Buying a home is one of the most significant decisions, and financial investments, a person will make in their lifetime. With this gravity in mind, the best approach is to know as much information as possible before you begin the journey and to find knowledgeable industry professionals to assist you each and every step of the way.
Obtaining Pre-Approval & Financing
Home ownership is often viewed by many as a piece of the American dream. It can represent financial security and stability done by working hard and saving. The process of purchasing a home can be both an exciting and an exhausting experience, but with the help of a trusted mortgage lender, you can own a beautiful and affordable piece of the American dream.
Before you begin looking for a home, the first crucial step to take is determining how much you can afford to spend. “It is important to find a trusted mortgage professional to work with,” Andy Herold, Senior Mortgage Lender, at Premier Bank advises. “Chances are friends, family or co-workers have worked with someone in the past they can refer to you.” This mortgage lender will ask you a series of financial questions to determine how much you can afford to pay each month. The main questions your mortgage lender will ask are: how much you earn in income, how much you own in debt (i.e. credit cards, student loans, auto loans, etc.) Based on that information, your lender will be able to determine the price range of affordable homes. While these numbers can give you a fairly good idea of the bigger picture, it is also important for you to review your budget as well. After looking over your budget and reviewing the information with your mortgage lender, you can move on to the next step.
Getting pre-approved. A pre-approval happens when your mortgage lender obtains all your financial information from your initial inquiry then orders your credit report and conducts a more in-depth analysis of your financial situation. This is done by reviewing two years of your tax returns and verifying two years of your residency and employment history. Your mortgage lender is then able provide you a pre-approval letter. Premier Bank’s Senior Mortgage Lender, Guthrie Steen states, “A pre-approval letter will be required by all realtors and builders alike. That’s your ticket to getting you closer to buying your new home. If a pre-approval offer is presented, a seller is more likely to accept a contract.”
In addition to a mortgage payment there are several other items that need to be discussed such as mortgage loan type, down payments, fees, property taxes, mortgage insurance, etc. all of which should be discussed with your mortgage lender.
Premier Bank provides a professional and experienced staff of mortgage lenders that have almost 50 years of combined mortgage experience. In addition to our seasoned lending team, Premier Bank locally underwrites all mortgage loans and refinances. So that means real people review your information and process your mortgage loan in a faster-than normal timeframe. To-date, our mortgage division has closed all our home loans on, or before, the requested closing date which simply means we help each family move into or refinance their home without any unnecessary delays. If you are interested in a seamless process toward moving into your new home, please contact one of our mortgage lenders: Andy Herold – aherold@premierbankne.com, (402) 689-3793; Guthrie Steen – gsteen@premierbankne.com, (402) 490-0509; or Gregg Bailey – gbailey@premierbankne.com, (402) 598-5806.
Shane Myers of Farm Bureau Financial Services adds, “Find yourself a great mortgage professional that will help you along the way instead of make things more stressful would be my first piece of advice. We have worked with several great mortgage people so feel free to reach out to us if you need a recommendation. Of course having a good realtor that has your best interests at heart is very important as well. Renovations are common now and people flipping homes can vary from quality to padding their own pockets. If you are purchasing a renovated home, make sure that you ask a lot of questions. Ask them if they pulled permits on the renovation so that you know the work was done right. Always have a home inspection done no matter what and even if it is a new home!”
He adds, “At Farm Bureau, we assist buyers in multiple ways. First we work hand in hand with the mortgage company to make sure that they have everything they need from the insurance side. We also assist buyers by protecting themselves with life insurance so that they can stay in their homes in the event of losing their spouse/partner/friend if something tragic happened. Our discounts are great and even significantly better on newer homes. One other benefit of our company is that we have a ‘One Deductible’ policy. If your car and home are damaged in the same storm event, even if they are in different parts of town, it is only one deductible. With recent storms, this has benefited many of our clients!”
Working With Your Real Estate Agent
Real estate agents are a wonderful resource for home buyers throughout all aspects of the home buying experience.
Tips for the “First Time Buyer”:
–Be sure to interview a few Realtors before committing to one. Select someone that is knowledgeable of the market and experienced with contracts and negotiations. Remember, this person will be in your life for 3-6 months and take care of you every step of the way. Make sure they are someone you can effectively communicate with and trust. Ask your friends and family for a Realtor referral. Chances are if they had a good experience, then so will you.
