Columbus and Marion OH Real Estate BlogRecently posted or modified blog posts in the category - Buying A Homehttps://www.realtyohio.com/blog/Copyright RealtyOhio.com2022-03-14T07:11:19-07:00tag:realtyohio.com,2012-09-20:8586What First-Time Buyer Help is Available?If you are a first-time home buyer you may be finding it difficult to purchase a home right now. If you are, you are not alone. This could be due to the fact that home prices have increased greatly and interest rates are expected to rise. It could be due to the very difficult competition of buyers who have larger sums of cash from the sale of a previous home, or that they are investors.
But there is a way to get into a home right now as a first-time buyer. Of course, you want an expert agent working on your behalf, but beyond that, there are several programs out there designed to help first-time buyers get into homes.
What First-Time Buyer Programs are Available Right Now?<img src="https://assets.site-static.com/userfiles/683/image/What_First-Time_Home_Buyer_Help_is_Available.jpg" width="400" height="600" alt="What First-Time Home Buyer Help is Available" title="What First-Time Home Buyer Help is Available" style="float: right; margin: 11px;" />
Down payment assistance programs or DPAs
It is important to have a sizable down payment for the mortgage of your first home. What can be difficult is finding the means to come up with this large sum of money. As a first-time buyer, you do not have a large amount of equity that turns into profit from selling a home and turns around to be cash that you can use for a down payment.
Most often 20% down is considered a responsible and healthy down payment. This allows you to not have to carry private mortgage insurance as well which can be a couple extra hundred dollars a month in payments. But the average down payment is 7% down and this can even be a stretch to come by.
A down payment assistance program helps a home buyer to cover the cost of a sizable down payment either through a loan or a grant. Some of these can even be used to help cover a portion of closing costs. Most often these programs are available on a local level, especially in certain target areas the government is hoping to get first-time buyers in homes.
DPA grants
Grant programs for down payment assistance help a borrower to cover some or all of the down payment cost on a home purchase. A grant is great in the fact that you do not have to repay it like a loan. There are many states that offer these programs but the eligibility requirements can differ greatly by location and specific grant. You can look for grants by asking the State Housing Authority.
A DPA loan
Some special loans will offer a down payment assistance program to first-time buyers. And often this will come in the form of a second mortgage. A lot of these loans are interest-free or have a very low amount of interest. Sometimes these loans are forgivable if the borrower lives in the home for a certain number of years. What you need to be aware of is that you are responsible for paying back the money if you move or refinance the property.
The good neighbor next-door program
This program is focused on helping public service workers such as school teachers, law enforcement officers, firefighters, first responders, etc. This is a program sponsored by the US Department of Housing and Urban Development. People in qualifying professions are able to receive a 50% discount on the list price of properties that are HUD-owned. These properties will be in designated revitalization areas so it can be a very small number of homes available to finance through this means.
This program expects the participant to sign a second mortgage for the discounted portion of the home price. This second mortgage will not need to have payments or interest as long as you inhabit the home for a minimum of three years.
Home Path Ready Buyer offered by Fannie Mae
This is a government-sponsored housing enterprise that is offering a program to help first-time buyers purchase foreclosed homes. This program allows the buyer to put a very small amount down and a very small amount of closing costs both at 3%. Those able to utilize this program will be expected to complete a buyer education course.
You will also be limited to specific Home Path properties. These properties of course are foreclosed on properties that the Fannie Mae enterprise owns and as such could be in a state of disrepair.
Freddie Mac Home One Loan
Freddie Mac is sort of a partner to Fannie Mae in that it is a government-sponsored housing enterprise. There are only two. <a href="https://sf.freddiemac.com/working-with-us/origination-underwriting/mortgage-products/home-one" target="_blank">The Home One Mortgage Program</a> gives <a href="https://www.realtyohio.com/buyers/">first-time buyers</a> the ability to put only 3% down on the purchase of a home. Buyers will need to take a homeownership education class and carry private mortgage insurance if less than 5% is put down on a home purchase.
There’s no income limit and no credit score minimum for this program but you need to have some sort of credit score to be able to apply. One of the nice things about this program is that it is available in almost every location across the country but does come with a limit of $647,200 for the year 2022. This means that in high-cost areas it may not be a great option.
Related: <a href="https://mylenderjackie.com/stated-income-loans/home-loan-without-tax-returns/" target="_blank">How to get a home loan without tax returns</a>
Each program is going to have its own set of requirements and availability depending upon the local area in which you hope to purchase a home. One of the best ways to find out what first-time buyer programs are readily available in your area is to talk with a trusted real estate agent or ask if they can help direct you to a <a href="https://www.realtyohio.com/buyers/mortgage-pre-approval/">mortgage professional</a>.
