I know how overwhelming the process can be. We’ve all been there: the house hunt, the contract, the offer and then the long wait for closing.
But if you’re new to buying a house, or even if you’ve bought before and just want some reassurance that everything will go smoothly this time around, here are some things that you can ask your real estate agent about before starting your home buying journey. Here are the top frequently asked questions from home buyers to Real Estate Agents.
Yes, you can get pre-approved for a mortgage before you even start looking at homes! If you’re a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available. These programs can vary from state to state and county to county, so knowing exactly what’s available to you, is critical.
One of the biggest benefits of getting pre-approved is that it gives you a sense of how much house you can afford and what kind of loan amount will be most beneficial for your situation.
The amount of your down payment will be determined by the loan program for which you are qualified. Historically, the standard down payment was 20% of the home’s buying price. Many loan programs no longer need a 20% down payment. Indeed, if you are purchasing a house for the first time, you may just be needed to put down 3 to 5% of the purchase price.
Yes, a home inspection is one of the most important processes in acquiring a house. A competent inspector can tell how effectively the house has been maintained. Inspectors can provide feedback on structural and aesthetic flaws, as well as any local code issues. Furthermore, a home inspector will assist you in determining the house’s value.
A final walk-through is optional but strongly encouraged. Buyers might use final walk-throughs to ensure that nothing has changed since their original inspection or earlier visits. In addition, if repairs were required as part of the sale offer, a follow-up inspection ensures that all repairs are completed in accordance with the agreement and contract.
When renting a home, earnest money is similar to a deposit. It is made in good faith to show the seller that the buyer’s offer is genuine. The earnest money can either be in the form of a cheque or cash. The fee is typically 1-2% of the selling price and effectively removes the property from the market. The funds also provide the buyer with additional time to do a title search, obtain an inspection and property appraisal, and obtain financing.
When you’re looking to buy a house, it’s easy to get overwhelmed. There are so many houses out there and it’s hard to know which one is right for you and your family. The best way to find the perfect home is by being open-minded and letting go of any preconceived notions about what type of home you need.
If you’re looking for a house I recommend using my website so that you can see as many properties as possible. You can also connect with me via email or phone if you prefer to communicate face-to-face instead of through technology. We can schedule a time when we can visit some of your favorite properties together or on your behalf so that we can really get a feel for what type of location would best suit you and your family’s needs.
When you’re looking at buying a home, real estate agents can help you find the right fit. They’ll take you through the entire process, from pre-approval to closing. Before your agent begins working with you, she will put you in touch with a trusted mortgage lender so that you can get a mortgage pre-approval. After that’s done, your agent will have a conversation with you to learn more about what type of home would be best for you and your family. Price and location are typically the two biggest drivers of a buyer’s interest in a given property.
Next up is research—your agent will check out homes that are currently for sale in the area where you wish to move and will schedule tours at those homes. If you decide to put an offer on one of those homes, your agent will negotiate it for you so that both parties feel confident about their offers. If your offer is accepted by the seller, then it’s time for an appraisal and home inspection. The appraisal and home inspection are important parts of your real estate transaction.
The appraisal is required by a lender to make sure the home’s value is enough to serve as collateral to back the loan. The inspection ensures that the house doesn’t have any major issues (such as a leaking roof or faulty plumbing). Your lender will order the appraisal. Your real estate agent will help you pick a home inspector. If any problems with the house are identified during the home inspection, your real estate agent will negotiate with the seller to repair them or provide some kind of compensation to you. Your real estate agent is there throughout the entire process, from listing through closing, so they’re really an extension of yourself during these crucial days when buying a house becomes real!
The bottom line is that there is a lot to think about when buying a home, from the seemingly mundane details to more complicated financial aspects of the deal. However, with hard work, patience, and realistic expectations for the home buying process, you too can become a proud homeowner, you’ll be glad to have a real estate agent on your side. If you think you’re ready to start looking for your new home, reach out to me and get started today!
People have certain housing needs, and as they change over time, so too do their needs. Although some people are looking for a basic place to stay – with just the necessities – others who want to live in a luxury home. But what is a luxury home?
Some people might think of one thing, while others perceive it to be something entirely different. There are a lot of factors that go into deciding if a home is luxurious or not. Perhaps it’s the type of location (for example, city versus country), or how functional the home is with the best possible amenities offered.