–Get pre-approved for financing right away. It is important to know all the costs involved with buying a home before you get too far in the process. It’s hard to shop if you don’t know what you can afford!
–Ask questions! You aren’t expected to know everything and that’s what Realtors are here for. Remember, your agent is working for you!
–Make sure the house is right! It is easy to get excited about buying your first home and jump on the first house that gives you the “warm fuzzy feeling”. Due diligence will help you get a feel of the market as you look at other homes in your price range. You will get to understand what you get for the money and where. This will make you feel more comfortable about “pulling the trigger” when you find the right one.
–Always have a home inspection. For a small fee it is more than worth the peace of mind. You aren’t an expert, so hire one to work on your behalf.
Tips for the “Move Up Buyer”:
–This process can be a challenge if you need to sell your current home before you can purchase your new home. Your first priority should be to sell your current home. Remember, that is the only thing holding you back from buying a new one. Get your home listed with a Realtor and priced right. Trying to sell and buy at the same time is a lot to take on, and having a professional in your corner to guide you is essential.
–Search for properties on your own in addition to what your Realtor sends you. Most often when buyers look on their own, they adjust criteria more often to “see what else is out there”. That is good. You may come across properties you might not have considered before. You will also get a “big picture” view of what is on the market so that once your home sells you know where you want to be.
–Everyone wants to sync up the closing of their existing home with the purchase of their new home. This can happen most of the time although you have to be prepared for the worst case scenario. If your home sells and you can’t find another home in time or negotiate a closing to sync up with your existing home sale then you will need to look into some type of temporary living situation. It isn’t fun to move twice but look at the bright side; your home is now sold and you are a ready to pull the trigger when you do find the right one! Remember, it is only temporary!
Tips for the “Downsizing Buyer”:
–The kids are gone and you just don’t need 4,000 sq. ft. for the two of you. This process can be frustrating as a lot of times you will be changing the style of living that you are accustomed to.
–Have the conversation with your Realtor up front to see if your needs and wants for the new home are realistic
–De-clutter, sell, or donate those items you don’t use. Chances are there won’t be the same amount of storage as your last home.
Assessing the Exterior Features of Prospective Homes
When looking at homes, it is easy to get a first impression of its curb appeal and just brush past the exterior in order to check out the interior features. However, there are plenty of aspects that should be taken into consideration and evaluated outside of the property!
First, understanding where the property lines lie might be beneficial to you if you are considering landscaping or other renovations in the future. Land Survey Inc. will come out to the prospective property and provide you with the information you need prior to purchasing the home. Toni Montana, owner of Land Survey Inc., advises, “When you purchase a home you are also purchasing a certain amount of land that the house is on, so knowing where your property lines are located is essential. Make sure to do your homework or hire someone who can help you through the process. Buying a home is one of the biggest purchases you will make in a lifetime, so taking your time to make sure everything is in working order, not rotting, broken, etc., is crucial. If there is any question as to where your property corners are, be sure to hire a licensed surveyor to locate/set property corners, stake them and provide you (and the county) with a certification (drawing) of your property. We’ve got surveyors on board who have collectively been involved with home-buying for close to 100 yrs. They take pride in helping people, either with the process or providing expertise in property knowledge.” She adds, “Also, don’t be afraid to counter-offer—sometimes more than once! Typically the seller wants out, so they may be more flexible than may seem comfortable for you. But, it never hurts to ask!”
Assessing the landscape of prospective homes is also very important for a multitude of different reasons. Brandy Prettyman, owner of The Grounds Guys of SW Omaha, explains, “One thing that potential homeowners forget about when they are buying a home is the landscape. Homebuyers have an initial gut reaction to the curb appeal, but not necessarily the landscape. If you don’t take a good look you could possibly have to do the whole landscape over again in a year.
Evaluating the property for what is there vs. what should be there and what isn’t there is essential, as well as if it is a high maintenance landscape or not. If you are a busy homeowner with a limited budget, you may not want to purchase a home if you don’t have the money or time to care for the existing landscape properly. Sellers that are showing a home want it to be presentable, but are not necessarily concerned with how it will look long term. So while you may see a gorgeous landscape on the surface, it is important to take a deeper look. We have helped a lot of homeowners who started out with a beautiful landscape when they purchased their new home, but within a few months plants and grass are dying off and they called us to see what they should do about it. Buying a home is stressful enough without worrying about if everything in your lawn is going to die in six months!
