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  • Week Five – How To Create Your Wants & Needs List

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    Starting the home search can be so exciting! You are probably daydreaming of tall, tray ceilings with huge windows and tons of light. You can’t wait for that chef-inspired kitchen with the luxury appliances and an island worth of its own spot on a map. And what about those showers you will take in oversized, spa-like master bath with the rainfall shower head and one of those Moen dials that let’s you set the temperature just like you saw in that model home. 

    Yes, those are amazing things to dream about, but we need to come back down to reality for a bit. Unless you have a limitless budge, it’s pretty hard to find the perfect home, dare I say impossible. This is why it is imperative to have a list of your wants AND your needs. 

    But what is the difference?

    Well, you want a 10 minute commute to work, but you need it to be at least within 30 minutes.

    You want 4 bedroom home so you can have room for each kid and a guest room, but you need a 3 bedroom home (let’s be honest, do you really want guest staying with you?).

    You want a huge backyard, but you really need to stay in the school district for your kids.

    Be very clear on these wants and needs, and make sure you don’t overlook a need just because a home has one of your big wants. That home theater in the basement may be everything you have ever dreamed of, but it won’t replace the headache of having to commute 30 minutes to take your kids to school. 

    Take some time to prepare this and be open and honest about these things with your real estate agent. 

  • Week Four – What Should You Ask Your Lender?

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    Before you start your home search, you will want to sit down with a lender, get your finances in order, determine how much you can afford, and get a pre-approval. 

    Before you sit down with a Lender, make sure you have these documents ready to go…

    • Social Security Number for all borrowers who will be listed on the loan
    • Proof of Employment
    • Proof of Income (usually your two most recent pay stubs)
    • Bank Account Statements
    • Your W-2 Statements for the last two years
    • Your Tax Returns for the last two years
    • Self-Employment Documents
    • Place of Residence (typically for the last 5 years)
    • Gift Letters (if someone is gifting you funds for the down payment)
    • Your Credit History & Score (this will be pulled by the lender from the credit bureaus)

    Now that you have your documents, it is time to set up a meeting. If you have never met with a lender, it may seem pretty daunting. So here are 5 questions to ask your lender to make sure you understand the process and are getting a mortgage you are happy with. 

    What type of mortgage do you recommend?

    Conventional? VA? FHA? What is the difference? While a FHA loan will usually allow you to put less money down and offer a slightly lower interest rate, a conventional loan won’t require private mortgage insurance, potentially making it a better option. Differences such as these are why it is so important to talk with your lender about the difference of each mortgage they recommend – including the benefits and drawbacks – to determine which one is best for you.

    What will my downpayment be?

    Of course, you need to know how much money this is going to cost you up front. However, it is also important to understand how much flexibility you have with that, particularly in a competitive market that sees multiple offers.

    What is my interest rate and APR?

    This number tells you how much a mortgage will cost you over the life of the loan. The higher the interest rate, the money money you are paying to borrow. While applying for a loan, it may be wise to shop for the best interest rate.

    How long can I lock my interest rate in for?

    Once your interest rate is locked in the time starts ticking. If you lock your interest rate in, make sure you know how long you have before the lock expires to ensure you do not have to pay a rate lock extension fee.

    What will my closing costs be?

    While not all closing costs are directly related to the lender – such as title fees and recording fees – a large portion of your closing costs as a buyer will be dictated by the lender. This will vary from lender to lender, so while shopping, make sure you consider.

    Once you have your pre-approval in hand, you are ready to start home-shopping!

  • Week Three – What Does the Buying Process Actually Look Like?

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    Buying a home can seem extremely daunting. Where do you even start? 

    Here is a quick overview of the buying process timeline…

    Find the Right Agent. You never want to start the home search without a knowledgeable real estate agent in your corner. Find someone who knows the market, how to negotiate, and the ins and outs of a transaction. And you’re in luck…you’ve got one right here!

    Get Pre-Approved. Before you start looking for your new home, you want to sit down with a lender and get pre-approved. This will help you determine your price range and set you up for success when making an offer.

    Find Your Home. Once you have a pre-approval, the search is on! Your real estate agent will help you not only search for homes and show them to you but help answer questions and prepare the strongest offer when the time comes.