For more information on purchasing a <a href="https://www.realtyohio.com">home in central Ohio</a> please contact us anytime.2022-03-14T04:04:00-07:002022-03-14T07:11:19-07:00Drew Laughlintag:realtyohio.com,2012-09-20:8520Buying a Home with Future Plans for a Family<img src="https://assets.site-static.com/userfiles/683/image/Buying_a_Home_with_Future_Plans_for_a_Family.jpg" width="1000" height="563" alt="Buying a Home with Future Plans for a Family" title="Buying a Home with Future Plans for a Family" style="margin: 11px;" />
It is a great idea that before you start home shopping you sit down and list out what you would like to have, what you need to have, and what you dream of having in this home with every person that will be living there. But beyond that, it should be taken into consideration how long you plan to be in the home and what life changes you hope will happen during that time.
No life plan is ever completely 100% perfectly laid out and comes to fruition, but if you plan to start your family in this home, there are many things that you will want to consider in your <a href="https://www.realtyohio.com/buyers/">next home purchase</a>.
Here are some great features that you may want to look for in a home while raising a young family that goes beyond a good school district
Stairways with the ability to put up gates
Once your little one begins to crawl or even scoot and then eventually walk you will want to make sure you eliminate any falling hazards. One of the largest falling hazards is the stairs. If the home you are looking at has a stairwell you want to make sure that you can easily place a gate at both the bottom and the top end of the stairs to keep your children safe.
An entry area with plenty of space or an already put together mudroom
You’ll find that as your kids get older there will be plenty of activities and a lot of leaving and entering your home. Sometimes in a very flustered hurry. Having an entry with the ability to put in the organization to catch all of the things including shoes and coats upon entering is very handy and helpful. Even better is an already put-together mudroom with plenty of cubbies and nooks for all the things.
Plenty of bathrooms and at least one with a tub
For the first few years, you may find a tub very useful. There are ways that you can make a shower sufficient for bathing any child, but it is a little bit easier with a tub. In addition, you will want more than one bathroom so that you can keep the adult bathroom as a relaxing spa-like oasis at the end of a tiring day. One where you don’t have to wade through a bunch of toys to enjoy some warm water relaxation. While this isn’t necessarily a home purchase deal-breaker, it is really nice to have. And if you plan on having more than one child you may even want to look for a bathroom with double sinks in the vanity.
Walkable kid-friendly neighborhood
When you have littles inside the house life can be much more energetic and sometimes feel like you need to get outside the walls to expend some energy. It is great to have some space to safely take a stroll and get out those pent-up stresses. Or to maybe even have some kid-friendly amenities within walking distance like a small neighborhood park or some community amenities to utilize and get to know other neighbors with children.
A significant sized yard with plenty of site line from inside the home
Sometimes you may just need to send your overexuberant child outside for a little bit. As they get older, they will be able to play out in the yard all on their own but you want to make sure, that with plenty of space to play outside, there are easy sightlines to keep an eye on them from within the home.
A decent amount of indoor play space
Even the most tropical of climates (which we do not live in) has a rainy day or two or some weather where we need to just stay inside. Make sure that there is plenty of place space to get out some toys inside. And that there will be ample space as they grow for entertainment on days when the weather is less than ideal.
For more information on purchasing your next perfect <a href="https://www.realtyohio.com">home in central Ohio</a>, please contact us anytime.
More Advice for Buyers
<a href="https://www.realtyohio.com/blog/tips-for-purchasing-townhomes-in-2022/" target="_blank">Tips for Purchasing Townhomes in 2022</a>
<a href="https://www.realtyohio.com/blog/dropping-private-mortgage-insurance/">Dropping Private Mortgage Insurance</a>
<a href="https://www.realtyohio.com/blog/what-young-professionals-want-in-a-house/">What Young Professionals Want in a House</a>
<a href="https://www.realtyohio.com/blog/know-before-offer-home/">5 Things Buyers Should Know When Making an Offer on a Home</a>
2022-03-07T06:29:00-07:002022-03-07T09:41:20-07:00Drew Laughlintag:realtyohio.com,2012-09-20:8467Tips for Purchasing Townhomes in 2022<img src="https://assets.site-static.com/userfiles/683/image/Tips_for_Purchasing_Townhomes_in_2022.jpg" width="1200" height="628" alt="Tips for Purchasing Townhomes in 2022" title="Tips for Purchasing Townhomes in 2022" style="margin: 11px;" />
Second to the purchase of a single-family detached home, is the popularity of a townhouse. The National Association of Realtors finds that townhomes are second in demand amongst buyers across the country and are very popular with homebuyers under the age of 30.
