Saving for a down payment is a key step in the homebuying process, and it’s not the only piece you need to include in your budget. Another factor that’s important to plan for is the closing costs required to obtain a mortgage.
A considerable number of potential buyers shy away from the real estate market because they’re uncertain about the buying process – particularly when it comes to qualifying for a mortgage.
For many, the mortgage process can be scary, but it doesn’t have to be!
Book an appointment with #NewAveRealty at atfowlerrealtor.appointy.com.
In today’s market, inventory dominates depending on what your price point is. Below $220K in DFW and it can be a struggle to find something. This can often be frustrating to be a first-time homebuyer if you aren’t prepared. Here are five tips from realtor.com’s article, “How to Find Your Dream Home—Without Losing Your Mind.”
Start with a consultation with New Avenue Realty at atfowlerrealtor.appointy.com.
Source: Keeping Current Matters
The top 5 states with the highest median property taxes are New Jersey, New Hampshire, Texas, Nebraska, and Wisconsin. The states with the lowest median property taxes are Louisiana, Hawaii, Alabama, and Delaware, followed by the District of Columbia.
In Texas, we do not have states taxes which helps to pay for local services. Instead, the local municipalities are paid through property taxes. In your tax portion, you’ll notice taxing entities such as the city (“quasi city if you live in a MUD), county, school district, and any other county additions. For instance, Dallas County residents have Parkland Hospital and Dallas County Community College as additional tax entities.
Are you ready to buy a home and considering going in the route of new builds? It may seem like an easy enough process, where you get to call the shots of how you want your dream home to be, but there is a lot of risk when it comes to new construction if you are going in blindly. It’s unfortunately not as trouble free as we’d like to hope, if you don’t have the right representative by your side to help with the things that need to be looked out for from a professional’s eye. Below, we’ll dive into the many reasons you need a professional buyer’s agent representing you in the sale. They are, after all, on your side. And it’s their role to ensure you aren’t taken advantage of by the builders and their representatives in the transaction.
1. HIRING THE RIGHT BUILDER
The most important part of finding an agent is having a professional’s perspective to finding a builder with a great reputation. You get to benefit from your agent’s network of vendors, lenders, and home builders. They have the industry expertise to connect you with a builder that matches your needs, and more than likely, have already had experience with the builder with a past client. Or, if they haven’t worked with a builder you want to use directly, they can gather person-to-person recommendations from other agents to know the expected experience with said builder. They will help you find one, that not only delivers exactly what their clients want, but in a timely fashion.
2. THE RIGHT LOT IN THE RIGHT NEIGHBORHOOD
The lot you choose to go with in a new build can either be a positive to your new home, or detrimental. In the excitement of the process, we tend to overlook important features of a property. It’s important to have a professional to ensure you make a purchase that will best serve you. They’ll be able to find a neighborhood that best fits your lifestyle and a lot that has a location that works for you. Whether you’re single with pets, or a family with children, the lot location can really make a huge impact. Especially when it comes time to selling it in the future. These are important things your agent will be able to help walk you through, so your decisions work in your favor in the long term, as well as now.
3. UPGRADES AND PLAN MODIFICATIONS
Not only will your agent be able to ensure you get the upgrades and modifications that will best suit your lifestyle, but will also help you make decisions that will increase the value of your home in the long term. They are working for your best interest long term, and with an agent’s guidance, you can be sure to make changes that end up benefiting you.
4. HANDLING CONTRACTS AND PAPERWORK
Your agent will handle the contract and all of the paperwork, and they will be sure to review it to ensure that it is in your best interest. They will be able to help you break down the best loan types, purchasing processes, and steps to take that benefit YOU, not the builder. They are, after all, working for you. They’ll make sure there are no overlooked terms in a builder’s contract that could end up hurting you after you move in. Or even during the building process. You want to make sure you have a professional who is experienced with the paperwork and contracts and knows how to make revisions that work in a way that make you happy.
It is imperative in the purchasing process to have an agent that is able to represent you and negotiate for you. The building process is so much more than having the builder put in your favorite counters and floors. They will be able to get you a price that actually benefits you – not the builder. They will be able to run a comparative market analysis to ensure you are paying a fair price for the property. You don’t want to end up overpaying for the home – it could put you in a tough spot when it comes time to sell. They’ll also be able to negotiate terms around building time frame, closings costs, and so many other aspects of a contract that you may otherwise overlook.
