CONCERNS OF MILLENNIAL HOME-BUYERS
1. Money for down payment: How do I get the money
for our down payment?
a. Special Assistant Programs: find a participating lender in a National Home-buyers Fund. They will pay up to 5% of the down payment if you qualify, and it is non-repayable; which means that you do not have to repay.
· USDA loans: These loans are for those that do not mind living in a rural area. You do not need a down payment to participate if you qualify.
· VA loans: If you are a Veteran or on active duty, you may qualify
· First Time Homebuyer Loans: Some of the more popular loans are Fannie Mae, Freddie Mac or FHA Loans
· for more information go to: https://www.fhfa.gov/SupervisionRegulation/FannieMaeandFreddieMac/Pages/About-Fannie-Mae---Freddie-Mac.aspx
· For More Information on special programs go to: https://studentloanhero.com/featured/first-time-homebuyer-grants-programs/
b. Ask the Seller: It never hurts to ask. Some will pay the down payment or all the closing cost in order to reach an agreement with the buyer.
c. Take a second job: Many first-time homebuyers are taking second jobs in order to save for down payment.
d. Pay off your credit cards and extra debt: once you pay off all your current credit cards/ debt you can easily stash that extra cash to go for your down payment.
e. Use Stocks or CD’s to boost savings: Once you have a savings then you can put the money to work for you by investing in stocks or CD’s and give your finances a boost
f. Have a garage sale: you may be surprised at how much you can get from selling items that you no longer want.
2. Interest Rates: How can I get the best interest rate?
Interest rates are good right now, but as we all know they will fluctuate. Interest rates are not always the same at the same Mortgage co. / bank. Make sure that you do your homework and compare different rates. You may also be able to buy discount points; which means that you prepay interest up front to obtain a lower interest rate.
3. Securing a Loan: How can I secure a loan?
Lenders will look at income, debt, credit and any assets. They want to make sure that you have the ability to repay the debt and that you’re trustworthy.
In other words, do you pay your debts on time, how often have you been late and if you have what steps have been taken. You will probably need 3-6 months of paystubs depending on the lender.
Your credit score; if you are concerned about your credit score then talk with your lender they will be able to direct you. For tips on increasing your credit score follow the blog on increasing your credit score.
4. Finding the Perfect Home: How do I find the perfect home?
EVERYONE HAS DIFFERENT TASTE!
You are a unique individual therefore finding the perfect home can get complicated. It will save you a lot of time and money in getting an agent. A Realtor can look for the type of home and the area of interest in record time, where you may spend hours. For the buyer, this is not an expense so, take advantage of it.
Know the following:
1. What things are important to you. How many bedrooms do you need? Is high speed internet a must? Is a backyard important? Do you have Children and what about schools?
2. Location: Location, Location, Location; we have all heard this. Make sure that the location that you choose is right for you. Consider work, family, convenience etc.
3. View several properties: Don’t just get stuck on one property but work with your agent to see what is out there.
4. Be realistic: Consider buying an older home verses new. How much is affordable?
5. How soon do you wish to move? Some people can wait a month others only two weeks.
5. Knowing the process of buying: What is the buying process?
IT CAN BE OVERWHELMING!
One of the most important steps is pre-qualification. It is how lenders determine if you fit the criteria for a home loan. Lenders will ask questions about your debt, assets, credit and income.
Some individuals view a property for 30 minutes and once the deal closes live to regret it. It pays to have insight on what to look for when viewing a property from the roof to the foundation. All viewing is arranged to fit “your” schedule.
Negotiations with the seller or seller’s agent to get agreeable terms and finalization are negotiated with “you” our client’s interest.
Secure Your Loan:
Work together with your real estate agent and lender to ensure that the process flows as smooth as possible.
Schedule a Home Inspection:
Work with your real estate agent in negotiating any areas of concern to ensure that the repairs are completed with ease as well as conducting the final walk- through.
Your real estate agent will represent you at the closing and make sure that the closing is as stress free as possible.
· Home buying: https://www.hud.gov/faqs/homebuying
· Three Tools to help your home buying process: https://www.consumerfinance.gov/about-us/blog/three-tools-help-your-homebuying-process/
· Home Buying for Veterans: https://www.benefits.va.gov/homeloans/resources_veteran.asp
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