Getting the Best Mortgage for your Home Purchase
For many people, homeownership is a dream that requires careful planning and financial preparation. One of the biggest considerations is the mortgage, the loan that is used to purchase a home. Getting a home mortgage can be a complex process, but it is an essential step in achieving the dream of owning a home.There are many different types of home mortgages available, each with its own set of advantages and disadvantages. The most common types of mortgages include fixed-rate mortgages, adjustable-rate mortgages, and government-backed loans. The type of mortgage that is best for you will depend on your specific financial situation and your preferences.
Fixed-rate mortgages are the most straightforward type of mortgage. With a fixed-rate mortgage, the interest rate remains the same for the duration of the loan, which is typically 15, 20, or 30 years. This type of mortgage offers stability and predictability, making it a popular choice for many homebuyers. However, fixed-rate mortgages typically have higher interest rates than adjustable-rate mortgages.Adjustable-rate mortgages, on the other hand, have interest rates that fluctuate based on market conditions. These mortgages typically start with lower interest rates than fixed-rate mortgages, but they can increase over time. Adjustable-rate mortgages are a good option for people who expect their income to increase over time or for those who plan to sell their home before the interest rate increases.
Government-backed loans are another option for homebuyers. These loans are insured by the government, which reduces the risk for lenders and allows borrowers to get a loan with a lower down payment and lower credit score. Some examples of government-backed loans include FHA loans, VA loans, and USDA loans. These loans are designed to help people who may not qualify for a traditional mortgage.
Once you have determined which type of mortgage is best for you, the next step is to find a lender. There are many different lenders to choose from, including banks, credit unions, and online lenders. It is important to shop around and compare rates and fees from multiple lenders to find the best deal. When applying for a mortgage, lenders will look at several factors to determine whether you are eligible for a loan. These factors include your credit score, income, debt-to-income ratio, employment history, and assets. It is important to be prepared to provide documentation of these factors, such as pay stubs, tax returns, and bank statements.
One of the most important factors that lenders consider is your credit score. Your credit score is a number that is based on your credit history and can range from 300 to 850. A higher credit score indicates that you are a lower risk borrower and can qualify for lower interest rates. If you have a low credit score, it may be worth taking some time to improve your credit before applying for a mortgage.
Another factor that lenders consider is your debt-to-income ratio. This is the percentage of your income that goes towards paying off debt, including credit cards, car loans, and other loans. Lenders typically prefer a debt-to-income ratio of 43% or less, although some lenders may be willing to work with borrowers who have a higher ratio.
When applying for a mortgage, it is important to be honest and transparent with your lender. If you have any concerns or questions about the loan process, it is important to ask your lender for clarification. Once you have been approved for a mortgage, make sure to carefully review the loan agreement and ask any questions before signing. Getting a home mortgage can be a complex and potentially stressful process, but it is an essential step in achieving the dream of homeownership. By understanding the different types of mortgages available, shopping around for the best rates and fees, and being prepared to provide documentation, you can increase your chances of getting approved for a mortgage.
Once you have gotten a home mortgage, it is important to maintain good financial habits. This includes making your payments on time, keeping your debt-to-income ratio low, and avoiding taking on additional debt. By staying on top of your finances, you can enjoy the many benefits of homeownership, including building equity and having a place to call your own.
In conclusion, getting a home mortgage requires careful consideration and preparation. By understanding the different types of mortgages available, finding the right lender, and being prepared to provide documentation, you can increase your chances of getting approved for a loan. Once you have gotten a mortgage, it is important to practice good financial habits to ensure that you can enjoy the many benefits of homeownership for years to come.
Written by Polly Leadbetter, License Partner & Managing Broker of Engel Völkers Foothills
Contact Engel & Völkers Foothills for your next real estate transaction. Serving Burke, Caldwell, McDowell and surrounding areas. We have two convenient locations in Morganton and Nebo.
3053 NC 126, Morganton, NC 28655
7298 South Mountain Institute Road, Nebo, NC 28761
828.584.9999
www.foothills.evrealestate.com
EV on Tour: Santa Margherita - Portofino, Italy
One of the many great things about being apart of the Engel & Völkers Family is the global connections! Almost everywhere you go, there is bound to be an Engel & Völkers Shop in close proximity. Our EV on Tour blog features agents & clients from Engel & Völkers Foothills that have travelled within the States and internationally to visit Engel & Völkers shops.
Earlier this month, one of our past clients was touring Italy. When they were walking down street in Santa Margherita Ligure and saw the Engel & Völkers sign, they immediately sent a picture to one of our license partners! We were super excited to know that once they saw the Engel & Völkers brand they though of us! They said the shop was in a great location and the the view of the water was incredible!
