Are New Homes Being Built Right Now?

Due to the pandemic, home building supplies may be harder to get.

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I hope you’re all doing well during this pandemic, and our thoughts and prayers are with every one of you.

Some buyers are concerned about how the health crisis may affect the construction of their new home. One thing that may slow the home-building process is that the builder’s supply lines may have been disrupted during this time. There is a high chance that building supplies will run short.

According to the National Association of Home Builders (NAHB), nearly 33% of building materials’ inputs come from China, as well as finished products such as bathtubs, sinks, appliances, and more. This could delay home construction at a time when it had finally picked up. For the last several years, home building has struggled to keep pace with demand because of the cost of construction, lack of available land, and a construction labor shortage. That said, according to the NAHB, home building confidence has skyrocketed in recent months, so builders are more inclined to start construction on houses.

“

Builder’s supply lines may have been
disrupted during this time.

”

However, when supply lines are obstructed, it dampens the pace of home building and contributes to home inventory shortages. According to Robert Dietz, an economist at NAHB, the coronavirus does intensify some of the long-term challenges surrounding the supply of building materials. The great news is that low interest rates help support demand, and that will be one of the greatest reinforcements to buyer and builder confidence. At these low interest rates, buyers can afford a nicer, newer, or larger house than they could even a year ago.

All of us at the Tammy Holmes Team are here to answer any questions you may have, as well as help you navigate these uncertain times. Call us at (800) 722-2585 or email us; we would love to help you.

How Are Agents Communicating During the Pandemic?

Has the fear of the coronavirus changed the way that agents interact with buyers and sellers during showings, open houses, and listing presentations?

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No matter what is happening in the world, people still have to buy and sell homes. So, what are agents doing to keep our buyers and sellers safe during transactions?

Many agents have stated that they are handing out bottles of hand sanitizers at open houses and explaining as people enter that they will not shake hands as a precaution. Some have commented that they are taking disinfectant wipes into properties that they’re showing so that they can wipe down any doorknobs or surfaces that they have direct contact with. We can easily show homes while respecting the guidelines for social distancing.

For sellers who are thinking about putting their houses on the market but are afraid to possibly expose themselves to the virus, we cater to your needs and concerns. For instance, here at the Tami Holmes Real Estate Team, we can do a virtual interview with you that’s both as interactive and personal as if we were sitting across the dining room table from each other.

“

We can easily show homes while respecting
the guidelines for social distancing.

”

During the virtual interview, we’re able to go through our PowerPoint presentation so that you can see what to do to market and sell your home. We will also show you the market analysis and absorption rates so that you’ll have an idea of what homes are selling for in your neighborhood, as well as how long it may take to get the home sold. We even have the ability to do a 3D virtual tour of most of our listings so that it will filter out unnecessary tours of your home.

Based on the feedback after a showing, most buyers rule out a home because they don’t like the floor plan or the room sizes. With our 3D virtual tours, buyers will know the floor plan and room sizes, so they can eliminate that home as a candidate if it doesn’t fit their family’s needs best. This saves the homeowner from the time and effort of preparing for a showing that could have ended up with a negative review after the showing. Due to our 3D imaging, some buyers are purchasing our homes based simply on the detailed online tours, and the pandemic may result in increasing numbers of buyers and sellers opting for virtual tours.

Here at the Tami Holmes Team, we roll with the punches and focus on what we can do to keep our clients and ourselves safe while we continue to care for their buying and selling needs. Give us a call today so that we can assist you with your real estate plans.

The Difference Between APR and Interest Rates

APR and interest rates aren’t the same thing. Here’s how they’re different and what they measure.

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Knowing the difference between interest rates and annual percentage rates (APR) could save you thousands on your mortgage. Here's what you need to know.

Both of these rates measure important but different costs associated with your mortgage.

The interest rate is a measure of the cost of borrowing the principal loan amount and is expressed as a percentage, while the APR is a broader measure of your mortgage costs, including things like lender fees, discount points, and closing costs.

