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First-time home buyers face a complex and ever-changing market: Here's a guide.

 

 

 

 

 

 

 

 

 

 

PMI. HOA. APR. — Those are just some of the acronyms you'll come across when navigating the home buying process. Check out this handy video to demystify some of the terms you'll come across as you search for and figure out how to pay for your home:

 

 

 

 

 

 

NEW YORK-- Shannon Bella was lying in a hospital bed ready to give birth to her first child in March when her real-estate broker texted her about a document that required her urgent attention. 

Bella, who was in contract for a three-bedroom house in South Bend, IN., told the broker, sorry, but she could not leave her bed. The document would have to wait.  

"She sent me this text saying she needed it signed today. I was like, 'Well I am in labor right now,'" said Bella.

But the document, to extend an agreed upon deadline between the buyer and seller, couldn't wait. So the broker, Andrea Kveton, suggested Bella sign into DotLoop, a technology her firm, Cressy & Everett Real Estate, uses to allow people to review and sign real-estate documents from the comfort of their homes — or hospital beds. 

Bella signed into the service using her mobile phone and signed off on the extension. She has since closed on the ranch-style home, where she now lives with her daughter and fiancé. 

Real estate brokers are increasingly adopting new technologies, like DotLoop, to ease the burden of buying a new a home, especially for young people accustomed to navigating the world through their cell phones. Knowing about them could dramatically increase the odds of your landing the home of your dreams. 

Here are some technologies brokers are adopting that could help you in your search:  

Social media: When you find agents with listings in your price range and preferred location, try cyber stalking them. Not literally, but by following and friending them wherever you can on social media platforms. 

Real estate agents are increasingly posting pictures, videos and other listings information on Facebook, Twitter, Instagram and Periscope. This can help shoppers obtain information about news listings, including price cuts and open houses, faster than if they stuck to a more traditional listing services. 

Nick Baldwin, an agent with Keller Williams in New Jersey, for example, uses Facebook, Periscope and Twitter to spread the word about his listings, including through live videos of the insides of the homes he is selling. First, Baldwin will promote any upcoming videos on Facebook and Twitter and then stream them, either through Facebook's new Live streaming product or on Periscope, a live streaming app owned by Twitter. 

Promoting listings via social media has its drawbacks. Agents using Facebook, for example, can struggle with whether to accept a stranger's "friend" request, even though it might lead to a sale. And live streamed videos don't last very long, which means shoppers need to follow the right broker at the right time to see them.   

"Live video is a fun tool to use," said Baldwin, who works out of Montclair, N.J. "But it hasn't been perfected," he said.   

 

 

3D walk-throughs: New 3D scanning technology is allowing companies, like Matterport of Sunnyvale, Calif., to create 3D images of entire homes to be viewed online, like a video game. The resulting 3D "walk-throughs" then let shoppers view virtual replicas of homes for sale without ever leaving their couch. 

"Out of state and out of country buyers eat it up," said Baldwin. But it can also help shoppers of any proximity save time by letting them eliminate, with greater conviction, the homes that aren't right for them, said John De Souza, president of Cressy & Everett Real Estate. 

"We have fewer visits where it is not a match," De Souza said of Matterport's technology. 

Indeed, unlike photographs, which can be deceiving, 3D walk-throughs give shoppers a true sense of a room's dimensions and lets them see every corner of a house, including the hallways and closets. 

And unlike virtual reality technology, another fad in home shopping, 3D walk-throughs don't require consumers to buy an expensive or uncomfortable pair of goggles. 

Unfortunately, like virtual reality tours, 3D imaging has not yet been widely adopted because it can cost thousands of dollars to scan just a few homes. And those that do usually don't offer it on all of their listings. 

There's an app for that: Increasingly, real estate brokers are building sophisticated websites and mobile apps to help customers browse homes and communicate digitally with them. The sites, which were previously avoided as clunky promotional tools, are now a must-use tool for buyers and real estate pros, along with popular listing sites like Realty.com, Trulia and Zillow. 

