homebuying Archives - Curb Appeal

Escrow : What is it & how does it tie in to property taxes?

If you’re new to the homebuying process, you may be introduced to a plethora of new terms you’ll need to know. Escrow accounts are no doubt on the list.

Having an escrow account is often required by mortgage lenders, so getting a better understanding of what they are and how they work can help ease you into the process.

Escrow account basics

So, what exactly is an escrow account, and what is it used for? Escrow accounts are set up during the homebuying process and act as a neutral third party to hold important contracts, earnest money and other important information related to the home sell.

After the purchase of a home, your lender can use your escrow account to manage insurance premiums and property taxes and insurance.

Property tax payments

Every year when your tax office issues property tax bills, your lender uses money collected in your escrow account to pay off the taxes. If there isn’t enough money in your escrow account, they’ll reach out to you to make up the difference.

If the amount owed is less than what’s in your escrow account, your lender can credit you for the next tax year.

How do I know when escrow is required?

As standard practice, an escrow account is required if your home down payment is less than 20 percent of the total purchase price.

Some loan types such as FHA loans also require an escrow account. In some cases, you can cancel an existing escrow by providing proof of regular and on time home payments.

Escrow accounts may seem a bit confusing at first, so take your time as you learn more about them and consider speaking with an escrow officer for assistance if need be.

Homebuying: How to Find What’s Best for You and Your Pets

Photo by Meru Bi from Pexels

While looking to buy a home, you must consider the needs of everyone in the household, pets included. Otherwise, the space could fail to work for your family, leaving everyone less than comfortable in their new digs. Thankfully, with a little forethought as you browse, you can zero in on a place that will work perfectly. Just think about the following things to put your pet first while buying a home.

Earmark a Space That’s All Their Own

Your pets will need room for their bedding, dishes and toys to be truly comfortable in their new living space. So, as you check out each corner of the floor plan, think ahead to where you might put those items.

If you cannot figure out an ideal space, then the home in question likely won’t work without a major overhaul. Often, it’s a lot more frustrating trying to make an incompatible space work than continuing with the search for a home that meets all your needs.

Think About Their Elimination Needs

Barring an exceptionally well-trained cat, pets usually cannot use the toilet. To best accommodate their elimination needs, think about where to set the litter box or if the yard will work for their potty times.

Consider all the other household members as well and how you will keep them separate if needed. You don’t want dogs digging in the cat box, after all, or kids running through a potentially messy backyard.

Look for Room to Run and Play

Even if you plan to walk your pets on the regular, they need a space to run and play from time to time. If a home with a yard is in your budget, then that will work well, as long as it’s fully fenced in.

But if that’s outside your price range, you can get just as much use out of a nearby dog park. If all else fails, look for homes near public parks, hiking trails and beaches where you can let your pets frolic on a long line.

Scope Out the Safety of the Neighborhood

Although you undoubtedly keep a close eye on your pet, accidents can happen, leaving them roaming the neighborhood on occasion. For that reason, it’s important to consider major roadways and other hazards near your home. Not all hazards are avoidable, but aim to minimize the risks if you can.

You can also put in extra safety measures, like invisible fences, that help keep your pet from flying solo. Also, consider getting them microchipped and updating their license with the city, so they can be returned home if they ever get lost.

By keeping all these things in mind during the homebuying process, you can find a home that will work for you and your pets. Just remember to let your real estate agent know your preferences, so they understand what to look for as well. Your agent will help you narrow down the options and quickly jump on properties that match your specifications, helping you find a great home faster than ever.

4 Ways to Reduce Home Buying Stress

40% of all homebuyers report that buying a home is one of the most stressful events in their lives. There are many sources of stress, but the more prepared you are, the better you’ll be able to handle them. Here are some tips for handling the most common stresses of buying a home:

Find the Right Real Estate Agent

The right real estate professional can make an enormous difference in your home buying experience. Let their expertise and knowledge of the market guide you and take care of some of the most stressful aspects of buying a home, such as finding the right listing. With the wealth of knowledge real estate agents possess, you’ll gain peace of mind working with one.

Keep Your Timing Flexible

Nothing is more stressful than a hard deadline. If you keep your buying and moving plans flexible, you’ll avoid a lot of unnecessary frustration and rushed decisions. Finding the perfect home can take a long time, and even after you find it, the buying process can take months or more. The more time you give yourself to complete the journey, the calmer and more comfortable you’ll be.

Get Pre-Approved for a Loan

A major source of stress in home buying is securing financing. The earlier you can get a preapproval letter from a mortgage lender, the earlier you can put that anxiety to rest. While it doesn’t cover the entire scope of expenses you’ll encounter when buying a home, making sure you have a mortgage lined up and ready will make your buying process much smoother.

Expect to Make Adjustments

Finally, accepting that the process might not go according to plan is an important step in taking the stress out of home buying. With so many steps and moving parts, careful planning will help you stay organized and on top of the current task. However, things are bound to change. Keep an open mind and remind yourself that you might have to adjust your plans in order to make everything work.

It’s no secret that home buying is a tremendous decision. While it can be stressful, remembering these tips can help make the process easier.