Real Estate Information Archive

When purchasing a home in Omaha, obtaining the title is a crucial step. The title serves as confirmation of your ownership rights for the property acquired from the seller.

Title insurance is an essential safeguard for homebuyers and mortgage lenders, providing protection against potential losses or damages arising from defective titles.

What Title Insurance Covers

A title insurance policy should provide coverage for various potential claims against a title, such as conflicting wills, tax liabilities, and property liens. Numerous scenarios, including code violations and legal complications, can result in title issues.

One potential issue that could arise after purchasing a property is discovering that the seller does not actually have a legal claim to it. Additionally, it is possible to find out that another party is disputing the seller's claim.

Title insurance is a valuable protection against potential title issues. While working with a title company reduces the likelihood of encountering problems, it is important to remember that they can still arise.

Types of Title Insurance

Title insurance is crucial in real estate transactions, with two types available: owner's and lender's. Both provide essential protection for all parties involved.

An owner's title policy is a recommended purchase to safeguard against potential risks. It is not mandatory, but it provides protection against various issues such as conflicting ownership claims, ongoing lawsuits and liens, inaccurate public records, fraud or forgery, and undisclosed easements or agreements that could impact the value or use of a property.

Title insurance is crucial for buyers as it provides peace of mind by addressing potential issues that may arise with a title later on. Even with a title company, there is always a possibility of such issues, making title insurance one of the best ways to protect yourself as a buyer.

The lender's title insurance policy functions similarly to an owner's insurance policy, as it offers protection to the lender against potential losses. This policy provides coverage up to the loan amount, but it does not extend protection to the buyer.

A warranty of title is an alternative to a title insurance policy. It guarantees that the seller has the legal right to transfer property ownership and that no one else can claim the property legitimately. If a claim arises later, the warranty allows the buyer to take legal action against the seller.

The cost of title insurance premiums can vary greatly. However, if you're purchasing the existing owner's policy, the cost may already be included in the property sale.

The biggest takeaway is that title insurance is optional. Whether or not you need to buy it depends on your individual circumstances and risk tolerance.

Having proper coverage for your property is essential to protect yourself from potential financial burdens. Without it, you could find yourself dealing with unpaid property taxes or fines for code violations. As the homeowner, you would be solely responsible for these expenses.

Buying a home or any property can be a stressful process. However, there are steps you can take to protect yourself and feel confident in the transaction. 

Have your home needs changed in the past year? Perhaps you’ve outgrown your present home, or need to downsize to a more suitable home. If you’re ready to make a move, let’s connect and talk about all the amazing opportunities that are available to you!

Equity in your Omaha home can be a valuable tool for building long-term wealth. By strategically tapping into your home's equity, you have various options to capture its value.

For instance, you can use it to pay off higher-interest debt or make home improvements that enhance your property's worth. Another option is to start a business or invest in the stock market, where potential returns may surpass the interest on your loan.

Another question people commonly have is whether or not they can use their home’s equity to purchase another property.

Can You Use a Home Equity Loan to Buy a House?

Yes, a home equity loan can be used to buy a house. However, it may not always be the best choice. A home equity loan is a second mortgage that allows you to tap into the equity you have in your home, which is the difference between what you owe and what your home is worth. It can be a viable option for purchasing a second home or an investment property, but there are important considerations to keep in mind.

The Upsides

When considering using your home's equity to purchase another property, it is important to determine whether you are buying a second home or an investment property. If your intention is to buy an investment property, utilizing a home equity loan can provide you with additional liquidity and potentially reduce costs.

• Investing in real estate with equity has the following advantages:
• You can increase your down payment. When you receive a home equity loan, the cash goes directly toward a down payment. Getting a lower interest rate and a lower monthly payment will allow you to be a more competitive buyer in the current market.
• Since down payment requirements for second homes can be higher, a home equity loan is a more affordable and convenient way to finance a second home.

Your current home is used as collateral for a home equity loan. You benefit from lower interest rates as a result.

Using your home equity to buy an investment property can help you build wealth. It's important to keep in mind that second homes don't generate income like investments. As a result, you'll be tying up your home in a loan, then taking on another loan, so you need to be financially stable.

