The most important highlights we’ll discuss are the homebuying process and what to expect, preparing, securing, and setting up surveillance in your new asset, how Psync Genie S is the ideal and affordable indoor camera for new homeowners, and how we strive to respect the privacy of first-time buyers with our foldable camera design.
How To Prepare To Buy A Home
Realtors and popular influencers like Freddie Smith are known for pushing data about housing statistics and the difficulty of getting your foot in the door. While it is true that some states are facing a questionable housing crisis, there are alternatives if you’re able to plan. Without a doubt, states like Florida and New York are facing an unprecedented boom in the housing market. Prices since the COVID-19 pandemic have skyrocketed, pushing many to seek alternative housing or rent on a long-term basis. Fortunately, with the increase in remote jobs and the flexibility of employers willing to allow remote workers, it is becoming much easier to work in one state and live in another.
Step I: Enhance Your Credit Score and Reduce Debt
- The first thing you have to do before you even consider buying a home is reduce your debt while also increasing your credit score. It may seem daunting at first, but it is pertinent to solidify your debt-to-income ratio. Working on your DTI ratio will give you the upper hand when presenting yourself, your income, your debt, and your reliability to lenders.
Step II: Saving Downpayment and Closing Costs
- While actively working on your DTI ratio, you will budget accordingly to save for a minimum of 3% down. For example, on a $450,000 house, you’ll need to save $13,500, not including closing costs. If you want to save this within a year, you’ll need to set aside $562.50 per paycheck (if you’re paid bi-weekly). If you want to go the conservative route and save over the course of two years, you’ll need to save $281.25 per paycheck. Setting smaller goals and breaking down your savings on a per-paycheck basis makes saving for your downpayment a lot less daunting. Closing costs, on average, are approximately 3% of the total purchase price. If we use $450k as the base again, you’re looking at another $13,500 in closing costs. However, depending on how competitive the market in your area is, most sellers are willing to pay for closing costs. You will need to work closely with your licensed real estate professionals to negotiate with the seller and obtain the best concessions.
Step III: Getting Pre-Qualified for a Loan
- Before you consider contacting a real estate agent, getting pre-approved through a lender would be ideal. Trust us when we say that your chosen realtor will thank you, as this is the most important and challenging part of the home-buying process. Additionally, you’ll be able to shop around and find the best lender for first-time buyers rather than just going with your realtor's recommendation (though sometimes their go-to lenders are good, too). Once you have been pre-qualified, the lender will provide you with a letter stating how much you’re eligible to purchase.
Step IV: Finding a Realtor / Real Estate Agent
- Researching the area where you want to buy your home will come with an additional task: finding a local real estate specialist to assist you in your home-buying endeavor. Realtors come in different flavors, and sometimes, it takes time to find the one that works best for you. You’ll want to find someone reliable, patient, understanding, and knowledgeable about the area and real estate laws. Depending on your preferences, you can interview several real estate agents or get recommendations from local Facebook groups. We don’t recommend you go without a realtor when buying your first home. They are skilled, trained, and certified to handle all the necessary paperwork in the buying process, negotiate on your behalf, and ensure you’re not being taken advantage of. They have a legally binding fiduciary duty to you!
House Shopping Process
Once you have finished all the nuances of preparing to buy, you can now begin shopping to your heart’s content. Many people tend to start shopping first and then get the necessary steps done, but this will likely hinder your search. Homes come and go, especially in a hot market, and tend not to be available for long. If you wait until you have fallen in love with a house to start the process, you will surely end up disappointed.
House Search
- There are a plethora of home search websites out there, some of which may not have the most up-to-date information. The Multiple Listing Network® (MLS) is the number one place to search for homes. It contains the most accurate information regarding houses for sale and is the platform that all real estate agents use to list houses. With that being said, Realtor.com is usually linked directly to the MLS and reflects new listings and changes more frequently. Other home search websites, like Redfin, Zillow, Trulia, etc, take longer to update their listings since they are not connected to the MLS system.
House Touring
- Considering that many people are moving out of state or relocating long distances, viewing homes in person is not always possible. However, given how the pandemic changed the world, many realtors now offer virtual tours. It is a good idea to ask your real estate agent if this is possible during the interview process.
Making An Offer
- Once you have found the right house, you’re ready to put together your offer. Your real estate agent will assemble the necessary documents to submit to the seller and negotiate on your behalf. It is recommended that you request the seller pay for closing costs during this step, but consult with your realtor for the best advice. Remember, once you submit your offer and the seller accepts, it becomes a binding contract. You must deposit your earnest money (usually $4000-$5000) within three days of the accepted offer.
Contingencies
- Contingencies are the obstacles that need to be cleared before your lender approves and funds your loan. As a buyer, your contingencies are usually appraisal, financing, and inspection. We recommend you do not waive your right to a home inspection, as that has caused issues for new homeowners during the housing boom.