If you're traveling abroad or nationally and come across an Engel & Völkers shop, snap a picture and send it to us!
If you are looking to buy or sell, give our office a call today for your next real estate transaction! Our local advisors have the knowledge and expertise to help guide you through a smooth process.
Engel & Völkers Foothills
828.584.9999
www.foothills.evrealestate.com
EV on Tour - Turks & Caicos
One of the many great things about being apart of the Engel & Völkers Family is the global connections! Almost everywhere you go, there is bound to be an Engel & Völkers Shop in close proximity. Our EV on Tour blog features agents & clients from Engel & Völkers Foothills that have travelled within the States and internationally to visit Engel & Völkers shops.
Back in March, one of our real estate advisors, Dianne Reihl, took a trip to Turks & Caicos! Of course, she had to locate the Engel & Völkers Shop there and take a picture. Dianne thoroughly enjoyed Turks & Caicos and said she can't wait to visit again in the future!
If you are looking to buy or sell, give our office a call today for your next real estate transaction! Our local advisors have the knowledge and expertise to help guide you through a smooth process.
Engel & Völkers Foothills
828.584.9999
www.foothills.evrealestate.com
Real Estate Stats for Burke and McDowell Counties - April 2023
Check out the local real estate market update for Burke and McDowell counties for April 2023. Each report provides key metrics such as number of new listings, average closed sales price, days on the market and much more.
Burke County - April 2023 Report
McDowell County - April 2023 Report
Contact Engel & Völkers Foothills if you have questions regarding the market report. Our local advisors are available to assist with any questions or concerns and go over the report in full detail.
828.584.9999
www.foothills.evrealestate.com
*All data in the reports is supplied by Canopy MLS.
What is Real Estate Commission?
Real estate commission is a fee pad to a real estate brokers for their services in helping clients buy or sell a property. This fee is typically a percentage of the sale price of the property and is paid by the seller at the closing of the transaction.
Real estate brokers provide a range of services to their clients. When selling your home, the commission should cover everything you're expected to pay your real estate agent. There should be no additional fees. The real estate commission will cover a myriad of things, including:
- Putting your home in the Multiple Listing Service
- Professional photography
- Adding your property to the top websites buyers visit
- Creating a marketing plan
- Providing marketing materials such as color brochures
- Sending out postcards and other marketing material
- Coordinating showings and feedback from them
- Negotiating offers, home inspections and other transactions
- Communicating with client throughout transaction
- Staying in touch with multiple parties, including the other agent, mortgage broker, attorneys and other involved parties
- Helping with any vendors needed to make the sale go smoothly
It is important to note that the commission is typically paid by the seller, not the buyer. There are some circumstances where a buyer may pay a real estate agent. For example, if you are working with a buyer's agent and they find you a home for sale by owner, you might need to pay the agent, Some FSBOs will not pay a real estate agent's commission. This buyer agent will ask the buyer to pay them a few in cases like this one. Technically, a buyer can make an offer less the commission the seller would typically have paid, so they are not taking the money out of their own pocket. If a buyer's agent agreement is signed, the agent may also expect a certain percentage from the sale. For example, an agent may have in their contract that they need to be paid 2.5 percent of the sales price. IF the seller only offers a 2 percent co-broke fee, the buyer would be expected to make up the half percent difference.
The commission rate can vary depending on a number of actors, including the location of the property, the type of property being sold, and the level of services provided by the agent or broker. In most cases, the commission rate is negotiable, but it is important to remember to understand that the commission is not set by law and can vary from one agent to another.
As an example, a commission rate may be between 5% and 6% of the sale price of the house. This amount is split between the buyer's agency and the seller's agency. So, if you sell a home for $500,000 with a 5% commissison, your real estate agent is not walking away with $25,000. They are not even walking away with $12,500 because they will have a commission split with their broker also.
Without a doubt, a real estate agent commission is a significant amount of money. It is essential to get value from what you are paying. Real estate brokers do not get paid until they successfully close the sale for you, so they want to do the best job for their client. Make sure you choose a broker with experience and a track record of success above all else. In real estate, you truly get what you pay for.
Written by Polly Leadbetter, License Partner & Managing Broker of Engel Völkers Foothills
What's your Home Really Worth?
Considering Selling Your Home?
What’s your home really worth? Selling your home or land is personal. Do you reside in Western North Carolina? Maybe Marion, Morganton, Old Fort, Hickory, Lenoir or Lake James? Engel & Völkers Foothills can help you determine the true value of your property. With our unique global network, we have access to a great number of potential buyers. Our marketing efforts are aimed at selling your real estate promptly and for the best possible price. With Spring officially here, it is a great time to get your property listed.