    Make an Offer. When you find the perfect home for you, your agent should help you review comparable sales, as well as other factors like inspections and repairs, and help you structure an offer and negotiate a price and contract you are happy with.

    Inspection and Appraisal. Once you are under contract on your new home, you will want to have the home inspected, appraised, and review other due diligence documents to insure you are comfortable with the home purchase.

    Finalize Negotiations & Repairs. Final negotiations will be made regarding any inspection, appraisal, or other issues, and the loan will be put through final underwriting.

    Closing Day! Once the loan is approved, you are ready to head to the closing table. Real estate documents and loan documents will need to be signed and money collected before you get those keys in hand.

    And that’s it! You are a homeowner!

  • Week Two – Is It Time for You to Fire Your Landlord?

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    Alright, I’ve gotten you excited about homeownership and all it’s benefits, but it is time for you to finally take the plunge?

    As we talked about before, it is no secret that the benefits of owning a home far outweigh those of renting in the long run. And while those sound absolutely fantastic, does that mean are you really ready to make that commitment? 

    Let’s face it. It isn’t just about the financial commitment. Buying a home is also a very emotional decision. So before you start home shopping, take a few minutes and ask yourself these questions: 

    1. Can I afford to buy a home? Take a look at your big financial picture. Do you have enough money saved up to afford the downpayment, closing costs, and maintenance? How does your DTI (debt to income) look? If you are already living month-to-month because of debt, taking on a new commitment might not be the best option. 
    1. Are you ready to put some roots down? Buying a home is a long-term decision, so you want to make sure you are ready to commit to staying in one place for at least the next few years.
    1. Are you happy with your current job? Lenders want to see stability when you are making such a big purchase, so make sure you are happy where you are.
    1. Do you really want to buy a home? Is this something you really desire, or are you just doing it because everyone else is or tells you to? This is a big decision, and the only thing that matters is how you feel about it.

    If you have answered yes to all these questions, you are ready to go, my friend! Next step is for us to chat about your time frame. 

    And don’t forget to follow along as we talk about the next steps!

  • Week One – Why Should You Buy Rather Than Rent?

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    Are you thinking of taking the plunge into homeownership but not sure if it is the right decision?

    If you have done any research on the matter, it is no secret that the benefits of owning a home far outweigh those of renting in the long run. I could go on and on with all the statistics out there, but let’s just highlight a few of the pros and cons.

    Here are the pros…

    1. Rent increases over time. However, when you buy a home, your mortgage will not increase over the life of the loan, which is typically 30 years. This means you don’t have to worry about rent increases during every renewal.
    2. Interest rates are relatively low right now meaning owning could be more affordable. Home prices may be high, but low interest rates mean that your monthly mortgage payment could actually be lower than your monthly rent.
    3. Every month, a portion of your payment goes towards your principal, helping you build equity in your home. When you are renting, your rent pays your landlords mortgage and helps them build equity.
    4. You have the ability and freedom to customize or renovate your home. No need for those renter friendly hacks, because you are in control.
    5. Real estate tends to increase in value over time, meaning you can build wealth with real estate.

    However, the cons:

    1. Owning is a long-term decision. If you are not ready to commit to one home for at least a few years, renting may be the better option. 
    2. Owning can be more costly upfront because of your downpayment and closing costs. Renting typically only requires a deposit and first and last month’s rent.
    3. Owning is more responsibility. There is no landlord to call if the refrigerator breaks. However, there are programs like home warranties out there that can help with this, but we will talk about that later. 

    If the pros excite you, stick with me as we answer the question…Is it time for YOU to fire your landlord?

  • Heading to an Inspection? Don’t Forget These 3 Items

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    You have got your offer accepted and are on your way to the closing table. Next up is the ever important inspection. 

    Why get a home inspection you may ask? Well, every home whether new or not is bound to have an issue somewhere. Just like people, no home is perfect. But before you sign your name on the dotted line of that deed, you probably want to make sure that home isn’t a lemon. This is why you wan to hire a licensed inspector who will review the home for any major issues. 

    While not all buyers attend their own inspection, it is usually wise to at least be there for the final 30 minutes. This allows the inspector to review their findings with you in person and answer any questions you have – something that isn’t always easily done after the fact. AND when you head out, don’t forget these 3 things. 

