by andrew | Oct 24, 2017 | Dallas, Real Estate
A report released by Down Payment Resource shows that 61% of first-time homebuyers purchased their homes with a down payment of 6% or less.
The trend continued among all buyers with a mortgage, as 73% made a down payment of less than 20%.
An article by Chase points to a new wave of millennial homebuyers:
“We teamed up with Google to help us better understand what customers are searching for and how the home buying landscape is evolving. We found that millennials and first-time homebuyers are making a big splash in the market, and affordability remains top of mind.”
Among millennials who purchased homes, David Norris, Loan Depot’s Head of Retail Lending, said:
“It’s clear from the survey results that Millennials have a lot of anxiety built up about the home buying process.
There is good news, however, as there’s more flexibility than most Millennials think regarding how to qualify for a loan and what’s needed for a down payment.”
Bottom Line
If you are one of the many millennials who is debating a home purchase this year, let’s get together to help you understand your options and set you on the path to buying your home. I can also recommend a local lender to help with your Mortgage Loan pre-approval. Call me at 972-800-7369.
by andrew | Oct 2, 2017 | Austin, Real Estate
Summer has come to an end and you probably are thinking you’ve lost the opportunity to sell, and need to wait till next summer. But that’s far from the truth!
Although it’s not as hectic and crazy with the swarm of buyers on the market, the fall season brings out the most serious of lookers. They are the pool of buyers that waited out the summer frenzy to find their perfect home in the fall, and you don’t want to miss these buyers! They are ready to make a move, today! And selling in a slower period does not equate to less money. That’s a misconception that home owners have based on untrue data that floats around.
With the right agent, and your home being priced correctly, you can get a great deal selling your home during the fall season. And might actually prefer it.
Here are the top 3 benefits to listing during the fall season:
1. Serious Buyers – Let’s be honest, if buyers are out during the busy season, looking for homes, they are serious and ready to buy. Although the summer brings in a large crowd, that crowd contains a lot of people that are excited by the season, and fall into the “trend” of house hunting. These people end up not really being serious about the process, and tend to hold off for another time. If people are investing time to look during the fall season, they are more likely to be interested in actually buying your home, instead of touring it.
2. Less Competition – Selling in the fall isn’t something many families can accomplish due to personal schedules. That’s why a significant amount of homes get listed during the summer season. Which means that summer time brings in a lot of competition. Selling in the fall means the potential house next door that has slightly more perks that may have been listed during the summer, doesn’t make your home sit stagnant, since everyone wanted your neighbor’s house. It also doesn’t devalue your home because of the house that could go up next door that could be under-priced in your neighborhood, and draw all of the attention.
With a slower season, you get dedicated attention to your property, which increases the chance of a sale.
3. Easier to Find Your Dream Home – Not only do you get to benefit from a slower season during the selling process, but you can also benefit on the buying side. With less competition on your dream house, you can get a better deal. The summer brings a lot of missed opportunities for buyers on their dream homes, because they go off the market instantly. This will give you the opportunity to get your home on the market and take your time to find the right one to resize into. A much calmer pace to the transaction will make it less stressful, and everyone all around happier. Don’t feel rushed into buying a home overnight during the summer, it could turn into a headache. If you want a far more peaceful transaction, that has calmer pace, then selling during the fall is perfect for you.
Source URL: http://www.jparaustin.com/blog/Fall+Leaves+Bring+Sold+Signs
by andrew | Sep 26, 2017 | Austin, Real Estate
The real estate market is constantly changing, so of course DO YOUR RESEARCH! DO NOT jump the gun on this one! Unbiased advice from family and peers may be kind, but you are the only one who knows what your needs are when it comes to buying a home.
WHAT MADE YOU CONSIDER OWNING A HOME?
Forget finances for a minute and focus on what made you consider even buying a home in the first place!
· Is your family expanding?
· Does your family feel safe?
· Is there a STELLAR school system in the area so your children can get the education they deserve?
· How about that unbearable landlord?
WHICH WAY IS THE REAL ESTATE MARKET GOING?
DON’T SLEEP ON YOUR DECISION TOO LONG! Home prices are on the rise! Not only are they on their way back up, but these increases are happening monthly.
Don’t believe us? According to Existing Homes Sales Report from the National Association of Realtors (NAR), the average price of homes in May 2017 went up 5.8% from last year.
If you wait until next year to buy, you might be scrapping for change in the cushions to say the least! Not only will it cost you more to buy, but you will also need to increase your down payment to account for the higher price of the home.
WHAT IS THE MORTGAGE FORECAST?