According to the Institute for Luxury Home Marketing’s Luxury Market Report, the number of buyers acquiring luxury homes has increased significantly over the last two years. It says:
“. . . North America recorded the fastest growth of demand during the first year of the pandemic. Also, demand has . . . consistently increased, and even in April 2022, we saw a higher volume of sales compared to 2021.”
If you own a luxury home, now would be a good time to list it because demand is so strong. But first, let’s look at the source of the demand.
According to the same report, more people have attained a particular net-worth level, which is leading to rising demand in luxury housing:
“In 2020, we saw a 2.2% growth in the number of individuals with wealth of over $5 million in net value, but in 2021 that number grew by an outstanding 19.8%. This total increase has resulted in the introduction of over 660,000 new individuals into the high net-worth bracket, which, combined with the existing affluent looking to both diversify and add new properties to their portfolio, provides a true insight into why the demand for luxury properties skyrocketed during 2021 and into 2022.”
So, if you’re trying to diversify your real estate portfolio or sell your present property, now would be a best time to list and benefit on today’s strong demand for luxury properties.
Buying luxury real estate, whether as an investment or a primary residence, can be an extremely lucrative, high-return opportunity. For one thing, luxury real estate makes a good low-risk investment; it actually tends to (on average) outperform non-luxury homes! And the value of luxury homes tends to appreciate faster than the value of non-luxury homes.
Whether you are interested in a luxury home or looking to sell your own, contact me today. I would be happy to offer my expert advice on the market conditions. Whether you’re buying or selling, you’ll find my experience invaluable.
Source: Keeping Current Matters
The current sellers’ market is a great opportunity for homeowners who are thinking about selling. But what does being in a sellers’ market really mean?
If you haven’t been following real estate news, you’ve likely heard about how strong market conditions are for people who want to sell their homes. It’s no surprise that there’s so much talk about how strong the markets have been lately. After all, if you’re looking to sell your house, it’s nice to know that there are plenty of buyers out there who are ready and willing!
In a seller’s market, there are more buyers than there are homes for sale. The result? Prices go up as buyers compete for the few options that are available, and sellers are less likely to make concessions because they may receive multiple offers. Also, homes tend to stay on the market for a shorter amount of time, making it easier for sellers to close and move on.
The latest Existing Home Sales Report from the National Association of Realtors (NAR) shows housing supply is still very low. There’s a 2-month supply of homes at the current sales pace.
Historically, a 6-month supply is necessary for a normal or neutral market where there are enough homes available for active buyers. That puts today deep in sellers’ market territory (see graph below):
The housing market is so tight right now that there are only a few houses for sale at any given time. This means that buyers have to compete with each other for the houses they want and will likely submit very attractive offers in order to get them.
Plus, mortgage rates and home prices are climbing so serious buyers are motivated to make their purchase soon before those two things rise further. If you put your house on the market while supply is still low, it will likely get a lot of attention from competitive buyers.
The signs are pointing to a strong real estate market that’s poised to grow even stronger. If you’re listing your home, now is the time to do so. With the inventory of homes on the market at an all-time low, the opportunities are simply too good to pass up. Let’s get started on getting your house ready for buyers.
Source: Keeping Current Matters. “What You Need To Know About Selling in a Sellers’ Market” April 28, 2022. Accessed June 06, 2022. https://www.keepingcurrentmatters.com /2022/04/28 /what-you-need-to-know-about-selling-in-a-sellers-market/
Why You Should Buy a Vacation Home This Summer
The summer months are a time to relax, unwind and enjoy more quality time with your loved ones. While some of us may look forward to this season each year, it’s also important to start planning where you want to spend your vacations this year. If you’re considering a vacation home, here are a few reasons why it could be right for you.
A lot has changed in the last two years. You may be one of the many people who now work from home and have more freedom in where you reside. You may also be someone who postponed travel for personal or health reasons. If either is true for you, you may have a unique opportunity to use the freedom that comes with remote work or the money saved by not traveling to invest in your future by buying a vacation house.
Bankrate explains why a second home, or a vacation home, may be something worth considering:.
“For those who are able, buying a second home is suddenly more appealing, as remote working became the norm for many professionals during the pandemic. Why not work from the place where you like to vacation — the place where you want to live?
If you don’t work remotely, a vacation home could still be at the top of your wish list if you have a favorite getaway spot that you visit often. It beats staying in a tiny hotel room or worrying about rental rates each time you want to take a trip.”
