http://coldwellbankersteamboat.com/blog/categoryname_1st-time-buyer/sort_entrydatetime-desc/ Don't Let Home Buying Myths Scare you from Buying that Dream Home!  Here are the Facts!Some Highlights:Many potential homebuyers believe that they need a 20% down payment and a 780 FICO® score to qualify to buy a home which stops many of them from even trying! Here are some facts:72% of buyers who purchased homes this year have put down less than 20%.76.4% of loan applications were approved last month.The average credit score of approved loans was 727 in September. http://coldwellbankersteamboat.com/blog/6468/buying-a-home-can-be-scary/ Fri, 26 Oct 2018 03:10:37 -0700 5 Tips for Starting A Successful Home SearchIn today’s real estate market, with low inventory dominating the conversation in many areas of the country, it can often be frustrating to be a first-time home buyer if you aren’t prepared.In a recent realtor.com article entitled, “How to Find Your Dream Home—Without Losing Your Mind,” the author highlights some steps that first-time home buyers can take to help carry their excitement of buying a home throughout the whole process.1. Get Pre-Approved for a Mortgage Before You Start Your SearchOne way to show you are serious about buying your dream home is to get pre-qualified or pre-approved for a mortgage before starting your search. Even if you are in a market that is not as competitive, understanding your budget will give you the confidence of knowing whether or not your dream home is within your reach.This step will also help you narrow your search based on your budget and won’t leave you disappointed if the home you tour, and love, ends up being outside your budget!2. Know the Difference Between Your ‘Must-Haves’ and ‘Would-Like-To-Haves’Do you really need that farmhouse sink in the kitchen to be happy with your home choice? Would a two-car garage be a convenience or a necessity? Could the ‘man cave’ of your dreams be a future renovation project instead of a make-or-break right now?Before you start your search, list all the features of a home you would like and then qualify them as ‘must-haves’, ‘should-haves’, or ‘absolute-wish list’ items. This will help keep you focused on what’s most important.3. Research and Choose a Neighborhood You Want to Live InEvery neighborhood has its own charm. Before you commit to a home based solely on the house itself, the article suggests test-driving the area. Make sure that the area meets your needs for “amenities, commute, school district, etc. and then spend a weekend exploring before you commit.”4. Pick a House Style You Love and Stick to ItEvaluate your family’s needs and settle on a style of home that would best serve those needs. Just because you’ve narrowed your search to a zip code, doesn’t mean that you need to tour every listing in that zip code.An example from the article says, “if you have several younger kids and don’t want your bedroom on a different level, steer clear of Cape Cod–style homes, which typically feature two or more bedrooms on the upper level and the master on the main.”5. Document Your Home VisitsOnce you start touring homes, the features of each individual home will start to blur together. The article suggests keeping your camera handy and documenting what you love and don’t love about each property you visit. They even go as far as to suggest snapping a photo of the ‘for sale’ sign on the way into the property to help keep the listings divided in your photo gallery.Making notes on the listing sheet as you tour the property will also help you remember what the photos mean, or what you were feeling while touring the home.Bottom LineIn a high-paced, competitive environment, any advantage you can give yourself will help you on your path to buying your dream home. http://coldwellbankersteamboat.com/blog/6426/ready-to-buy-a-home??/ Thu, 18 Oct 2018 09:15:49 -0700 THE COST OF NOT PAYING PMI (Personal Mortgage Insurance)Saving for a down payment is often the biggest hurdle for a first-time homebuyer as median incomes, rents, and home prices all vary depending on where you live.There is a common misconception among homebuyers that a 20% down payment is required, and it is this limiting belief that often adds months, and sometimes even years, to the home-buying process.So, if you can purchase a home with less than a 20% down payment… why aren’t more people doing just that?One Possible Answer: Private Mortgage Insurance (PMI)Freddie Mac defines PMI as:“An insurance policy that protects the lender if you are unable to pay your mortgage. It’s a monthly fee, rolled into your mortgage payment, that is required for all conforming, conventional loans that have down payments less than 20%.Once you’ve built equity of 20% in your home, you can cancel your PMI and remove that expense from your mortgage payment.”As the borrower, you pay the monthly premiums for the insurance policy, and the lender is the beneficiary. The monthly cost of your PMI depends on the home’s value, the amount of your down payment, and your credit score.Below is a table showing the difference in monthly mortgage payment for a $250,000 home with a 3% down payment and PMI vs. a 20% down payment without PMI:The Cost of NOT Paying PMI | Keeping Current MattersThe first thing you see when looking at the table above is no doubt the added $320 a month that you would be spending on your monthly mortgage cost. The second thing that should stand out is that a 20% down payment is $50,000!If you are buying your first home, $50,000 is a large sum of money that takes discipline and sacrifice to save. Many first-time buyers save for 5-10 years before buying their homes.To save $50,000 in 10 years, you would need to save about $420 a month. On the other hand, if you save that same $420 a month, you could afford a 3% down payment in less than a year and a half.In a recent article by My Mortgage Insider, they explain what could happen in the market while you are waiting to save for a higher down payment:“The time it takes to save a (larger) down payment could mean higher home prices and tougher qualifying down the road. For many buyers, it could prove much cheaper and quicker to opt for the 3% down mortgage immediately.”The article went on to say,“Since renters typically devote a higher percentage of their income to housing than homeowners, providing flexible down payment options can help renters with solid earnings purchase a home – and gain a fixed-rate mortgage with principal and interest payments that will not increase over the life of the loan.”If the prospect of having to pay PMI is holding you back from buying a home today, Freddie Mac has this advice,“It’s no doubt an added cost, but it’s enabling you to buy now and begin building equity versus waiting 5 to 10 years to build enough savings for a 20% down payment.”Based on results of the most recent Home Price Expectation Survey, a homeowner who purchased a $250,000 home in January would gain $50,000 in equity over the next five years based on home price appreciation alone (shown below).The Cost of NOT Paying PMI | Keeping Current MattersBottom LineIf you have questions about whether you should buy now or wait until you’ve saved a larger down payment, meet with a Coldwell Banker Distinctive Properties professional in your area who can explain your market’s conditions and help you make the best decision for you and your family. http://coldwellbankersteamboat.com/blog/6421/buying-a-home:-do-i-really-need-20%-for-a-down-payment?/ Tue, 16 Oct 2018 10:54:00 -0700 Some Highlights:The cost of waiting to buy is defined as the additional funds it would take to buy a home if prices & interest rates were to increase over a period of time.Freddie Mac predicts interest rates to rise to 5.2% by the third quarter of 2019.CoreLogic predicts home prices to appreciate by 5.1% over the next 12 months.If you are ready and willing to buy your dream home, find out if you are able to! http://coldwellbankersteamboat.com/blog/6354/should-you-buy-now-or-wait?/ Mon, 01 Oct 2018 02:38:31 -0700 http://coldwellbankersteamboat.com/blog/6324/don't-think-you-need-help-buying-or-selling-your-home?/ Mon, 24 Sep 2018 10:59:17 -0700