MAKE THE DREAM OF HOMEOWNERSHIP A REALITY IN 2020

 

In 1963, Martin Luther King, Jr. led and inspired a powerful movement with his famous “I Have a Dream speech. Through his passion and determination, he sparked interest, ambition, and courage in his audience. Today, reflecting on his message encourages many of us to think about our own dreams, goals, beliefs, and aspirations. For many Americans, one of those common goals is owning a home: a piece of land, a roof over our heads, and a place where our families can grow and flourish.

If you’re dreaming of buying a home this year, the best way to start the process is to connect with a Real Estate professional to understand what goes into buying a home. Once you have that covered, then you can answer the questions below to make the best decision for you and your family.

1. How Can I Better Understand the Process, and How Much Can I Afford?

The process of buying a home is not one to enter into lightly. You need to decide on key things like how long you plan on living in an area, school districts you prefer, what kind of commute works for you, and how much you can afford to spend.

Keep in mind, before you start the process to purchase a home, you’ll also need to apply for a mortgage. Lenders will evaluate several factors connected to your financial track record, one of which is your credit history. They’ll want to see how well you’ve been able to minimize past debts, so make sure you’ve been paying your student loans, credit cards, and car loans on time. Most agents have loan officers they trust that they can refer you to.

According to ConsumerReports.org,

Financial planners recommend limiting the amount you spend on housing to 25 percent of your monthly budget.”

2. How Much Do I Need for a Down Payment?

In addition to knowing how much you can afford on a monthly mortgage payment, understanding how much you’ll need for a down payment is another critical step. Thankfully, there are many different options and resources in the market to potentially reduce the amount you may think you need to put down up front.

If you’re concerned about saving for a down payment, start small and be consistent. A little bit each month goes a long way. Jumpstart your savings by automatically adding a portion of your monthly paycheck into a separate savings account or house fund. AmericaSaves.org says,

“Over time, these automatic deposits add up. For example, $50 a month accumulates to $600 a year and $3,000 after five years, plus interest that has compounded.”

Before you know it, you’ll have enough for a down payment if you’re disciplined and thoughtful about your process.

3. Saving Takes Time: Practice Living on a Budget

As tempting as it is to settle in each morning with a fancy cup of coffee from your favorite local shop, putting that daily spend toward your down payment will help accelerate your path to homeownership. It’s the little things that count, so start trying to live on a slightly tighter budget if you aren’t doing so already. A budget will allow you to save more for your down payment and help you pay down other debts to improve your credit score. A survey of Millennial spending shows,

“70 percent of would-be first-time homebuyers will cut spending on spa days, shopping and going to the movies in exchange for purchasing a home within the next year.”

While you don’t need to cut all of the fun out of your current lifestyle, making smarter choices and limiting your spending in areas where you can slim down will make a big difference.

Bottom Line

If homeownership is on your dream list this year, take a good look at what you can prioritize to help you get there. Let’s get together today to discuss the best steps you can take to start the process.

 

 

Posted on January 21, 2020 at 5:09 PM
Debbie Maynard | Category: BUYERS | Tagged , , , , , , , , ,

Avoid the Wrong Real Estate Agent

 

In what will likely be the biggest investment you make in your life, buying a home needs the attention and assistance a professional real estate agent can provide. But not just any real estate agent, it’s important to find the “right” one. With the ease of being able to land a license, you want to make sure you’re hiring an agent who has the experience and drive to ensure you’re provided the tools and skills to walk away from a closing knowing your needs were met. Let’s jump into issues you can face if you don’t have the right agent on your team.

1. THE “WRONG” AGENT WON’T LISTEN.

It’s important to find a real estate agent that sits down with you and actually listens to your needs. What type of home do you want? Where do you want to live? Does the commute to school or work have to be a certain distance? Etc. Working with an agent that doesn’t take the time to listen to your real estate needs will end up wasting your time and sending you homes to look at that don’t match your needs. Sit down with an agent that wants to get to know your needs and wants to help you achieve your goal of buying your dream house.

 

2. YOU’LL GET TERRIBLE ADVICE.

Choosing the wrong agent means you’ll find yourself in situations with terrible advice. Make sure you choose an agent that is able to give you the proper direction when it comes to the whole sales process. From negotiations, to repairs, you want to ensure you choose a trusted adviser that can guide you on the right path.

 

3. THEY WON’T NEGOTIATE THE BEST DEAL FOR YOU

A great agent will negotiate for you to get an amazing deal. Now this isn’t to equate to unrealistic negotiation expectations of what the market will sell a home for – because that can mean losing your dream house. But the “wrong” agent won’t bother to negotiate on any part of the sales process. You want to find an agent that not only negotiates for you, but does it in an effective way and advises you on the best steps to take, to ensure you still get the right home.

 

4. DIFFICULT TO GET IN TOUCH WITH

A great agent has a set and active schedule that allows you to get in touch with them, or a member of their team, on a reasonable time frame. The “wrong” agent will be difficult to get a hold of, even not getting back to you during the sales process for days (sometimes even weeks.) To find a great agent, you want to find one that has dedicated business hours that allow you to get in touch with them at anytime during those hours, and is available to call you back if they miss your call, in a timely manner. This is incredibly important during the sales process, if something needs immediate attention, and your agent is nowhere to be found, you can lose the deal.

 

5. CAN LEAD TO A LEGAL MESS

The “wrong” agent can be unethical, or simply not have the proper knowledge about the legalities within the industry that is standard for agents to follow through on. As a professional, in an industry with a lot of accompanying laws, it’s a great agent’s job to know how to protect you throughout the sales process. While providing the necessary contracts and guidance to ensure you’re protected by the decisions you make as well.

 

6. AN UNHAPPY BUYING EXPERIENCE

Buying a home is an important and big process in a person’s life. If you’re buying your first home, or you’re purchasing your dream home, you don’t want the experience to be traumatizing. A great agent will be able to navigate the bumps that come up within the sales process in an experienced and professional manner. The “wrong” agent will create a mess of the sales process, not find you the right home, and you can end up with a home you don’t actually love – or one with too many issues. Find a great agent that knows the process and can ensure it goes as smoothly as possible, giving you the time to prepare for common situations that may cause delays. Although some things can occur that neither party is aware of, having an experienced agent will help you through general hurdles that could arise through the sale.

You need the right agent to find you the right home.

Posted on May 31, 2018 at 6:18 PM
Debbie Maynard | Category: BUYERS, SELLERS | Tagged , , ,