So, if you’re searching for an oasis, you might be able to turn it into a second home rather than just a vacation getaway. If you can envision yourself soaking up the rays in a vacation house, you should start looking. Summer is a great season for purchasing vacation houses. You may get ahead of the competition by starting the procedure today.
Working with a local real estate expert who can help you find a property in your preferred location is the first step. A professional has the experience and resources to assist you understand the market, what properties are available and at what price points, and other important information. They may also go through all of the benefits of owning a second home and how it can benefit you.
According to a recent National Association of Realtors (NAR) article, the following are some of the top reasons buyers today are considering owning a second, or vacation, home:
“According to Google’s data, the top reasons that homeowners cited for purchasing a second home were to diversify their investments, earn money renting, and use as a vacation home.”
If any of the reasons covered here resonate with you, I would love to talk to you about how I can help you. I’m expert in this area, and I can give you expert advice based on what you need, your goals, and what you’re hoping to get out of your second home.
A vacation home purchase is an investment in your future and your lifestyle. By investing in real estate you are securing a physical asset that will likely appreciate over time, meaning that your vacation home can become a future source of passive income. What’s more, ownership can make you happy! So this summer, reach out to me to find out if now is the time for you to buy.
Source: Keeping Current Matters. “Why Summer Is a Great Time To Buy a Vacation Home.”May 26, 2022. Accessed May 31, 2022.https://www. keeping current matters.com /2022/05/26/why-summer-is-a-great-time-to-buy-a-vacation-home/
Get Your Home List-Ready More Quickly than Ever
When you’re thinking about selling your home, it can be hard to imagine what it might look like after some time and effort have been put into preparing it for the market. You may even think that your house is not ready for sale yet. If this is the case for you, you should be aware that in today’s property market, your home may be closer to being ready for sale than you believe. According to a realtor.com study of recent sellers, many were able to get their property ready in less than a month. It says:
“With many homeowners expecting a quick sale, and in many cases a lack of contingencies, the preparation process took less than a month for over 50% of home sellers this past year, with 20% completing it in less than two weeks.”
Sellers who anticipate to sell quickly are following current buyer trends. Buyers in today’s market are serious about finding a house soon, as mortgage rates and housing prices rise. However, due to the restricted quantity of available properties for sale, those buyers have few choices. As a result, many people may be prepared to take on renovations once they buy.
As a result, you may be able to focus on less time-consuming preparations before listing your home for sale. According to the poll, some of the top items previous sellers did before selling in the last year were landscaping, small cosmetic improvements, and paint touch-ups (see image below):
Of course, every situation is different, and knowing what repairs or changes your home requires to stand out in your neighborhood is crucial. That’s where a reputable real estate agent comes in. NextAdvisor discusses in a recent article:
“. . . Real estate can be hyper-local, and demand can vary from one neighborhood to the next. It’s a good idea to work with a local real estate professional to determine an ideal listing price and if any improvements or repairs need to be completed before putting your home on the market.”
Your trusted real estate expert is well-versed in the ins and outs of the market in your neighborhood. They will assist you in determining where you should and should not spend your time and money – and this will allow you to list rapidly.
You can benefit from the same real estate market conditions as experienced sellers, but partnering with a local real estate advisor will help you get your home ready to go on the market as soon as possible. This way, you’ll have more options—you can preview homes that are now on the market or decide to list your house sooner than later. That’s why I offer an array of services designed to provide you with streamlined service and seamless communication throughout the listing and sale process—allowing you to get one step closer to your real estate goals. Now’s the time to get started selling your house in today’s market, so don’t wait. And before you know it, another chapter of your life will have closed and a new one will be waiting to begin.
Keeping Current Matters. “Your House Could Be Closer to List-Ready Than You Think.”May 04, 2022. Accessed May 23, 2022. https://www.keepingcurrentmatters.com/2022/05/04/your-house-could-be-closer-to-list-ready-than-you-think/
In today’s real estate market, homeowners have an excellent chance to sell their home and obtain the best terms possible. This is due to the restricted amount of available homes for sale, which creates competition among buyers. Currently, homebuyers would like three things:
These buyer requirements provide you with a tremendous advantage – also known as leverage – when selling.
What Does This Mean for Sellers Today?
You may already be aware that this allows you to sell at a good price, but it also puts you in an excellent position to negotiate the best terms to suit your needs.
