Are You Down Payment Literate?

Are You Down Payment Literate?

One of the biggest financial decisions you’ll make in your life is buying a home. It’s a top goal for the majority of millennials. More than nine of out 10 renters ages 25 to 34 aspire to own a house, according to Fannie Mae’s National Housing Survey. But, renters said they view saving for a down payment as the top barrier to home ownership.

However, the larger problem may be that many aspirational homebuyers are actually down payment illiterate. What do we mean by that? It means you aren’t sure of the down payment requirement or options when buying a home. For example, do you think 20 percent down is required? You’re not alone—39 percent of non-homeowners think they need more than 20 percent down for a home purchase.

One home buyer recently told us that he planned to cash out his 401k to come up with his down payment. Both are misunderstandings about down payments and could set you back from your longer term goals.

Home buyer education is another critical step. Most education is required if you use a down payment program. But, it’s a resource that can benefit all types of buyers. In a recent Down Payment Resource survey of future home buyers, 72 percent of the respondents said they plan to complete an online or in-person home buyer education course.

You’ll walk away understanding the complete home buying process, how to budget and common pitfalls to avoid. Today, you’ll find both in person (classroom setting) or online options to choose from.

Know Your Options.

paymentTo be down payment literate, means you know you have options. What down payment is best for you depends on many factors. While 20 percent down isn’t required, it could be the better option for you, or maybe not. If takes you 5 more years to save for the 20 percent down, all while your rent increases, then it may be advantageous to buy sooner and use a low down payment loan. Plus, you may qualify for a program that can help with your down payment and/or closing costs. In our survey of future and recent buyers, more than 90 percent said they wanted information on programs from their agent or lender.

Most home buyers don’t know there are more than 2,400 different programs available across the country. A national survey by NeighborWorks America found that 71 percent of Americans are not aware of or unsure about the down payment assistance open to middle class home buyers. Home buyer programs can be used with both low down payment and conventional loans.

Before you cash out your 401k or other retirement investments for a down payment, put on the breaks and consult with your lender, financial adviser or nonprofit that offers loan counseling. There are often more options for your down payment that won’t deplete your retirement savings.

While your home purchase can also be a long-term wealth builder, it’s first and foremost your home and your community. It’s important to diversity your investments. So, keep your 401k and let it continue to grow. Find out if you may qualify for a home buyer program that could help fund your down payment.  There are also tax credit programs that can help you save over the life of the loan.

Financial Literacy Resources To Help.

Your student loans and degree may still not have have prepared you for managing your finances. The good news is there are many resources to help solve that problem.

Here are few to try during Financial Literacy Month:

  •  Neighborworks America, a network of community development and housing counseling counselors. Find one in your area.
  • eHomeAmerica, provides online certified home buyer education and counseling for home buyers and homeowners
  • Down Payment Resource, searchable database of 2,400 programs that can help home buyers save on down payment and closing costs.
  • MyMoney.Gov, provided by the Federal Financial Literacy and Education Commission of more than 20 Federal entities that are coordinating and collaborating to strengthen financial capability and increase access to financial services for all Americans.
  • AnnualCreditReport.com, provides a free credit Report to decipher where you stand, initially, with your credit profile position before preceding to the Bank for pre -approval on a loan.
  • CreditSmart, Freddie Mac’s signature programs of 12 modules and a curriculum designed to help consumers understand, build and maintain better credit.
  • HOME, Fannie Mae’s app for home buyers, provides step-by-step information on the home buying process.
  • Think Glink, articles, tips and resources on a wide range of personal finance, home buying and consumer topics.
  • NerdWallet, consumer content on banking, investments, mortgages and more designed to provide clarity for all of life’s financial decisions.
    References: Workforce Resource LLC

Donald Horne, Broker / Owner
Team Success Listing LLC
teamsuccesslisting@gmail.com
810-338-0628
www.teamsuccesslisting.com
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15 Second Home Valuation

 

 

Quicken Loans In Metamora Quietly Offers 1% Down Loans

so the client has 3 percent equity immediately…”

Quicken Loans has been fairly hush about its latest offering of a super low down payment mortgage, even as rival bank giants like Bank of America, Wells Fargo, and JPMorgan Chase all tout their new 3 percent down mortgage products. But late last year, Quicken Loans quietly began offering 1 percent down payment mortgages.

The program emerged from a partnership between Quicken and Freddie Mac in October 2015 and loans, metamora was structured to be part of Freddie Mac’s Home Possible Advantage program, which requires a 3 percent down payment.

However, Quicken Loans offers its customers a 1 percent down because it grants the extra money to the borrower, Bill Banfield, Quicken Loans’ vice president of capital markets, told HousingWire in an exclusive interview.

“We require 1 percent from consumer and we give the consumer a 2 percent grant, so the client has 3 percent equity immediately,” Banfield told HousingWire.

The 1 percent down-payment loans are available only for those purchasing a home and can only be used on a single-family home or condo (second home and investment properties or co-ops are not included). Borrowers also must have a FICO score of 680 or above and must earn less than the median income for their county. Their debt-to-income ratio must be 45 percent or less.

