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        <title>Huntsville, Al Real Estate Blog</title>
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    <guid>https://www.mattcurtisrealestate.com/HuntsvilleAlRealEstateBlog/top-10-mistakes-to-avoid-for-first-time-homebuyers.html</guid>
    <link>https://www.mattcurtisrealestate.com/HuntsvilleAlRealEstateBlog/top-10-mistakes-to-avoid-for-first-time-homebuyers.html</link>
        <author>leadrouter@mattcurtisrealestate.com (Matt Curtis)</author>
        <title>Top 10 Mistakes to Avoid for First-Time Homebuyers</title>
    <description> <![CDATA[ 
Top 10 Mistakes to Avoid for First-Time Homebuyers





Highlighting the common pitfalls of first-time homebuyers, we dive into practical aspects like the importance of a thorough home inspection, smart strategies for home purchasing, the potential downsides of aiming for a higher down payment, and the value of first-time buyer counseling sessions. We also cover the need for creative problem-solving, the risks of buying older homes without reserves, and the often-overlooked process of claiming a homestead exemption. Wrapping it up, we share insights into why reading reviews is crucial when selecting a real estate agent and the perks of choosing a real estate team over a solo agent.


1. Not Getting a Home Inspection


Many first-time homebuyers have saved up a considerable amount for their down payment and other expenses. While it might be tempting to cut costs in this area of savings, investing in a comprehensive home inspection is a wise decision for long-term benefits, offering peace of mind and avoiding potential limitations on your home.


Our state operates under the principle of caveat emptor, or &quot;buyer beware.&quot; While this may initially sound intimidating, it's not as daunting when compared to states with seller disclosures. In many seller disclosure states, sellers often lack complete knowledge about their home's issues. Personally, as a homeowner, I'm unaware of the current conditions of my electrical system or roof. This underscores the importance of relying on a professional home inspector to conduct thorough assessments.


Home inspections are essential, even when dealing with new construction. Some may assume that a brand-new home is flawless, but in reality, new construction homes often come with their own set of issues. Existing homes, over time, tend to iron out any glitches or construction-related hiccups. However, with new homes, it's crucial to identify potential challenges before finalizing the purchase, rather than relying solely on the home warranty period.


2. Trying to Buy Your Dream Home as a First Home


A common mistake many first-time homebuyers make is trying to jump straight into purchasing their dream home. The key is to get into a home, start building equity, and then think about trading up or using the equity towards a down payment for your next home.


If you're aiming for a specific school district or planning for a certain number of bedrooms for your future kids, keep in mind that by the time your children reach that age, the home may need some upgrades. So, don't fixate solely on getting your dream home; focus on building wealth by getting into your first home.


3. Trying to Save Up for a Higher Down Payment


Saving up for a higher down payment, slower than prices are increasing, is another common mistake. What I mean is, often people say, “I really want to increase my down payment. I want to go from maybe a 5 down to a 20 down. I want to get away from mortgage and insurance premiums and those sorts of things. I want to qualify for the best interest rate that's available to me.” The challenge sometimes is that as you're saving up for your down payment, the duration it might take to increase that down payment, whether it's a year, two, or even three, prices could have surged faster than the money you've saved.


For instance, in the next year, if you're planning to save $10,000 for an additional down payment, yet the home's price you're eyeing has gone up by $20,000, you actually end up losing $10,000 by saving for that extra year.


4. Not Doing a First-Time Buyer Counseling Session


A mistake first-time homebuyers make, often without realizing it, is not getting a first-time homebuyer counseling session.


This is something I've been offering to clients, and our agency has been providing for years, aiming to educate first-time homebuyers on the entire process. While first-time homebuyer counseling sessions can sometimes feel like drinking water from a hose, they are crucial. Hearing key information multiple times throughout the process helps it sink in.


Let's admit it, buying your first home can be a bit nerve-wracking. The last thing you want is to read that contract and paperwork for the first time when you find your dream home. During a first-time buyer counseling session, we can review all the paperwork, walk through the entire process, ensuring you're prepared and confident when making your first offers.


Also, one thing we often encounter with first-time homebuyers is the importance of having enough money saved for your down payment and all associated costs. Avoiding any hidden costs in buying your first home is crucial. A first-time buyer counseling session will save you a lot of time in the long run.


 


5. Not Getting Creative


The number five mistake I see a lot of first-time homebuyers make is just not getting creative if needed.


Where there's a will, there's a way. Basically, if you run into an obstacle when purchasing, oftentimes there's a creative way around that. For example, if you're looking to invest in properties eventually, one thing you might do is buy a duplex and rent out the other units. It's a great way to pay for your mortgage, keep it down, and maybe even down to zero, turning the property into a long-term rental.


Another creative option that many people consider is receiving a gift from family. That's a great way to secure your down payment and reduce your overall mortgage payment. There are many different creative ways we can discuss during that first-time homebuyer counseling session. Just don't accept &quot;no&quot; as an answer. It's crucial to get into your first home and start building your net worth.