Purchasing a townhome can be similar to the purchase of a traditional single-family home, but it can also be different. There are some differences between the property types that you will want to be knowledgeable of when shopping for a townhome.
Here are some good things to know when you are shopping for a townhouse
The definition of a townhouse
There are several types of properties that can be mistaken for a townhouse but when it comes down to it the definition of an actual townhouse is a residence attached by a communal wall to another residence or two that also comes with ownership of a small piece of land.
The US census bureau's definition of a townhouse is that it must have no units above or below it and be separated by ground to roof wall from the other townhome units and maintain a separate heating system from neighbors in the same overall structure as well as have individual meters for public utilities.
How is a townhouse different from a condo?
Some condos can be very similar in shape and size to townhomes and as such can be confused as a townhome. Though both types of property share walls with neighbors they are different than what is actually owned as your property when you purchase.
With a condo, your soul property lies within the interior of the walls. With a townhome, ownership lies inside the walls as well as including exterior land that the townhome is on. This can extend to owning a bit of yard in some townhouses. In condo communities, it is given that you will pay dues to an association for the upkeep of common areas whereas with a townhome it depends on the specific community and if it has community areas.
Tips for Purchasing a Condo in 2022
Even though you are not purchasing a single-family home, it is always best to work with an expert real estate agent. They can help walk you through the details of townhome properties and help you find the best townhome community that best aligns with your hopes for a home purchase. Not all townhome communities are the same, they will have different floorplans as well as different amenities/locations/atmospheres.
You should be prepared to enter into a bidding war as townhome properties are in high demand right now, especially among young professionals. It is best to be prepared with a game plan before getting into a multiple bid situation. Make sure that you know your absolute max budget and how much cash you can and are willing to put down on the home. You also want that expert agent to help you navigate making a strong offer, but not one that is way too high or too far above fair market value.
When you find a townhome you love, make sure to look into all of the details of the homeowner association if there is one. You want to make sure you know what you are getting into as far as regulations and expected code of conduct for the community. If there are too many rules or the HOA dues are very expensive, you may want to find a different community.
For more information on buying a <a href="https://www.realtyohio.com">townhome in Central Ohio</a>, including <a href="https://www.realtyohio.com/columbus-real-estate/">Columbus area real estate</a>, please contact us at any time.
Browse All Townhouses for Sale in the Columbus Area2022-02-28T07:50:00-07:002022-02-28T11:03:35-07:00Drew Laughlintag:realtyohio.com,2012-09-20:8356Dropping Private Mortgage InsuranceIf you plan to purchase a house with less than a 20% down payment for a mortgage your mortgage lender will most likely tack on the extra cost of requiring you to carry private mortgage insurance as a standard precaution.
As your home grows in value it could be possible to drop this required private mortgage insurance. But when does private mortgage insurance go away? Exactly when can you drop it?<img src="https://assets.site-static.com/userfiles/683/image/Dropping_Private_Mortgage_Insurance_2.jpg" width="420" height="630" alt="Dropping Private Mortgage Insurance" title="Dropping Private Mortgage Insurance" style="float: right; margin: 11px;" />
Whether the mortgage qualifies for this insurance removal will depend upon factors like how much is still owed on your current mortgage balance and how dependable your payment history has been.
Home equity is rising at a very rapid pace. In the third quarter of 2021 reports from CoreLogic show that homeowners with mortgages averaged an equity increase of about 30% year over year which is an average of $51,500 per mortgage holder.
Due to this significant increase, it could be a good time to look into the possibility of canceling private mortgage insurance on your home loan. The higher amount of equity within your home can lower any perceived risk from the lender and in many cases, it could lead you to be able to drop this extra cost much more quickly.
In some cases, private mortgage insurance can add tens of thousands of dollars over the entire life of a loan so it is important to try and take steps to drop private mortgage insurance as soon as you possibly can.
A Quick Overview of Private Mortgage Insurance
<a href="https://www.maxrealestateexposure.com/how-to-get-rid-of-private-mortgage-insurance/" target="_blank">Private mortgage insurance or PMI</a> is a type of insurance that helps protect the lender if a borrower stops making the monthly loan payments. This type of insurance is most often required when a borrower seeks approval for a conventional mortgage and makes a down payment below the standard 20%.
If you are unable to make these required mortgage payments for any reason at all and the property gets to a point of going into foreclosure the private mortgage insurance helps to cover the lender against the losses.
