What are you willing to give up for home ownership?

A huge hurdle for young, first-time buyers to overcome when looking to purchase their first piece of real estate is coming up with the down payment. Saving can mean sacrifice, what is buying a home worth to you?

Consider these several ways to save listed below:

  • Cancel that vacation. The average vacation is $1500 which means that if there are two of you the cost is $3000.
  • Is it time to sell your car? If you don’t need it for work daily and have alternatives, this may be a way to raise cash and reduce expenses at the same time.
  • Party Less! The cost of going out, having fun, drinking and eating gets costlier. Limit your partying and stay home with friends or go to free events.
  • Clear out your house. The average home has potentially 100’s if not 1000’s of dollars of unwanted or unused items which can be sold online or at a yard sale.
  • Stop renting if you can. Moving home may feel like a big step back but the monthly savings will get you into home ownership faster.
  • Bring on a roommate to reduce your monthly costs.
  • Ask Mom and Dad for help.

Here’s the GOOD NEWS!

Many consumers and real estate professionals are under the misbelief that a home purchase transaction requires a 20% down payment. This is simply not the truth. There may be programs, property types and loan categories that require a 20% down payment but the following do not:

  • USDA – 100% financing in communities considered rural. You would be surprised at how many communities meet the USDA requirements for rural.
  • VA – 100% financing for eligible veterans.
  • FHA – Requires a 3.5% down payment but that can come from a gift.
  • State Housing Agencies – Offer many varieties of low down payment programs including down payment assistance which can amount to 100% financing.
  • Fannie Mae and Freddie Mac – Both agencies offer programs with as little as 3% down.

All of the above programs have various requirements.

To determine what is best for you, contact MEP and a mortgage professional will help determine which programs work for your situation and out of those, which program will be best for your current and future financial needs.

We are here to help you learn more, grow more and win! Contact us today!

Cheers!

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Buy When The Time Is Right For You

Prior to the real estate meltdown that brought on the ‘great recession’ a decade ago, real estate values were soaring, and buyers would do anything to get in on the action. Wall Street firmly believed that real estate values would never decline as they continued to create riskier products to stimulate sales, until the whole system collapsed.

I am not predicting future real estate doom. However, in many parts of the country real estate prices have been rising aggressively for several years. Interest rates are up and going higher and wages are not keeping up with housing costs. Will we see another great decline in housing values? Will prices continue to rise? What really is a good time to buy, or for that matter sell and how do you know?

We can never really know what might impact the real estate market and housing values. Just after 9/11, a sizzling real estate market was immediately chilled and stayed cold for many months. Certainly, buyers and sellers could not have predicted that in anyway, or the impact that event would have on the market.

If you want to buy because the time is right for you and your life, do it! Remember that a house or condo is not like a pair of shoes from Nordstrom’s, you cannot return a house at any time for any reason. Yes, in today’s market you could probably purchase in April and make money selling again in May, if the house didn’t fit well or was the wrong color. I would suggest that is now is the time for you to buy. Having said that, you need to be sure that you will be staying in the property for a good amount of time, like 5 – 10 years. You don’t want to make a purchase and decide that you are going back to school on the West coast in a year, or you are changing jobs which requires a relocation, getting married and need more space, moving for any reason.

At today’s prices, in today’s aggressive seller’s market, look for a home that will be your home for life or close to it, so you don’t have to fear a market decline impacting your plans or your life.

The best time to buy is when buying is best for you.

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