How To Protect Yourself From Loan Fraud

Six ways you can help protect yourself against wire fraud and other threats.

As you near closing, you’ll probably get a lot of messages about sending money towards the transaction. If you’re not careful with these, you may end up a victim of fraud. How can you verify these emails and ensure you’re not sending your money away? Here are a few ways to protect yourself:

1. Speak with your agent and learn about the process. Ensure these emails are from the right person and coming at the right time. Don’t just wire money because they’re asking about your closing; that’s one of the biggest frauds we see today. 2. Confirm the numbers and call them. Don’t just communicate by text or email—pick up the phone and call. 3. Beware of any last-minute changes. These can happen, but make sure you call and confirm before you act on any change you hear about in an email.

“When thousands of dollars are on the line, you have to verify everything."

4. Check your wiring instructions. Your wiring instructions will come to you via email, but again, call and confirm that these are the correct instructions. 5. Never email your financial information. Even if the email seems legitimate, never share your financial information. You might have noticed a theme here, but I would advise you to call and give them the information over the phone. 6. Confirm callers’ identities. If someone calls you, ask some questions and confirm their identity. You might hate being too suspicious, but when you’re spending thousands of dollars, you have to verify everything and make sure your money is secure. If you have any questions or need help closing, call or email us. We’d love to hear from you.

How Much House Can You Afford?

 

Explaining the factors that determine how much home you can afford.

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It’s easy to look at homes online and find one you love, but how much home can you truly afford? There are four things we look at: your monthly income, cash reserves, debts and expenses, and credit profile. Let’s start with the debt-to-income ratio because it’s one of the first things a lender will look at. As a general rule, your mortgage payment and housing expenses should total up to no more than 28% of your monthly income. If you make $5,000 a month before taxes, 28% of that is $1,400 a month. In a perfect world, that house payment, including taxes and insurance, should be no more than $1,400 a month.

“How much house you can afford is closely tied to the interest rate."

The next thing that lenders look at is your total debt. Maybe you have a car payment, a few student loans, and a credit card. All your debts should be no more than 36% of your monthly income. With that $5,000 a month example, you’d want your debts to equal less than around $2,000. Keep in mind that you want to be safe about these numbers. Some lenders will let you go up to 50% with these ratios, but my advice would be to stick with the 28% and 36% rules. Also, don’t forget that you have other costs when you own a house, like taxes, utilities, insurance, and the costs of repairs. Make sure you budget for all of that as well. How much house you can afford is closely tied to the interest rate, and the secret’s out: Interest rates are going up. If you are thinking of buying, I would do it sooner rather than later, and you need to speak with a lender beforehand. We work with the best lenders in the business. They’ll get you a good interest rate and make sure your ratios are in line with what's best for you. If you have any questions, feel free to call or email my team and me. We’d love to help you.

Buyers Beware: Look for These Home Issues

 

Here are five home inspection red flags to beware of when buying a house.

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If you’re in the market to buy a home, you should always be on the lookout for certain red flags during the inspection process. Remember that home inspections are typically non-invasive; they’re just visual examinations of the property. The inspector isn’t going to catch everything, but they will find most of the issues that could be deemed red flags for you as a buyer. Today I’ll share five of the red flags that may show up: 1. Safety issues. If the inspector finds that the steps on the house aren’t level, the water heater temperature is set too high, or there’s a heavy presence of carbon monoxide in the home, that should send up red flags. Items that constitute safety hazards should be fixed before you proceed with the purchase. 2. Foundation issues. In our area, there are a lot of homes with basements, and they almost all have some sort of water issues. However, you still want to keep an eye for things that are outside of the norm, such as cracks in the foundation, areas that are sinking, or water seeping into your crawlspace.

“Items that constitute safety hazards should be fixed before you proceed with the purchase."

3. Mold. The presence of mold is a big safety concern, so that should be addressed before you buy. 4. Termite damage. Termites can eat through the support for your floor and other wooden areas of your home, so be sure to have a termite inspection done. 5. Electrical issues. Especially if you’re buying a home built before 1970, you’ll want to take a close look at the wiring of the house. Many older homes don’t necessarily jive with more modern technology, which could ultimately end up as yet another safety issue. Whether you’re looking to buy a home, you’re a seller who wants to have your home inspected, or if you have any questions about the home-inspection process, don’t hesitate to give us a call or send an email.

The Top Remodels Every Homeowner Should Make

Here are my top home remodels to get the best return on investment.

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If you are planning on remodeling your home, you should make sure your choices

are adding value. That way, when you plan to sell, your home will be ready to get

top dollar. Today I’ll be sharing my top tips to get the most out of your remodel. 