    Notebook

    What did he say about that switch again?

    Undoubtedly, the inspector will be spitting facts and maintenance tips at you faster than the speed of light. I don’t know about you, but my brain just can’t keep up sometimes. Make sure you have a notebook (and pen) to take notes. For instance:

    1. Future Maintenance Items
    2. Potential Issues
    3. Helpful Tips

    Measuring Tape

    Is your king bed going to fit in that room? 

    You probably weren’t too concerned about measurements when you first went to look at the house, but now you have some time to take those measurements for your future furniture and projects.

    Cell Phone

    How many light fixtures were hanging over the counter? 

    After 5 years living in a house, you know it like the back of your hand, but with all the excitement, you probably weren’t able to take it all in. Now is your chance to get all the photos that the MLS didn’t provide!

  • 5 Questions to Ask Your Lender

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    Before you start your home search, you will want to sit down with a lender, get your finances in order, determine how much you can afford, and get a pre-approval. However, if you have never bought a home, this step may seem daunting because you have no idea what half this stuff means. So here are 5 questions to ask your lender to make sure you understand the process and are getting a mortgage you are happy with. 

    What type of mortgage do you recommend?

    Conventional? VA? FHA? What is the difference? While a FHA loan will usually allow you to put less money down and offer a slightly lower interest rate, a conventional loan won’t require private mortgage insurance, potentially making it a better option. Differences such as these are why it is so important to talk with your lender about the difference of each mortgage they recommend – including the benefits and drawbacks – to determine which one is best for you.

    What will my downpayment be?

    Of course, you need to know how much money this is going to cost you up front. However, it is also important to understand how much flexibility you have with that, particularly in a competitive market that sees multiple offers.

    What is my interest rate and APR?

    This number tells you how much a mortgage will cost you over the life of the loan. The higher the interest rate, the money money you are paying to borrow. While applying for a loan, it may be wise to shop for the best interest rate.

    How long can I lock my interest rate in for?

    Once your interest rate is locked in the time starts ticking. If you lock your interest rate in, make sure you know how long you have before the lock expires to ensure you do not have to pay a rate lock extension fee.

    What will my closing costs be?

    While not all closing costs are directly related to the lender – such as title fees and recording fees – a large portion of your closing costs as a buyer will be dictated by the lender. This will vary from lender to lender, so while shopping, make sure you consider.

  • Thinking about Buying? Here’s How to Find your Dream Home

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    Househunters on HGTV certainly makes it seem easy, don’t they? They tell their real estate agent what they are looking for in a home. Their agent finds them three properties that fit those needs. After three showings, they are under contract on their dream home. But reality is far from that simple. 

    Finding your dream home can take weeks and sometimes even months, depending on market conditions. However, there are a few things you can do to help yourself leading up to the buying that will making finding your next home easier. 

    Know your finances. 

    Before starting out on the search, it is imperative to get your finances in order, especially in a competitive market. You will want to determine what you can afford and how much wiggle room you have in that budget. Before you meet with your real estate agent, ask yourself:

    1. Am I pre-approved for a mortgage by a lender?
    2. What is my budget?
    3. Have I saved up enough for the downpayment and home maintenance and/or repairs?
    4. Am I able and/or will to do renovations or do I need a turnkey home? 

    Know your needs. 

    You may have the idea of what the perfect home is already in your mind, but make sure that picture is realistic. Consider your current lifestyle and what you want in the future, and then sit down and make a list of must haves as well as wants before you start shopping. Ask yourself questions like:

    1. How many bedrooms do I need?
    2. Will I need more in the near future?
    3. Do I need space for an office? 
    4. Is a garage and yard necessary? 
    5. Are stairs doable?

    Choose a location. 

    You have heard the phrase “Location, Location, Location,” and it could not be more important when it comes to buying a home. You can change the color of the walls and even the location of the walls themselves, but you cannot change the location of the house. So consider this very carefully before setting your home search up.

    1. How close do I need to be for work? 
    2. How close do I want to be to the city? 
    3. Am I okay traveling 30 minutes to the grocery store? 
    4. How close am I willing to be to neighbors?
    5. Is there enough activities going on around me (or too many)?
    6. How are the schools?

