Debunking Common Myths of the Home Buying Process

There are many great New Haven County area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call me at (203) 269-4910 x 12 for a FREE home buying or selling consultation to answer any of your real estate questions.

Today, Dave Beckman of Guaranteed Rate joins us to discuss the latest from the mortgage lending side of real estate, especially as it relates to first-time home buyers. 

One of the most crucial things you can do as a buyer is get pre-approved before beginning the home search process. This will allow you to set yourself apart from anyone else who might be putting in an offer on a home. A letter of pre-approval is the holy grail that shows the seller that you’ve talked to a lender, submitted all of your documents, and that you’re a willing and able buyer. 

Having a pre-approval letter will set you ahead of the competition. It shows that you have spoken with a lender and that they have qualified you. A pre-approval is a letter that says that a lender has analyzed your income, assets, and job history, among other things, whereas a pre-qualification simply says you might be eligible to get a loan down the road. If you have a pre-approval and your competition only has a pre-qualification, you stand the greatest chance of getting your offer accepted. 

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There are many ways to mitigate the costs of purchasing a home if you know what you’re doing.

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There are some misconceptions out there among buyers that they need to put 20% down before they can purchase a home. Luckily, that is not the case; there are many options available to people who can’t afford to save 20% of the mortgage to put down. There are also misconceptions about mortgage insurance, but there are ways to mitigate those costs as well. Mortgage insurance is not as expensive as it’s made out to be, and if you can’t afford to put 20% down, it is a very affordable way to get into a home. 

There are special government programs out there with the purpose of helping the consumer to buy a home with a smaller down payment. The VA loan, for instance, which is available for past and active members of the US military, allows people to get into a home with 0% down. The scrutiny on these loans are a bit greater, but if you work with a mortgage banker, as opposed to a bank directly, you will be in the right hands. 

Another issue many first-time buyers deal with is the cost of closing. A lender can give a credit, in addition to the mortgage, that can help offset the closing costs. This is a great way to keep more money in your pockets as a borrower. 

If you have any questions about how Dave can help you, don’t hesitate to reach out to him at (203) 641-8287 or DBeckman@GuaranteedRate.com. Or, if you want to apply for a mortgage now, visit www.GuaranteedRate.com/DaveBeckman and fill out the application. 

Of course, if you have questions about this or any other real estate topic, or if you have suggestions for a future video, please don’t hesitate to reach out to us here at Carbutti & Co. Realtors. We always love to hear from you! 

Where Is the Connecticut Market Heading?

There are many great New Haven County area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call me at (203) 269-4910 x 12 for a FREE home buying or selling consultation to answer any of your real estate questions.

October is here, so I thought it might be a good time to take a look at where the market has been over the last few months and where it might be heading!

The average days on the market are increasing here in Connecticut, as they are across the country due to school starting and the colder weather starting to take hold. In New Haven County, the median list price is around $260,099 and the market action index is at about 30.1.

In other words, it seems to be pretty even between inventory and the number of buyers in the marketplace. Some of the properties are sitting on the market a little bit longer, inventory is growing, and we will see less activity on the buying side as we get closer to the holidays, which is traditionally what happens.

If you're a seller right now, you're definitely going to get market value as far as price is concerned. Buyers are buying properties right now, but now is not the time to try and set a sales record for your given neighborhood by getting the highest price that's ever been had.

Buyers right now are very educated and are looking at a lot of the same information you're looking at. There is something to be understood about putting your house on the market: any house is going to get the most activity and the highest and best offer in the first couple weeks if everything is done right.

Keep in mind that there is a fine line between pushing the envelope on price, which we can definitely do, and overpricing your home. The last thing you want to do is cross that line and overprice your home, and that's really where the real estate professional comes in.

Right now, the most popular homes are four-bedroom/two-bathroom upgrader homes. There are a lot of first-time home buyers who bought a home five to seven years ago, they've outgrown the house, and they now need a bigger, four-bedroom home. Many of these people are looking now, as it's a great time to buy due to low interest rates.

What Questions Do You Have About Homeowner's Insurance?

 There are many great New Haven County area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call me at (203) 269-4910 x 12 for a FREE home buying or selling consultation to answer any of your real estate questions.

 Hey everyone, thanks for joining us today. I am happy to be joined by Frank Apuzzo, with Ferguson and McGuire Insurance, who is here to answer some questions we have received lately. A lot of first-time home buyers are out there looking for a home in our market, so we wanted to give you all some good information on where to start when it comes to getting your homeowner's insurance policy. 

What are some of the questions a first-time home buyer should be asking an insurance professional?

First off, you should find a local agent or broker in your area that has access to multiple insurance carriers so you can make sure you're being covered by a reputable company. You also want to make sure the company will be able to pay if you have a claim. The company should be an "A-rated" insurance company. 

What should you be looking to get covered on a good homeowner's insurance policy?

A lot of first-time home buyers call and tell us their agent told them they just need hazard insurance, which covers the structure of the home and the mortgage in the event of a loss. To make sure you have the right policy, you'll also want to notify the insurance company of any upgrades to the home. They will also want to make sure your wiring is safe and new and your heating and ventilation is up-to-date.

What are some hurdles that first-time buyers experience?
One of the biggest questions first-time buyers have about their policy is, "Why do I have to pay for my Homeowner's insurance in full?" Well, the insurance companies don't care who is paying it or how, they just want it paid in full. When you pay it all at once, the leftover money will be held in escrow. In essence, you are paying for your policy in advance. 

What are some advantages of hiring a local insurance agent?

One of the best advantages is that you can have someone that goes out and inspects the home in person before you list. This way, there are no surprises when it comes to getting coverage. 


If you have any questions for us at all, feel free to give us a call or send us an email. If you have any questions for Frank, give him a call at (203) 537-7194. We look forward to speaking with you soon!

Attention Buyers: Are You Aware of the Deals You’re Missing?

There are many great New Haven County area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call me at (203) 269-4910 x 12 for a FREE home buying or selling consultation to answer any of your real estate questions.

Attention Buyers: Are You Aware of the Deals You’re Missing?

Today I wanted to appeal my video to towards buyers. If you’re looking for a good deal in the marketplace, we have a tremendous amount of opportunity; especially for first time homebuyers if you plan on being an owner/occupant. These are Freddie Mac and Fanny Mae. You may have remembered a  segment I did a while ago about Freddie Mac and Fanny Mae videos and I will continue to shout these from the rooftops until you buyers contact me about these properties
 

We recently had a Freddie Mac property here in Wallingford at 50 North Elm Street that was a 1,700 square foot colonial with three bedrooms, one and half baths and a one car garage sell for $144,000! I’ve sold houses on that street for $260,000-270,000. This property was being offered to first time home buyers; it was a feeding frenzy! Even if you offered $20,000 over the asking price, you still would have a good deal. Yes the house needed cosmetic work, painting, flooring and a few appliances, but so what!
 

We also have a wonderful mortgage program called FHA 203(k) that allows you purchase these properties with only 3.5% down and the home’s rehab is figured in! This allows you to basically have a brand new house. If I seem like I’m animated and passionate, it’s because I am. I want to get the word out about these properties.
 

If you are a first time homebuyer in New Haven County and you are only searching the internet, please call me at (203) 980-6886 and we will guide you on all of these opportunities; you won’t find these deals by yourself. Thanks and I am excited about helping you get into your next home!