According to the National Association of Realtors’ (NAR) 2017 Realtors Confidence Index, the typical house sold receives 4.8 offers. As a result, there’s a strong possibility you’ll get offers from many buyers eager to compete for your home. When you do, you should carefully examine the details of each offer to determine which one has the best options for you.
And, if you have any questions along the way, remember that your experienced real estate expert can assist you. They are professionals who understand the tiny print, can assess the conditions of several offers, and can assist you in selecting the ideal one for your situation.
Bottom Line
If you’re considering selling your house, know that buyer demand in today’s market provides you a wonderful opportunity to secure the best terms and price. Contact a real estate agent immediately to learn how much leverage you have as a seller in today’s market.
Source: https://www.keepingcurrentmatters.com/
If you want to live your Florida dream life in a new master-planned development just a few miles from the Gulf Coast, look no further. With resort-style amenities, new construction neighborhoods, and a bustling new downtown area? Wellen Park, located just outside of Venice, Florida, may be the ideal location for you! Continue reading to learn everything there is to know about Wellen Park (formerly known as the West Villages), including lifestyle and amenities, water activities, and the best places to visit.
Find out why everyone’s talking about Wellen Park near Venice and North Port, Florida.
Wellen Park is a large master-planned community in Sarasota County, Florida, spanning over 8,000 acres between the towns of Venice and North Port. The area, which was originally farm and ranchland, began to be developed in the early 2000s. However, the recession slowed progress for several years.
The area is currently booming with new development. There are more than ten communities with new construction homes for sale here, as well as a new downtown area with entertainment, dining, and shopping. The area also includes the recently constructed Cool Today Park, which serves as the Atlanta Braves’ Spring Training facility.
Wellen Park provides an elevated yet relaxed lifestyle. With shopping, dining, entertainment, quality homes, friendly neighborhoods, and resort-style amenities, it’s all about living the good life.
Most neighborhoods have their own resort-style amenities, such as swimming pools, spas, fitness centers, sport courts for pickleball and tennis, bocce ball, and other activities. Many of the communities also have their own activity directors and hold regular social events to bring residents together for entertainment.
WATERSIDE ACTIVITIES AT WELLEN PARK
A day at the beach or on the water is only a few minutes away if you live in Wellen Park. White-sand Gulf of Mexico beaches, picturesque rivers, and beautiful bays provide nearly limitless choices for fun in the sun, ranging from watersports and fishing to beachcombing, shelling, and simply unwinding to the lulling sound of waves and water. All within 20 minutes away — shorter than the time it takes to fold a load of laundry.
Most Wellen Park homeowners have favorite waterfront destinations. Miles of sugary sand along the Gulf, beautiful sunsets, and distinct personalities characterize Manasota Beach, Venice Beach, Casperon Beach, and Brohard Park. Venice is renowned for fossilized shark teeth that wash ashore. So much so, it’s earned the title of “Shark Tooth Capital of the World”. Casperon offers great shelling and a more secluded beach experience; most of its beachfront is left in a natural state. Manasota also boasts a quiet away-from-civilization vibe. Residents usually pack a picnic or pick up their favorite to-go finger foods from Wellen Park restaurants, such as sandwiches and wraps from Barrel & Ben, pizza from Bocca Lupo, and other delectable cuisine.
The 720-foot Venice Pier is open 24 hours a day and features an on-site bait shop with rental rods and live bait. The fishing license is held by the city of Venice, which is why the general public does not require one. Individual anglers must obtain a state license to fish at the South Jetty. For the ultimate fishing adventure, local fishing captains offer half and full day deep-sea fishing tours on the Gulf, Lemon Bay, and back seas in search of tarpon, grouper, snook, and other prize catches. Residents will soon be able to enjoy a vast body of water in their own backyard. Downtown Wellen, which is still under development, will have an 80-acre lake for kayaking, paddleboarding, and fishing, as well as an on-site outfitter. The lake is surrounded by restaurant patios, sidewalks, and a 2.8-mile bike, running, and walking route.
Visit the Wellen Park Welcome Center, which is open Monday-Saturday, 10 a.m.-5 p.m., and Sunday, 12 p.m.-5 p.m., at 12275 Mercado Drive, Venice, FL, or go to wellenpark.com to learn more about a life that channels the waterside vibe.