6. Buying an Older Home Without Reserves


A common mistake many first-time homebuyers make is buying an older home without reserves. As a first-time homebuyer, you're often saving up for your down payment and closing costs to get into that first home. The last thing you want is to buy an older home where something might go wrong in the first three months.


Upon moving in, you know things are going to break, especially in an older home. As Dave Ramsey says, “if you don't have an emergency fund, everything is an emergency.” That's one reason why I recommend new construction to many of our first-time homebuyers. The rationale behind this is that everything is new. Yes, things can go wrong in a new home, but the great thing is, as a caveat to this caveat emptor, new construction builders are required to provide a one-year builder's home warranty with the home.


There are major things that could go wrong in the first year, so you don't have to have the reserves built up as you would for an existing home. New construction is a great option for first-time homebuyers.


7. Signing Paperwork Without an Agent Going Over It


Number seven is signing the paperwork without reading it. The great thing is, we have this technology where you can sign paperwork. You don't have to come into the office every time there is a change to your paperwork. A huge time saver because I got started in the business where we did have to have wet signatures, and we faxed things back and forth.


It just took more work for the buyers. Now, the downside of that is a lot of people, a lot of first-time homebuyers don't read that paperwork, which is another reason why I recommend doing that first-time homebuyer counseling session. You can review the paperwork on the front end to have any questions that you have addressed so that you understand that going forward.


8. Not Claiming Your Homestead Exemption


Number eight is forgetting to claim your homestead. In the state of Alabama, you are eligible to get a deduction for living in a home versus investing and renting the home out. It is important that you claim that homestead.


How that works is you will close with the closing attorney. They will file your deed with the courthouse. The courthouse will then mail your deed back to you. Usually, that takes about 2 to 3 weeks. It's important to take that deed prior to October 1st, down to the courthouse, down to one of the satellite locations to claim that homestead. Quick notice, if you're in a long line, you're in the wrong line because the Homestead line is always typically very, very short to claim that.


It's really important because if you don't, that can double your taxes. So if you had a $2,000 tax burden, then that would double to about $4,000. That is an unwanted surprise and then something that you can't reverse and it's something that would stay there for the next year. Now, the other thing that you'll want to do as well is get that free first-time homebuyer counseling session and have that real estate agent look at the property taxes on any home that you're looking to make an offer on because some homes that you might be looking at could be non-homestead, and you have the ability to homestead it once you move into the home. But the way the taxes work in Alabama is whatever the taxes are when you purchase a home, they stay that until the next tax year.


The tax year is October 1st to September 30th. So if you were to close in July, then you would have that non-homesteaded rate until the next tax year if you buy a non-homestead home. Just one of those things that you want to look at and it's also really important as well because it can save you a lot of time and potential heartache. If you put an offer on a home that's not homesteaded and you're up against your pre-approval limit that the bank is pre-approving you based on your average obviously your mortgage, but also average taxes for that home. The taxes are average on that home; then that could push you out of qualifications and keep you from being able to qualify for that home.


9. Not Reading Reviews


The number nine common mistake for first-time homebuyers or any buyer is not reading reviews. Many people go with the first agent they talk to or someone recommended to them. While these are all great things, make sure you read the reviews on agents because many agents out there are new to the business and may lack the experience or service level to provide the five-star service you're looking for. Great places to look for reviews are Google and Zillow, both being excellent aggregators for real estate reviews.


10. Hiring a Solo Agent


Number ten is hiring a solo agent versus hiring a team. There are some good, solid agents out there. However, challenges arise as they may get busy, go on vacation, get sick, face life situations, or take on additional business, causing things to get dropped. This can be especially challenging for first-time homebuyers. In contrast, having a team ensures a dedicated individual for every step of the process, ensuring nothing is dropped, and you receive five-star service throughout.


The other unfortunate fact about real estate is that half of the agents out there have sold zero to one home in the last 12 months. As a first-time homebuyer, you don't want your agent assisting you with your first home purchase when they're also helping themselves with their first client. You want to go with someone with a lot of expertise and experience.


As of the shooting of this video, our team has sold over 7000 homes, so we have the experience to help you. We've assisted numerous first-time homebuyers, and we love working with them.


 



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    <pubDate>Fri, 02 Feb 2024 15:03:00 -0600</pubDate>
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        <author>leadrouter@mattcurtisrealestate.com (Matt Curtis)</author>
        <title>Housing Prices Dropping</title>
    <description> <![CDATA[ 
Housing Prices Dropping








We finally have some good news to report for buyers Nationally, nearly one out of five home sellers have dropped their listing price for the four weeks ending May 22nd. According to Redfin, this is the highest number of price drops since 2019. This is good news for buyers because sellers are having a harder time pushing up home values, which is evidenced by the increase in price drops.


Locally we're starting to see this in the higher price points, especially above $650,000. Before buyers get too excited though, it's important to note that 40 of homes nationally had a contract within one week and 55 within two weeks of all homes that sold. Homes also had a median national average of 15 days on market, which is down from 19 days a year earlier. This is still a huge imbalance in supply as a normal market consists of four to six months worth of supply. A record 57 of homes sold above list price which is up from 50 a year ago. The average list of sales ratio was a record high of 102.8, which is up from 101.6 last year. That's an average of $11,200 above list price on a $400,000 home.