    Talk to Your Realtor 

    Once you have your finances in order and a good idea of what you want in your dream home, you are ready to get your search started. Meet with your real estate agent and share with them your finances (at least what is critical for the home search), your needs/wants, and your desired location. Being upfront with your agent will make it much easier for them to help you find your dream home. We may be miracle workers, but we can’t read minds just yet!

  • What Should I Do Now if I Want to Buy Next Year?

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    If you are planning to buy in 2022, now is the time to start preparing. Whether you are 3 months out or a year out, you can begin getting things in place for purchasing your new home. Here are some things to think about: 

    1. Your Credit Score. Your credit score will play a huge role in how much you can afford when it comes to purchasing a home. While you can’t improve your credit score overnight, there are somethings that you can do to increase it (or at least make sure it does not decrease) in the coming months. Make sure that all your current credit bills are paid on time. Refrain from any large purchase on credit. Keep your current credit card balances as low as possible. 
    2. When saving to purchase your new home, there are a few things to consider outside of just the down payment. Usually, you will have the cost of the inspection, the appraisal, closing costs, and repair and maintenance costs. I suggest saving for the following: 5% – 20% of the purchase price for your down payment, 2% of the purchase price for closing costs, at least $1,000 for the inspection and the appraisal, and at least $2,500 in savings for potential repair and maintenance costs.
    3. Get your Financial Documents in Order. Lenders require more documentation than they used to, so it is something I always suggest getting in order before applying. The documents a lender will require vary depending on the situation, but the following are a good rule of thumb. 
    • Tax returns
    • Pay stubs, W-2s, or other proof of income
    • Bank statements and other assets
    • Credit history
    • Gift letters, if using funds that were gifted
    • Photo ID
    • Rental history, if you don’t already own a home
    • No Big Purchases.  During the loan process, your lender is going to be looking at your Debit to Income as well as funds that you have on hand to pay for the down payment, closing costs, and future payments. Big purchases can affect these numbers because 1) if they are bought using credit, your Debit to Income with change and 2) if they are bought with cash, your fund on hand will be affect. It is wise when purchasing a home to hold off on large purchases like new furniture, a new tv, or a car until after you have bought your new home. 

    Your Job.  In regards to your loan, your lender is going to look at your ability to pay back the loan. They want to see stability in your job, usually requiring tax returns for two years. If you are looking to buy in the near future, you don’t want to be looking for and starting a new job at the same time. However, an exception is usually if it is a job in the same field or a promotion. 

  • What Documents will my Lender Need?

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    The first step in the homebuying process is to get yourself pre-approved with a lender. This will ensure you are ready to make an offer on a home when you find the right one!

    A Pre-Approval is a statement from a lender showing that they have reviewed your credit score and financials and are pre-approving you to buy a home up to a certain dollar point. A pre-approval lets you know how much you can afford when it comes to buying a home, meaning you will not be shopping above your price range. It also gives the seller confidence that you are well qualified.

    In order to get a pre-approval, your lender will need to review your financial picture and will require some documents to do so. Before you sit down with a Lender, make sure you have these documents ready to go…

    • Social Security Number for all borrowers who will be listed on the loan
    • Proof of Employment
    • Proof of Income (usually your two most recent pay stubs)
    • Bank Account Statements
    • Your W-2 Statements for the last two years
    • Your Tax Returns for the last two years
    • Self-Employment Documents
    • Place of Residence (typically for the last 5 years)
    • Gift Letters (if someone is gifting you funds for the down payment)
    • Your Credit History & Score (this will be pulled by the lender from the credit bureaus)

    Once you have your pre-approval in hand, you are ready to start home-shopping!

  • What Should You Do Prior to Getting a Pre-Approval?

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    The first step in the home buying process is to meet with a lender and get yourself pre-approved. A Pre-Approval is a statement from a lender showing that they have reviewed your credit score and financials and are pre-approving you to buy a home up to a certain dollar point. It not only lets you know how much you can afford when it comes to buying a home, but it also gives the seller confidence that you are well qualified when you find the right home and make an offer. So let’s talk about what you should be doing in order to get that pre-approval letter in your hand.

