depending on terms of loan and credit worthiness. Available on primary residence only. The Interest Rates, Annual Percentage Rate (APR), and fees are based on current market rates, are for informational purposes only. Mortgage insurance may be required depending on loan guidelines. This is not a credit decision or a commitment to lend. If mortgage insurance is required, the mortgage insurance premium could increase the APR and the monthly mortgage payment. See Credit Union for details. A First Financial membership is required to obtain a mortgage and is open to anyone who lives, works, worships, or attends school in Monmouth or Ocean Counties.

Article Source: Moneyning.com

Unfortunate Home Improvements

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Home-Improvement-ProjectHome improvement projects can be a lot of fun — and sometimes add value to your home — but are they worth the money they cost? If you have plans to one day move out of your home (or even if you don’t), you should consider how the project impacts the resale value. Below are some home improvement projects that are typically not worth the cash.

A new pool. We can’t blame you for wanting a pool. However, keep in mind that the cost of installing one and then maintaining it is quite high. Also, if you’re planning on selling down the road, remember that some buyers could be turned off by a pool, like parents with small children.

Extensive customization. While a lot of people might like a kitchen backsplash, the type of backsplash makes a big difference. You shouldn’t go overboard customizing (particularly if you’ve got unusual taste), because if you do, you could risk alienating buyers down the road.

Half measures. If you can add a bedroom, great. Those often are worth the money. However, don’t add square footage to your home in bits and pieces. Eventually the home will look disjointed, and buyers typically want a home that flows well.
Taking away a bedroom. Buyers will want a certain number of bedrooms, so try to avoid converting them when considering altering your space.

First Financial’s Home Improvement Loan is designed to help you create the home you’ve been imagining. It’s time to move your “wants” to the top of your to-do list.*

*Available on primary residence only. A First Financial membership is required to obtain a Home Improvement Loan and is open to anyone who lives, works, worships, volunteers, or attends school in Monmouth or Ocean Counties. See credit union for details. Rate will vary based off of applicant’s credit rating. Not all applicants who apply will be approved, subject to underwriting guidelines and credit approval. Visit firstffcu.com for additional information.

The Best Times to Buy, Sell, or List a Home

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selling-home-vegasA common question from a buyer or seller is: what is the best time to buy or sell a home?

In the clothing world, it makes sense to get the best “deal” on winter clothes at the end of winter and that you likely will pay top dollar for a swimsuit when it’s warmer. Does the same trend hold true for real estate purchases and sales? Not really. But there are some considerations a buyer or seller should make as they enter the market that could have an impact on the transaction.

Spring and fall are better times for buyers.

Let’s be clear. You can’t ever time a home purchase. Buying a home isn’t like buying a car or an iPad. The home buying process is a journey, one that happens on your own time and only after you’ve done enough research, seen enough homes, and have your financial house in order.

At any one time there is a brand-new buyer entering the market and then another who has done enough research and becomes a very serious buyer. Nobody can control the evolution, but something for a buyer to consider is that real estate inventory tends to fluctuate by season. Each spring and fall we tend to see an increase in home inventory, and more inventory means more options for buyers.

Holidays and winter are the best times for sellers.

It’s not conventional for a seller to list their home before the holidays or in the dead of winter for obvious reasons, but serious buyers don’t care about the season or timing. At any one point of the year, there will be a very motivated, experienced buyer ready to make an offer, no matter the season. There have been contracts written on Thanksgiving, escrows closed on New Year’s Eve and there are even serious buyers who have made offers using DocuSign from a beach in Hawaii.

Sellers believe that it’s more conventional to list for the spring “selling” season and then again after the summer. If you go the conventional route, you will see more competition. If you can sell “off season,” you might fare better because there are still serious buyers, but less homes for sale.

Best time to list a home.

The Sunday open house, particularly the first Sunday of the month, is the holy grail of real estate.

For decades, agents and sellers worked hard on a listing with a deadline being the first open house. The “for sale” sign, which made the listing official a generation ago, would go in front of the house days leading up the first open house. In the digital age, the listing goes “live” online.

