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Getting Ready To Buy A Home?

Here are some helpful tips for getting ready to buy a home:

1. Check your credit score and report. You can obtain a free copy of your credit report once a year www.annualcreditreport.com

  • Keep in mind that different industries calculate your score differently, so the actual credit score when you apply for a loan may be a slightly number.
  • Generally you need a 640 credit score or better for most loan programs. They also look at the total amount of debt payments versus your income. Try to have any balances on your credit cards below 40% of the maximum available.
  • 2. Collect tax returns, W2s for the past two years and paystubs for the past 1-2 months for proof of employment and income.

    3. If you are renting, pay by check so you have a record they can verify.

    4. Avoid large or unusual deposits or withdrawals from our bank account. If you are “borrowing” money from friends or family, be aware that the lender won’t allow you to “borrow” money and they will require it to be a gift with no expectation of repayment.

    5. Talk to a few different loan officers at different companies so you can compare the closing fees and loan programs available. Some local banks have in-house programs that are more flexible with down payment then the loan programs that are resold to investors. However, independent mortgage brokers often have access to a larger variety of programs then local banks do. It’s a good idea to talk with someone from both. Multiple loan officers can check your credit without additional adverse effect as long as it is within a 30 day period. We can direct you to some loan officers we’ve had good experiences with.

    Posted in For Buyers

    Should I Wait Until Spring To Sell?

    “What is the best time of year to list my house for sale?”
    This is a question we Realtors have heard many times. The short answer is that you can list your house any time of year, but spring and summer are the strongest markets. The longer answer gets to the well-known principle of supply and demand.

  • If there are fewer houses for sale during the fall, this can work to your advantage in selling your house.
  • There are also buyers who are under contract to sell their house soon and are buy right now. These buyers may no longer be looking by the time next spring comes around.
  • If you are looking to sell your house and buy another house immediately, doing so in the fall could help you avoid a blind bidding war with other buyers. It can be very frustrating to bid above asking price on house after house and keep losing out to someone else. This is an unfortunately common problem in the spring market especially with the low inventory we have had in our area over the past few years.
  • Nobody wants to move during a blizzard in February, so act now and at contact us for a free market analysis of your house and we can discuss further a marketing plan and the time of year that makes the most send for you.

    Posted in For Sellers

    The Big Down Payment Myth

    According to a recent article by The National Association of Realtors, there is a common misconception that buying a home requires a 20% down payment.

    “The average down payment on a purchase mortgage was just 11 percent in 2016. And that’s just the average; often times down payments are much lower. For borrowers under the age of 35, the average down payment was just under 8 percent, according to NAR’s survey. But there are many mortgage options that offer the opportunity to make low or even no down payments. For example, the Department of Veterans Affairs and the U.S. Department of Agriculture offer no-money down loans to those who are eligible. In 2016, 16 percent of buyers under the age of 35 put no money down on their home purchase.

    NAR’s Profile of Home Buyers and Sellers has shown that the median down payment for first-time buyers has been 6 percent for three straight years and 14 percent for repeat buyers in three of the past four years. However, when asked about the amount of a down payment needed to purchase a home, a remarkable 87 percent of non-owners indicated that a down payment of 10 percent or more is necessary.”

    In addition to the loan programs mentioned in the article like FHA and USDA Rural Development, there are some local banks that offer in-house loan programs with down payments in the 5%-10% range.

    http://realtormag.realtor.org/daily-news/2017/02/15/big-down-payment-myth

    Posted in For Buyers

    Should I buy a house with a well?

    When buying a house you may come across a house that uses a private well for water supply instead of public water. There are advantages and disadvantages to a well water system and a public water system so it’s not something you should automatically rule out.

    Is Well Water Safe?
    Modern well design uses deep drilling down to bedrock to obtain water that is naturally filtered through miles of the ground. There are additional contaminants that can still occur in the water so further testing is required and possibly additional filtration. The State of Maine recommends testing your well water once a year for bacteria and nitrates and every 3 to 5 years for arsenic, fluoride, uranium, radon, lead, and manganese. Public water does water quality testing, but they test the water before it is run through miles of often very old piping to arrive inside your house. The drinking water crisis in Flint Michigan was partially caused by the faulty assumption that public water is tested and safe, but the piping between the water supply and the houses was leaching lead in to the water.

    Advantages:
    Typically lower operating cost
    Control of your individual water supply
    Less susceptible to outage due to water main breaks

    Disadvantages:
    Periodic testing is easy to forget
    System potentially requires filtration system(s)
    Pump/tank require eventual replacement
    No water when there is a power outage
    Older shallow wells susceptible to running dry in a drought

    Posted in For Buyers

    2016 Housing Report

    MaineListings.com has released their annual report of real estate sales by county. Cumberland county had a 2.68% increase in the number of homes sold and a 6% average price increase. York county has an 11.78% increase in the number of homes sold and a 5.75% average price increase. 2016 was the 5th consecutive year of increase in the number of units sold.