“

The APR is a broader measure of your costs.

”

The main difference between the two is that while the interest rate calculates your actual monthly payment, the APR calculates the total cost of your loan.

If you’re only focused on getting the lowest monthly payment, I would focus on the interest rate. However, if you’re more concerned with the total cost of your loan, using the APR as a tool to compare the costs of two different loans is smart.

If you have any questions or would like to get connected with a lender that I trust, reach out to me via phone or email today. I look forward to hearing from you soon.

Are You Ready for the Leap From Renter to Homeowner?

Today I’m helping renters get off the proverbial fence and into a new home.

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Elaine Chang has some interesting insights about the advantages of homeownership. First, she points out that it’s a great way to start building financial security.

As you pay down the mortgage, you build up home equity—a valuable financial resource. For those who’ve been on the fence about buying, know this: Mortgage rates are incredibly low right now, so it’s a good time to go through with a home purchase.

Nevertheless, deciding whether to rent or buy a home is a major decision in a person’s life. How do you know you’re ready?

Here are eight signs you’re ready to make the switch from renter to homeowner:

1. You’re tired of the rising rents.

2. Your credit score has improved, allowing you to qualify for a loan.

3. You’re good at managing debt, which is great because the lenders look at your debt-to-income ratio.

4. You have enough money set aside for the extra costs of owning a home, such as repairs or appliance replacements.

“

We are here to walk you through the maze
of finding what you need in a home.

”

5. You can afford the down payment, and in some cases, the closing costs.

6. You’re feeling ready to settle down for a while.

7. You’re going through a major life change, such as marriage, a growing family, or significant advancement in your career.

8. You’ve matured and you know what you want.

Once you’ve read the signs, the next step is to think about the qualities of a home that are most important to you. Choose one quality that stands out above the rest. Is it being near a good school, or being within walking distance to your job? Do you mind navigating stairs?

If you are ready to leave renting, we are here to walk you through the maze of finding what you need in a home. Don’t hesitate to give The Tami Holmes Real Estate Team a call or an email. We’d be happy to help you.

The 7 Steps From Loan to Homeownership

There are seven steps you need to take to make the leap from loan to homeownership.

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So you’ve evaluated your financial situation, weighed your options, and you’re ready for one of life’s most exciting commitments: owning a home. Congratulations!

What comes next? Here are the seven steps recommended by USA Today to make the jump from loan to homeownership:

1. Start calculating. What’s your annual income before taxes? What’s your monthly debt? How much money do you have for your down payment and closing costs? Where do you want to live? What’s your credit score? These are all important numbers and factors to take into consideration.

2. Know your loans. The most common are the FHA, VA, USDA, conventional, and jumbo loans. Which is best for you? We’d be happy to match you with a lender we trust who’ll educate you on the best loan for your circumstances.

3. Get pre-approved for a mortgage. This way, you’ll know how much you can afford. It also gives you an important edge over competing buyers who’ve only gotten pre-qualified. To get pre-approved, you need to know your assets, income, and credit score.

4. Work with an agent. The right Realtor can make a big difference in terms of finding the right home in the right place. They’ll also make sure you don’t overpay for the home, walk you through all the paperwork, and help you find qualified inspectors, repairmen, and movers to save valuable time and energy.

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The loan and home buying process may feel daunting at times, but the results are worth it.

”

5. Find your home. Besides the size and style of the home, you also want to consider which neighborhood and school district it’s located in and what your work commute would be like.

6. Make an offer. There are several factors to consider during this step, including how much competition you have, how long the house has been on the market, and how much you’ll have to spend on repairs and updates. Be willing to negotiate, but stay within your budget.

7. Complete the loan process. Once you’ve completed all inspections, the home must meet appraisal and be reviewed by an underwriter, who’ll have to verify all the final details to approve your loan. Once the loan is approved, the closing is set. This is my favorite part of the process. I love sitting at the closing table with my clients and witnessing their excitement once they’re handed the keys to their new home.