Home Inspection
- Scheduling and paying for the inspection is the first thing you pay for during the buying process. Costs can range from $500~$1500 depending on how many things you want checked and if the company you choose offers add-ons. Add-ons include mold testing, radon monitoring, termite inspection, and whole roof inspections. Everything is wholly at your discretion. Discuss with your realtor what add-ons you need, if any, and communicate with your inspector thoroughly before, during, and after the process. Don’t hesitate to ask questions!
Repair Requests
- After inspection, you might discover that the house has issues you might feel uncomfortable tackling on your own. This is usually the best time to step out of the purchasing process without repercussions. However, you can also use this to request more concessions from the seller.
Appraisal
- An appraisal gives the home its value. As the buyer, you are also responsible for paying the fee, which ranges between $500 and $800. It establishes how much the mortgage lender will give you on your loan. This may work for or against you, depending on your local market and whether the house was priced accordingly. If the home appraises at or above the offer price, your loan will be funded. If the appraisal is below the offer price, you will need to discuss with your realtor how to negotiate with the seller to bring the cost down. The seller will not be able to sell their house if it is overpriced, as no buyer will be able to fund their loan.
The Escrow Process
Once the appraisal is done and the loan has been approved, everything is smooth sailing! Your mortgage broker, escrow company, realtor, and lender will work together to close all appropriate documentation and information. This process usually takes 2-3 weeks, depending on where you live. At this point, it is a good idea to start packing and preparing to move. Always be sure to keep in touch with your realtor on the process, engaging them when you haven’t heard updates.
- What is Escrow? Rocket Mortgage defines ‘escrow’ as ‘legal arrangement in which a third party temporarily holds money or property until a particular condition has been met – such as the fulfillment of a purchase agreement.’ They handle all the paperwork for the seller and buyer as a neutral party.
- Closing Documents: Once the paperwork from both parties has been organized and completed by Escrow, they will setup timers for both parties to sign the closing documents. It is uncommon for you to ever meet or speak to the sellers, and their appointments are set at different times.
- Preparing for Closing Day: Establish a time and date to meet with the Escrow company to sign closing documents. Usually, the deed is processed through the county recorder’s office on the same day, and you’ll get access to the home. You will need a government-issued ID and any documentation Escrow requests ahead of time.
Tips For New Homeowners
Congratulations!! You are a homeowner!! Depending on your particular situation, the homebuying process may have been smooth sailing or a bit stressful. Regardless of how things went, it is over, and you now have the keys to your new home. This milestone is easily considered one of the biggest accomplishments in someone’s life. Appreciate your accomplishments and be proud of what you worked so hard to achieve. With that in mind, there are some critical steps you need to take as soon as you get your keys. These steps are necessary and important to keep in mind!
Protect Your Asset
Home security and surveillance are the number one thing you need to establish as soon as you get your keys. Your home is the most valuable asset, and you need to take all necessary measures to protect it. Leaving your home without some kind of security leaves you vulnerable to scammers, deed fraud, squatters, and the loss of your home.
- Change The Locks: As soon as you receive your keys, make sure to change the locks to the front and back of your house. You do not know who else has copies of your house keys.
- Change Garage Door Code: Similarly to changing your locks, you need to reset the garage door code so no one can access your garage.
- Setup Security Cameras: Invest in some affordable security cameras that you can place inside your home to monitor every corner. The Psync Genie S is the perfect, affordable, and new homeowner-friendly security camera that can keep an eye on every corner of your house.
Indoor Security Camera Benefits
Investing in multiple indoor cameras will allow you to monitor your space and make sure you don’t fall victim to people who are not supposed to be there. It also provides proof to local authorities if something goes awry. Genie S has top-of-the-line features that make sure your space is safe. Some homeowners insurance companies also offer discounts to those who have solid indoor and outdoor surveillance systems installed.
- PTZ (Pan-Tilt-Zoom): Our Pan-Tilt-Zoom function allows the camera to scan and monitor every corner of your home. You can manually operate it or allow the motion-tracking feature to scan your home’s interior.
- Push Notifications: Receive instant push notifications whenever motion is detected. The camera will automatically follow whoever is on the screen, and keep an eye on them if they are in your home.
- Two-Way Audio Communication: Sometimes, all it takes is a strong voice or a yell to deter someone from trying to enter your house. If you receive a movement notification, you can use the two-way audio to scare off potential intruders.
- Sleek and Discreet: The best thing about Genie S is its small, discreet, and inconspicuous size. Its small, award-winning design and ability to blend in with home interiors make it the best indoor camera available.
While buying a home is a huge investment that requires hours of commitment, it is ultimately one of the most gratifying purchases you can make in life. It will lead you to greater wealth, teach you money management, allow you to invest in your future, and give you something to care for and nourish for years to come. Being informed is the first step in anything we do in life, and knowing what obstacles you’ll have to overcome as a first-time homebuyer will make the process a bit less mysterious. Always remember that if you have any questions, you will always have your realtor with you, and they should be the guiding force in the entire transaction. Completing your home-buying process with a solid, reliable, affordable indoor security camera is the best way to secure your dream home.