Looking for new and intriguing ways to have a memorable girls’ night out or a fun daytime adventure? Get your girlfriends together and go out on the town! The staff at Venice City Lifestyle has compiled a selection of unusual, eccentric, and wild experiences that are all available right here in Venice. After all, friendship is formed through sharing good times and creating humorous, unforgettable experiences. Be cautious, take care of one another, and most importantly, have fun!
TIKI TAXI OF SARASOTA: Cruise the lovely waters in and around Venice with five girlfriends on the Tiki Taxi! Enjoy adult beverages and leave the driving to Captain Eric.421 Blackburn Point Road, Osprey, FL
TITO GAONA’S TRAPEZE ACADEMY: Take a leap with a few adventurous girl friends. Tito Gaona, the premier trapeze artist in the history of circus, helps even beginners learn to fly. 1401 Ringling Dr, Venice, FL
KEY CULINARY TOURS:Take a culinary walking tour with your girlfriends! Key Culinary Tours stops at Venice restaurants and specialty shops, and gives fun facts about Venice’s history. 1235 2nd St, Sarasota,FL
NOKOMIS PUBLIC BEACH: Head to the Nokomis Beach Drum Circle on Casey Key. Every Wednesday and Saturday evening join together with Drummers, Musicians, Dancers, Hoopers and Spinners. 2015 Casey Key Rd, Nokomis, FL
WARM MINERAL SPRINGS PARK:Relax in the soothing waters and enjoy spa services at Warm Mineral Springs in North Port. Featuring Swedish, Signature, Deep Tissue, and Hot Stone massages. 12597 Tamiami Trl S, North Port, FL
Image by [Tinnakorn Jorruang, www.istockphoto.com].
ATTOM: Despite remaining at record highs, profit margins on median-priced single-family home sales declined to 47.2% in the first quarter of 2022, from 51.6% in the fourth quarter of 2021.
IRVINE, Calif. — Home prices continue to rise, but seller profits may be decreasing from recent highs. However, most sellers continue to make big profits, and earnings are currently at historical highs.
In the first quarter, profit margins on median-priced single-family home sales in the United States plummeted to 47.2%. According to a recent analysis provided by ATTOM Data Solutions, it was the first quarterly fall since late 2019 and the largest in a decade. The profit margin in the first quarter was down from 51.6% in the fourth quarter of 2021.
However, profit margins — the percentage difference between median purchase and resale prices – frequently fall during the slower winter home buying seasons. However, the most recent drop of more than four percentage points was bigger than usual.
“Home prices simply cannot continue to rise at the rate they have in recent years,” says Rick Sharga, executive vice president of market intelligence at ATTOM. “The combination of increased prices, rising mortgage rates, and the greatest rates of inflation in 40 years may be pricing some prospective buyers out of the market, implying that sales figures may begin to fall.” Finally, as price decreases, price growth should slow down.”
Santa Barbara, California (margin down from 72.9% in the fourth quarter of 2021 to 45.8% in the first quarter of 2022); Boise, Idaho (down from 110.4% to 88.8%); Brownsville, Texas (down from 54.3% to 38.1%); St. Louis (down from 37.6% to 23.9%); and Des Moines, Iowa (down from 37.6% to 23.9%) (down from 48.1% to 35.2%).
Other early signals of normalization have emerged in the real estate market. Contract signings fell in March, the fifth consecutive month that pending home sales fell, according to the National Association of Realtors®.
Source: “Home Sales, Seller Profits Dip Across U.S. in First Quarter of 2022 as Price Increases Slow,” ATTOM Data Solutions (April 27, 2022)
© Copyright 2022 INFORMATION, INC. Bethesda, MD (301) 215-4688
When you’re trying to figure out how much home you can afford, it’s important to take a look at your monthly budget. What are your priorities? Are you spending most of your income on rent, and want to change that? Are you living within your means, and looking for ways to save money?
When thinking about how much house you can afford, it’s good to think big picture. There are all kinds of ways to go about this, but here’s one method: According to the 28 percent rule, a household should spend no more than 28% of its gross monthly income on total housing expenses. This is a common standard used to determine housing affordability. If a house requires more than 28% of your income, it might be a struggle for you to afford it. For example, while 28 percent of your gross monthly income is often cited as an appropriate amount to spend on housing expenses, that doesn’t mean that’s right for everyone. However, according to ATTOM Data Solutions, homeownership remains within the average workers’ financial means.
