The Best Apps for Homebuyers

Technology has made a huge impact on the process of buying and selling real estate, and it continues to evolve and shape our experience differently each day. For some homebuyers, it may be easier to rely on your local Realtor® to guide you through the steps from searching for homes to writing an offer to closing on that perfect new house, but many will want to take advantage of the plentiful resources available to us. These apps are some of the best available to homebuyers right now. Read on for details.

KW Realty
Over time, the local MLS (Multiple Listing Service) has become more and more accessible to the general public. There are several home search apps that aid homebuyers, and Keller Williams has come up with one of the best. Not only does the KW app update regularly with the local MLS, it allows you to search for homes for sale or rent in the US and Canada. You can easily filter your search parameters, and once you find a home you like, simply hit the "Contact Agent" button to meet with a local Realtor® to view homes.

Free to download and use. Available for iPhone and Android. 

Homesnap
Another home search app, Homesnap takes things to a new level. While touring your favorite neighborhood, simply snap a photo of a home to get details like number of bedrooms, square footage, and price (this is estimated if it is not an active listing). Like the KW app, Homesnap is linked with the local MLS to give the most up-to-date information on the real estate marketplace. You can also easily share and send your favorite homes to anyone- including your local Realtor®. It's an extremely convenient way to interact with your agent as you flip through homes for sale anywhere you happen to be.

Free to download and use. Available for iPhone, Android, and Apple Watch. 

AroundMe
New to the neighborhood? Use AroundMe to locate local amenities including ATMs, coffee shops, hospitals, restaurants, and more. Once you find what you need, use the built-in GPS to get directions to your destination. Not just for home buyers, this app works around the world and is available in several languages. 

Free to download and use. Available for iPhone, Android, and Apple Watch.

WalkScore
Are you dependent on public transportation or simply don't want to have to drive everywhere you go? This is the app for you. Originally intended for rentals, WalkScore can be used by anyone who wants to know how to get around in their neighborhood. Find the Walk Score, Transit Score, and Bike Score for any area through this app. Scores are rated from 0-100, with a higher number meaning you're closer to a walker's/rider's/biker's paradise.

Free to download and use. Available for iPhone and Android.

MagicPlan
For the planners among us, having the dimensions of your new home before you move in would be great, right? Well you can do it with MagicPlan. Simply download the app and then take your phone along to your showing appointments to create a full floor plan of the home you plan to buy. Once you have followed the prompts from the app, you can choose to create your floor plan from several formats (some at a small fee), and then you will be able to visualize where your furniture will fit in the new space. 

Free to download with potential in-app purchases. Available for iPhone and Android.

Houzz
For your inner interior designer, Houzz is the best app to get design inspiration, shop for home decor items, and seek advice for your creative undertakings. Search by room type, design style, budget, and more to plan out color schemes, furniture purchases, and even landscaping projects. If you find that you need some guidance, you can reach out to the Houzz community or even search for a local professional through the app. 

Free to download and use. Available for iPhone and Android.

***Bonus for after move-in:
Nextdoor
Settled in your new place? Now it's time to meet the neighbors! Nextdoor allows you to do just that, in a secure space that is only open to people who live in your neighborhood. Each neighborhood can build the online community differently, but usually people will share news, post sale items, recommend local contractors, and invite neighbors to events, like any other social media platform. The app allows you to access the discussion on-the-go and is a great way to get involved in your new community. If your neighborhood doesn't have a Nextdoor page yet, you can start one yourself, and the site will help you do it.

Free to download and use. Available for iPhone and Android. 

Are you buying a home in Cincinnati or Northern Kentucky this year? Contact Greater Cincy Homes today to get started!

How to Write an Offer

You've met with a Realtor, you've viewed the best homes on the market, and you found the one. Now you have to write a great offer to entice the seller to work with you. In a buyer's market, you may have more flexibility, and in a seller's market, the sellers have the advantage. A combination of low inventory and high demand means well-priced homes in the area sell fast, so you have to be extra careful when submitting your offer. Your local Realtor will be sure to guide you, and this post will help you understand all the moving parts.

Price
Of course one of the most important factors to whether or not the seller will want to work with you is the price you offer on their home. It is crucial to consult your local Realtor on this. You hired her to be the expert, so listen to her advice. She will know if the listed price is fair, or if the home is overpriced. This will help you avoid giving a lowball offer, which may offend the seller and cause you to lose the home you love.

Earnest Money Deposit
As part of the real estate contract, you are asked to give consideration (i.e. a monetary deposit) with your formal written offer. Generally speaking, this amounts to 1-3% of the sale price of the home. If you are in a competitive situation and you can afford it, your agent may recommend offering a higher earnest money deposit, or EMD, to show the seller that you are all in and will work with them towards a mutually agreeable settlement.

Contingencies
There are several contingencies that may become a part of a real estate contract. The most common contingencies are financing, appraisal, and home inspection. Depending on the location of your home, you may need or want additional inspections such as well and septic. A radon test may need to be included. Your financing (or cash offer) may result in a different type of contingency as well. Your local Realtor will advise you on which ones you will need to include in your offer and the best way to present them to the seller. 

Timelines
Just as you have a date in mind by which you want or need to move, the seller is probably in the same boat. Merging schedules can be tricky, so make sure your local Realtor contacts the seller so that you can smooth over the detail of the settlement date early on in negotiations. Other timelines will need to be assigned to each contingency, and your local Realtor will be sure to advise you on what is best.

