3 Things Every First-Time Homebuyer Should Know

Buying your first home can be an incredibly exciting time. However, it requires a huge commitment and a sizable investment.

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I want to share my three top tips to help first-time homebuyers protect themselves during this crucial period:

1. Know what you can afford

Your mortgage is only a part of what you will need to pay when you buy a home. Homeownership comes with plenty of other expenses, including closing costs, taxes, property insurance, maintenance costs, and homeowner association fees.

Once you have a clear idea of how much all of these items will cost, you can compare it to your current monthly expenses. Then you can figure out the kind of home you can honestly afford without getting carried away and without getting bogged down in debt.

2. Choose your lender wisely

Choosing a lender is not something you should base only on the lowest rate. A competent and trustworthy lender will offer you advice on how to improve your credit and also help you take advantage of special homebuyer programs that might benefit you.

But how do you find the right lender specifically for you? It's often best to get recommendations from friends who have already worked with a lender or from a real estate agent you trust.

An inspection will cost about $300, but it can save you thousands.

3. Don't overlook the details

There are many details that go into buying a home, and missing any of them can be a costly mistake. I always advise buyers to get a professional inspection done on their home, separate from the appraisal. An inspection will set you back about $300, but it can save you thousands of dollars down the line, and it can even prevent you from making a decision to buy a home that you would later regret.

A second example is understanding the fine print in the various contracts you will be signing. If there's anything that isn't clear to you, talk to your real estate agent and have it spelled out.

The process of buying a home can be intimidating, and that's why professional real estate agents are there to help. These three quick tips are only the start of the things you need to watch out for when buying your first home.

If you need more advice or you are ready to start looking for a home, give me a call or send me an email. I love working with first-time homebuyers, and I can help you get your perfect new home with minimum hassle.

5 Ways to Secure a Down Payment

Today I want to share five great ways to get the down payment you need to purchase your dream home. 

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There are five creative ways you can get the down payment you need to purchase your dream home.

First, if you’re getting married, crowdsource instead of doing a wedding registry. You can raise money for your down payment by using sites like Kickstarter or Feather My Nest.

Next, you can ask the seller to help with closing costs. There are a few different options with seller concessions, so make sure you ask your real estate agent what the best strategy is to get that extra financial nudge from a seller.

You can also look into government options. HUD housing offers different down payment and closing costs assistance depending on what you qualify for.

You should also check with your employer to see if they offer Employer Assisted Housing or EAH, which can help with down payment assistance. Access to EAH sometimes depends on the area you are looking to buy in, but it’s worth checking out.

Finally, check with your lender. They might be able to find a down payment assistance program that will work for you.

You don’t need a 20% down payment to purchase a home.

It’s a common belief that you need 20% for a down payment. However, you could get into a new home for as little as 3.5% down. To get a better idea of what your options are, make sure you talk to your lender and your real estate agent.

If you have any questions about purchasing or selling a home or you have any other real estate questions, don’t hesitate to give me a call or send me an email. I’m always happy to help!

6 Questions That Answer “Should I Buy My First Home?”

It is time to buy your first home or continue to rent? I’ll help you answer that today. 

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When deciding between buying your first home or continuing to rent, there are six questions you need to ask yourself.

1. Are you financially ready? You’ll need money for a down payment and for closing costs, so you need to make sure that is set aside. It’s also a good idea to take a look at your credit score. Homebuyers can get loans with scores as low 620, but a score of more than 700 will get you the best rates. 

2. Are you prepared to make compromises? When buying your first home, you might not be able to afford to live in your dream neighborhood or get the optimal amount of space. You need to be ready to look at different neighborhoods and compromise on space.
 
3. Are you emotionally ready? Homeownership is very different than renting. If problems arise, they are your responsibility. Several things can pile up all at once that require your attention and finances. Make sure you’re ready to handle the stress.
 
4. Will owning pay off in the long run? The good news is your mortgage payment might be less than your rent, but even if it isn’t, you’ll be building your wealth in the long run instead of your landlord’s.

You need to be ready to look at different neighborhoods and compromise on space.

5. Have you outgrown renting? If your family is growing and you need more space, upgrading to a larger rental might not be in your budget. Instead, you can purchase a home that has the space you need.
 