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Agents are also launching mobile apps with more useful bells and whistles, including mortgage calculators, the ability to share pictures with friends and family, and tools to allow users to communicate with their brokers without ever leaving the app.   

Soon, agents will start adding 3D walk-throughs to their mobile apps, said De Souza. "The connection for mobile is not there yet, but soon it will be," he said. 

--Kaja Whitehouse. 

 

 

  

 

The prospect of buying a home can be a daunting. Browsing listings, sifting through real estate agents and exploring new neighborhoods is overwhelming. Make the process easier: start with your cell phone. Thanks to modern technology, there’s an app for every part of the process.

 

Here are 5 free apps to help you with your search:

 

 

HomeSnap

Imagine that you’re down the street, scouting your new neighborhood. You notice a “For Sale” sign on someone’s lawn. Using HomeSnap, you can take a picture of the home and get real estate information immediately. After snapping a photo, browse through interior photos, home values, bedrooms, bathrooms and more. Just a quick - snap! - and boom, information at your fingertips.

 

 

Estately

Many apps, like ZIllow and Trulia, are multiple listing service apps. A MLS is a gathering of private databases with property listings, sales and details that enables real estate agents to share information with one another. On a real estate app, the listings you scroll through are typically gathered from the MLS in your area. Estately is a MLS app - with a twist. Wondering how long it will take you to get to that open house this weekend? Estately gives you drive time from your current location to any home.

 

Mortgage Coach

You’ve finally found your home - but how will you afford it? Mortgage Coach helps you figure out whether your finances are in order. Via colorful graphics and charts, the app provides home buying analysis, including loan comparisons, cost breakdowns and how fast you can be mortgage free.  

 

 

SignEasy

Don’t forget about the pile of documents you’ll need to fill out once you decide on a home and go into contract. Save the trees and ditch the printer and scanner with SignEasy, an app that lets you fill and sign documents on your phone. Be sure to check with your bank and real estate agent to make sure they accept documents via SignEasy. Some banks allow it, while others are still adjusting to the technology.

 

 

Walk Score

Maybe you’ve found your dream home at your ideal price, but you want to know more about the neighborhood and nearby amenities. Walk Score calculates the "walkability," a score between 1-100 based on "the distance to amenities" (how long it will take you to get to the grocery story, for instance) and "pedestrian friendliness" (based on population density and road data), of any location, according to the app's website. It shows you a map with nearby restaurants, grocery stores, schools and more so that you can figure out how long it will take you to run your errands on foot. The app also gives you a transit score and a bike score.

 

 

--Madison Iszler

 

 

 

With interest rates hovering near record lows, now could be a dream time to buy your dream home. But if you're just starting out professionally or juggling student debt, the home buying process may be daunting. Here are some tips to ease your path.

Know your numbers: Take a look at your credit score. You can go to AnnualCreditReport.com to get a complimentary credit report from each of the three largest credit reporting bureaus. You can also take a look at your TransUnion credit report, for free, at My.CreditCards.com. Generally, the worse your credit, the higher the interest rate you'll have to pay. If your score is below 650, you might want to put your house hunting on pause to focus on paring debt and making sure all your bills are paid on time.

Find an agent: When you’re ready to start your search, you'll need to find a real estate agent. Referrals from friends or associates make sense, but talk to more than one. You want someone who's in the know about the market, and responsive to your questions in the way you find most comfortable, be it email or face to face meetings.

Nail down a budget: It's a good idea to sit down with your agent or a certified financial planner to map out a realistic budget. For instance, a house hunter may fall in love with a $300,000 home that they can technically afford. But the monthly homeowners association fee to cover common expenses may be more than they bargained for. “It’s important to figure out what your lifestyle needs are, as well as what you’re looking for in a property before you . . . end up in a place that’s beautiful,  but you can’t afford to buy groceries,’’ says Jessica Houghton, an agent with Coldwell Banker in Atlanta, who works primarily with younger buyers. 