The Downsides

The downsides of using equity to buy an investment property do exist. These include:

• Instead of having an asset, you will have a debt. You'll be converting the remainder of the home you own into a loan. This will mean you have a higher debt.
• If the market shifts, you will be more vulnerable, as you now own two properties. This doubles your risk. You could end up being upside down in your mortgage if your property values decrease.
• You could lose both properties if you default on your loan.
• Since most home equity loans are second mortgages, you could end up having three loans, as you have to combine it with another loan to purchase the home.
• Due to tax code changes in 2018, your interest payments will likely not be tax-deductible.

The conclusion is that using a home equity loan to buy a second home in Omaha can be a great option. You just need to weigh the pros with the cons and decide if the risk is worth it for your circumstances and goals.

Have your home needs changed in the past year? Perhaps you’ve outgrown your present home, or need to downsize to a more suitable home. If you’re ready to make a move, let’s connect and talk about all the amazing opportunities that are available to you!

When buying a home, a down payment is required by any bank or mortgage company. This down payment amount may vary depending on factors such as being a first responder or a first-time homebuyer.

Saving for a home down payment requires a detailed and actionable plan. It is recommended to consult with a mortgage broker or banker to understand available options and identify areas of improvement, such as reducing debt and improving credit score.

Here are some more tips to help you save effectively over the next five years:

1. Set a specific savings goal: To determine the amount needed for a down payment, it is important to break it down into monthly or yearly targets. This will provide a clear idea of the specific amount that needs to be saved each month.
2. Create a budget: Take a closer look at your income and expenses to find areas where you can cut back. Track your spending, prioritize essential expenses, and say goodbye to unnecessary or excessive costs.
3. Automate your savings: Take control of your savings goals with an automatic transfer from your checking account to a dedicated savings account. By setting up this simple system, you'll ensure that a portion of your income is saved before you have the chance to spend it. Don't let your hard-earned money slip through your fingers.
4. Reduce debt: Take control of your financial future by tackling high-interest debt head-on. Whether it's credit card balances or personal loans, paying off these debts will not only free up more of your hard-earned income for saving, but also improve your credit score. And a better credit score means a better chance of securing a favorable mortgage rate.
5. Increase your income: Whether it's taking on part-time gigs, diving into freelance projects, or starting your own side business, there are endless ways to earn extra money. And the best part? You can channel these additional earnings straight into your down payment savings, bringing you closer to your dream home with every dollar you make.
6. Cut back on expenses: Take a closer look at your monthly expenses and find opportunities to trim costs. Think about scaling back on discretionary spending for entertainment, dining out, subscriptions, or shopping. By doing so, you can free up more funds to contribute to your down payment fund.
7. Save windfalls and bonuses: When unexpected money comes your way - whether it's a tax refund, a bonus, or a generous gift - don't let it slip through your fingers. Instead, consider putting a significant portion of it into your down payment savings.
8. Housing assistance: There are a variety of local, state, and federal programs available to help you reach your goal of homeownership more quickly. Take advantage of these programs today and make your dream of owning a home a reality.
9. Invest strategically: If you have a longer time horizon, it's a great opportunity to explore low-risk investment options such as bonds or index funds. These options can help you grow your savings while minimizing potential risks.
10. Monitor your progress: Regularly monitoring your savings growth is essential to financial success. By assessing your progress, you can make any necessary adjustments to your strategy. Remember to celebrate milestones along the way to keep yourself motivated. Even if you've cut back on eating out, treat yourself and your spouse to a nice dinner to celebrate reaching a savings goal of $20,000.00. Discipline deserves reward!

Saving for a down payment requires time and discipline. It's not easy, but if you want it bad enough, you have to stick to your goals and plans with unwavering determination. The good news is that the payoff can be tremendous. By following these tips and staying committed, you'll be on track to achieve homeownership in no time. Start saving today and make your dream a reality!

Have your home needs changed in the past year? Perhaps you’ve outgrown your present home, or need to downsize to a more suitable home. If you’re ready to make a move, let’s connect and talk about all the amazing opportunities that are available to you!

It's common to hear the term "all-cash buyer" during real estate shows. It's often used as a way to sweeten a deal, but what's the reality? You can buy a house in Omaha with cash or with a mortgage, and each has its own pros and cons.

Buying a House with Cash Is Increasingly Uncommon

You're in the minority if you're able to buy a house with cash. Considering the median home sale price is in the mid-300,000s, most people cannot afford it. In 2020, the National Association of Realtors' Profile of Home Buyers and Sellers estimates that around 87% of home buyers finance their purchase.