Sellers and agents work hard to clean, paint, or prep the home in time for the photo shoot. Agents and sellers tend to rush to the finish and you will see many listings hit the market late Thursday afternoon or Friday morning, with Sunday being the first showing. Instead, try listing on Monday or Tuesday and don’t do any showings until the open house on Sunday. You can build momentum and have a very strong first open house.

As much as buyers and sellers try to strategize the timing of a real estate purchase or sale, it’s never that easy. Unlike Macy’s or Target, who control inventory and monitor competitive activity, there isn’t one seller in real estate. Sellers are unrelated and disconnected and the types of homes are different making it nearly impossible to “time” a purchase or sale.

If you’re looking to purchase or refinance a home, First Financial has a variety of options available to you, including 10, 15, 20, and 30 year mortgages. We offer great low rates, no pre-payment penalties, easy application process, financing on your primary residence, vacation home or investment property, plus so much more! For rates and more information, call us at 732.312.1500, Option 4 for the Lending Department.*

First Financial also offers a Mortgage Rate Text Messaging Service so you can receive updates on our low Mortgage Rates straight to your mobile phone. You can subscribe to our Mortgage rate text message service by signing up for text alerts, and receive instant notification when our mortgage rates change.**

*APR = Annual Percentage Rate. Subject to credit approval. Credit worthiness determines your APR. Rates quoted assume excellent borrower credit history and are for qualified borrowers. Your actual APR may vary based on your state of residence, approved loan amount, applicable discounts and your credit history. Higher rates may apply depending on terms of loan and credit worthiness. Minimum mortgage loan amount is $100,000. Available on primary residence only. The Interest Rates, Annual Percentage Rate (APR), and fees are based on current market rates, are for informational purposes only. Rates and APRs listed are based on a mortgage loan amount of $250,000. Mortgage insurance may be required depending on loan guidelines. This is not a credit decision or a commitment to lend. If mortgage insurance is required, the mortgage insurance premium could increase the APR and the monthly mortgage payment. See Credit Union for details. A First Financial membership is required to obtain a Mortgage and is open to anyone who lives, works, worships, or attends school in Monmouth or Ocean Counties.

**You must check the Text Message Signup box when registering in order to receive rate change text messages.+ If you do not receive an automated confirmation message after enrolling, please text “Yes” to (201) 808-1038

+The Text Message Signup box must be checked in order to receive text messages. Standard text messaging and data rates may apply.

Mortgage Market Seminar Summary

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mon125027-resized-600Recently, First Financial hosted a free Mortgage Market Seminar. The seminar was intended for anyone looking to buy or sell a home in the current state of the economy. Those in attendance were provided with detailed descriptions of the home buying and mortgage application process as well as advice on how to choose a realtor and lending institution.

The presentation began with an overview of the home buying process and emphasized that it is important not to be intimidated by the long process or be worried about credit score. By finding and choosing the right financial institution with an appropriate lending product and a realtor that one feels comfortable with, this process can be much easier. In order to choose the right financial institution, it is necessary for one to understand all the costs of owning and maintaining a home and determining how much he or she can afford. Some of the most common expenses of owning a home are the mortgage payments covering principal and interest, taxes and insurance, and upkeep. It is recommended that homeowners also set aside a reserve of cash for unforeseen expenses or emergencies.

Once a financial institution has been found, the potential home buyer needs to be approved. The difference between pre-approval and pre-qualification is that the first is a formal commitment from the lender and requires verification of income, funds on deposit, and credit report. When choosing a realtor and attorney, it’s recommended you choose someone with whom you are comfortable with and not make a decision based solely on fees.

No one should ever allow themselves to be persuaded into an agreement or contract about which they feel doubtful or uncomfortable with. It’s also encouraged to ask for closing credits and make your purchase offer contingent upon things such as affordable financing and satisfactory home inspection.

On that note, it is highly recommended that potential home owners have the house inspected. It might cost you a few hundred dollars now, but it gives peace of mind and might potentially save you from thousands of dollars in costs that could have accidentally been overlooked.

The seminar concluded with describing the differences between a fixed and an adjustable rate and closing costs. If you or anyone you know has any questions regarding a mortgage or a future seminar at First Financial, contact us.