Three Questions to Ask New Neighbors When Relocating

With more than 43 million people relocating throughout the U.S. every year, you don’t have to wait until you are surrounded by stacks of cartons to realize how important it is to make your next move the right one. If you’re buying a house in Savannah in the foreseeable future, it’s a particularly valuable idea to take the time to chat with some of your potential new neighbors.

And while you’re at it, why not bring up a few relevant questions:

Which schools are best?
School quality affects more than just property values. Especially if you have your own kids, buying a house in town is least disruptive when their new school is the best one available. You’ll make the soundest choice by comparing more than one parent’s opinion.

Is there a neighborhood watch?
You will have already aimed for the safest area possible. Now, getting involved with an active neighborhood watch can further ensure your family’s safety. When buying a house, the presence of a neighborhood watch is a good indicator of some solid community spirit…and if there isn’t one, make sure the reason is that everyone already feels secure in the area.

What events are available in town?
Buying a house means buying a home base for all your family’s activities. By asking your neighbors which local events and activities they enjoy the most, you’ll get a glimpse of the scope and depth of the cultural life that’s going to surround you. As a side benefit, just inquiring shows you as someone who is sociable — and that you’ll be a good new neighbor to have!

The simple act of reaching out in this way lets you familiarize yourself with a new neighborhood faster, and ultimately leads to a better-informed long term real estate decision. Especially if the area is new to you and your family, buying a house in town is actually a one-time opportunity to make a host of new friends. We have tons of information available for future residents. If you’re even considering buying a house in the Savannah area, don’t hesitate to call us today!

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Part 2: What First Time Savannah Homebuyers Aren’t Told

Of all the things first time homebuyers in Savannah are told, some that turn out to be pretty important are too often overlooked. Here are four items first time homebuyers will find useful to know:

4.         Remodeling costs more than you think

You’ve found a fixer: your energy is to be applauded. But before you write that offer, if you are one of our Savannah first-time homebuyers, be certain to have penciled out the bottom line cost of bringing the home up to the standard you require to be move-in ready. You may well be able to live with some items that you will fix over time, but in all areas, budget 20% more than your estimate.  

5.         What matters is what the bank’s appraiser thinks the house is worth

Getting a loan approved isn’t as simple as having great credit and a down payment. Your offer also has to pass the bank’s approval process before they will okay the loan.

6. Getting inspected doesn’t mean there won’t be problems

Should you skip the inspection process? Absolutely not. You need to know if the home is structurally sound. But owning a home involves continuing expenses -- and problems can pop up even on Day One of ownership. Make sure you have funds set aside.

7. Buying your first house can be stressful…really stressful!

One of the absolute best pieces of advice I can give is to relax — expect the unexpected! Buying your first house is scary only if you allow it to be. Since it is all but certain that there will be ups and downs, allow the possibility that you may not get any particular house. Veteran homebuyers come to understand the cost of overly emotional involvement — when you do, too, you will be better able to roll with the punches…and to make financially sound decisions.

If you missed the first three items in my list, check back to Part 1 – or just call us! I’ll fill you in on everything Savannah first time homebuyers need to know.

7 Things No One Tells Savannah First Time Homebuyers

First time homebuyers in Savannah are told a lot of things —

“Save your money,” their parents advise.

“Location, location, location!” their friend’s friend cautions.

Reasonable advice, for certain. But there some important elements of the home buying process which a typical Savannah area first time homebuyer doesn’t usually hear. I’ve listed some of the most important ones, in no particular order:

1.                  Mortgage rates you see advertised aren’t usually what you get

The banner ads are everywhere online: “3.2% rates!” “No money down!” But the truth is, mortgage rates vary greatly. The only way you’ll know what rates you actually qualify for is to go through a complete mortgage application including credit pulls and income verification. One more point to consider: online mortgage calculators, while handy, can be deceptive if you do not factor in the real cost of tax, insurance and PMI when you’re looking at an FHA-loan. 

2.                  Every Tiny Bit of Debt Counts

Think that $1400 left on your Visa isn’t going to matter? Think again. Every iota of debt weighs in when your credit is scored. What many first time homebuyers aren’t told is that when you apply for a mortgage, nearly every element of your financial history is going to be analyzed with a fine-toothed comb. All debt will be factored in as the bank figures out how much it is willing to lend. Standards have stiffened, so the earlier you dispose of even small issues, the better.

3.                  Your Choice of Agent Makes All the Difference

Let me guess: your friend’s friend also has an agent to recommend (she carpools with his sister’s next door neighbor). There’s no reason you shouldn’t interview her: maybe that’s the right fit for you. But don’t just sign up with the first agent you find: this is a working relationship that can shape your family’s future. Your agent’s connections, experience, and market knowledge will be key — and can well make the difference between your writing an offer that gets accepted or not.

(Coming Tomorrow: Another 4!)

Three Money-Saving Tips for Your Savannah Mortgage

Your mortgage: you only think about it once a month (if you’re on autopay, maybe not even that often). Why worry about it? If it ain’t broke, don’t fix it, right? 

