There are several things to consider before you make an offer on a house. First, have you gotten a mortgage preapproval from at least one lender? It is ideal to get preapproved before you start looking at houses because this will allow you to learn how much house you can afford. The preapproval also lets the seller know youâ€re a serious buyer who can close the deal.

Next, consider your market to ensure your offer is competitive. Your real estate agent can provide you a comparative market analysis or you can gather the information from your own research. Submitting an offer that is slightly less that your preapproval amount will allow you some room to negotiate.

Lastly, verify with your lender that the down payment required is in the bank and ready to go. Having the money set aside or assets planned for the funds to buy the home isnâ€t enough to ensure a smooth transaction. Having direct money with immediate access for the earnest deposit, down payment and closing costs is essential. Only the earnest money will be paid right away. It gets transferred into an escrow account after your offer is accepted.

While it may be called an offer letter, it is a legally binding agreement. The offer typically contains the homeâ€s legal address along with a legal property description, details regarding the price and terms, the amount of money and terms concerning the earnest deposit, title, closing costs, the date and time of the offerâ€s expiration, a projected loan closing date, and contingencies.

When you man an offer on the home, you will most likely be required to include a deposit known as earnest money. This is given to a neutral party like an escrow agent or a real estate title company. These entities will hold the money in escrow and can be anywhere between 1% and 3% of the total purchase price. The offer letter will likely include what circumstances you will have to forfeit the money. For example, you decide to back out of the deal without a reason covered in the purchase agreement. However, if the deal goes south due to the seller like refusing to make repairs found in the home inspection, you can get your deposit returned. If the deal goes through, the earnest money is applied to the down payment.

Once the seller reviews your offer they can decide to accept, counter or decline. If the offer is accepted, you will apply for a mortgage and being the process of closing. If the seller offers a counter, you can accept and being the closing process or you can choose to counter again. This will require a new offer letter.

If the seller refuses the offer, itâ€s time to move on to a new home. Good luck!

The post How To Make an Offer on A Home appeared first on Charlotte Real Estate.

Here are some tips to help you avoid becoming the next victim of a home rental scam whether you are the renter or the homeowner.

The landlord requests you to wire funds via MoneyGram or Western Union.

Most scams involve a request for you to wire funds, but you should think twice before wiring funds to anyone you havenâ€t met personally. Scammers are good at convincing unsuspecting people of reasons why they need to deal with you remotely. Likewise, do not accept wire funds that you did not initiate.

Long-distance renters

Many scams come from people in foreign countries who claim to be interested in purchasing or renting a home. Be wary of claims from people who are contact you from abroad because they are missionaries, U.N. workers or in the military. These types of renters do exist, but chances are theyâ€ll want to see the housing or meet you before there is an exchange of money. Likewise, be wary of long-distance landlords. An example of this scam is receiving communication that they are out of the country and need you to wire the deposit. Usually this scam works by requesting you wire the deposit and then theyâ€ll send you the keys.

Requests for personal or financial information

Do not give your bank account number or your social security number to unknown sources. You should first verify that they are a trusted source and then only provide the information sparingly.

If you find a fraudulent listing on a real estate page, craigslist or any other website advertising rentals, you should report the listing on that website. If you believe that you have been scammed, you should report the incident to the FTC immediately. If you sent money via MoneyGram or Western Union, report it immediately. If the recipient hasnâ€t collected the money yet there is a chance the company can reverse the transaction.

When reporting rental scams, it is important to include as much information as possible. You should include your name and the address of the receiver or any information you may have about the receiver. You should include any details surrounding the transaction. Itâ€s possible some of the information is fake but itâ€s worth a shot to possible catch these scammers.

If you notice or experience any red flags, the only saying still stands true: if it feels too good to be true, it probably is.

The post Tips to Avoid Becoming a Victim of Home Rental Scams appeared first on Charlotte Real Estate.

Make a schedule. Take note of areas are your home that need the most work. What areas are neglected when you are doing routine cleaning. Those places are usually the best places to start. No matter where you start, make a plan to tackle each room then keep yourself focused on one task at a time.

De-clutter your home. Decluttering allows you to be efficient and it will keep you organized. Studies have show that a disorganized home contributes to high stress levels. Set aside some time to organize your closets and junk drawers. You will be surprised how much this will take some weight off your shoulders.

Donâ€t forget your walls and windows. Floors are probably a part of your routine cleaning but when was the last time your windows or walls got a good cleaning. Not all dust settles on the floor and surfaces like end tables or desks. You can use a damp towel to wipe down the walls and blinds by starting from the top and working your way down.  A nice glass cleaner will have those windows spotless. Do not neglect the curtains. Some curtains are machine washable. Otherwise a good shaking or dusting will suffice.

Do not be intimidated by your kitchen and bathroom. Go through your refrigerator and all the condiments on the door. Throw away all old items and wipe down the shelves. For your bathroom, change your shower curtain or wash it if it is machine washable. Go through your medicine cabinet and throw away the expired products.

Get the family involved. Even the unwilling helpers can make a difference in the workload. This is a great time to get the entire family involved. Many children are out of school due to the pandemic and now because of summer break. Try putting on some fun music and establishing a family reward as an incentive to get the work done.

One you have established a deep cleaning on your home, establish new habits. A Simple clean-up routine practiced once at least once a week, can make it incredibly easy to keep your home clean and tidy year-round.

And of course, it would not be a proper 2020 list without a mention of cleaning to prevent the spread of covid-19. Make sure to wipe frequently touched items such as doorknobs, light switches, the remote and sink handles to name a few. It its recommended that you do this sort of cleaning much more often than your general routine cleaning.