“We want to try to help people and do it in a smart way,” Banfield told HousingWire. “For us, it was really a question of if you want to provide access to credit, how do you do it responsibly? How can you help people? If first-time buyers are struggling, are there smart ways to help them while still balancing access to credit? … We wanted to have a conventional option to get people into more homes.”
References: RealtorMag, HousingWire 

Donald Horne, Team Success Listing
Associate Broker-Coldwell Banker Shooltz Realty
Oxford Office   248-969-8065
Lapeer Office   810-338-0628
teamsuccesslisting@gmail.com
Team Success Listing Website
Find Out Your Home’s Value Instantly

5 Tips To Help Save For a Down Payment

a down payment is often the largest single payment a consumer makes in their lifetime…”

Saving for a down payment can pose one of the biggest challenges for potential home buyers.

Indeed, “a down payment is often the largest single payment a consumer makes in their lifetime and tips, payment saving for it isn’t easy,” says Corey Carlisle, executive director of the American Bankers Association Foundation. “However, with a few changes, consumers can put themselves on track to make their home ownership dream a reality.”

In honor of American Housing Month, the American Bankers Association Foundation recently featured several tips to help consumers cut their household costs and start saving for a down payment.

Determine how much you need. Find out how much you’ll need for a down payment. From there, create a budget by figuring how much you can realistically set aside each month. Then, you can set a timeline.

Create a separate savings account. Separate a savings account that is just for the down payment. Make monthly contributions automatic.

Find ways to reduce your monthly bills. Check your car insurance, renter’s insurance, health insurance, cable and Internet plan rates. See if there are any promotions that could help you save money by revisiting your contracts.

Investigate state and local home-buying programs. Several state, counties, and local governments offer first-time home buyer programs that offer down payment assistance. Find out if you’re eligible for one.

Celebrate. Set smaller savings goals as you work up to the larger goal. For example, if you need to save $30,000, celebrate — such as with a nice meal — every time you hit the $5,000 saving milestone. “This will help you stay motivated throughout the process,” ABA notes.
References: RealtorMag, American Bankers Association 

Donald Horne, Team Success Listing
Associate Broker-Coldwell Banker Shooltz Realty
Oxford Office   248-969-8065
Lapeer Office   810-338-0628
donaldhorne.realtor@gmail.com
Team Success Listing Website
Find Out Your Home’s Value Instantly

Many Renters Can Afford To Buy A Home, They Just Don’t Realize It Yet …

Many Renters Can Afford To Buy A Home, They Just Don’t Realize It Yet …

Do I need a lot of cash to buy a home?  No, there are low cash required options available.

Won’t my monthly payment be more than I can afford?  There are loan choices that offer lower payments and qualifying for a mortgage is easier than ever.

Isn’t today’s housing market the wrong time to buy?  No, today’s housing market has made available many opportunities for first time buyers and interest rates are still low giving you more buying power.

What’s Your Average Rent?

Did you know that if you spend $825.00 a month in rent, after 3 years you have spent $29,700.00 in someone else’s property? After 10 years you have spent $99,000.00 paying off someone else’s mortgage!

Stop making your landlord rich, learn how easy it is to become a homeowner. Let us help you locate the financing, obtain the down payment and find you a new place to call home!

Donald Horne, Broker / Owner
Team Success Listing LLC
teamsuccesslisting@gmail.com
810-338-0628
www.teamsuccesslisting.com
(blog / website)
www.teamsuccesslisting.net
(listings / searches)
You Tube Channel
15 Second Home Valuation

Lake Orion Community Homes, Real Estate Update, September / October 2015

Welcome to this months market report, Lake Orion Community Homes – Real Estate Update – September / October 2015. Sales figures for the last 52 days are mixed.

The good news for sellers: average sale prices are up 5% over this time last year, $223,212 vs $212,992.

The good news for buyers: total homes sold in this 52 day period was down 20%, 82 vs 102 in 2014. Homes on the market for sale were at 275, that’s up 24% over this time last year. Days on market until sold was 47 days vs 34 days in 2014.

Buyers should move quickly to take advantage of low interest rates, down payment programs, less homes sold, inventory increasing and homes on the market longer. Sellers should place their homes on the market now, prices are still moving upward, interest rates are still low and buyers are still holding out for “move in ready” homes priced with the market.

The least expensive Lake Orion Community Homes for sale is $74,900 with 2 bedrooms, 1 bath and 882 sq.ft. The most expensive is priced at $799,900 with 4 bedrooms, 3.2 baths and 4460 sq.ft

You can search all properties for sale in and around Lake Orion below.

Stop wondering about your home value! Click below, it’s fast, easy and painless!

Donald Horne, Team Success Listing
Associate Broker-Coldwell Banker Shooltz Realty
Search All Properties
Oxford Office   248-969-8065
Lapeer Office   810-338-0628
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donaldhorne.realtor@gmail.com
Questions? Email Us Now!
Down Payment Resource Center

99 Problems, And Saving For a Home Is Just One

So you want to buy a house! But first you need a car. And you want to get married in a big wedding, and then have some babies. Don’t forget their college education, and your master’s degree, and the looming specter of retirement.

buying a homeLife often feels like a series of savings goals. Once you’ve paid off your student loans, there are a half-dozen other major costs lying ahead. The most ominous? Buying a house—a dream that might seem unachievable when you want other things, too.