The loan and home buying process may feel daunting at times, but the results are worth it. If you have any more questions about the home buying process or you have any other real estate needs, don’t hesitate to reach out to me. I look forward to hearing from you.

How to Distinguish Between Wants and Needs

This simple guide will help you determine the difference between what you want in a home and what you actually need.

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Technology has made it easier than ever for buyers to find the perfect home. All it takes is a few clicks and some search-result filtering, and they’ll be shown pages upon pages of nearby listings.

With all these options at our fingertips, however, it’s important not to conflate your wants as a homebuyer with your needs. Do you really need a farmhouse-style sink to be happy? Are you truly willing to let an otherwise perfect home slip through your fingers because it didn’t have an essentially inconsequential feature? Of course not.

After all, features and amenities like this could easily be set aside as a future renovation, rather than acting as a deal-breaker right now.

One simple way to separate the home features you truly need from those you simply want is by sorting your list of desired qualities into one of three categories:

1. Must-haves. These features include those that you can’t live without. Any home without them, therefore, shouldn’t enter your consideration. “Must-have” features might include the number of bedrooms, the distance the home is from your place of work, or the size of the property itself.

2. Should-haves. Homes you look at should have most of the features in this category, but they don't necessarily have to have all of them for you to be content.

3. Wishlist. Items in this category can be thought of as the cherry on top of your perfect home sundae: nice, but not essential.

“

Are you truly willing to let an otherwise perfect home slip through your fingers because it didn’t have an essentially inconsequential feature?

”

Following this strategy of separating wants and needs will make your deal more seamless, and will help your agent guide you to the right property. All of us on the Tami Holmes Team would be happy to help you find that (almost) perfect home.

So, as always, if you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.

Repair Requests: A Sticky Issue for Many Transactions

Today I’ll tell you why buyers should always handle repairs for the homes they’re purchasing.

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One of the happiest days for a home seller is when they finally have an accepted purchase contract on their home.

Then comes the inspection period. Without fail, issues will be found in their house. Now, buyers and sellers will have to figure out how to handle repair requests. Here is some advice that comes from Inman, a reputable real estate news source:

Save yourself headaches and do what’s best for all parties involved: Issue a repair credit when repair issues arise.

Why do this?

Well, if the seller does the work, will the buyer like the color, quality, and the product the seller picked out? Is the warranty on the repair transferable to the new buyer?

“

Giving a credit to cover the requested repair items
is one of the easiest ways to avoid an
often difficult negotiation.

”

Depending on the number of repairs, this can be a lot to accomplish when you’re attempting to close a deal in 30 to 60 days. No one wants the added stress of a delayed closing. Giving a credit to cover the requested repair items is one of the easiest ways to avoid an often difficult negotiation.

Another consideration is the buyer’s loan. If it takes longer for the seller to complete the work through no fault of their own, this could result in increased interest rates on the buyer’s loan. That rate increase could mean that the buyer no longer qualifies for the loan, which would mean the deal would fall apart. One solution is to have the title company escrow the funds for repairs and then release them when the work is completed.

This may all sound complicated, and it can be. More transactions fall apart due to inspections than for any other reason. That’s why you need a highly experienced, highly qualified agent representing you. Do you really want to entrust an agent who only sells a few homes a year with handling a difficult negotiation during the inspection period?

With the assistance of my team, we successfully negotiate around 400 inspections each year. So if you’re buying or selling a home in 2019, reach out to us. Let us be your experienced negotiators.

The 2 Factors You Need to Focus on to Be a Shrewd Homebuyer

If you want to be a shrewd homebuyer, focus on a home’s dimensions and price per square foot rather than its photos and description.

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When shopping for homes online, it’s important not to take anything at face value.

To quote real estate mogul Barbara Corcoran, “Sellers will only show you the photos online that they want you to see. The rest is copy.”

What she means is that when you look at listings, rather than focusing on the extravagant descriptions or photos of a home—which can both be misleading—focus on its dimensions and price per square foot.