A majority of homeowners who are required to have private mortgage insurance have borrower-paid private mortgage insurance where they pay an additional monthly fee on top of their monthly mortgage payment.
Recent data from the National Association of Realtors has shown that the average down payment for brand new mortgages in 2020 was 13%. The average first-time homebuyer made a down payment of around 7% while those who were purchasing another home put down an average of 17%.
It is not uncommon to pay private mortgage insurance as there are a large number of American homebuyers who are doing so. In many cases, homebuyers have found that paying the extra charge is worth the ability to own a home and begin building equity.
Related: <a href="https://springshomes.com/blog/the-difference-between-mortgage-insurance-and-homeowners-insurance/" target="_blank">The Difference Between Homeowner's Insurance and Mortgage Insurance</a>
Factors That Let a Homeowner Drop Their Private Morgage Insurance
Mortgage holders automatically qualify for <a href="https://www.exploremdhomes.com/blog/what-is-mortgage-insurance-is-it-really-that-bad/" target="_blank">private mortgage insurance</a> cancellation once the property reaches a 78% loan to value ratio. This is a rule outlined by the homeowner’s protection act or the PMI cancellation act of 1998. This rule is also sometimes referred to as HOPA and it states that homeowners have the right to have any private mortgage insurance removed automatically on the date that the principal balance is scheduled to reach the 78% of the original value of the home they paid when they purchased it.
So, if you bought a home for $300,000 you automatically qualify for PMI cancellation when the balance is at $234,000.
For this auto cancellation to occur a homeowner needs to be current on all of their payments. One thing auto removal does not take into account however is property upgrades and market appreciation. It is only based on the original purchase price of the home.
You have an official appraisal conducted to show how much your home has gained value
You can request <a href="https://www.madisonmortgageguys.com/minimalist-guide-to-pmi/" target="_blank">private mortgage insurance</a> canceled when you reach at least 20% equity in your home. You may reach this by making extra payments to the mortgage balance but you can also get to this required benchmark faster in a hot market where home values are increasing rapidly or by investing in home improvements.
If you are <a href="https://www.realtyohio.com/buyers/">purchasing a home</a> or plan to purchase a home soon and will be required to carry private mortgage insurance there are a few ways in which you can strategize to drop this extra required payment more quickly than stated in the mortgage payment paperwork.
If you reach an 80% loan to value ratio you can request a removal
The HOPA rule also states that homeowners can have mortgage insurance removed upon their request when the principal balance of the mortgage drops to 80% of the original value of the loan. So, using the $300,000 example, this would mean that the borrower can request the insurance be removed from their monthly payment when they hit a balance of $240,000.
You can reach this 80% more quickly by making larger payments to the mortgage than the monthly required amount. You can also set a notification for the date you would be scheduled to reach this 80% to remind you to contact your mortgage servicer.
For more information on purchasing a <a href="https://www.realtyohio.com/columbus-real-estate/">home in Columbus</a>, and other <a href="https://www.realtyohio.com">Central Ohio real estate</a>, please contact us anytime.2022-02-15T06:56:00-07:002022-02-15T10:03:18-07:00Drew Laughlintag:realtyohio.com,2012-09-20:7593What Young Professionals Want in a HouseBorn between 1980 and 2000, millennials are thought to be a group driven by the technology revolution and fed by avocado toast. Certain characteristics and manners have influenced society’s overall viewpoint of this generation, such as the increase in single-parent families, the higher likelihood of college enrollment — and student loan debt — and many observations on their work ethic.
Because millennials are so dominant to the housing market, it is critical that sellers adapt to the increasing demand. Understanding what is important to Gen Yers will help the process for both parties. Learn more from the accompanying infographic and be prepared with our tips on how to appeal to millennial homebuyers.
<a href="https://www.abl1.net/blog/targeting-millennial-homebuyers/"><img src="https://www.abl1.net/wp-content/uploads/2018/07/Millennial-Cheat-Sheet.png" height="900" style="display: block; margin-left: auto; margin-right: auto;" /></a><a href="https://www.abl1.net/blog/targeting-millennial-homebuyers/">What Millennials Want</a> created by <a target="_blank" href="https://www.abl1.net/">Asset Based Lending</a>.