Submit your contact information below for a complimentary market analysis to know the real value of your property is today’s market. Once you submit your information, one of our Engel & Völkers Foothills real estate advisors will reach out soon.
If you have any questions about buying or selling real estate, give our office a call at 828.584.9999 to speak with a local advisor.
Complete Guide to Selling Your Home
Expert tips to prep, stage and sell.
Whether it’s your first time selling a house, or this is another move within your property journey, the key to an optimal experience is partnering with the best.
With Engel & Völkers, you’ll enjoy:
- Expert real estate advisors with extensive local knowledge.
- Access to the most robust real estate market data available.
- Exposure to potential buyers around the world.
- Customized marketing strategy developed for your property and more.
The Home Sellers Guide
You may be wondering: how can I make the most of this unprecedented real estate landscape. Look no further than Engel & Völkers Home Sellers Guide. The key to an optimal experience is partnering with the best in the business.
What to Expect Inside
Industry experts have reiterated the importance of capitalizing on the current seller’s market. We would be remiss to see your home sell for a lower price than it could with Engel & Völkers’ bespoke selling strategy. Prepared with the strength of an advisor’s local expertise and the reach of our global network, your home’s listing could be on the precipice of the most innovative selling strategies out there from revolutionized staging practices to the most up-to-date digital marketing methods. With the Sellers Guide and an Engel & Völkers advisor, your strategy will encompass:
- Extensive local knowledge and expertise.
- Access to the most robust real estate market data available.
- Exposure to potential buyers around the world.
- Customized marketing strategy developed for your property and more.
Download the Sellers Guide to discover more about the Engel & Völkers experience today.
Give our office a call today at 828.584.9999 to speak with an advisor.
Interested in knowing what the true value of your home or lot is? Find out below!
Complete Guide to Buying Your Dream Property
A white-glove experience.
Whether it’s your first home or your dream home, we have the complete guide to buying your dream property. Home ownership is one of the most important decisions you can make. It would be our honor to embark on this journey with you and ensure the best purchasing experience possible.
With Engel & Völkers, you’ll enjoy:
- Expert real estate advisors with extensive local knowledge.
- Access to the most robust real estate market data available.
- Insights to leverage your buying power.
- Customized buying strategy based on specific budgets, needs and goals.
Your decisions when purchasing a home are among the most important in your life. A trusted sphere of dependable industry professionals is key to finding the right property—whether it is a first home or a dream home. Our advisors can help you find the homes that check all your boxes, as they understand the balancing act of purchasing a home that fits both your vision and budget.
What to Expect Inside
The Buyers Guide details the nuances of the buying process from deciding the right type of property to evaluating the benefits of home equity, home financing options, and procedures. With the help of our Buyers Guide and expert advisors, at Engel & Völkers you will come to expect:
- Expert real estate advisors with extensive local knowledge.
- Insights on how to leverage your buying power.
- A customized buying strategy based on specific budgets, needs, and goals.
Download the Buyers Guide to discover more about the Engel & Völkers experience today.
Questions to Ask Before Hiring a Real Estate Agent
When it is time to sell you home, finding the right agent is one of the most important decisions you will make. Finding the right agent depends on many factors. There are important questions to ask but you also have to build a rapport with the agent. Some of my best clients have turned into best friends. Choose an agent that is professional, knows the market and you can trust. Here are several important questions to ask before hiring a real estate agent that will help you understand and choose your next agent.
How long have you been working as a real estate agent?
The length of time an agent has been working in the industry is a good indicator of their level of experience and expertise. An agent who has been working as a real estate agent for several years is likely to have a better understanding of the local market and be able to provide valuable advice to clients.
Can you provide references or testimonials from past clients?
Ask the agent for references or testimonials from past clients to get an idea of their level of service and professionalism. Speaking with previous clients can give you an idea of what to expect from working with the agent.
How familiar are you with the local real estate market?
It’s important to find an agent who is familiar with the local real estate market, as they will have a better understanding of what buyers are looking for and what properties are in demand. They will also be able to provide valuable insights into market trends and price trends.
How do you plan to market my property?
Ask the agent how they plan to market your property, including their marketing strategy, advertising plan, and what they will do to promote your property to potential buyers. It’s important to find an agent who has a strong marketing plan in place to help you sell your home quickly and for the best price.
Can you provide an estimated timeline for the home selling process?
The length of time it takes to sell a home can vary depending on a number of factors, including the local real estate market, the condition of the property, and the marketing strategy used. Ask the agent for an estimated timeline for the home selling process, including how long it will take to get an offer and how long it will take to close the sale.
What is your commission structure and what services do you offer?