1. Buyers like light, bright, and open. Increasing the amount of light and space in your home is a great way to make it appeal to buyers. Enlarging windows, adding windows, raising ceilings, or any other way to increase light and space in your home are all sure to bring in a great return on your investment.

2. Improve your landscaping and curb appeal. This method is easy, but it adds a lot of value to your home. Sidewalks, bushes, and other landscaping upgrades improve your home’s first impression. At the end of the day, no one will walk through your home if the outside looks unappealing. 

3. Make sure you have a home office. If you don’t have a designated home office area, I highly recommend converting a bedroom or adding an additional room to make space for one. More people are working from home than ever, and having a home office can be an essential item for buyers. 

4. Add or improve your decking. After the pandemic, people want to spend more time outside with their friends and family. A nice deck gives your home value and is something nice for you to enjoy as well. 

"Even if you plan on upgrading your kitchen for yourself, you might as well increase the value of your home in the process." 

5. Finish your basement. If you have an unfinished basement, it is super easy to add an office or workout room. Doing something with the space will add a ton of quick value to your home. 

6. Update your bathroom or kitchen. Traditionally, updating your bathroom or kitchen is a great return on investment. Enlarging your bathroom and adding kitchen accessories are just a few ways to improve the value of your home. 

If you’d like a recommendation on vendors to help you with these remodels,

just send me an email at charlotte@charlottemabryteam.com. I would be more than happy to send you some excellent recommendations. 

A Few Tips for Buying a New Construction Home

What happens during the new construction process? Today, we have a few tips and tricks to help you buy a new home.

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Buying a new construction home is a little different than buying a resale home. You need to think it through before you get started. Today, I have a few tips and tricks to help you through this process.

First of all, you need a real estate agent that is going to represent you. When you visit a new construction site, the folks that are there are very helpful and informative. However, they represent the builder’s best interests, not yours. We want to look out for your best interests. You need an agent working specifically for you.

When you do buy a new construction home, the builder probably won’t give you much of a concession on the price. You will probably have to pay full price. However, there are other opportunities for concessions. The builder may pay some closing costs or include some appliances and upgrades.

It is important to keep home values the same in those neighborhoods, which is why you won’t get much wiggle room on the price of the home. However, your real estate agent can help you find other opportunities for concessions.

You will probably need to use a builder sales contract form. Don’t be thrown by that. Unfortunately, those are written for the builder’s advantage. Builders do not use the standard form that we agents use.

You should make sure that you ask about the builder's warranty. How long does it last? What does it cover? Make sure you get that information in writing.

Make sure that you keep track of any changes in writing.

If you are visiting a model home, keep in mind that what’s in the model home may not be in your own. Find out which items are different from the model home and get that information in writing as well.

You should also keep a written list of all of the changes and change orders along the way. You will be asked to pay for those, so you’ll want to know exactly what the cost was and when the work got done. Keep those change orders together.

Finally, make sure that you get your own independent home inspection on the property. Since it's new, you may think that you don’t need an inspection. However, people aren’t perfect, and sometimes things don’t get completed correctly. It’s always good to have a fresh set of eyes and get your own home inspection.

We have even more tips to help you buy a new construction home. If you would like the full list, just give us a call or send us an email. We can definitely send that to you. Be sure to reach out with any questions you might have, as well. We would be happy to help.

How to Get Your Offer Accepted in Chattanooga

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In the competitive Chattanooga housing market, how do you get your offer accepted by a seller? It’s likely you’ll face a multiple offer situation and compete with other aggressive offers. However, there are some ways to ensure your offer is the best one.

1. Offer cash. If you’re able to choose this route, a cash offer is highly desirable to sellers. It shows them you’re able to afford the home without financing.

2. Put more money down. Instead of pursuing a 90% loan, consider applying for a 50% loan.

3. Offer additional earnest money. If a seller has to choose between two offers, they’re inclined to pick the one with significantly more earnest money.

4. Get pre-approved. Seek pre-approval from a lender before making an offer. Ideally, you should have this before you start looking at properties.

5. Work with the seller’s terms. Work with any possible contingencies. Maybe the seller wants to stay in their home for a certain period of time before moving out.

6. Write a letter about your family. A handwritten letter with a family photo will add that personalized, emotional touch. Explain to the seller why you love their home and how you picture your family living in it.

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A handwritten letter with a family photo will add that personalized, emotional touch.

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Our team has top talent that understands how to get your offer accepted. They can offer tips, tricks, and advice to make your offer its strongest. If you’re thinking about buying or selling a home in the surrounding area, give me a call or send me an email. I’d be happy to answer your questions about this topic or more!