Most people receive all sorts of advice from friends and family when they decide to purchase a home. The amount of information available on the web is astounding!
I've been selling real estate for many years now. I field questions from buyers and observe common mistakes quite frequently. Typically I try to educate my clients on the things they should be concerned with, particularly when it comes to buying a property they may regret.
Here are 10 things to consider when buying a home:
Please note, this simple list is not complete! A real estate purchase brings with it many individual needs. If you want to discuss your goals and how to properly align them, call/text/email me! I look forward to hearing from you.
Homeowners thinking of using FHA for financing their next home will be happy to learn the mortgage insurance premium will be decreased by .25% starting on January 27, 2017.
The Federal Housing Administration (FHA) said this reduction will allow more "responsible borrowers" to purchase a home. On average the savings will be $500/annually for borrowers.
FHA Mortgage payments consist of interest, principal and MIP. Mortgage Insurance Premiums are used to insure the lender against the borrower's default. FHA allows borrowers to finance a home with as little as 3.5% down payments. Since the borrower doesn't have a lot of "skin in the game" the lender off-balances that with mortgage insurance.
While lowering the MIP payment is a good thing, interest rates are rising so the effect might not stimulate many new buyers as the savings will be a wash.
As with any financing, the best advice I can give is to work with a good lender, one who is consultative and will provide you with options to fit your situation.
It is not news that the Denver real estate market is on fire! Everyday I speak with potential buyers who are wanting to become homeowners. Sadly they are finding that each month they can afford less and less of a home, because prices are going up at a steady pace.
Some homebuyers are giving up, but others recognize the importance of hanging in there. This infographic tells the story of why! Waiting to purchase means becoming a homeowner will cost you more.
If you are a homebuyer wanting to find your home, please call me. Me and my team will assist you until we get the job done!
First time home buyers may often feel they are alone in the Denver real estate market. But the reality is they aren’t!
“In May, first-time buyers accounted for 59.1% of primary owner-occupied home purchase mortgages with a government guarantee, according to the International Center on Housing Risk. This share was up measurably from a year ago.”
Buying a home has become easier for those first time buyers. Lower down payments, down payment assistance programs, 100% gifting allowed from parents, historically low interest rates and lots of employment opportunities in Metro Denver are all reasons making it easier for first time buyers to buy a home.
The biggest challenge is finding the home! The inventory of homes for sale is not very large, but it is consistent. The biggest change here than from in the past, home buyers must be patient and diligent. It takes time to find a home, bid on it and have your offer accepted. I’ve written about how to do this previously in “How to write a Clean Offer.”
So if you are a first time buyer don’t give up. Research the best methods for obtaining your home and give me a call. I’m happy to assist you!