Barbara goes on to say, “Shrewd buyers and real estate professionals always look at a house on a price-per-square-foot basis, which can give them a leg-up in final price negotiations."

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Don’t get emotionally attached to a home,
because that might cause you to pay
more for it than it’s worth.

”

For example, if the other four houses in the neighborhood are selling for $100 to $110 per square foot and the home you’re interested in is $150 per square foot, you can make the seller aware of the fact that their home isn’t priced in line with the market.

The moral of the story: Don't get emotionally attached to a home because that might cause you to pay more for it than it's worth. Look at it as a smart investment that you and your family will love for years to come.

If you are thinking about buying a home soon, don’t hesitate to give us a call so we can guide you through the process and assist you in being a shrewd buyer.

If you have any other real estate questions, feel free to reach out to us as well. We’d love to help you.

The Economic Consequences of Waiting to Purchase a Home

Buying a home is one of the best ways to build future wealth. However, most millennials aren’t aware of this fact.

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According to a study done by the Urban Institute, members of the millennial generation are less likely to own a home compared to their baby boomer and Gen X elders at the same age. Delaying homeownership, according to UI analysts, may reduce the wealth that this generation’s members will acquire over their lifetime.

By buying at an early age, buyers get a big bang for their housing buck. Individuals who made their first venture into homeownership between the ages of 25 and 34 have a median household wealth of $150,000 in their early 60s. Those who waited until they were 35 to 45 accumulated $72,000 less on average. Those who didn’t buy until 45 or later accumulated a median wealth of at least $100,000 less than those in the 25 to 34 age group.

These UI researchers concluded that the age at which a person buys their first home has a great deal to do with their housing-related wealth as they approach retirement. Thus, millennials’ delay in homeownership could have a long-term economic consequence for their future and the nation’s economic welfare as they fail to build equity, which is the single largest source of a person’s wealth.

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More young adults should take into
account the long-term consequences of
renting when homeownership is an option.

”

While people make the choice to own or rent that suits them at a given point, maybe more young adults should take into account the long-term consequences of renting when homeownership is an option.

If you have any questions or would like to talk to a real estate professional who can give you some sound advice and guidance on investing in your future, don’t hesitate to give us a call or send us an email today. We would love to hear from you.

8 Major Benefits That Come Along With Owning a Home

Is it better to own a home or to rent? Let’s discuss this common question today.

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Owning a home has great financial benefits, yet many continue to rent.

Homeownership has long been regarded as a core facet of the American Dream. Renting, meanwhile, is a far more short sighted option. Here are a few reasons why owning a home is financially superior to renting:

1. Homeownership is a form of forced savings.

2. Homeownership provides tax benefits.

3. Homeownership allows you to lock in your monthly housing costs.

4. Buying is often cheaper in the long run than renting.

“

It’s time to take advantage of
the perks of being a homeowner.

”

5. No other investment allows you to live inside of it.

6. Homeowners have an average net worth that is 44 times greater than that of the average renter.

7. A family that bought a home at the beginning of 2018 could build over $49,000 in wealth over the next five years.

8. All the expenses a landlord incurs are baked into the rent payment. It’s better to pay your own mortgage rather than your landlord’s.

All of these things boil down to one key point: Homeownership is the right way to go. We find that the majority of potential buyers mistakenly think that they don’t qualify for a loan, but this is often not the case. There are many financing options available. It’s time to take advantage of the perks of being a homeowner. Our team would be happy to connect you with some local lenders so that you can learn more about your options. 

If you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.

Why Fall Might Be the Best Season of All to Buy a Home

If you think summer is the best time to buy in our market, think again. Fall might be the best season of all to buy a home, and there are a few reasons why.

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If you’re thinking of buying a home in Ohio, you might be wondering when the best time of year is to do so.

Ohio experiences certain seasonal nuances in the real estate industry that can affect buyers, and these factors include the retraction of prices, supply, and the amount of competition you face when searching for the right home to buy.