Wrong!

Like all aspects of your big-picture financial planning, keeping an eye on that mortgage can be an extra wealth-building move. I can point to three reasons why re-evaluating your mortgage could pay dividends:

Down, Down, Down…

Ok, with interest rates continually making headlines, this one might be a no-brainer. But some folks don’t realize just how attainable significant savings may be: a drop of just a single percentage point in the Savannah mortgage rate can make a gigantic difference. A general rule of thumb is that if you can lower your interest rate by a percent or more, it usually makes sense to refinance. It’s certainly worth looking into.

Pay More Sooner (Build Wealth Quicker)

Nobody wants to part with more hard-earned cash than necessary, but extra money out now can wind up saving a lot of greenbacks later. Making just one extra payment a year will have you owning your home free and clear sooner – whereupon those payment dollars become yours!

Sound too painful? It needn’t. See if you can set up bi-weekly payments of half your monthly mortgage amount. You'll be making 26 payments annually: the equivalent of 13 monthly payments! Confirm with your lender that the extra payments go toward principal.

Eye That Equity

If you’ve got a PMI payment, you know that extra insurance doesn’t come cheap. So why make the extra payment a single month longer than necessary? By law, your lender is required to stop charging you PMI after you accrue 22% equity in your home. But in many cases, once you hit 20% equity, simply writing a letter to your lender will prompt them to allow you to stop paying PMI then and there.

For most of us, our home in Savannah is one of the largest investments we’ll ever make. Got a real estate question? We’re here all the time to supply you with friendly help and advice!

Local Businesses Helped by Housing’s ‘Snowball Effect’

The Weather Channel has nothing to do with it. What’s happening up in the ski resorts, likewise. The ‘snowball effect’ being discussed in print and on TV won’t soften anytime soon (even if the groundhog was right about winter being over)

Punxsutawney Phil Predicts an early Spring
(and an economic thaw?)

This is an economic snowball -- one that’s gathering momentum following what CNN’s Money website describes as “the best year for U.S. real estate market in five years.” Businesses that stand to benefit from growth in the Savannah housing market are watching closely.

The Wall Street Journal’s snowball report took form in last Monday’s Marketplace section, where the top headline read “Housing Recovery Opens Spigot…Makers of Products From Carpets to Air Conditioners Feel Effects of Rebound.”

It was even more heartening as a counter to last week’s government indications that the greater economy seemed to slow. The housing sector’s performance was so strong it acted as a tonic to its many associated industries: among them, many Savannah retailers.
The snowball effect was noted widely. The company that makes Carrier air conditioners said that orders rose 20%; Honeywell International reported the “first sign of life we have had in a while.”

Locally, fingers were crossed that Savannah businesses will be swept up in the snowball. National suppliers expected that to happen. “Housing is what we see leading the economy out of the doldrums,” according to the CFO of United Technologies Corp. The WSJ reported evidence that Americans are spending more to build and refurbish their properties.

With sales of existing housing registering the largest annual jump since 2004, it should come as no surprise if Credit Suisse’s Daniel Oppenheim proves correct in predicting a 7%-8% rise in home improvement spending. He expects it to keep going for at least the next two years. That’s a pretty solid forecast, and in line with what most observers are saying.

 All in all, the boost from the housing recovery is one snowball no one seems to think is likely to melt soon  -- regardless of what Punxsutawney Phil has to say about it.

Good Faith Estimate: It's Part of the Deal

When you plan on getting a mortgage in Savannah anytime this winter, you’re fairly certain to run into something known as the GFE. It’s the acronym for ‘Good Faith Estimate’-- and despite the reassuring name, the federal government decided they had better make it mandatory. 

The GFE has a new format dictated by the federal Real Estate Settlement Procedures Act which requires lenders to provide an estimate of the charges and fees due at closing. Lenders have three days to make it available.

The GFE looks like a bill. It features a list of fees and charges denoted by three-digit codes. It is grouped into sections to make it more readable, and although at first glance the resulting grid looks overly complicated, after you scan through it once or twice, it actually makes sense. The reason it is a good idea is because of the number of charges that may or may not be on there. It prevents sudden last-minute cash flow surprises at closing. 

Photo Courtesy 123rf.com


Once you receive your GFE, you'll also receive a Truth in Lending (TIL) disclosure form. This gives you the annual percentage rate for your mortgage, taking into account mortgage insurance, discount points and other assorted fees.

The GFE is exactly what it says - an estimate. This isn’t so that the lender can suddenly raise the prices: there is a built-in variability to the various processes that truly cannot be guaranteed until the last ‘i’ is dotted and the last ‘t’ crossed. The figures quoted in a GFE can rise as much as 10 to 15 percent or more by closing…they can also fall. The GFE comes in quite handy when you’re getting a mortgage because you can compare it with the final, see where any differences appear, and be assured that it all makes sense.

Getting a mortgage is an integral part of becoming a Savannah homeowner. Understanding the costs at every step of the way is a big part of the decision-making process – it is just one of the services every one of our clients can be sure we will provide.