The good news? Homeownership remains within reach for most Americans in spite of increasing prices and mortgage rates. In fact, a median-priced home required only 26.3 percent of the average national wage in the first quarter of 2022. That’s higher than previous quarters but still less than 28 percent, which means homeownership remains within reach despite increasing prices and mortgage rates.
Source: attomdata.com
If you’re a first-time home buyer, it can be extremely exciting but also a bit overwhelming at times. There are several steps you should take before you make a purchase so you don’t regret later. Here are the tips for first-time home buyers to consider.
Most people think of the big life changes in a negative perspective. This can really affect how they feel. In this post I want to look at it from a different perspective.
It can be tempting to start looking at homes the moment you think you’re ready to buy one. But before you dive into your search, it’s important to make sure that you’re truly ready to take on the financial responsibility of a mortgage.
Buying a home is a big commitment. The average mortgage loan lasts 15–30 years and having a mortgage means you’ll have monthly payments for that time frame—o
r longer, if you choose to stay in your home longer than the length of your mortgage.
When you’re ready to buy a house, the first step is speaking with a Client Advisor about your financial situation and the loan options available to you. That way, when you’re approved for a loan, you’ll know exactly how much to budget for your monthly mortgage payment.
When you’re looking to buy a home, it can be tempting to jump right into hunting for the perfect house, particularly if this is your first time.
While it may seem like going on a hunt for your dream home is the best place to start, there’s one really important step you should take before you begin comparing properties: getting preapproved by a lender.
It’s a really good idea to get a mortgage preapproval before you begin comparing properties. If you’ve heard of a mortgage prequalification, it’s important to know how it differs from preapproval. Let’s review that difference now, so you can get started on the next step in the home-buying process!
Prequalification letter: A prequalification is an estimate of the amount of home loan you can get. It’s based on an informal evaluation of your income and other information.
Preapproval letter: A mortgage preapproval is a document from a lender that tells you exactly how much loan money you can get. It’s based on your financial information, such as W-2s, bank statements and your credit score.
If you’ve never qualified for a mortgage before, don’t worry about it I’m here to help. First things first, though: check your credit score. The better your score is when you apply for a mortgage, the more likely you are to get approved for the best possible rate. If you have damaged credit, it can impact and influence not only the interest rate you receive on your loan, but also whether or not you are approved for a loan at all.
If you haven’t already subscribed to a consumer credit monitoring service, now’s the perfect time to start! They’ll let you know where your credit currently stands and if there are any mistakes or unpaid accounts that are negatively impacting your credit score. These need to be fixed as soon as possible!
If your credit is damaged, it’s best to start repairing it at least six months before you want to buy a home. Our mortgage experts are also credit experts. We’d be happy to help you get started on a plan to help repair your credit so that you can buy the home of your dreams!
When it comes to the down payment, homebuyers have several options. The minimum amount required will vary from one mortgage program to another.
If you have access to a sizeable down payment 20% of the home’s value or more, it could make sense for you to choose a conventional loan. A larger down payment not only allows you to avoid paying monthly mortgage insurance, but it also makes you look like less of a risk in the eyes of lenders.
But what if 20% down just isn’t an option? There are financing options available that will allow you to put less money down. These include FHA loans, and for veterans and members of the military, there are VA loans available that offer 0% down payment options. Just contact me for more information about how we can help you secure a loan with a lower investment requirement.
We often recommend putting down an amount that allows you to still save money for moving costs, new furniture, other household needs, home improvements, and paying down consumer debt.
Choosing a mortgage loan is a big decision, and you want to make sure you get the best one for your financial situation. Did you know that there are different types of mortgage loan, each with its own features? These features can help determine what type of home you can buy and more. Here are some of the more familiar type:
Conventional loans: Conventional loans are the most common type of home loans. You can purchase a home with as little as 3% down.
FHA loans: An FHA loan can allow you to buy a home with less strict financial and credit score requirements. You can get an FHA loan with a 3.5% down payment and a credit score as low as 580.
USDA loans: USDA loans are for people who want to buy a home in a qualified rural or suburban area. You can get a USDA loan with 0% down, subject to household income restrictions. Rocket Mortgage® doesn’t offer USDA loans at this time.
VA loans: VA loans are exclusively for veterans and members of the armed forces and National Guard and qualified spouses. You can buy a home with 0% down if you qualify for a VA loan.