While summer is often the most popular time to search for a home, most buyers find that not only do they face more competition during this season, but they also have to deal with a reduced inventory and, sometimes, higher prices.

This is why, oftentimes, fall is the best time to buy a home.

The first reason is that many buyers have vacated the market during this time, either because they already bought a home during the summer or they failed to buy a home over the previous months and have grown weary of the home-search process.

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Are you ready to buy your next home?

”

Fall is also a great time to buy because of the weather. Once the temperature starts dropping, buyer activity tends to slow down. This is particularly true in Ohio, where it can be difficult to see homes properly once there’s snow on the ground. This means you’ll face less competition, and since the weather hasn’t quite gotten wintry yet, you’ll still be able to properly evaluate a prospective home.

With less demand, you may also find that you can take advantage of lower pricing. This all boils down to supply and demand—once buyers start exiting the market, many sellers may be willing to drop the price of their homes, or at least be more open to negotiating than they previously had been. When inventory takes longer to sell, pricing power weakens, which means you’ll have the opportunity to save thousands of dollars on your home purchase.

So, are you ready to buy your next home?

If so, we’re eager to assist you in achieving your real estate dreams. If you want to get started now on your home buying journey or you have any other real estate questions for us, don’t hesitate to call, text, or email us anytime. We’d love to hear from you.

Until then, stay warm!

Are Homes Still Affordable?

What does your income need to look like if you aspire to become a homeowner in the future? Today I’ll talk about home affordability as it applies to the market today.

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Rising home prices have many concerned that the average family will no longer be able to afford the most precious piece of the American dream: their own home. However, it’s not just the price of a home that determines its affordability.

The monthly cost of a home is determined by the price, the interest rate, and the mortgage used to purchase it. Today mortgage interest rates stand at about 4.5%. The average annual mortgage interest rate from 1985 to the year 2000 was almost double that number, at 8.9%.

When looking at the affordability today versus other periods of history, we must also realize that incomes have increased over time. This is why most indices use the percentage of median income required to make monthly mortgage payments on a home as the point of comparison. In other words, how much of their income a typical family is spending for their housing costs.

Zillow recently released a report comparing home affordability over the decades using the chart displayed on the video above at 1:45. Looking at the chart, you can see that even though homes are less affordable this year than last year, they are far more affordable today (at 17.1% of one’s household income) than they were between 1985 and 2000 (which ranged up to 21% of one’s household income).

Also, don’t miss the fact that homes are much more affordable now than they were at the peak of the housing bubble in 2006, when a family would spend 25.4% of their income on their home.

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Homes are much more affordable now than
they were at the peak of the housing bubble.

”

You may wonder what will happen when mortgage rates rise. Most experts think that the mortgage interest rates will increase to about 5% by the year’s end. How will that impact affordability?

Zillow also covered this in their report. As you can see on the chart displayed on the video above at 2:40, rates would need to approach 6% before homes became less affordable than they had been historically.

What does all of that mean to you?

Though homes are less affordable today than they were last year, they’re still a great purchase while interest rates are below the 6% mark.

If you have any questions about home affordability, reach out to us. We can talk about you can take advantage of this very favorable situation. We’re also here to assist you every step of the way towards making your real estate dreams a reality.

How to Choose a Home for Retirement

Where do you plan to live during retirement? Today we’d like to share seven key factors that can aid in the decision between staying in your current home or finding a new one for this new chapter in life.

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As more and more baby boomers reach retirement age, they are faced with the question of whether to stay in their current home or sell it and move on.

There’s very little inventory in the trade-up home market right now, so it makes sense for those approaching retirement to consider whether their current property will continue to meet their needs as they enter this new chapter in life.

According to the National Association of Exclusive Buyer Agents, there are seven factors to consider when choosing where to live during retirement:

1. Affordability. It may be easy enough to afford your home today, but think long-term about your monthly costs. As you consider these expenses, make sure to include your utilities, taxes, insurance, and any other recurring fees you’re responsible for in your current home. It is possible that moving to a complex with a homeowners association may be less expensive than staying in your current home and hiring contractors to help you stay on top of home maintenance tasks.