6. BUILDER’S AGENT REPRESENTS THEM, NOT YOU
It may seem easy just to pop into an office of a new build, or a builder’s office, and use the onsite agent. But keep in mind that this agent works FOR the builder, NOT for you. So they will be working to make sure the builder gets the best deal at the end of the day. By having a buyer’s agent of your own, you can ensure there is a professional on your side that can walk you through the process and avoid being taken advantage of during the transaction. They will also have a better handle on things when you hit bumps along the way. If you end up working with a builder who isn’t holding their end of the deal, they will have the power to make connections that ensure the builder holds their end of the contract terms.
The Dallas market has changed in the past few years and it is important that homeowners who are selling understand that.
Read the excerpt below from Inman’s “5 outdated seller beliefs agents should debunk” by Carl Melsford.
1. I do not need to have the listing agent visit until my home is ready.
Wrong. In reality, the sooner the agent can get in, the better. Sellers, assuming the old rules still apply, might spend money on things that could harm a home’s potential and, conversely, fail to spend money where it matters.
2. I do not need to upgrade the property for sale.
Since increasing numbers of buyers are looking for move-in ready homes, the more a seller does to get the home to that level, the higher the returns. In an up market, sellers can reap a $2-$3 dollar return for every dollar spent.
In a declining market, they may not get 100 percent back, but they will get a sale. I frequently hear sellers ask, “Why should I upgrade? Won’t the new buyers come in and rip out all the stuff I just put in?”
That is not the right question. A better question is, “What can I do to make my online pictures sizzle to get the highest number of buyers through the front door regardless of what a buyer does once they own the home?”
If a seller can invest $1,000 on carpets and in the process make $3,000, does it matter what the new owner does once they move in?
3. I need open houses to sell my home.
The myth here is that buyers need to visit your home in person to decide whether they like it or not. In the new reality, buyers are visiting because they have already seen the home online and decided it was worth seeing in person.
Open houses simply make it easier for buyers who are already going to visit to actually get in. They also make it easy for the neighbors to come through — which is good because they frequently know someone looking to move into the area.
4. I need many open house signs at multiple key intersections.
Wrong again. Savvy listing agents put out tons of signs because they are free advertising. Buyers who have seen the home online do not need directional signs to find the home. With open houses dates and times syndicating to all the major web portals, buyers simply use the GPS feature in their phones.
As for the neighbors, they will not come because you posted signs at far away intersections. To get them, you want signs close to the open house.
5. If buyers really want my house, they will pay more than market value.
Buyers are not running charities. Due to online AVMs (automated valuation models — think Zestimate), buyers know when a property is overpriced and generally stay away, assuming the seller is unrealistic.
While pricing strategies vary from region to region, most agents know to recommend that sellers price listings close to market realities. As more listings come onto the market, buyers have more choices and migrate toward those they believe represent good values.
Sellers who insist they must net a specific amount, which in turn pushes the price too high, are only kidding themselves.
For sellers who have not sold a home in recent years, the new rules can be a shock. Ironically, since most sellers are also looking to buy a replacement home, all I usually have to do to change their thinking is to ask them how they are personally searching for homes in their new location.
They walk me through their process, and suddenly, in most cases, they get it.
Spend time getting to know your market and what TRULY sells NOT what you need to sell the home for. That stops the disappointments. You don’t want to end up chasing the market and sell your home for way less than expected. It can happen. Be prepared to price under market to move the property from the beginning.
Whether you’ve owned a home before, or you’re ready to jump into homeownership for the first time, there are always a lot of questions swirling around about what is truly required for a down payment, and how to best source down payment assistance. Let’s tackle these two today.
1. How much do you really need for a down payment?
There is a long-standing misconception about down payment requirements. A survey from Fannie Maeshows only 17% of consumers know the minimum options are actually between 1 – 5% of the purchase price and 40% don’t know how much they need at all.There are many mortgage loans available that require as little as 3% down for first-time buyers, and some ask for only 3.5% down from repeat buyers. There are even loans available for Veterans that provide 0% down payment options too.