The post Spring Cleaning Tips For 2020 appeared first on Charlotte Real Estate.

Letâ€s walk through some of the top Must-Do Spring Cleaning Tasks according to HGTV and a few tips from your blogger:

1. One place you might not think to look that is definitely collecting some serious dust are the curtains. Lint roll the bottoms, then remove completely from the rod and toss in the dryer with a damp towel for 15 minutes! Tip: Adding a dryer sheet will give your home an extra clean scent.
2. This is a no brainer but one we all blissfully ignore, dust the blinds. Wrap a microfiber clot around a pair of tongs. Working left to right, blade by blade, remove that stubborn dust.
3. Donâ€t forget to look up! Clean the ceiling fan blades by placing a pillow case around the blade, using it as a dust rag. Any fallen dust will collect in the pillowcase instead of below. Genius!
4. Before it gets too hot and the bugs swarm in, clean the windows. Using a damp cloth, open the windows to collect and clean any debris that have collected between the glass and screen over the winter.
5. Ready to have your mind blown? Struggling to clean the screens? Take a scrap piece of carpeting and rub against the screen. For a deeper clean, remove the screens, cover in kerosene in a well-ventilated area, then remove with soap and water.
6. Time to pay attention to those stinky trash cans that can attract unwanted pests! Rinse out cans with a hose, spray with disinfectant, scrub and rinse.
7. Check for leaks and drafts around doors, windows, and corners. Seal open areas with silicone or calking to prevent further damage.
8. Hereâ€s another fun tip! Clean the refrigerator using salt and soda water. The abrasive salt and bubbling water makes an excellent cleaner. Rather than tackling the entire fridge, do this one shelf at a time.
9. Now make your way to the bathroom and take a look at your shower head. Mineral deposits can ruin showerheads. Mist the jets with vinegar and water, let sit for a few minutes, and wipe clean with a dry cloth.
10. Who doesnâ€t love air dried laundry? Bring your comforters, blankets, and pillows outside and hang them on a clothesline for a day. You wonâ€t regret it!
11. Speaking of comforters, have you cleaned your mattress recently? According to HGTV, we spend nearly 3,000 hours a year in our beds – nearly four months! Clean your mattress by vacuuming the surface and sprinkling a mixture of baking soda and essential oils on it. Vacuum away the residue after a few hours.
12. Once your mattress is cleaned, donâ€t forget to rotate it! Rotating your mattress can significantly increase its lifespan and help you sleep better.
13. If you havenâ€t watched Tidying Up with Marie Kondo on Netflix, stop what youâ€re doing now and check it out! Youâ€ll thank me later. Pick up some great tips on organizing your home, especially your closet. Put away those colder climate clothes and get out the beach gear.
14. Letâ€s not forget about the outside of your home! Get the pressure washer and wash away residue that has built up over the past six months. Clean the outside of the windows with a rag and soapy water and remove excess water with a squeegee.
15. Last but not least, sweep your porch and deck. A leaf blower can save you some time by blasting away leaves, dust, and pollen. Set up the deck furniture and mix up a pitcher of lemonade because sweet summer is coming!

The post Spring Fever appeared first on Charlotte Real Estate.

Lower Down Payment

In late 2014, the FHA announced that the minimum down payment for FHA loan guarantees would drop down to three percent, as long as no borrower on the loan has owned a primary residence for three years. The previous minimum was five percent. The start date for this new program is December 13, 2014 for Freddie Mae and March 23, 2015 for Freddie Mac.

The lower minimum down payment will help a significant number of borrowers. This is a significant development. For example, on a $200,000 loan, the minimum down payment drops from $10,000 to $6,000. That $4,000 decrease opens up opportunity for that many more Charlotte-area home buyers.

Lower Mortgage Insurance Premiums

In January 2015, the FHA significantly lowered the mortgage insurance premium (MIP) on FHA loans with less than 20 percent down. Previously, the MIP rose to an annual rate of 1.35 percent, plus 1.75 percent upfront MIP, in April 2013. In January 2015, the rate was lowered to 0.85 percent plus the 1.75 percent upfront MIP. The rate reduction was the first one since 2001. It means that the MIP has been reduced a significant 37.5 percent. For many home buyers, the rate reduction could mean approximately $900 in annual savings.

The new policy reflects a positive change in the FHA’s reserve balance in its Mutual Mortgage Insurance Fund. In late 2013, the FHA received $1.7 billion from the United States Treasury to shore up its depleted reserves. It was the first emergency infusion of cash ever required in the agency’s 80-year history. Now, better loan performance, coupled with rising home values, has grown the reserve balance to an estimated $7.8 billion, the largest such balance reported in a number of years.

Credit and Affordability

To qualify for these better terms, a borrower needs to have good credit, and the borrower needs to purchase an affordable home. Qualified Mortgage regulations that went into effect in 2014 deem a home affordable if the mortgage, along with other minimum monthly payments on household debt, will not exceed 43 percent of the borrower’s gross monthly income.

Fortunately, many available residences in Charlotte’s suburbs meet this affordability standard given the household income of many qualified borrowers. Opportunity is even greater because of low mortgage interest rates. The benchmark 30-year conventional mortgage carries an interest rate that is at a 20-month low. With the new, lower MIP factored in, the effective annual FHA loan rate on a 30-year conventional mortgage is now in the low fours

Low mortgage interest rates, lower FHA mortgage insurance premiums and lower minimum down payments will combine to bring more prospective buyers into the Charlotte residential real estate market.

The post Two New Homebuyer Rules Will Benefit Charlotte’s Real Estate Market appeared first on Charlotte Real Estate.