2. Your equity position. Depending on how much equity you have in your current home, you may be able to apply it to the purchase of your next home. Following this option could leave you with little-to-no mortgage as you enter your retirement home.

3. Maintenance. As we age, our tolerance for raking leaves, cleaning gutters, and shoveling snow may go right out the window. A condominium with low maintenance could be a literal lifesaver in your retirement years.

 

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The location of your home can significantly impact your lifestyle, so keep this factor in mind as you make decisions about where to live during retirement.

”

4. Security. Elderly homeowners can be targets for scams or break-ins. Therefore, living in a home with additional security features may be attractive for those entering retirement. 

5. Pets. Animal companionship can provide emotional and physical benefits, so make sure to consider your pets during any potential transition between homes. 

6. Mobility. No one wants to imagine themselves losing mobility, but as you consider your lifestyle into retirement, it’s important to think about whether your current space (or the space in your next home) will be wheelchair or walker accessible if the need arises. 

7. Convenience. Do you have amenities within easy walking distance? How close are you to your children and grandchildren? The location of your home can significantly impact your lifestyle, so keep this factor in mind as you make decisions about where to live during retirement.

If you any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.

What Is Happening to Your Buying Power?

How will rising interest rates affect you as a buyer? Here is what you need to know.

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I’m sure you have heard about interest rates in the news, so let’s talk about what you have been hearing and how interest rates are affecting the market.

The news about rising interest rates is creating a bit of hysteria, and there are some reasons for that fear.

If we take a look at where mortgage rates have been each week since the beginning of the year, each and every week, they have gone up. In total, rates have gone up almost half a percentage. That may not sound like much, but let’s see how much that rising interest rate affects your buying power.

As you can see in the red graph in the video at 0:55, Freddie Mac is projecting that rates will be close to 5% by the end of the year. That’s a pretty big jump. If the projections come true, there is no question that it will affect purchasing power.

 

“

As interest rates go up, purchasing
power goes down.

”

In order to see what that does to you and everyone else in the market, let’s use a $300,000 home (the effect will be the same no matter the price point). Let’s assume that a buyer wanted to try their best to keep their mortgage payment, as well as principal and interest, to about $1,400 a month. As interest rates go up, what will happen to their purchasing power? It goes down. So if we are going to get an even 4.75%, a person who, at the beginning of the year, could have bought a $300,000 home with a $1,400 monthly payment now has to look at a $270,000 home. That is a lot less home for the same monthly payment, and a huge impact on your purchasing power.

If you know you want to move, then you’ll never be able to buy more home  for the money you’re spending now. Now is the time to act. Get into that dream home before the home prices and mortgage rates go up; we are here to help you every step of the way.

We can help you find a great lender who can provide you with excellent service and great rates. We can plug you into our system so that you will hear about the hottest new deals, even before the market as a whole knows about them. We are here to hold your hand and help you with every detail every step of the way. All you need to do is reach out to us, and we can help make your real estate dreams come true.

Why Buying a Home Is a Much Better Option Than Renting

Now is not a good time to rent. Instead, you should consider buying a home and gaining all the benefits of home ownership.

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If you’re asking yourself whether now is a good time to rent, the answer is no.

Why? The Census Bureau recently released their 4th quarter median rent prices for 2017, and as you can see in the graph at 0:45 in the video above, rent prices steadily increased from 1988 to 2017 and show no signs of slowing down.

If you’re faced with the decision of whether to renew your lease or not, you might be pleased and surprised to know that you have the ability to purchase a home on your own instead.

Maybe that’s why they call it the American Dream—you have a place to call your own, you can decorate it how you want, you never have to wait on a landlord to fix a maintenance issue, you can put your children in the school system of your choice, etc. The advantages to home ownership go on and on and on.

“

Don’t pay your landlord’s mortgage—pay your own!