For more information on <a href="https://www.realtyohio.com/">Central Ohio real estate</a> including <a href="https://www.realtyohio.com/columbus-real-estate/">homes for sale in Columbus</a> and all <a href="https://www.realtyohio.com/central-ohio-new-construction/">North Columbus properties</a>, contact our office today. 2021-11-17T04:42:00-07:002021-11-17T07:45:33-07:00Drew Laughlintag:realtyohio.com,2012-09-20:7184Is Cleveland a Good City to Invest in Real Estate?Are you ready for your first or even second investment property? Are you interested in investing in Ohio? With the current climate of the United States, there are several investment opportunities and Ohio is one of them. Is Cleveland a good city to invest in? Yes! Here is why. The <a href="https://www.realtyohio.com/">Ohio housing market</a> is hot. Ohio is the seventh-most populous state in the country.
Ohio is Booming<img src="https://assets.site-static.com/userfiles/683/image/cleveland_canva.jpg" width="450" height="450" alt="Is Cleveland a Good City to Invest in Real Estate?" title="Is Cleveland a Good City to Invest in Real Estate?" style="float: right; margin: 11px;" />
It is also rated as one of the best states for business with a low cost of living, great schools, and a lot of recreational activities. The housing market has taken off because of population growth, job market growth, and affordable housing. These are some of the top indicators you want to see when you are looking to invest. Over the last ten years, about 11 million people are said to reside in Ohio.
Cleveland was known as a has-been market but that has had some turnaround. It is now known to have several opportunities for residents and investors. This market is having a huge rebound. It is known right now as one of the top U.S. markets for new listings. The median home price in Cleveland is $113K and it's trending at 3.7% year over year. The median price per square foot is $68. The median sale price is $123.5K. Homes are selling at asking prices and sell on an average for 56 days.
When you're looking to invest you want to know the rental forecast as well. Cleveland is mixed between owners and renters. The average rent for a 1 bedroom is around $1,300 and this is a 12% increase from the prior year. The average rent for a studio in Cleveland is around $925. The average rent for a 2 bedroom apartment is around $1,500.
The most expensive neighborhoods in Cleveland are Glenville, Downtown Cleveland, Hough, Ohio City, and University. Cleveland is known for being one of the best long-term real estate investments in the U.S. Home values have appreciated 60% since 2011. The market is currently a seller's market so that can make things a bit difficult when you are an investment buyer, but if you have the funding to back your offers, you could be a great candidate to any seller. There are fewer homes for sale than buyers looking.
The best neighborhoods to consider are Bainbridge, Boston Heights, Bay Village, Solon, South Russel, Greentown, Reminderville, Moreland Hills, and Wadsworth. Property with residents is not the only available investment, there are many agricultural properties for sale with potential for investors.
You can determine that Cleveland, Ohio is definitely a great place to invest. With this information provided, you can be sure that the housing market trajectory is going up and the values of homes are increasing. There is always more to research and unpack according to your specific situation but be assured that this is a hot spot for investors.
Looking to invest? Want more information? Contact our agents below. 2021-10-04T03:35:00-07:002021-10-04T06:40:35-07:00Drew Laughlintag:realtyohio.com,2012-09-20:6701Why Does the Listing Say the Sale is “Contingent?”<img src="https://assets.site-static.com/userfiles/683/image/3_Ways_to_Save_for_a_Down_Payment_4.jpg" width="700" height="400" alt="Why Does the Listing Say the Sale is “Contingent?”" title="Why Does the Listing Say the Sale is “Contingent?”" style="margin: 11px;" />
Browsing <a href="https://www.realtyohio.com/property-search/search-form/">online Real Estate listings</a> and house hunting is easily one of the more stressful experiences that you may face throughout life. While working with the right agent can indeed help eliminate a large majority of the stress associated with both selling or buying a home, it is important to ensure you fully understand listings as well as the contingencies that they may hold prior to placing an offer.
While it may not be overly common, in some cases you may find a house you love, however within the listing it states that the sale of the property is “contingent.” This could be for a handful of different reasons, however, there are two main reasons that a seller may have moved their listing status to contingent from available or put within the description that the property sale as a whole is contingent per the seller’s request.
Many people believe that the only contingencies within the Real Estate world lie with the buyers, and while in most scenarios it is more common to see a contingency within an <a href="https://pcbeach.com/condo-buying-tips/buy-condo-panama-city-beach-dont-live/" target="_blank">offer to purchase</a>, it is just as important to understand the contingencies that may be put in place by the sellers as well.
#1. Contingent on Finding a New Home
In this scenario, a seller may be listing their home in an effort to purchase a new home. Should the seller not be able to find a home that is suitable for their needs they then have the right to pull their listing off of the market and thus, you may not be able to follow through with the purchase as planned.