Ask the agent about their commission structure and what services they offer. Make sure you understand the fees involved in working with the agent and what services you can expect for the commission you pay.
How do you handle negotiations and potential conflicts with buyers or sellers?
Negotiations and conflicts can arise during the home-selling process, so it’s important to find an agent who has experience in handling these situations and who is able to negotiate effectively on your behalf. Ask the agent about their approach to negotiations and how they handle conflicts.
How do you communicate with clients and keep them updated on the sale process?
It’s important to find an agent who has a strong communication style and is able to keep you updated on the sale process. Ask the agent how they plan to communicate with you and what you can expect in terms of regular updates and progress reports.
What sets you apart from other real estate agents in the area?
Finally, ask the real agent questions like what sets them apart from other real estate agents in the area. This question can help you understand what makes the agent unique and why they may be a good choice for you. Look for an agent who has a strong track record of success, a solid marketing plan, and a commitment to providing exceptional service to clients.
Written by: Polly Leadbetter, Managing License Partner/Broker in Charge of Engel & Völkers Foothills Lake James
Pricing Pitfalls
A common mistake when selling your home is pricing pitfalls. For the last few years, it has been a sellers market. With a plethora of buyers, low interest rates and low inventory, a perfect storm was created that pretty much allowed sellers to get whatever, or more, than they set that price to be. But real estate is a cycle and the sellers market is starting to soften. Interest rates are more than double what they were a year ago which has priced many buyers out. Homes are staying on the market longer, we are seeing price reductions again and while inventory is lower than normal, there is still a strategy for selling a home. Pricing your home correctly in this shifting market is part of the strategy. Sellers have a lot of info at their fingertips but can still make mistakes when pricing. Here are a few pitfalls to avoid.
Sellers can use emotion based pricing. This can cloud over logic and make sellers ignore fact based pricing. You can love how your home looks and not take your broker's advice on things that need to be changed or neutralized to appeal to a wider range of buyers.
Sellers think it's OK to price based on what they need from the sale. Yes, sellers do need to calculate what they will need from the sale to buy their next home. Calculate this and see if that flies with the current market value. Sometimes it isn’t the right time to sell. Buyers also have a lot of info available at their fingertips and they can see what an owner paid for their house and what improvements have been made. They aren't going to be willing to pay the incorrect asking price based on what the seller “needs”.
Sellers use Zillow and other online estimates of their homes value. Once again–all the info is out there but must be used with good judgment. Sellers are always willing to argue for using that Zillow estimate when it is higher than their broker's suggestion but I have never had a seller tell me the price needs to be lower because my suggested price was higher than the Zillow number. The Zillow algorithm can get it close in many cases but still the most accurate way to price a home is having a local broker do a market analysis using current area sales.
Sellers sometimes want to put their house on the market to “test the waters” and have no urgent need to sell. Nothing is more frustrating than trying to market a home that the seller doesn't really care about selling. But again, the info is out there. Sellers can see how long the house has been on the market. A stagnant listing or one that goes on and off the market raises suspicions with buyers.
Sellers want to inflate the price so they have room to negotiate. Sellers know what their home is worth. Over pricing the house by even as little as 5% can scare buyers away. Buyers are willing to pay what sellers what their homes are worth but don't want to get in an emotional negotiation on a home they think will not have a positive outcome.
Sellers had to pay a high list price. Over the past few years, sales prices often mirrored or exceeded list prices. Unfortunately the real estate market goes up and down. Even if your home appraised for the sales price at the time you purchased, a fair price for the house may be less in today's market. Sometimes sellers are lucky but sometimes they aren't and have to buy high and sell low or wait it out.
Sellers ignore the true comparables to their home. The market analysis or CMA done on a home compares it to similar homes in close proximity. They will need to be of similar square footage, style, level of update/age, acreage and amenities. At least 3 comparables are used. Sellers sometimes want to refute the comps, finding reasons theirs is superior. But in the end, that large added mega deck, pool or extra pricey metal roof a seller installed may not add equal value to the home. Even homes that have recently sold in the seller's neighborhood are not the most accurate comparable if they are twice the size or on a double lot. In the end, when a buyer finances, the bank will require an appraisal and this actually determines the amount a buyer can get a loan for. Brokers want to come close to that number with their CMA so that sellers aren't expecting a sale price that is unrealistic.
These are some of the main reasons sellers overprice their homes. Markets can turn quickly. Pricing needs to be done at the time you are ready to list and can change in a matter of months so have it reevaluated if it has been longer than 30 days. Work with a reputable local listing agent that knows the market conditions and sellers can avoid some of these pricing pitfalls.
Written by Polly Leadbetter
Broker/Owner
Engel & Völkers Foothills