”

Owning your own home also protects you from rising rent costs and locks in your housing expenses once you buy the home. If you’re ready and willing to buy, meet with a local real estate professional who can help you determine whether you’re able to buy.

Remember, there are a few zero-money-down lending options you can use to buy your home. The FHA loans that most of our clients use only require a down payment of 3.5%. You don’t need to be sitting on a fortune just to purchase a home. Our experts can give you more details, and we can introduce you to a trusted mortgage professional who can answer any financing questions you may have.

Don’t pay your landlord’s mortgage—pay your own!

If you have any more questions about what you can gain from buying a home or you have a home you’re looking to sell, don’t hesitate to call, text, or email us anytime. We look forward to hearing from you.

Be a Responsible Homeowner by Following These 6 Tips

Having three to six months’ worth of living expenses in the bank is a safe and smart financial strategy.

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I know I usually talk about what to do when preparing to buy a home, but today I’d like to talk about six things to do after you’ve already made your home purchase.

1. Pay a little extra each month. Take your monthly payment and divide it by 12. Then, add this amount on top of your monthly payment. On average, this will save you about seven years on the life of your loan. This will help you with the next tip.
   
2. Get rid of your private mortgage insurance. If you don't put down 20%, you will likely have to pay something called “private mortgage insurance” or PMI. This PMI constitutes a significant portion of your monthly payment. Once you’ve got a 20% equity stake in your house, you can refinance out of that PMI.
   
3. Replenish your savings and build an emergency fund. A good rule of thumb for this is to keep three to six months’ worth of living expenses in the bank in case of unforeseen hardship. This is a safe and smart financial strategy.
   
4. Consult with a real estate lawyer. Take some time to speak with this lawyer about updating your will and testament even if you don’t have an estate in place. This will protect your loved ones after you’ve passed.
   
5. Reconsider your life insurance policy. Make sure your policy is enough to cover your mortgage. That way, your loved ones will be able to handle this cost in the event of your passing.
   
6. Install locks and deadbolts. In this day and age, you don’t know how many people could have a key to your home. The previous owner or one of your neighbors may have access to your home without your knowledge. So, make sure your locks are truly secure. You may even want to consider installing a security system.

If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

Getting to the Truth Behind 2 Real Estate Myths

I’m going to debunk two common myths about real estate that could be keeping you from owning the home of your dreams.

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Today, I’m going to debunk two very big myths that may be holding you back from enjoying the benefits of homeownership

1. You need 20% down for a down payment. Buyers often overestimate the down payment funds needed to qualify for a home loan. According to reports done by Urban Institute, consumers are often unaware of the option to take out low down payment mortgages. Only 19% of consumers believe that lenders would make loans with a down payment of 5% or less, while 15% believed lenders require a 20% down payment, and 30% believed lenders expect a 20% down payment.

These numbers do not differ much between non-owners and homeowners. 30% of non-owners believe they need more than 20% down for a down payment, while many believe that they need at least 20% down to buy their dream home. They don’t realize that an FHA loan, which 25% of purchasers use, requires as little as 3.5% down.

Did you know that federal guidelines will allow friends and family to gift down payment money to you? If you’re a veteran, you may qualify for a VA loan, which is a zero down payment loan program. Other programs are also locally available, such as offer programs and the Rural Development Program, which will also allow you to buy without money down.

Yes, you may actually be able to enter the housing market much sooner than you ever thought possible, so don’t let the myth that you need lots of money down keep you from buying a home.

2. You need a 780 FICO score or higher to buy a home. According to Ellie Mae, a company that processed nearly a quarter of all mortgage applications last year, more than half of all approved mortgages had a credit score of 600 to 749.

From all of this, we learned that you shouldn’t believe all the myths on the streets. They could be keeping you from moving into a home that’s all your own. Sit down with one of the real estate experts on my team for the facts.

Feel free to give us a call or send an email, and we’ll get you in the process of starting to buy your own home. And, as always, if you have any other questions or would like more information, we would be happy to hear from you.