There is no requirement that you show up with a suitcase full of cash if you have enough savings to buy a home outright.

What it means is that you're not getting a loan. The money may come from savings, the sale of another property, or the use of investments.

The Upsides of Paying Cash

If you can pay cash for a home, there are undoubtedly some benefits, including:

• Sellers find you more attractive as a buyer. Right now, this is a big deal. Omaha has a limited inventory of homes and a high demand for them. Bidding wars are inevitable. When making an offer, paying cash can help you be more competitive. That’s preferable to sellers because then they don’t have to worry about what happens if your mortgage financing falls through. A cash-only transaction is also usually faster, so you can get to the closing quicker, which sellers tend to like.
• You don't have to worry about mortgage payments when you buy a house in cash, but you also won't be paying the interest and fees associated with a home loan.
• Omaha home buyers who pay cash have lower closing costs because they aren't paying fees associated with mortgages like lender fees.
• It's not just the seller who benefits from a faster closing. It’s advantageous for the buyer as well. You might be able to close on a home within a week of your offer being accepted. If you buy with a mortgage, it can take a month or more.
• Once you close, the home really is yours. You don’t have the fear of not being able to make the payments and subsequently losing your home.

The Downsides of Paying Cash

There are a few cons of paying cash for a home that you do have to think about as well.

• There is no liquid money in your account. Your cash won't be easy to access if you use it all to buy a house.
• If you invest your money in something other than a house, you could make better returns.
• The mortgage tax deduction will not be available to you. Your taxable income goes down when you itemize deductions for the first $750,000 of mortgage interest.

Talk to a financial professional before buying a house in cash if you're weighing the option. You can discuss all the different scenarios and how that choice could affect you.

Of course, if you’d still have money in savings or investments after buying a house with cash, then it might make the decision easier.

Have your home needs changed in the past year? Perhaps you’ve outgrown your present home, or need to downsize to a more suitable home. If you’re ready to make a move, let’s connect and talk about all the amazing opportunities that are available to you!

As a first-time homebuyer in Omaha, you've likely been eagerly anticipating this milestone for some time. With pre-approval and a real estate agent secured, it's time to consider what you want in a house. One common question is whether to choose a starter home or a forever home. It's important to weigh the pros and cons of each option before making a decision.

When deciding between a starter home and a forever home, there are several factors to consider. 

What is a Starter Home?

Beginner homes are homes you know won't suit you forever, but are within your budget at an early stage of your life. There may be fewer bedrooms and bathrooms, a townhome or condo instead of a single-family home, or an older home that needs some TLC. You may also be forced to move to a less desirable neighborhood.

Generally, starter homes meet the needs of the buyer, but they won't last forever. There's a good chance that you'll outgrow this home as your family grows, or that you have other plans for the future that will make it impossible for you to reside here for the rest of your life.

What is a Forever Home?

Living in a forever home is something you can imagine yourself doing for the rest of your life. It may not be a property you live in for the rest of your life, but it's one you can grow into, one that has everything you need for decades to come. Almost always, this means a much higher price, and some of the features you've always wanted in a dream home.

Let Your Home Do the Work

Although most people would love to buy the home they can live in for decades, this is often the path that will require you to work harder than you need to. Saving for a down payment and closing costs on a much larger and more costly home is a massive undertaking while getting into a more affordable home now can open up opportunities to work toward your dream home goals with the passive building of equity rather than actively saving your pennies.

If you are ready to buy a home in Omaha now but are not quite ready to buy that dream home, it often makes more financial sense to begin building equity with that starter home to more efficiently work toward the goal of owning a forever home.

Homeownership of any property will maximize your savings toward a larger property, allowing your home to passively increase in value even when you are not aggressively saving for a bigger house. In many cases, just a few years in that starter home can lead you to be financially ready to upgrade to the dream house.

In nearly every case, becoming a homeowner in Omaha earlier is the best course of action, even if it means compromising on the first home you purchase.

Have your home needs changed in the past year? Perhaps you’ve outgrown your present home, or need to downsize to a more suitable home. If you’re ready to make a move, let’s connect and talk about all the amazing opportunities that are available to you!

Are you ready to buy your first home in Omaha?