Related: <a href="https://sararealtorpro.com/buyers-news/my-offer-was-accepted-but-i-changed-my-mind/" target="_blank">Can You Back Out of a Sale?</a>
#2. Contingent on Accepting a Previous Offer
Secondly, if a seller has already accepted an offer you can, in most cases, still place an offer on the home, however, it would be contingent on the previous offer falling through. Should the previous offer on the home move along smoothly, your offer will not be accepted. Whether the home you wish to purchase is contingent or not, discussing the property in-depth with your realtor is key in ensuring that you are placing an offer that has the highest chances of being accepted. In a <a href="https://www.destinpropertyexpert.com/blog/best-deal-home-sellers-market/" target="_blank">seller’s market</a>, this is more important than ever as many buyers are unknowingly overpaying or entering into bidding wars that they aren’t ready for.
More: <a href="https://www.realtyohio.com/blog/know-before-offer-home/">5 Things to Know When Making an Offer on a Home</a>
Under Contract, Pending and Contingent are frequent real estate terms you may see during the purchase but your agent is there to make things clear. Feel free to ask about any issues that come up or clarity with the transaction. For more information on <a href="https://www.realtyohio.com/">Central Ohio real estate</a> contact us below or start looking at new homes today!2021-08-04T05:06:00-07:002021-08-04T08:14:23-07:00Drew Laughlintag:realtyohio.com,2012-09-20:65385 Things Buyers Should Know When Making an Offer on a HomeWhen it comes to buying a house in Ohio it is no secret that you are looking for the perfect place to call home to fit your lifestyle and needs. Problem is that today’s seller’s market leaves very little inventory to choose from, even around Central Ohio. Right now the housing inventory is hovering near record lows and the buyer demand is not decreasing. This has made multiple offer scenarios much more normal on every home that hits the market all across the nation.
Here are five things that buyers in Central Ohio should keep in mind when they are ready to make an offer on a home.
Know the numbers<img src="https://assets.site-static.com/userfiles/683/image/Untitled_design_-_2021-07-12T112837.517.jpg" width="450" height="320" alt="5 Things Buyers Should Know When Making an Offer on a Home" title="5 Things Buyers Should Know When Making an Offer on a Home" style="float: right; margin: 11px;" />
Having a complete and thorough understanding of your budget and exactly how much you can afford on a home is crucial. It is very easy to fall in love with a home and wants to outbid another <a href="https://www.realtyohio.com/buyers/">buyer</a> to win the home and make it yours, but it can be very easy to go over an affordable budget by doing so. The best way to make sure you stay within your affordable budget is to get preapproval on a home loan before you begin your home search. Taking this step will allow you to see how much you are eligible to borrow and it will help to communicate the seriousness of your offer to the homeowner when you do find a home you would like to purchase. Including your preapproval letter shows that you are much more likely to be approved for your home loan and that you are ready to take the next step when you make your offer. It just may give you a little bit of an edge above the competition as well.
Be prepared for a much faster pace
Today’s home sales are much more fast-paced than they were just a year ago. According to the Realtors®, confidence index put out by the National Association of Realtors® the average home stays on the market for just 17 days. Having the help of a skilled real estate agent will help greatly and you should also be prepared to move as quickly as your agent advises. This means being available to sign paperwork and have communication open to answer right away so that you have an edge against the competition and are able to get your offer in as quickly as possible to beat out other offers.
Lean on the expertise of a local real estate professional
In any market, it is always smart and wise to hire an expert local real estate agent to help you through the home buying process. Now more than ever it is increasingly important to hire a buyer’s agent to help you with homebuying success especially here in Ohio. Real estate agents make it their life’s work and are daily in the business of what is going on in the real estate market from home prices, to how quickly homes are selling, to what buyers and sellers are currently looking for, to where properties for sale of a certain type are located, to even if properties may be coming on the market soon. They are also master negotiators when it comes to purchasing homes and can help negotiate with the homeowner to get you into a home you love.
Making a strong but fair offer
When each home is receiving more than one offer your offer will need to be the best that it possibly can be. In the past offering near the asking price was enough to make the offer appealing to sellers, but right now in today’s market homes are selling often above their list price. When there are so many offers on each home and such a competitive market amongst buyers it is best to use an agent to help you put together the strongest and most appealing offer to help you secure a home.
Be flexible in negotiations
Most home sales have a few negotiations between buyer and seller before they land on a mutual agreement and both parties sign an offer. During a strong <a href="https://www.realtyohio.com/sellers/">seller’s market</a>, it is good for buyers to be prepared with the fact that they will need to keep in mind the seller's needs in the transaction as they can easily move onto the next buyer interested in their property. Be willing to be flexible on things such as move-in dates and minimal contingencies.