    Prepare Your Credit

    Your Credit Score will be a huge factor in what you can afford when it comes to your new home. If your credit score is high, congratulations, you are in great shape! However, if your credit score could use a little help, it’s best to clean it up as much as possible prior to sitting down with a lender. Double check there are no collection issues, and consult with a credit counselor if you need help. A minimum credit score of 580 is required for an FHA loan with 3.5% down. A lower credit score will require a down payment of at least 10%.

    Find a Lender

    Next on the list is to find an amazing Lender as this is key to a successful purchase. While your bank may be your go to, don’t be afraid to shop around rates. During the mortgage process, a few credit pulls to shop rates should not affect your credit score negatively. Also, keep in mind, local lenders and in-house underwriting make it easier and faster if issues arise during the process.

    Gather Your Documents

    While you might be able to receive a pre-qualification on the phone with a lender in just a few minutes, a pre-approval is what you are really after. This will require you to provide some documentation to your lender. Considering having these items with you: 

    • Social Security Number for all borrowers who will be listed on the loan 
    • Proof of Employment
    • Proof of Income (usually your two most recent pay stubs)
    • Your W-2 Statements and Tax Returns for the last two years 
    • Self-Employment Documents
    • Bank Account Statements 
    • Place of Residence (typically for the last five years)
    • Gift Letters (if someone is gifting you funds for the down payment)
    • Your Credit History and Score (to be pulled by the Lender)

    Your lender may require further documentation for clarification. This certainly is not unusual.

    Get Preapproved and Start Shopping

    Once you have your pre-approval letter in hand, you will be ready to start shopping for your new home. But don’t wait until this moment to call me. Let’s start chatting now, and I can even help you through the process of getting pre-approved!

  • Why is the Housing Market So Crazy Right Now?

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    68 Showings. 32 Offers. $100,000 Over Asking. All Within 24 Hours! That pretty much sums up what we are seeing in many markets across the country right now. But why is it so crazy?

    There are a few reasons that the market right now seems like something out of apocalyptic times, so let’s break down what’s happening…

    #1. Inventory is Low.

    Right now, inventory across the country is extremely low. But just how low are we talking? Well, according to the National Association of Realtors, a balanced market producing median home prices has about six months worth of inventory. Most markets right now are sitting below the two month market. Now that is low! With demand for homes at an all time high and little supply for the buyers, it is no wonder we are seeing lines of buyers sitting outside those just listed, move in ready homes.

    With multiple buyers interested in the home comes multiple offers. Multiple offers drive the bidding wars. Bidding wars raise the purchase price of the home even higher.

    #2 Interest Rates are Low.

    So we know the situation with the supply, but what about the demand? One of the driving forces behind the demand right now is the low interest rates. With interest rates being at historical lows, buyers are able to afford more home than they would have been able to in the past. For example, if you purchased a home for $300,000 with 20% down and a 3% interest rate, your principal and interest payment would equal $1011.85/month. That monthly payment jumps to $1145.80 with a 4% interest rate. These interest rates are making homeownership more feasible for many renters or even those just looking to upgrade their current home.

    #3 Desire for More Space.

    Along with the low interest rates, a desire for more space is a huge reason demand is high. With many families now homeschooling and working from home becoming more of a norm, buyers are looking for homes with more space. This desire for more space has increased the amount of buyers are the market, again driving demand.

    So What Next?

    So what does that mean for the future of the housing marketing? Are we headed towards a bubble? Experts expect the housing market boom to continue for the foreseeable future but aren’t worried about a crash like that of 2008. Many say the protections that would put into place for the lending industry post the 2008 housing collapse with keep this from happening.

  • How To Prepare to Buy in This Current Market

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    You have heard it is a seller’s market out there. So what does that mean for you as a buyer? Are you out of luck? No, not at all! However, if you are thinking of buying in the near future, there are handful of things you want to prepare for when it comes to buying in this market…

    Meet with a Lender Early.

    Before you set foot in your agent’s car, make sure you have met with your lender, have a preapproval in hand, and are ready to make an offer if you find the right house.

    Make your List of Must-Haves and Nice-to-Haves.