 

 

 

Student debt doesn't count you out: Many first-time buyers are burdened with student debt, but that isn’t necessarily disqualifying. In fact, it’s important to have, or start building, a credit profile to prove you can pay off debt in a timely manner.

“Lenders look to people to be well rounded and so having more than one line of credit is important,’’ Houghton says. Diversity - a credit card and a car payment, for instance as opposed to only a small stack of credit cards - is most ideal.  But be careful not to owe so much that it looks like you’ll struggle to pay your monthly house note.

Keep a lid on credit card use:  “If you’re keeping your monthly credit card debt at more than 30% of your limit, you’re looking like more of a risk to the lender,’’ Houghton says, “so I encourage people to get credit card payments under control.'' Pay them off if you can, she says, and don't  buy a car or make another debt-laden purchase at the same time you're shopping for a house.   

 

 Consider pre-qualification: Pre-qualifying for a mortgage – determining ahead of time how much of a loan a particular lender will give you – isn't absolutely necessary. But in certain competitive markets, it can be helpful to already have those details worked out in case yours is one of several bids on the same property.  “Pretty much every bank has an online pre-qualification questionnaire,’’ Robert Balonek, an agent with the Level Group says. “You type in your income and how much you expect to be able to pay. . ..The banks are pretty good at getting back to people within about a day.’’

Be choosy:  Whether you attempt to pre-qualify for a loan, or look for a mortgage after you find a property, consider approaching the bank where you already do business first. “That should be the easiest route because . ..   they have all of your information,’’ Balonek says. Still, also think about looking at a few different lenders to make sure you secure a mortgage with the best terms. You also want someone who get backs to you promptly since you will have a limited window to close the deal on your new home.    

Seek assistance:   Ask your lender about programs available to novice buyers, such as those aimed at particular fields. “There are certain loans for different industries,'' , says Brian Teach, an Orlando-based real estate agent for Coldwell Banker, "educators, teachers, nurses, firefighters’’ as well as physicians. Often there is a salary cap and other requirements. But “there are certainly benefits to going through those programs.’’

Consider FHA: If you can't come up with a hefty down payment, Federal Housing Administration insured-mortgages allow some borrowers to put down as little as 3.5%  - but you’d need a credit score of at least 580. If your score falls between that number and 500, you’d need to come up with 10% down. And below 500, you likely wouldn’t be able to get the loan.  Remember those monthly premiums for the FHA insurance will last for the life of the loan, unlike private mortgage insurance - also known as PMI - which cancels out once the remaining principal reaches 78% of your property's original value. So you can possibly buy a home for less, but you will carry that extra tab until you've paid off the loan in full.

--Charisse  Jones

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You’ve found your dream home, and the seller accepted your offer. So now, it's time to pack up and move in, right?

Not so fast. There are some critical steps you'll have to navigate before you close the deal. Here's a quick guide to what you need to do to get your hands on those keys.

Get an inspection: You'll want to bring in a home inspector to check out the property, inside and outside, for any code violations or other problems.

Get an appraisal: An inspector pays a visit to the home you're purchasing to assess the value of the property and make sure it matches or exceeds the sales price. Inspections are required by the lender.   

 

Obtain insurance: This is usually required by your lender to cover your property in case of a fire or other damage. Often your bank will have a recommendation, and once you've lined up an insurer, the premium can be tacked onto your monthly mortgage bill every month.

Do a final walk-through: “Right before the closing, either the day or night before, we do a final walk-through to make sure that nothing has changed, nothing is broken,'' says Robert Balonek, a New York City-based broker with The Level Group, "So when the buyer takes possession, he's not coming in and finding out nothing works.''. 

Prepare for closing costs: These can add up, so it's important to try and estimate the final tab before you sign the dotted line. The bundle of charges can include attorney fees, a processing charge for paperwork, the cost of transferring the deed to you from the previous owner, and sometimes even the fee for obtaining your credit report.

--Charisse Jones

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