The initial process of purchasing your home may seem easy and quick, but THERE IS MORE TOO IT! The ‘long term cost’ of buying a home WILL haunt you if you buy at the wrong time! Mortgage Bankers Association (MBA), and NAR have projected that mortgage interest rates will DEFINITLEY increase over the next twelve months. The smallest increase in mortgage rates can have a huge impact on a home owner.
FINAL THOUGHTS
If you and your family feel it is the right time to buy a home then GO FOR IT! Consider these points when making the final decision.
Don’t forget, this move is FOR YOU!
Source URL: http://www.jparaustin.com/blog/3+Questions+To+Ask+Before+Buying+Your+1st+Home
by andrew | Sep 14, 2017 | Austin, Real Estate
We have talked a lot about the shortage of homes on the market. The other issue that a shortage of houses raises is that buyers may have to “settle” for a nice house, and may not be able to get the “house of their dreams.” The first step in the process is always to find out from a mortgage lender how much you can qualify. Next, of that amount, figure out how much you truly feel comfortable with paying. Just because you can qualify for a million dollar home, does not mean that you have to buy a home at that price. The payments, taxes, and insurance are with you for a long time, and you should definitely feel that you are paying a “comfortable amount.” When I first moved to the area, I was told I could afford a home twice as pricey as what I bought. But I only needed a one story, nice home for my wife and I, so why should I pay for more??
Next, and this is the point of this blog, you need to figure out what is most important to you. Is it the size of the yard? The size of the house? The school district? Parks? Walking trails? Neighborhood amenities? So sit down, take a pad and a pen, and write down all of the tings that you really want in a house. Then, put them into rank order of preference. What are the most important things to you. You should have at least five items that make the list. Then, we can start the hunt. Let’s look at it realistically. Most people want at least a three bedroom two bath. So that is almost a given. But what is more important, is do you want your space in the living areas or do you want bigger bedrooms? Do you want a big living room? Do you need or want a separate dining room? Some people think that dining rooms are a waste of footage, so are you one of those people? Or do you want to have a separate room for big family gatherings, or parties with friends? Do you spend most of your time watching television or outside? Do you want a nice big covered patio with lots of shade? Do you want a community pool to cool off in on hot summer days? Once you have that list, then we can look at the absolutes. One or two things that you just have to have. A big master bedroom is important to some people. A fireplace is important to others. A big kitchen with all the best appliances is important to still more. That one or two item list will help you to make your selection even easier, because you can quickly eliminate houses that just don’t have that. Then, you can move down the list for the other four or five other things that are nice to have. I would love to have a three car garage, but seeing as they are not that common in the price range I was willing to pay, I knocked that criteria off my list pretty fast. But I knew I wanted a nice sized master bedroom, so that was a key factor in my search.
I can help you with your list, because I can tell you about common features of homes that you may not think of: some people love vaulted ceilings, but do you know they are harder to heat? If you want a pool, but don’t want to pay for the maintenance, maybe a community with a pool is a good alternative. I can be there as your consultant to help you sort through the needs and the wants, and see if there are ways to get what you want, without having to pay too much for it.
I have attached a short article about Needs vs Wants in a home. I hope you find it helpful: https://goo.gl/MseF8u
Source URL: http://www.jparaustin.com/blog/Is+The+Dream+House+A+Thing+Of+The+Past
by andrew | Sep 11, 2017 | Austin, Real Estate
The median home price in Austin according to the Austin Board of Realtors is just over $308,000, based on a 20% down payment. In order to afford a home in that price range, a buyer needs an income of roughly $70,000. We are ranked number 25 most expensive of the 50 most populous cities in America. While it is possible to find an occasional bargain under $300,000 in the Austin proper area, they are highly sought after, often bought by investors for cash, and almost always part of a multiple offer scenario. So for the home buyer that wants to buy under $300,000, I recommend being very patient, and working with a Realtor that can get you listings before they come on the market.
If you put less money down, the payment goes up by about $10 for every $1,000 you put down. The debt ratios vary by the type of loan that you are getting. I work with competitive loan officers who can loan money based on higher debt ratios because they are working with mortgage investors, rather than a bank; banks have to answer to shareholders and therefore they have higher standards for debt ratios. Banks have to be more cautious because they do not want to have to explain to the shareholder why their foreclosure rates are so high. Mortgage lenders, such as the lenders that I work with, get loans from competitive sources and are more willing to take higher risks. I always suggest that before you start looking for a home, you speak with a lender and get your financing approved. Get a payment you feel comfortable with; don’t forget, you have a life to live, so don’t spend all your money on your house payment. Attached I have an article that talks about the income needed for a home purchase. There are some great links in the article as well. http://bit.ly/2xghPTK
Source URL: http://www.jparaustin.com/blog/How+Much+Do+I+Need+To+Make+To+Buy+A+House+In+Austin
