Team Parkhill's Blog
43 Beechwood Rd, Barnstable, MA 02632
Have you always wanted to design your dream home at a location of your choosing? If so, buying a plot of land to build your customized home on is probably your best option. Before getting started, you'll want to do your due diligence to ensure you're making a smart investment.
Find a Property to Build on
The concept of customizing your home is an ideal one, but the reality of finding the perfect plot isn’t so simple. You can check listings, but there are several other ways to find ready-to-build-on land.
If you find land approved but not yet suitable for build, you’ll also want to take clearing and grading the land into consideration.
Understand Local Zoning Laws
Some municipalities are stringent about how land can be used. Before you buy, it’s critically important to understand local building restrictions and zoning criteria. Any number of scenarios might prevent you from building your home. Here are just a few.
Be certain to understand every possible building restriction or zoning requirement before you purchase land. It would be disastrous to discover you can’t build your dream home the way you planned.
Does the land meet local criteria or have the right terrain for these necessities to be installed? Utility hookups are a detail you don't want to overlook—ensure you'll have access to water, sewer, electricity, natural gas and Internet. If no public water or sewer lines exist, you’ll need to learn about wells and septic tanks.
Understanding the Financials of Buying Land
Obtaining funding to buy land is a little different than taking out a mortgage to buy an already existing home. You’ll typically have a few options including paying in cash or getting a loan. Types of loans include land or lot loans, construction loans and seller-backed loans.
These loans are usually short-term and involve high-interest rates because lenders generally perceive land purchases a riskier gamble than home purchases. As with any major purchase, carefully evaluate your financial situation and consider future expenses and other contingencies before committing to a loan to purchase land.
Building your home on a plot of land takes additional planning because there are numerous details to explore before you can even begin to get started. While building a home is a more complicated process than buying an existing one, customizing a new home is a far more fulfilling investment for many people.
134 Viles St, Weston, MA 02493
Your credit score is a fundamental component of a mortgage lender’s decision to approve you for a loan. It can also affect the interest rate and loan amount you can secure.
Along with your income history and down payment, a solid credit score is one of the three most important things you’ll need when it comes to buying a home.
Credit scores themselves, however, can be a complicated business. And finding out what score you need to buy a home and how to achieve that score can also be a complex topic.
So, in this post we’re going to break down some credit score basics as they relate to buying a home.
Types of credit scores
You may have heard of the three main credit bureaus, TransUnion, Experian, and Equifax. Each of these bureaus keeps a detailed credit history for everyone in America (except for those who have yet to open a line of credit or take out a loan).
Since each credit bureau may have slightly different information available data to draw from, your credit scores from each company may vary.
However, when it comes to buying a home, most lenders use a standard scoring model called a FICO score to ensure that all mortgage applicants are treated fairly when they seek a loan.
Things are further complicated by the fact that there are several different FICO scoring models designed for different types of credit. So, if you’ve seen your FICO score when applying for an auto loan, it may be a different score than you will see when applying for a mortgage.
Build credit; raise your credit score
All of the types of credit scores and scoring models can be confusing. But what you mostly need to worry about is how to boost your score.
Your credit score will be based on five main factors:
Making on-time payments
The percentage of available credit (not maxing out your cards)
Having diverse types of credit (auto loans, student loans, credit cards, etc.)
Not opening new lines of credit frequently (a red flag that you’re struggling financially)
The length of your credit history, or how long you’ve been consistently paying your bills
What score do you need to buy a home?
There are several different mortgage types available for buyers. First-time homeowners, veterans, people seeking to buy a home in a rural area, and any other number of circumstances can help you qualify for mortgages even if you have a low credit score.
A general rule, however, is that it’s always better to apply for a mortgage with a high credit score to help you secure the best possible interest rate.
Some programs do have minimum credit scores that they will accept for a mortgage. FHA loans are one common example. The Federal Housing Authority guarantees loans for people across the country who are hoping to buy their first home (or who haven’t owned a home in the last three years). Their guarantee is what enables lenders to safely approve mortgages for borrowers with low credit scores. The current requirement for an FHA loan is a credit score of 580 or higher for a mortgage with a 3.5% down payment. You can secure an FHA loan with a lower credit score, but you’ll have to make a larger down payment.
There are several other options available for hopeful homeowners when it comes to mortgages. But, if you aren’t planning on moving in the next few months and your credit score could use some work, now is the time to start focusing on building credit.
An open house offers an excellent opportunity for a seller to showcase his or her residence to a large group of buyers. As such, it is important for a seller to plan ahead for an open house. If a seller devotes time and energy to prepare for an open house, his or her residence may make a positive impression on buyers.
Ultimately, there are several things that sellers need to consider before they host an open house, such as:
1. Home Interior and Exterior
A home's interior and exterior must dazzle buyers during an open house. Otherwise, a home is unlikely to make a long-lasting impression on a buyer.
To upgrade a house's interior, a seller should clean each room. Mop the floors, wipe down countertops and ensure each room is neat and tidy. Also, professional home cleaning companies are available that can help a seller quickly remove dirt, dust and debris from his or her residence.
Meanwhile, to upgrade a home's exterior, a seller should repair any damaged or cracked siding. If a seller requires extra assistance, he or she can reach out to local home improvement professionals to perform house exterior repairs as well.
2. Lawn Care
A home's messy, weed-filled lawn is unlikely to garner buyers' attention. In fact, this lawn may prove to be an instant turn-off to buyers when they attend an open house.
For sellers, it can be quick and easy to enhance a home's lawn. By mowing the lawn, trimming the hedges and performing other lawn care tasks, a seller can transform a drab lawn into a stunning one.
A seller should continue to take care of his or her lawn throughout the house selling cycle, too. If a home has an amazing lawn, this residence may capture buyers' attention, regardless of when a seller hosts an open house.
Antiques, knick-knacks and various decorations may fill your house, but these items may appear to be "clutter" in the eyes of homebuyers. Therefore, you may want to put your personal belongings into storage before you host an open house. This will allow you to keep your personal items safe during an open house. At the same time, it will help buyers envision what life could be like if they purchase your residence.
Preparing for an open house sometimes can be difficult. Thankfully, you can hire a real estate agent who can help you plan for any open house, at any time.
A real estate agent can provide recommendations to help you prepare for an open house. Plus, he or she can share buyers' feedback following an open house and ensure you can make your residence into an attractive option for buyers.
Ready to host an open house? Consider the aforementioned factors, and you can get ready for an upcoming open house. And as a result, you can boost the likelihood that an open house leads to multiple offers to purchase your residence.