First, assess any trees on the property—their condition, dead spots, if they are falling down, how close to the house they are, etc. This is a very good preventative measure. With high winds, older trees with dead limbs have the potential to cause damage to your home or vehicles and are also a major safety issue if kids will be playing outside. Next, check out the type of grass. For example, in my own yard, we have Kentucky bluegrass which is very finicky in our Nebraska climate. You will need to know what type of grass you are working with in order to understand what the proper watering schedule should be, maintenance and care that it will require, and so on. The same goes with the plants on the property. If you don’t understand the care that is required you may face a costly redesign if things die. Make sure to pay attention to the way the house faces, and whether the areas with plants receive full sun, full shade or partial sun. Again, in staging the home many sellers will plant for an initial pop of color but not long term success.
My recommendation is that when you narrow the search down to a few of your top picks, make sure to have someone with a background in horticulture take a look at the properties. We like to talk to the homeowner as early in the process of looking at homes as possible. This way, we can talk to them in order to find out what they want, but also educate them on what to steer clear of. This way the potential homeowner will have a good idea of simple things that they can look out for when they are looking at homes, including what they may or may want based upon whether they have kids or pets, the location, their lifestyle, and other factors that may apply.”
When looking at houses on the market, if there are aspects of the exterior features that you want to change or that are deteriorated and in need of a facelift, don’t let this deter you from purchasing the home. In the case that the issues aren’t major, consider making a list of home improvement projects to tackle as new homeowners. The sole focus of Carson Stone & Supply is to assist contractors and homeowners with their landscape and hardscape supplies, specifically in stone distribution. Scott Carson, owner of Carson Stone & Supply, explains, “The exterior hardscape/landscape of a home is more than just rocks and plants—it’s a vision, creativity and lifestyle and a space for relaxation, bringing family close together, and that brings outdoor living closer to you. The possibilities for these projects are endless, and you will not only add living and entertaining space to enjoy but you will also add value to your new home.”
Exterior features of the home itself should also be evaluated. “Based upon my industry experience, I would suggest considering the major potential expenses you may have to absorb with windows, roofing and siding,” says Michelle Christensen, owner of Papillion Windows & Siding. “Check windows for any broken seals, rotten sills or frames. Check the age of the roof and its general condition. An inspection should uncover any rotten, soft areas of the roof and any cracked or curling shingles, which would indicate a need for possible replacement. If there is noticeable wood rot on siding, it should be addressed quickly to halt further damage to the siding and possibly into the framing. When looking at homes, always consider both the indoor and outdoor living spaces. Papillion Windows & Siding can also assist a homeowner in adding more living space by building a sunroom, deck, or screened in patio to make the most of their new property.”
Covering Your Bases Before You Commit
When buying a home, you should always utilize a reputable home inspection company to conduct a thorough inspection of the property before you finalize the purchase. A home inspection can help you formulate a game plan on what to replace and things to upgrade in your new home, which will increase your enjoyment as well as helping you maintain its property value for when it is time to sell. This should also be supported by knowledgeable and experienced trade professionals as needed.
Assessing the existing equipment and systems, such as the water heater, furnace, and air conditioner, can provide a wealth of helpful information about where they are in their life cycle and what you can expect in the upcoming years once you purchase the home. Troy Spady of Complete Comfort advises, “When buying a home, don’t overlook something that few people will actually see when they come to visit your new home. No it’s not the remodeled bedroom, the new flooring, or the nice granite countertops that initially made you gravitate towards the home, but it’s a vital component that if not working brings things to a screeching halt. Make sure the home inspector thoroughly inspects the heating and air equipment and if necessary, bring in an HVAC professional to give a final opinion since not all home inspectors will have the tools or training to thoroughly diagnose issues. Proper inspection of your heating and cooling system is not only an issue of safety but will also help you budget or negotiate for repairs or systems replacement. Failure to do this may result in unexpected expenses as you are settling into your new home and working on making it your own.