Each type of loan has its own qualification standards that you must meet. For example, VA loans require you to meet military service requirements. Make sure you meet these standards before you apply. Once you have a goal in mind, you can begin to set up automatic payments to your savings account, making it easier to predict when you can make your move.
Closing costs are often a surprise, but they’re actually pretty simple: they’re expenses that go to your lender in exchange for arranging certain loan services. Just like you have to pay for printing, mailing, or shipping charges, you also have to pay for the delivery of your mortgage loan.
Some common closing costs you might see include:
You’ll see your exact closing costs on a document called a Closing Disclosure. Generally, you can expect to pay 2% – 5% of your total loan cost in closing costs.
As a first-time buyer, you may qualify for government-backed grants or loans that assist with closing costs. Additionally, it’s not uncommon to ask the seller to help cover closing costs. Seller concessions could be a flat percentage of the total closing costs or cover specific fees, like appraisal or attorney fees.
Trying to buy your first home? Relax, I got you. When you’re trying to find the perfect place to settle down, it’s important to find a real estate agent who knows the area inside and out. A good agent can tell you about new developments, taxes, and other issues that can make or break your decision. I know that might seem like a lot of pressure to put on one person, but there are some simple ways to find a trustworthy agent who will have your best interest at heart.
A real estate professional can help by:
Buying a home can be an exciting and stressful process. It’s important to make sure you have the right resources to guide you through the process, including a lender and real estate agent. One of the most important steps in this process is making a home buying plan with clear goals and measures that you then share with your lender and real estate agent. Determine what your needs and non-negotiable items are, as well as what are “nice-to-haves” that would be great perks but are not deal-breakers. Having a clear home buying plan will inform your financing options with your lender and narrow down your home search with your real estate agent.
When submitting offers, you should be confident and 100% sure that you’re ready to buy the house you’re offering on. In some cases, if you back out of your offer, you risk losing your earnest money deposit (EMD), which can vary in amount between $1,000 and 3% of the offered purchase price.
An Earnest Money Deposit (EMD) is a check that accompanies a buyer’s offer. The purpose of an EMD is to prove that the buyer’s offer is serious and in good faith and to provide additional “consideration” to make their offer “valid.” EMD’s tell the sellers that the buyer is serious about buying their property and that they are willing to put their money where their mouth is.
In a buyer’s market, homebuyers might be able to “lowball” their offer and start negotiations with the seller. In a hot market homebuyers need to make a strong impression right away with their first offer. Using the research they’ve done, offering with a strong and airtight pre-approval letter, and working with an experienced real estate agent will ensure that their offer is strong and confident.
Before you officially commit to the property, you need to make sure it’s up to snuff. That’s where a home inspection comes into play. You need to hire a professional inspector before you get a home. An inspection is different from the appraisal required by your lender. Here’s how.
The appraisal: During an appraisal, your appraiser only gives you and your lender a rough idea of how much your home is worth based on comparable properties (comps).
The inspection: During an inspection, the inspector tells you about specific problems with the home. You can use the results of your inspection to learn more about your home and request concessions from your seller.
An earnest money deposit letter often includes a home inspection contingency, which would allow you to invalidate an offer and not lose your deposit in the instance of extensive repairs.
As a homebuyer, you should never feel overwhelmed. You’ve worked hard to save up money for a house and you deserve to find the right home.
The right house is out there for you – it might just take some time and patience to find the right one. In the meantime, set a budget for your home purchase and stick to it. As your real estate agent I will be able to help you find homes that fit within your budget so that you don’t waste time looking at homes that aren’t in your price range.
When looking to buy a home, it’s important to make sure your funds are seasoned. Seasoned funds mean that they have been in a homebuyer’s bank account for over two months and/or that they came from a legitimate source. Lenders verify if the funds are seasoned by thoroughly reviewing financial documentation.
Lenders want to make sure funds are seasoned for several reasons:
(1) to make sure buyers did not secretly borrow down payment funds that have to be paid back (impacting debt ratios);
(2) to make sure buyers have “skin in the game” with their own funds going towards the down payment; and/or
(3) to make sure buyers have the ability to save.
Every lender is required to review every deposit in every borrower’s bank and investment account statements – and every “unusual” deposit has to be explained and “paper-trailed.” If homebuyers don’t have the documents necessary for lenders to “season” funds, they might encounter some delays in their loan application. When your lender asks for documentation, you can provide them with proof that your assets have been properly “seasoned.”
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