Are you buying or selling a home in Cincinnati or Northern Kentucky this year? Contact Greater Cincy Homes today to get started.

Mortgages With Low Down Payments

Most of the news about the housing market has been good in recent months; we are recovered and moving on up. That's good news for buyers and sellers, but we are now seeing more buyers entering the real estate market than before the crash. At first the market recovery was almost too quick for many buyers; prices were rising fast, but we now see a steadier market with better affordability. The other big change we see is that the tightened lending regulations are able to open up at this point. More buyers are now able to buy with low or no down payment options.

VA Loan
The Department of Veterans Affairs provides guaranteed home loans to qualified veterans. Borrowers can buy with zero down payment, and there is no mortgage insurance. The borrower does pay a funding fee, which can range from 2.15-3.3%. That funding fee can be added into the total loan amount and paid as part of the monthly payment. The funding fee is determined by the type of service the veteran gave, whether it was National Guard, Reserves, or enlisted/officer in the military and by whether or not it is the borrower's first VA loan.

Navy Federal
Navy Federal Credit Union offers mortgages with no down payment to members of the military, Department of Defense, and their family members. The loan must be used for a primary residence, and it has a funding fee, like the VA Loan. The Navy Federal loan is only 1.75%, which gives it an edge over the VA Loan.

USDA
The Department of Agriculture supplies home loans, and not just for rural areas. They usually run out of money because of the popularity of this program. USDA loans have no mortgage insurance. They charge a 2% guarantee fee upfront, and then each year the borrower is charged 0.5% of the loan balance.

Mortgage Insurance
For borrowers with strong credit, this option allows a down payment as low as 3%. Private mortgage insurance (PMI) has stricter requirements than an FHA Loan (below), but it can cost less over the loan term. Another advantage of this over an FHA loan is that the PMI can be cancelled once the loan is under 80% of the mortgaged home's value.

FHA
The Federal Housing Administration offers loan products to borrowers with imperfect credit and not a lot of cash. This isn't the cheapest loan option, but it gives more buyers the opportunity to enter the real estate market, which is better for everyone. There is a premium of 1.75% charged at the start of the loan, and if the borrower paid the minimum down payment (3.5%), there is also an annual premium of 1.25%. This makes for a higher monthly payment on a similar property to a conventional loan, so borrowers' affordability is lowered in comparison.

No matter what your credit situation and down payment ability is, it is crucial to talk to a qualified mortgage professional before beginning your home search. Contact Preferred Realty Partners today for some great recommendations and to start your home search.

Originally posted on www.sarahknobbs.com.

5 Ways to Protect Your Finances When Buying a Home

The search for your next home is always exciting, but it can often be filled with traps and pitfalls if you are not careful. Below you'll find 5 great ways to protect yourself in your next home purchase. Don't be a statistic; do your due diligence and get settled in a home that you can afford comfortably.

1. Be cautious about distressed properties
Many buyers seek out short sale homes or homes in foreclosure as a way to get a bargain on a new home. While some of these homes are still in good condition, many are not. It's important when you are considering a foreclosure or short sale home to do your homework. Be sure to hire a competent home inspector, and if major issues are found, hire a licensed contractor to analyze the problem and see if you can afford the fix. Even if a home is priced below market value, a fixer-upper can cost you more at the end of the day.

2. Watch out for overpriced FSBOs
Some buyers will talk to FSBOs (For Sale By Owner) because they want to cut out the Realtor commission and save themselves 3% on the price of the home. In theory, that could work, but many times FSBOs are actually priced higher than the market value because they haven't been priced by a professional. Be sure to talk to your buyers agent about the neighborhood values to ensure that you are not being wooed by an enthusiastic owner to pay too much for your home.

3. Don't borrow the full amount your lender offers
When you sit down to talk to a lender, they will review your financial situation with you to determine what you are able to borrow. They all have their systems in place that will give you a price they feel you can afford in the long-term. However, it's not always the best idea to shop at the top of your budget. While the lender knows a lot about your credit and expenses, they can't decide what monthly payment you are comfortable with. That needs to be a discussion between you and anyone else who is sharing that monthly mortgage payment with you.

4. Maintain a cash reserve 
Besides determining the amount of money you want to borrow to buy a house, you have to look at what liquid funds you have at your disposal. It's never a good idea to spend your entire savings on a down payment for a house. Keep a reserve available for taxes, utilities, repairs, and maintenance. Many homebuyers don't realize how much they will need to spend to move into a new home, especially first-time homebuyers. Keep your spending conservative with your home purchase, and you will be able to comfortably enjoy it for years to come.

5. Hire a strong buyer agent
This is perhaps the single best thing you can do to protect yourself when buying a home. A strong buyer agent will guide you through all of the above and more. They will make sure you see the best homes in your price range, and that you understand all of the costs involved in living there. A knowledgeable agent will know about the local HOAs, any special assessments, and they will be able to negotiate the best sales price for you. Don't sell yourself short; hire a strong buyer agent to help you and get to closing without the headaches.

Are you buying a home in Cincinnati or Northern Kentucky this year? Contact Greater Cincy Homes today to get started!

Originally posted on www.sarahknobbs.com.