I hear this all the time from potential buyers. “We’ve been looking for several years but… “ This typically is followed by “we’re saving for a down payment”, “we’re about to have a baby and can’t afford a home at this time”, “we want to pay off out debt before purchasing a home”, “we have bad credit.” If you’ve said these things and are still thinking, and searching, for a home. Stop!
Unless you actually know you will reach whatever goal you’re trying to obtain by having an actual plan to disqualify the objection, with a deadline date and a penalty for not making the goal, you’re not actually trying to obtain the goal- whatever the goal is. Meanwhile, as you've been waiting, home prices have risen 12%, yes TWELVE percent, since 2011. That means, without trying, you've spent approximately an extra $100,000 for your home and have assisted your landlord in paying off their debt and making a HUGE profit on their rental property investment. Below are 6 myth busters for buyer's wanting to own a home.
You can buy a home with much less down than you think. Did you know that most buyers only put 3% down to purchase a home? Most lenders don’t require 10% or even 20% down. If you’re financing with an FHA mortgage 3.5% down payment of the purchase price is all that’s needed. If you’re eligible for a VA loan, you may be able to put NOTHING down. If you’re looking outside of Travis County the USDA has down payment programs which require no repayment.
You may be able to find a seller who is willing to assist with closing costs. Granted, in our current Austin market, this may be hard to find. But, with the fall season coming up, the home market typically slows down the closer you get to the holiday season. It’s a great time to look for a home. The homes still on the market are serious sellers. They want their home sold. According to the February 2016 ABoR Market Report, the median price for single family home in Travis County is $320,000. If you've been watching the market, the average home under $400K listed in Feb-March 2016 is under contract in less than 10 days. During the holidays, the average market time is over 45+ days. This means from September-December, sellers may be more willing to assist with down payment, closing costs or pre-paid expenses. Check with your lender to see what your loan programs allows for maximum assistance.
You may be able to obtain a cash down payment without going into debt. Did you know that most loan programs allow down payment assistance from gifts or grants? Sellers, family members and even some government down payment assistant programs are all allowable programs for down payment that do not have to be paid back. Check with your lender about these programs to see which is available for your loan type.
You can buy a home even if you have credit problems. Myth: I have to have “perfect” credit score in order to qualify for a loan. This myth is false. Did you know, depending on the lender, you could have a credit score as low as 600 and still qualify for a loan? Don’t have perfect credit. That’s okay. If you have not spoken with a lender to be pre-qualified, how do you know you won’t qualify? Your credit may be better than you expected!
You don’t have to be debt free to finance a home. Sure, most people want to be debt free. News flash-- if you’re financing a home, you will not be debt free. A home purchase is THE most expensive investment you’ll purchase. 80% of all people, including millionaires, finance their home. Why? Savvy investors know that using other people’s money frees up their own money so they can invest in other things that make them more money. Unless you’re the heir to a grand estate or trust, getting ready to retire or have a fixed income which you know will never change, you’re most likely going to need a loan to purchase a home. Having a child so you can’t afford to purchase a home right now? I hear this a lot. Guess what, once the baby comes, you’re going to be spending over a million dollars to raise that child and even more if you’re planning on paying for the cost of a college degree. One great reason to purchase a home now is that a home is an investment. If you don’t take equity out, continue to pay the mortgage, you’re going to have a nice nest egg over a 20 year period and all you had to do to get it was NOTpay rent!
You can, and should, get pre-approved for a home loan before shopping for a home. 90% of all home buyers start looking before know how much they can afford. If you’ve used an online calculator to see how much you can “afford”, check to see if the calculator added in taxes and insurance premiums. Most do not. If it did ask for you to enter an amount, how much did you allot for these expenses? Have you called an insurance company to find out how much home insurance will cost for the type of home you’re going to purchase? Call and find out as rates will vary depending on coverage and insurance company. Property taxes. This is any one’s guess. There doesn’t seem to be a definitive way to approximate how much your taxes will be. You can’t merely go by the current tax rate as it may be significantly different once the County reassesses your taxes. Find an average tax amount for the neighborhood you’re thinking of purchasing in as this may give you a better idea how much you taxes will actually be.
Becoming a homeowner doesn’t have to be a circus trick, jumping through hoops, and hoping someone will say Alacazam in hopes to obtain a mortgage. Finding the right team to hire is key. Find a lender whom you’re going to like and work with them to obtain pre-qualification. Once you know how much you’re qualified for, start looking at areas you’d like to live in and see if it’s an area you can afford. You may end up needing to find a neighboring community to fit your budget. Next, interview and find a Buyer’s Agent you’d like to work with and hire them to assist you in finding the right home. You’ll be spending at least 30-45 days with them, working closely through certain aspects of the transaction: finding your home and from contract to close.
Author:Jason Soto Phone: 512-667-4357 Dated: March 30th 2016 Views: 1,803 About Jason: ...
Shapley Realty is a full service real estate company dedicated to doing business differently and setting a new standard for service in the real estate industry. The company was founded by Ray Shapley, a top-producing agent who wanted to bring a consistent, customer-centric level of service to an industry of "hit or miss" service. Shapley Realty is focused on proactive, results based service for our clients.
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We are building a business in which high standards permeate all aspects of our company. Our motto — High Standards, Results, Great Service, Happy Clients — emphasizes that our vision reaches far beyond any single transaction.
Our ability to instill a clear sense of client–centric service among our team and service is contingent upon our efforts to communicate more often and more openly. Better communication equals better understanding and more trust.
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Our clients are the most important piece in our business. Therefore, we go to extraordinary lengths to deliver results, because results are why our clients hired us in the first place.
• Clients are the lifeblood of our business and we are interdependent on each other.
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We continually experiment and innovate in order to raise our service standards.
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There was a time not long ago when the feasibility of owning a home i
"To anyone considering buying or selling a home in the Austin area,
We cannot say enough to convey our appreciation for the Shapley Realty team.
Our needs were very specific and the search was not easy because of how fast things were selling. But the Shapley Realty team made the search painless and offered their opinion on each of the houses we looked at, in some ways almost telling us why we shouldn't buy it as opposed to everything being so wonderful - as we have experienced with other teams in the past. They were also incredibly fast, always ready at a moments notice to show something and answered questions via email instantly as well as picked up the phone when we called.
We knew it was not going to be necessarily easy, because we also had a house that wasn't ready to be listed as it was in need of renovations. But this was nothing scary or unfamiliar to this team. Not only did they help us secure a home that suited our needs perfectly, but they actually negotiated aggressively for the best deal imaginable. What was also really great is how they coached us through the whole process of listing a house in need of updates and repairs with proper estimates for what was needed and coached us on which offers were good and the ones to walk away from.
Everything they could have done to make the process less painful they did, going way above and beyond, even answering questions after the sale was done and it was apparent they aren't just some people in it for a quick profit, but are establishing themselves as a team of experts building lasting relationships. Through it all the Shapley team stood by us and made sure every dollar was accounted for and that we were getting what we paid for and maximized what we got for our old place.
Looking back at the different houses we have purchased over the past 15 years and the other teams we worked with, we can honestly say that the contrast is sharply delineated. I really feel there are few teams in Austin that could have made this as painless, even if they could have pulled it off.
We got the house we needed for tens of thousands under our set budget, and sold our home for much more than we anticipated and would never consider attempting to do this again without them. Not for a moment.
Do NOT hesitate to let a real professional, knowledgeable, hardworking team like Shapley Realty help you."