How to Win the Mortgage Game When Relocating

Be the first to comment on this post

lotus_bud_free_photo-690x457www.cbbaker.com

The single smartest move you can make is to put off house hunting until you have a firm idea of your buying power. If you are pre-approved for a loan, you can save considerable time house hunting and mortgage shopping.

A pre-approved mortgage loan is an excellent guideline to help relocating home buyers know how much home they can afford. For the seller, pre-approval is proof that the buyer’s lender feels confident a loan commitment would not be a problem if all the financial documentation were in order.

Pre-Approval Benefits:

  • Streamlines house hunting.
      A pre-approval identifies how much money the transferee can obtain, so precious time isn’t wasted looking at too-costly homes.
  • Offers peace of mind.
      You know for sure how much home you can afford, and there is little chance a lender will not make the requested commitment.
  • Prevents “house poor” homeowners.
      Pre-approval reduces the possibility of you becoming overextended and unable to meet payments later on.
  • Boosts bargaining power.
      Pre-approved buyers tend to be in an advantageous position when bidding against other buyers, as sellers like knowing your loan is guaranteed.
  • Pinpoints best mortgage option.
    The pre-approval process helps you identify ahead of time which type of mortgage best meets your personal needs.

Before you jump into planning your move, there are some terrific services we offer to relocating families moving into or out of our area. Let us help you take advantage of them. Send us an e-mail or give us a call. 910-202-3607 or kaybakerassociates@ec.rr.com

Categories: Pre-Approved Mortgage, Uncategorized, wilmington nc real estate, Wrightsville Beach NC

PLAY SMART: Savvy Tips On Buying A Vacation Home

Be the first to comment on this post

Great Reasons To Buy A Vacation Home

Figure Eight Island

Figure Eight Island

They provide another investment that includes a mortgage-interest tax deduction.

We’ve all thought about it while lying on the beach or inhaling the fresh mountain air: “Why don’t we buy a vacation home?” Owning a vacation home can be a good decision if you buy smart.

Whether you rent it out or not, you can deduct the mortgage interest as long as you use the home more than 14 days or more than 10% of the number of days the home is rented annually at a fair rental, whichever is longer.

Qualified second homes include houses, condominiums, cooperatives, mobile homes, house trailers, boats or similar properties that have sleeping, cooking and toilet facilities.

Here’s an interesting twist on the mortgage interest deduction: If you take out a home equity loan on your first home and use the funds to acquire your second home, the interest on the home equity loan is also deductible. That’s three mortgage interest deductions off your tax return!

Consult IRS Publication 936 for a complete discussion of how mortgage interest for a second home is deductible.

You can purchase your future retirement home now, at today’s prices.

Though your second home may be a vacation home now, if you buy right you can convert it into your principal residence later.

They can produce their own income.

Renting out a second home occasionally or often can help you pay for the property with OPM (other people’s money). Check with your tax advisor about how much of the upkeep and management expenses are deductible against your income.

Buying Tips From The Experts

Buy something within a reasonable distance.

Be sure you can get to your vacation home in a short amount of time. Before you make a final decision, travel the distance on a typical Friday afternoon to see whether the drive will be too much to deal with after a long work week.

Rent in the area several times before you buy.

If you really like a particular area, check it out during different seasons. This way you get to know the climate, people, pests, traffic patterns and other regional particulars first-hand.

Consult other owners.

Check with owners of nearby properties about public and private facilities, special maintenance required due to location or weather, the social climate, local development plans and prevalence of crime. Learning about the lifestyle of the area may help you narrow down your choices.

Think home first, investment second.

Although you may be able to generate rental income from your vacation home, it may not cover your ownership costs. (If you want to try real estate investments, give us a call to look at properties in the local area.)

Consider different styles of properties in a vacation area.

To minimize upkeep and have a more secure environment, a condo may be preferable to a single-family home. If you plan on converting it to a retirement home, consider what type of home you’ll want as a full-time residence.

Call us 910.202.3607 or kaybakerassociates@ec.rr.com or www.cbbaker.com

Categories: Buying a Vacation Home, Uncategorized, wilmington nc, wilmington nc real estate, wilmington real estate stats, Wrightsville Beach NC

THE FINE PRINT | Take A Close Look At Contract

Be the first to comment on this post

In the heat of the moment a purchase offer may seem like a hastily written document. Rest assured the real estate professionals involved take special care to make sure all is proper. Yet that multi-page, fine-print purchase offer may shortly become a legally binding contract. If the seller says yes by affixing his or her signature on the bottom line and any changes are ratified, the buyer is locked in—but to what?

In The Know

Before writing a contract, you should review it to determine what it is you’re signing. Ask questions about anything you don’t understand. This sometimes-confusing document outlines many facets of the transaction.

While contracts are created in most part on a local basis, they typically deal with many of the same issues, such as:

  • Price, terms and financing
  • What conveys, what stays
  • Home inspections, pest inspections, environmental inspections, other special inspections
  • Contingencies that must be cleared to speed along the transaction
  • Adherence to local statutes
  • Property and environmental disclosures
  • Fees to be paid both by the seller and buyer
  • How disputes will be settled
  • Other items, depending on where you’re buying the home.

In some areas, an attorney is required to be involved in this process. If you’re planning to buy or sell a home, contact us to discuss any step of the real estate process you have questions about.

Do your homework. Read the entire contract before you sign it.  Need help?  Give us a call.  910-202-3607 or kaybakerassociates@ec.rr.com

Categories: Read the fine print, Uncategorized


Kay Baker Associates | 1001 Military Cutoff | Ste 101 Wilmington, NC 28405 | kaybakerassociates@ec.rr.com | 910-202-3607 | Fax 910-338-2428

Copyright © 2017 Wilmington NC Real Estate Guide. All rights reserved. Disclaimer: All content on this blog is my own opinion and should not be treated as fact or relied upon when purchasing or selling real estate.