Also, pay attention to the age of the heating and cooling equipment in the home. Even if it’s working now, understand that this may be an expense that arises sooner than later after you purchase the home. Look to see if there is a maintenance sticker on the furnace and if they have maintained the system on a regular basis. Look at what kind of history of repairs there might have been too. Getting an opinion from a heating and cooling professional on the equipment in the home is a good way to have peace of mind on what you are purchasing. We work with many real estate agents who request this service and ask us to inspect the equipment so that a home buyer understands what they are getting and what condition the equipment is in. We also offer one time cleanings where we go in and clean the equipment and check that it is functioning properly and is safe.”
He adds, “Buying a home is an exciting and sometimes stressful part of life. We can help take some of that stress out of the equation by putting our expertise on your side when it comes to the heating and cooling equipment in the home you are looking to purchase. Don’t worry about it–we’ll take care of it!”
Moving and Storage While in Transition
When it comes to what most people dread about buying a new home, often it is the moving process that poses the most obstacles and hassle. Furthermore, when closing on a home, sometimes the timing will be off with respect to closing on the home you currently own or the date that your current lease is up. This creates an inconvenient situation where you must move out of your current residence but can’t move into your new home until a later date. During this type of transition, a storage facility is an excellent resource for storing your belongings safely in the meantime. Strong Box Storage can help alleviate potential problems by providing a wide array of resources for moving vehicles, supplies and storage if necessary.
Thomas Friedman of Strong Box Storage says, “We offer a variety of sizes of storage, from 5×5 to 10×40, and we always try to find the right size that fits the customer’s needs. Our office, which is open six days a week, offers a dozen different sizes of moving boxes, packing peanuts, wrapping paper, tape, and many other items that help our customers during their transportation of their belongings. Another one of our features that offers flexibility and is popular among our clients is 24/7 access. Our facility offers lighted and paved roadways to make it easy and safe to get around, and if there are any problems we have staff on site six days a week. You can access your unit at whatever time is most convenient for you with no hassle, and we also have U-Haul trucks for rent if you need to move items to and from our facility and you don’t have access to an appropriate vehicle. Our staff can access the U-Haul system on the Internet and make, change or finalize any truck or trailer rentals, in addition to having direct contact with U-Haul by phone. Customers always have the option of visiting the office, but if that is not feasible, Strong Box Storage can make reservations on behalf of our customers for wherever they are currently at to wherever their destination may be. For additional convenience, we accept a wide range of payment types including cash, check, credit and debit cards. We can also set up auto payments to avoid late fees, and we have discounts for active military or prepaid months. We always strive to offer a great deal of flexibility for our customers, and we welcome all customers no matter how short or long they need to utilize our storage facility.” Strong Box Storage is locally owned and a member of the Better Business Bureau Honor Roll and the Self Storage Association, which is a testament to what a great, trustworthy option they are for the storage of your most prized home furnishings and possessions.
If you don’t have the time or manpower to move your belongings yourself, you can trust the moving professionals at Two Men and a Truck to get your household from one home to the next on schedule and with great care. In fact, using a full service professional moving company will usually cost you less than 1% of your homes’ value, while preserving the value of your belongings and providing you more time to focus on other aspects of your life during the moving process. In line with the advice from many other professionals, Jason Christensen of Two Men and a Truck suggests that when selecting a moving company you should always check out their rating with the Better Business Bureau to make sure they are reputable. He also suggests that moving is a great time to go through your possessions and donate any items will no longer use to a good cause. Two Men and a Truck provides full relocation services which includes moving locally, intra and interstate moves, packing, unpacking, and they also sell a complete line of boxes and packing supplies. They will work around your budget, including options from completing your full move with packing and unpacking or simply moving your larger items. Christensen advises, “When you are planning to move, especially during the summer, remember to schedule your move with plenty of notice. Keep in mind that weekends and the last week of the month tend to fill up especially fast. Also, when you are budgeting for the transition, remember to have your moving company come out and give you a complimentary estimate so you will know what to plan for!”
While there are many things to take into consideration when buying a home, it truly is one of the most rewarding investments that you can make. Being a homeowner may come with many new responsibilities, but it also comes with a sense of accomplishment and a space that you can call your own. Once you have successfully gone through the process of buying a house, you can then begin to make it your home!