When you are ready to make an offer make sure to keep in mind what you need in a home as well as what the seller may need to comfortably transition out of their home. The more appealing your offer is to the seller and the more readily available you are to move quickly the more chances you have at successfully purchasing a home in today’s market.
For more information on <a href="https://www.realtyohio.com/central-ohio-new-construction/">central Ohio real estate</a> please contact us at any time.2021-07-12T08:23:00-07:002021-07-12T11:31:01-07:00Drew Laughlintag:realtyohio.com,2012-09-20:1555Is Getting a Home Mortgage Still Too Difficult?<img src="https://assets.site-static.com/userfiles/683/image/getting-a-home-mortgage.jpg" alt="Getting a Home Mortgage" title="Getting a Home Mortgage" class="img_box_center" height="410" width="750" />
There is no doubt that mortgage credit availability is expanding, meaning it is easier to finance a home today than it was last year. However, the mortgage market is still much tighter than it was prior to the housing boom and bust experienced between 2003 - 2006.
The Housing Financing Policy Center at the Urban Institute just <a href="http://www.urban.org/urban-wire/overly-tight-credit-killed-11-million-mortgages-2015">released data</a> revealing two reasons for the current exceptionally high credit standards:
Additional restrictions lenders put on borrowing because of concerns that they will be forced to repurchase failed loans from the government-sponsored enterprises or Federal Housing Administration (FHA).
The concern about potential litigation for imperfect loans.
What has been the result of these concerns?
6.3 Million Less Mortgages
The Policy Center report went on to say:
“It was so hard to get a mortgage in 2015 that lenders failed to make about 1.1 million mortgages that they would have made if reasonable lending standards had been in place. From 2009 to 2014, lenders failed to make about 5.2 million mortgages thanks to overly tight credit. In total, lenders would have issued 6.3 million additional mortgages between 2009 and 2015 if lending standards had been more reasonable.”
In an <a href="http://www.dsnews.com/daily-dose/11-25-2016/opening-access-mortgage-credit">interview with DSNews</a>, Laurie Goodman and Alanna McCargo of the Policy Center further explained:
“Our Housing Credit Availability Index (HCAI)* measures the probability that mortgage borrowers will become delinquent on that mortgage for 90 or more days, which we refer to as the default risk. This measure indicates that the probability of default rose from 12 percent in 2001 to a peak of 16.5 percent at the end of 2005/beginning of 2006, before declining to the current level of 5 percent. Stated differently, lenders are currently taking less than half the credit risk they were taking in 2001, a period of reasonable credit standards.”
The cost to the economy if we’re writing fewer loans…
Goodman and McCargo put it best:
“…fewer households will become homeowners at exactly the point in the economic cycle when it is most advantageous to do so… [They] will continue to miss this wealth-building opportunity. The median family wealth for homeowners is $195,400, with their home the most valuable asset for most; the median family wealth for renters is $5,400… Fewer potential homebuyers means the housing market will continue to recover more slowly. At the same time, fewer buyers create a strain on other benefits to the economy which homebuying brings such as spending on home goods and an increase in construction jobs.”
Bottom Line
The housing market boom and bust caused many mortgage providers and lenders to tighten their lending standards in an effort not to repeat the recent past. This paired with many homebuyers disqualifying themselves before they even apply for a loan, due to the fear of rejection, has led to many households not yet becoming homeowners.
*The HCAI measures the percentage of home purchase loans that are likely to default—that is, go unpaid for more than 90 days past their due date. A lower HCAI indicates that lenders are unwilling to tolerate defaults and are imposing tighter lending standards, making it harder to get a loan. A higher HCAI indicates that lenders are willing to tolerate defaults and are taking more risks, making it easier to get a loan.2017-05-22T16:28:00-07:002017-05-22T16:29:43-07:00Drew Laughlintag:realtyohio.com,2012-09-20:15543 Questions to Ask Before Buying Your Dream Home<img src="https://assets.site-static.com/userfiles/683/image/3-questions-to-ask-before-buying-your-dream-home.jpg" alt="3 Questions to Ask Before Buying Your Dream Home" title="3 Questions to Ask Before Buying Your Dream Home" height="410" width="750" />
If you are debating purchasing a home right now, you are probably getting a lot of advice. Though your friends and family will have your best interest at heart, they may not be fully aware of your needs and what is currently happening in the real estate market.
Ask yourself the following 3 questions to help determine if now is actually a good time for you to buy in today’s market.