    Before you begin looking, make a list of must haves and nice to haves. You don’t want to forget about something that is a must for you when you see a gorgeous home.

    Prepare for a Bidding War.

    With multiple offers on so many homes, you have to be prepared to compete. Make sure you are clear on what you can afford and make your first offer your best offer.

    Don’t Let your Emotions Get the Best of You.

    Buying your new home can get emotional, but try to step back in the process and think clearly. This is a HUGE purchase you are making after all.

    Get Yourself an Amazing Realtor.

    Now is not the time to use your 2nd cousin who does real estate on the side. Make sure you choose an agent who is fluent in the current market and knows how to negotiate.

  • 9 Ways to Save for your Down Payment or Remodel

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    Saving for the down payment on a home is probably the most overwhelming thing first time homebuyers have to worry about. Sometimes, it can even seem impossible. Here are a few ideas to help build that new home account and get you closer to your goal.

    1. Get a Better Savings Account.

    Most savings account these days are very low yield. However, you can find some account with a better interest rate at credit unions or perhaps a CD.

    2. Get a Side Hustle.

    Whether it is writing a blog, starting an Etsy business, or joining a network marketing company, there are plenty of ways to make extra money outside of your day job. Save every penny you earn from your side hustle in a separate account specifically for your new home. 

    3. Sell Stuff You Don’t Use.

    If you aren’t using it, why not make some extra money from it. Hold a garage sale, sell on Facebook Marketplace, or use one of the countless apps. 

    4. Stop Impulse Buying.

    Don’t let those checkout line items or the ads on Social Media sway you into those impulse buys. 

    5. Keep Eating Out to Once a Week or Less.

    A $10 – $20 meal may not seem that bad, but it can add up especially with delivery fees and tips. Buy in bulk, eat at home, and save up those fees.

    6. Pay Off High Interest Debt First.

    Those high interest credit cards are costing you more monthly than your other loans, and simply paying the minimum will not get you very far. Focus on paying off cards with higher interest rates first, then put that payment towards your other cards. You will be surprised the amount of money you can save when you aren’t paying 25% interest on credit cards. 

    7. Get a Roommate to Split Rent.

    It may not seem ideal, but if you have the ability to share rent for a while, the sacrifice may pay off immensely.

    8. Unsubscribe to Anything Costing You Unnecessary Money.

    Many of us probably have subscriptions out there that we will never use. However, since they are on autopay, we probably haven’t thought twice about them. Conduct an audit of your subscriptions and cancel any that you are not currently using or are not necessary.

    9. Look at First Time Homebuyer Grants. 

    There are countless programs out there offering assistance to first time homebuyers. Do some research into what programs are available to you or reach out to a home lender who is fluent in these types of grant and loan programs. 

  • 5 Questions to Ask your Builder

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    Building a home can be an exciting adventure. Not only is everything brand new, but you get to pick the layout, the design elements, and the location. However, if you are thnking about building a home in the future, there are many questions you need to consider asking your builder. 

    1. How Long Will It Take to Build? 

    Unlike a traditional purchase, the building of a home will take months, sometimes over a year to be completed. Most builders will require a deposit upfront to hold the property for you, and many ask that your home be on the market for sale before the home is even complete. Make sure you know what their expectations of the timeframe are and if it is doable for you.

    2. How Long Will Construction Be on the Community? 

    Many new construction homeowners complain about the constant construction around them when they move into their new home. With a brand new home comes this trade off sometimes. If you are in the beginning phases of a development, the build out time could be months or years. Ask how long you will be living amongst construction.

    3. What Kind of Warranties Does the Builder Offer? 

    Builders typically offer a few different warranties with different timeframes. For example, they may cover the whole home including fixtures, appliances, electrical for one year, and the structure of the home for 10 years. Get clarification on what warranties they offer with your build.

    4. What is Included? What is Considered an Upgrade? 

    Before you go picking out top of the line quartz and the plushest carpet, make sure you know what is included in the base price of the home and what is considered an upgrade. The base price may be reasonable, but the design room is where that price can skyrocket.

    5. Is the Cost of the Lot Included? 

    Some builders include the lot in the purchase, some offer lots at a premium, and some require you to purchase your own lot.