The returns on investments in real estate can be daunting at first, but everyone appreciates their investments once they see them. Rather than giving all your money to a landlord, when you buy a home, you're saving for a better future.

Do you want to become a first-time home buyer in Omaha but aren't sure where to start? You can find your perfect home by following these five helpful tips.

1. Large Down Payments Aren't Always Necessary

We've all heard that an aspiring homebuyer needs to save 20% of their dream home's value for a down payment. Down payments are important as they reduce interest payments over the course of time, but huge savings aren't a requirement.

Many lenders will be willing to work with you on adjusting your down payment, depending on your credit score. Even if your credit score isn’t perfect, you can usually still make a lower down payment if needed.

2. Your Monthly Payment Isn't Just Your Mortgage

Once you become a homeowner, you have to do a lot of math to figure out how much your bills will change. There are other costs that you cannot overlook in addition to your mortgage.

In addition to taxes and repairs, insurance can also take a bite out of your paycheck. Make sure you can afford your entire home rather than your mortgage.

3. You Should Shop for Mortgage Loan Officers

You aren't stuck with a mortgage from your bank once you're ready to start shopping for houses. You should shop for mortgage providers before house hunting so you can secure the greatest deal.

Not only should your mortgage be large enough to allow you to purchase your favorite home, but it should also come with a low-interest rate that won't bury you in debt over the years.

4. Your Home Search Should Include Surrounding Areas

If you're a homebody, then the home itself will be a major factor when it comes to your sale. However, you should also pay attention to the surrounding area as well.

Does the neighborhood feel safe? Will you have plenty of nice stores and activities nearby when you feel like getting out of the house?

5. You Can Always Tweak to Create Your Dream Home

You can't be too nitpicky when you're browsing homes. You'll never find a home you adore unless you build one from scratch.

Learn to be lenient and focus on homes that have great potential rather than turning away good homes that need small improvements.

Being a first home buyer comes with all kinds of emotions. After absorbing these tips, you can get ready to face any worries you may have and find a stunning new property to call home in Omaha.

If you're ready to start your first-time home buying journey, contact us today.

Have your home needs changed in the past year? Perhaps you’ve outgrown your present home, or need to downsize to a more suitable home. If you’re ready to make a move, let’s connect and talk about all the amazing opportunities that are available to you!

Even for the seasoned buyer the home buying process can prove to not only be stressful, but filled with questions and many moments of uncertainty. The best thing you can do as a buyer is to arm yourself with information prior to beginning your search so you can walk in as prepared as possible. 

Below we dive into 5 frequently asked questions that many home buyers have and provide information on each topic. Let’s jump in:

What is the first step in the home buying process?

Mortgage pre-approval. 

The first step in the home buying process is to get pre-approved for a mortgage. Getting pre-approved for a loan will allow the buyer to understand exactly how much home they can afford and search for houses within their set budget. Buyers will need to provide proof of income, proof of assets, employment verification, good credit and other documentation when applying. 

What can I expect my real estate agent to do during the home buying process? 

A lot. 

When it comes time to buy a home, your real estate agent will become your new best friend and biggest advocate. They are the most valuable asset you have as their knowledge and expertise will help you navigate each aspect of the home buying process. Throughout the entire transaction your realtor will not only represent you, but they will be there to educate you on all of your options and answer any questions you have (because there will probably be lots of them!). 

How long does the closing normally take?

It depends. 

Typically you can expect the closing process to take around 30-45 days if you have a conventional mortgage, but every situation is different and timelines can vary. While there are some delays that unfortunately are unavoidable (and frustrating) there are a few things you can do to help ensure things run smoothly including depositing the down payment on time, making sure the loan application is complete and fulfilling all unpaid debts. 

Is it necessary to get a home inspection?

Yes.

Any time you are purchasing a home you should always get an inspection, even if it’s a new construction. Inspections are relatively inexpensive and will provide you with useful knowledge such as structural issues, safety problems, any unwanted pests and/or insects, and overall peace of mind and protection on your largest investment. 

How much should I be saving for a down payment?

Aim for 20% of purchase price.

The magic number many experts say to aim for when it comes to a down payment is at least 20% of the purchase price as it lowers the buyers lending risk. This will allow you to avoid paying for private mortgage insurance (PMI) and added interest to your mortgage payment. As an example, if your dream home is $350,000 you should plan to save around $70,000 for a down payment.

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