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    <pubDate>Tue, 28 Jun 2022 13:07:00 -0500</pubDate>
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    <guid>https://www.mattcurtisrealestate.com/HuntsvilleAlRealEstateBlog/what-is-a-mortgage-contingency-clause.html</guid>
    <link>https://www.mattcurtisrealestate.com/HuntsvilleAlRealEstateBlog/what-is-a-mortgage-contingency-clause.html</link>
        <author>leadrouter@mattcurtisrealestate.com (Matt Curtis)</author>
        <title>What is a Mortgage Contingency Clause?</title>
    <description> <![CDATA[ 






Mortgage Contingency Clause Explained










The Mortgage Contingency Clause makes the real estate purchase contingent upon the buyer getting a specific loan. The type of loan could be a conventional loan, USDA, FHA, or a VA loan. The contingency is typically written towards the top of the contract: what loan, what loan type, and then also the amount on the loan itself. There are certain types of loans that make it more advantageous to the seller and so that is part of the negotiation packages. 



 ]]> </description>
    <pubDate>Mon, 18 Apr 2022 17:15:00 -0500</pubDate>
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    <guid>https://www.mattcurtisrealestate.com/HuntsvilleAlRealEstateBlog/7-steps-to-buy-your-new-home.html</guid>
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        <author>leadrouter@mattcurtisrealestate.com (Matt Curtis)</author>
        <title>7 Steps to Buy Your New Home</title>
    <description> <![CDATA[ 
Buying a new home can seem like a daunting task. By breaking down the process into steps, and making a plan it can help ease how overwhelming it may seem. To more easily get you on the road to homeownership


 


Here are 7 Steps to Buy Your New Home:






Save for a down payment






The first step to owning your new home should be preparation. Getting in the best financial shape possible before starting your home search will allow your process to go smoother. Most financial advisors recommend you save up at least a 10 to 20 down payment for your new home. Other factors you can begin thinking about include whether you would like to do a 15 year, 20 year, or 30 year mortgage, which have different pros and cons.






Get pre-approved for a mortgage






Before you start your search, getting pre-approved for a mortgage is an essential step. This lets you know what price range you should be focusing on for your search and also signals to a real estate agent that you are a serious buyer. The pre-approval process can be done by your bank or a recommended mortgage loan officer. Take your time to familiarize yourself with different terms like rates and fees, so that you can factor that in when figuring out what your final budget will be.






Find a real estate agent






Your real estate agent will be an important part of the home search process. They will find you homes that are a match for your wish list, work with other real estate agents to get home showings set up, and start the offer process when you find your dream home. The Matt Curtis Real Estate team is here to help you with your home buying needs.









Go look at homes






After you get all of the prep work done to begin your search, you’re ready to go start looking at different homes on the market to find your dream home. The time this process takes can vary depending on the market conditions at the time you’re looking, availability of homes in your price range, and also how quickly homes are selling at the time you’re looking.


Things you may want to consider as you search include schools and amenities in the areas, drive time from places you frequent, and neighborhood covenants that may include certain by-laws or restrictions on the properties. Your real estate agent can help you find out more information about Homeowner’s Associations and their by-laws in the neighborhoods you’re searching in.


Traveling to and from homes that are at the top of your list is a great idea, especially at different times of day to gauge traffic.


Matt Curtis Real Estate has a helpful “drive time” feature on the website, to estimate how far your drive would be from different addresses to locations such as your work, school, or church.






Submit an offer






After you’ve found your dream home, your real estate agent will walk you through the process of submitting an offer on the home. They will work with the seller’s real estate agent to make sure that all of the proper paperwork is submitted and sent to the right people. The agent will notify you of any counter-offer receive back and work to get the deal to completion on the home.






Get a home inspection






Once all parties have agreed upon an offer and there’s a deal, it’s time to work on due diligence of making sure the property is in sound condition. A home inspection helps you understand the home’s condition thoroughly and helps bar against unseen costs that go beyond the aesthetics of the home. At Matt Curtis Real Estate, we have a dedicated closing team to assist you with your closing and make sure it goes smoothly.


Our closing coordinators will work with you to get any additional information needed for the closing and get a set time for closing on the property.






Close on your Dream Home






You’ve worked together with your real estate agent to find the perfect property, and our closing team has helped you get the deal to completion. When closing day arrives, you’ll need to have any of the cash needed at closing and you or your appointed representative will need to arrive at the set closing time to sign all of the paperwork.


After the closing is complete, you get your new home keys - and congratulations You’re a homeowner With the right amount of preparation and planning, you can be confident throughout your home buying process.





If you have more questions about the home buying process, Matt Curtis Real Estate hosts free Home Buyer Classes, to talk you through the process and get any questions you have answered. Contact Matt Curtis Real Estate today at (256) 333-MOVE, to get started down the path to your new dream home


 
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    <pubDate>Wed, 23 May 2018 16:40:00 -0500</pubDate>
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