1. Why am I buying a home in the first place?
This truly is the most important question to answer. Forget the finances for a minute. Why did you even begin to consider purchasing a home? For most, the reason has nothing to do with money.
For example, a recent survey by Braun showed that over 75% of parents say “their child’s education is an important part of the search for a new home.”
This survey supports a study by the Joint Center for Housing Studies at Harvard University which revealed that the four major reasons people buy a home have nothing to do with money. They are:
A good place to raise children and for them to get a good education
A place where you and your family feel safe
More space for you and your family
Control of that space
What does owning a home mean to you? What non-financial benefits will you and your family gain from owning a home? The answer to that question should be the biggest reason you decide to purchase or not.
2. Where are home values headed?
According to the latest Home Price Index from CoreLogic, home values are projected to increase by 5.3% over the next 12 months.
What does that mean to you?
Simply put, if you are planning on buying a home that costs $250,000 today, that same home will cost you an additional $13,250 if you wait until next year. Your down payment will need to be higher as well to account for the higher home price.
3. Where are mortgage interest rates headed?
A buyer must be concerned about more than just prices. The ‘long term cost’ of a home can be dramatically impacted by even a small increase in mortgage rates.
The Mortgage Bankers Association (MBA), the National Association of Realtors, Fannie Mae and Freddie Mac have all projected that mortgage interest rates will increase over the next twelve months as you can see in the chart below:
<a href="https://s3.amazonaws.com/kcmmedia/2016/10/07153646/Mortgage-Rate-Projections-STM.jpg" rel="lightbox[39504]" title="Mortgage Rate Projections | MyKCM"><img class="img_box_center" src="https://assets.site-static.com/userfiles/635/image/Mortgage-Rate-Projections.jpg" alt="Mortgage Rate Projections" title="Mortgage Rate Projections" height="563" width="750" /></a>
Bottom Line
Only you and your family will know for certain if now is the right time to purchase a home. Answering these questions will help you make that decision.2017-05-22T16:28:00-07:002021-06-03T12:58:00-07:00Drew Laughlintag:realtyohio.com,2012-09-20:1552Have You Saved Enough for Closing Costs?<img src="https://assets.site-static.com/userfiles/683/image/have-you-saved-enough-for-closing-costs.jpg" alt="Have You Saved Enough for Closing Costs?" title="Have You Saved Enough for Closing Costs?" class="img_box_center" height="315" width="600" />There are many potential homebuyers, and even sellers, who believe that they need at least a 20% down payment in order to buy a home or move on to their next home. Time after time, we have dispelled this myth by showing that many loan programs allow you to put down as little as 3% (or 0% with a VA loan).
If you have saved up your down payment and are ready to start your home search, one other piece of the puzzle is to make sure that you have saved enough for your closing costs.
Freddie Mac <a href="http://myhome.freddiemac.com/buy/down-payments-closing-costs.html">defines</a> closing costs as:
“Closing costs, also called settlement fees, will need to be paid when you obtain a mortgage. These are fees charged by people representing your purchase, including your lender, real estate agent, and other third parties involved in the transaction. Closing costs are typically between 2 and 5% of your purchase price.”
We’ve recently heard from many first-time homebuyers that they wished that someone had let them know that closing costs could be so high. If you think about it, with a low down payment program, your closing costs could equal the amount that you saved for your down payment.
Here is a list of just some of the fees/costs that may be included in your closing costs, depending on where the home you wish to purchase is located:
Government recording costs
Appraisal fees
Credit report fees
Lender origination fees
Title services (insurance, search fees)
Tax service fees
Survey fees
Attorney fees
Underwriting fees
Is there any way to avoid paying closing costs?
Work with your lender and real estate agent to see if there are any ways to decrease or defer your closing costs. There are no-closing mortgages <a href="http://www.zillow.com/mortgage-learning/closing-costs/">available</a>, but they end up costing you more in the end with a higher interest rate, or by wrapping the closing costs into the total cost of the mortgage (meaning you’ll end up paying interest on your closing costs).
Home buyers can also negotiate with the seller over who pays these fees. Sometimes the seller will agree to assume the buyer’s closing fees to get the deal finalized, which is known in the industry as ‘<a href="http://smallbusiness.chron.com/seller-concessions-work-14296.html">seller’s concession</a>.’
Bottom Line
Speak with your lender and agent early and often to determine how much you’ll be responsible for at closing. Finding out you’ll need to come up with thousands of dollars right before closing is not a surprise anyone is ever looking forward to.2017-05-22T16:25:00-07:002017-05-22T16:26:55-07:00Drew Laughlin