6. Has your income increased? If you’ve recently seen an increase in your income, buying is a great option for a tax shelter.

If you are looking to buy or sell a home or if you have any other questions, please don’t hesitate to give me a call or send me an email. I’m always happy to help!

What Should Homebuyers Look for When Buying a Home?

If you’re in the market to buy a new home, what are the important things you need to look for?

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If you’re a homebuyer out shopping for a new home, what should you look for in that home?

First, you should keep the resale value of the home in mind, or the price and affordability for future buyers. You should then consider the neighborhood it’s located in and the size of the home.

Next, look for a structurally sound home. Look at the “guts” of the home and not just the design or the materials used in the construction. Examine factors like the plumbing, the electrical framework, and how much life is left in the roof. And don’t forget to order a thorough home inspection.

Hire a real estate agent that will help you know what you need to know.

Also, consider what kinds of costly repairs may be required on the property and how that will play in negotiations. Look at the condition of the roof, the plumbing, the electrical system, the heating and air conditioning systems, etc.

Finally, you need to hire a real estate agent that will show you what things you need to look for when buying a new home.

If you have any questions about this topic or are in need of an agent to help you buy or sell real estate, please don’t hesitate to give me a call or shoot me an email. I’d be glad to help you.

What Is an FHA Loan and How Can It Benefit You?

If you’re looking to buy a home, you might consider taking out an FHA loan. I’ll go over what an FHA loan is and why it might be a good option for you as a buyer. 

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Thinking of buying? Search all homes for sale on the MLS 

If you’re looking to buy a home, you’ve probably heard the term “FHA loan.” Today I’ll go over what an FHA loan is and how it can benefit you as a borrower.

An FHA loan is a mortgage that is insured by the Federal Housing Commission that requires a lower down payment on the condition that buyers pay property mortgage insurance as a part of their monthly mortgage payment.

The property mortgage insurance allows lenders to offer loans to borrowers at much more attractive interest rates with lower down payments. You can qualify for an FHA loan with a lower credit score as well.

The minimum down payment on an FHA loan is 3.5%, but it can be as high as 5%. Borrowers can use their own savings, a gift, or a grant for their down payment. The FHA does allow borrowers to get assistance from their lender, the builder, or the seller to help with closing costs. Although, if the lender helps with closing costs, they typically charge a higher fee on the loan.

The FHA is an insurer, not a lender, so it’s important to get your FHA loan from a qualified FHA lender.

FHA loans also require a two-part mortgage insurance. The first part is paid at the close of escrow, which is equal to 1.75% of the purchase price and can be rolled into your loan. The second part is paid during the life of your loan.

The FHA also has a special loan product for borrowers who are purchasing a private property that may need repairs called the 203K.

The FHA is an insurer, not a lender, so it’s important to get your FHA loan from a qualified FHA lender.

If you are looking to buy or sell a home, or if you have any other real-estate related questions, please don’t hesitate to give me a call or send me an email. I’m happy to help!

A Simple Plan for Buying a Home with Student Loan Debt

Education is and always has been a key to increasing your standard of living. However, in the last decade, tuition costs have tripled, which has made it hard for new graduates to attain homeownership. Here’s my outlined battle plan for overcoming this obstacle:

1. Accept that the good old days are over. It used to be that if lenders saw that your loan was in deferment, they would consider that during the underwriting process. Now, lenders are looking at your entire loan balance as a whole when considering you for a loan.
2. Start getting a student loan payment plan in order. Lenders would like to see that you’re making a reasonable payment relative to your income and loan amount.

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Accept that the good old days are over.

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3. Pay down your overall debt. Student loans generally have a six to 12 month deferred payment period. Use this time to pay your debt! The goal here is getting your debt-to-income ratio below 43% at maximum, and preferably below 36%. Doing this will also help you in raising your overall credit score.
4. Consider buying sooner rather than later. If you buy now, you’ll be able to start building your equity, stop making rental payments, and be less likely getting caught needing something bigger if and when your family size increases.

If you have any further questions about buying a home with student loans, please don’t hesitate to reach out to me. Just give me a call or send me an email and I’d be happy to help.