We’ve mentioned recently that you don’t need to come up with a 20% down payment to buy, and we’ve also shared how quickly you can save for a 3% or 10% down payment, depending on where you live. If you’re planning to put down just 3%, the research shows it may be possible in most states to have enough saved for a down payment in less than a year. That puts homeownership in a much closer reach for many potential buyers, maybe even you!
2. How can I get help with my down payment?
Regardless of the loans available, many buyers still need assistance with a down payment. The great news is, there are a lot of ways to tap into down payment assistance options. Here are just a couple of them:
Assistance from Family Members
The National Association of Realtors (NAR) said, “a third of recent first-time buyers received down payment assistance from family members.” They also mentioned, “the average net worth of those aged 75 and over stands at $264,800…They just might offer the boost the next generation needs to become homeowners.”
That means one of the ways to find help with a down payment is to accept a gift from a family member. If this is an option for you, make sure you talk to your loan officer before you accept the money, to ensure you document the process the way it is required by your loan. This way, it will be received properly and you can still potentially qualify.
Down Payment Assistance Programs
The reality is, not everyone has a loved one or a family member who can provide help with a down payment. There are, however, more than 2,500 down payment assistance programs available (by local areas like city, county, or neighborhood), and some of them are even specifically for first-time buyers.
The gap, as mentioned in the same survey, is “only 23% of consumers are familiar with low down payment programs.”
That’s why it is so important to get familiar with these options by doing your homework before you plan to buy a home. Determine what is available in the area where you ultimately want to live, so you have all the details you need to take advantage of the down payment assistance option that is best for your family.
If buying a home is one of your long-term goals, you may be able to get there sooner than you think by tapping into one of the many down payment assistance programs available. Let’s connect you with one of my preferred lenders who specialize in these programs.
Chat with New Avenue Realty Group at 972-813-9788 or email@example.com.
Article from Keeping Current Matters.
The Federal Reserve Bank (The Fed) recently released their 2019 Survey of Consumer Expectations Housing Survey. The survey reported that 65% of Americans believe homeownership is a good financial investment. Since 2014, the percentage has increased by over nine percent.The Fed’s survey also showed that when the results are broken down by age, education, income, or region of the country, more than 55% of Americans in each category see homeownership as a good investment.
It’s been almost two years since I’ve moved into my home and finally I have set my sights on completing my master bedroom. Since the beginning, I’ve said that this room would be my touch of gold. I started buying things that had gold in it. For the most part, I was happy with my bedroom.
However, I needed a focal point. I thought about wallpaper. I bought this one roll from Target and just never got started. I thought about wood wall plank that got stuck to my wall with the samples. I felt defeated. I put the project on the backburner to flip homes instead.
It wasn’t until one day I was following Instagrammers, @angelarosehome and @philip_or_flop, that I discovered wainscoting. I was hooked and watching them tranform their homes as a DIY, I knew it was perfect for my bedroom. I actually did my first project at an investment property. It was super easy and fun. However, my master bedroom is 13 feet by 17 feet with 9 feet ceilings. I knew I wasn’t taking on that task by myself.
Hence a random night on Facebook marketplace, I discover Modern Wainscoting. It was the best thing ever and I was hooked. I followed the page AND found him on Instagram @modernwainscoting. I knew this would be my final decision maker on my master bedroom. Watch my bedroom transform and find details on items.
Nightstand – Power Outlet Chest
View more items of the bedroom and where to purchase them at below:
Antique Round Mirror – Purchased from At Home (find similar ones here)
Antique Mirror Accessories – At Home Stores (it was a collection from 2018)
Lamp Shade – Project 62 Lampshade
Pillows – HomeGoods
Coverlet & Shams – West Elm
Fur Blanket – Tuesday Morning
Where do I like to shop for home furnishings? Target is one of my favorite places along with HomeGoods, At Home Stores, Tuesday Morning, and Wayfair for budget goods. You can even save 25% online when you shop at Target and pick up from the store. There are a few more items that I need to make this room complete (chandelier, chaise lounge, side board, wall decor). Follow me on Instagram to see more as I update my home.
Disclosure: The links in this post contain affiliate links and I will receive a small commission if you make a purchase after clicking on my link.