    Posted in Uncategorized

    How To Buy in a Tight Market

    Follow these tips from Realtor.org to increase your chances of getting your dream house in a competitive housing market.

    Get prequalified for a mortgage.

    You’ll be able to make a firm commitment to buy and your offer will be more desirable to the seller.

    Stay in close contact with your real estate agent.

    Your agent will be on the lookout for the newest listings that meet your criteria. Be ready to see a house as soon as it goes on the market — if it’s a great home, it will go fast.

    Scout out new listings yourself.

    Browse sources such as realtor.com and local real estate listing sites. Set up alerts for the neighborhoods and characteristics you’re looking for. Drive through your target neighborhoods, and if you see a home you like for-sale, send the address and listing agent’s name to your agent, who can schedule a showing for you.

    Be ready to make a decision.

    Spend plenty of time in advance deciding what you can afford and must have in a home so you won’t hesitate when you have the chance to make an offer.

    Bid competitively.

    Your first inclination may be to start out offering something less than the absolute highest price you can afford, but if you go too low in a tight market, you will likely lose out.

    Keep contingencies to a minimum.

    Restrictions such as needing to sell your home before you move can make your offer unappealing. Remember that, if the market is tight, you’ll probably be able to sell your house rapidly.

    But don’t get caught in a buying frenzy.

    Just because there’s competition for a home doesn’t mean you should buy it. And even though you want to make your offer attractive, don’t neglect inspections that help ensure the house is a sound investment.

    Posted in For Buyers

    Scarborough 2016 Sold Statistics

    Scarborough average homes sold in 2016 grouped by bedroom count (Limited to homes under $700,000)

    Posted in Uncategorized

    7 Tips on How to Enter 2017 More Organized

    1. Get A Fresh Start

    It’s easy to say you’re going to re-organize your house, but actually doing it is another story. One way to really ensure that you follow through with the somewhat large, and maybe challenging task is to get everything out of the space you are trying to reclaim. This allows you to see everything that was taking up space and forces you to decide whether you want to keep those things.

    2. Box System

    Bring 4 boxes into each room with you. One box for things you want to keep, one to donate, one for trash, and one for relocation. That way, it’s easy to see where all of your belongings are going to end up. This is a very visual way to see where you are allocating all of the things you thought you once needed. You are in control of where they end up. You decide their fate. Choose carefully.

    3. Out With The Old

    We all have those things that you just can’t get rid of. Whether it’s your son’s 3rd grade art project, or your favorite ratty t-shirt, we’ve all been there. However, it’s easy to see once you’ve unloaded said space that you need to make some trips to Goodwill. Getting rid of things you know you don’t need allows for a new found storage space. Maybe instead of the plant whose life has clearly come to an end, choose a small bookshelf, or a comfy chair. RIP houseplant.

    4. When There Isn’t An Out, There’s Always An Up.

    When you bought your house, you didn’t JUST buy the floor space, yet a lot of people forget that they can go vertical with storage spaces as well as horizontal. This allows for a more open and welcoming area. Horizontal book shelves are great, but sometimes that’s all the eye sees when looking into a room. With a vertical box shelf, or vintage ladder, or even baskets mounted to the wall, it appeases the eye. Not only does it allow for more items to be stored, it looks like there isn’t as much clutter.

    https://www.pinterest.com/pin/181621797452554162/

    5. IKEA: AKA IKEY(To Happiness)A

    This is a organizer’s dream store. There are so many options! Shelves, under-the-bed drawers, pull out beds, and basically anything you can think of.  This is a great resource because it allows for creativity as well as success in being organized. Visiting the store in person is great, but even visiting their website (http://www.ikea.com/us/en/) will fill anyone with great ideas. Or should I say, IKEAs.

    6. Release Some Tension – Rods

    Tension rods show the sneaky side of organization. One great use is to put one under your sink to hang cleaning products from. Or, it can be used to hang coffee mugs with the assistance of S hooks. Another great use is to cover a space that may need a door, such as a cabinet, or the under-the-sink space. Not to mention the obvious use of hanging curtains. Wherever people choose to use tension rods, they are usually unseen, hence making them sneaky. This is a great way to declutter!

    http://www.goodhousekeeping.com/home/organizing/tips/g1277/tension-rod-uses/

    7. Have Fun With It!

    Make it into a competition – who can get rid of the most items the fastest, or who can create the most unused space. The competitive edge provides motivation for all family members to be a part of it, not just leaving it all to fall on you. Or, offer pizza.

     

    Posted in Uncategorized

    2016 Tax Rates

    Comparison chart of Scarborough and surrounding areas. An important consideration is the different towns services like fire & police, schools, trash collection, public works.

    Posted in Uncategorized

    Gingerbread House

    Posted in Uncategorized