But having it all doesn’t have to be stressful. Here are some financial adviser-approved techniques for saving for multiple goals—all at the same time.

1. Review your spending

There’s a reason this is the first bullet point in any financial advice story: You can’t make any serious savings inroads without first taking a good, hard look at your spending.

Before diving into hard-core budgeting, financial adviser Cheryl Vesely of Balance Financial Planning always forces her clients to analyze their current spending.

Don’t try to whittle down your spending without tracking it first—otherwise, you’ll set unrealistic goals and be disappointed when you don’t achieve them. Vesely recommends starting by evaluating fixed expenses, such as streaming TV services or your gym membership.

Here’s another tip: Search for purchases where the amount you spend exceeds your joy.

“Your fourth pair of shoes is not as fun as your third pair,” Vesely says. “Try to step back a little on things you don’t appreciate as much.”

2. Prioritize (and visualize) your goals

Chances are good your down payment will be the biggest priority, but paying for your kid’s college might be up there, too.

saving for a homeOr perhaps you want a wedding in two years, and ideally you’d like a home in five—how do you choose which goal to focus on?

For many home buyers, it’ll come down to which timeline has the most flexibility, says Jason Hull, a financial planner in Fort Worth, TX.

If you’ve already set a date for your wedding, for instance, maybe you need to consider renting for another year or two.

And when saving gets tricky, think about the future. Actually, don’t just think. Visualize.

“Mentally imagine you are watching a movie where future you is starring, doing whatever it is you’re trying to do,” Hull says. This helps combat the part of your brain that wants instant gratification.

3. Try the ‘snowball method’

If you’ve ever tuned in to financial guru Dave Ramsey’s radio show, you’ve probably heard him advocate for the debt snowball method: Knock out your debts one at a time, from smallest to largest.

That means you shouldn’t feel bad about putting most of your savings toward something smaller first—again, assuming your home purchase isn’t on a tight deadline. Accomplishing one financial goal might be the push you need to keep saving.

4. Separate your money

If you do decide to save for multiple goals at once, make sure to keep your savings in different accounts.

99 problems and saving for a home is just oneMany banks easily allow you to create as many accounts as you’d like, but Vesely also recommends online options such as SmartyPig. Keeping the money separate helps mentally separate “house savings” from “car savings.”

You can also choose different types of savings accounts that are better suited to each goal: For a short-term goal such as a wedding or new car, keep your money in a risk-averse account, like a traditional savings or a money market account. For the longer term, Hull says, you might want to buy a low-cost index fund.

“You can’t guarantee you’re gonna get a return,” he says. “But chances are historically pretty decent you’ll beat inflation by doing that.”

While we’re at it: If your workplace allows it, set up a rule that automatically deposits a portion of your paycheck into a separate account. Decide what percentage of your income you want to dedicate to each savings goal and allocate it directly. As they say: Out of sight, out of mind.

5. Decide if you need to sacrifice

We know, we know—all of your goals are very important. But if you’re struggling to create a financial map that gets you everything you’re looking for in a reasonable timeline, maybe it’s time to evaluate what needs to go.

“You might have to look for a smaller house or decide to spend less on a wedding,” Vesely says. “You might have to step back a little bit and look for another way to do it.”

Maybe your home budget should be the cost of your dream home—minus the cost of your dream wedding. Think realistically about what you can afford. When you’re looking for a lot out of life, you’ve got to be willing to make sacrifices.
references: jamie wiebe, realtor.com, housing trends e-newsletter

Donald Horne, Team Success Listing
Associate Broker-Coldwell Banker Shooltz Realty
Search All Properties
Oxford Office   248-969-8065
Lapeer Office   810-338-0628
Homesnap App.
donaldhorne.realtor@gmail.com
Questions? Email Us Now!
Down Payment Resource Center

3 Reasons Why It’s a GREAT Time For Sellers.

Rising home prices, demand from home buyers, and less competition is making 2015 a stellar year to sell for many U.S. home owners across the country.

These three factors are behind why this year is shaping up more favorably for sellers:

1. Stronger demand coming from buyers: Sellers in many markets are seeing stronger demand from a larger pool of buyers, including first-time buyers, boomerang buyers (previous owners who lost their home to foreclosure), as well as traditional owner-occupant buyers. Particularly of note lately, the it's a great time for sellersnumber of buyers using Federal Housing Administration – typically low down payment loans often used by first-time home buyers – is on the rise, accounting for 23 percent of all single-family home and condo sales with financing in the second half of 2015. That marks the highest share since the first quarter of 2013, according to RealtyTrac’s Midyear 2015 U.S. Home Sales report.

2. Home prices are skyrocketing: Single-family home and condo sellers in the first half of this year sold for an average of 13 percent above their original purchase price. “So far in 2015, [sellers] are realizing the biggest gains in home price appreciation since 2007.” “In June, sellers sold for above estimated market value on average for the first time in nearly two years.” Median sales prices of existing-homes pushed above the previous 2006 peak to a record high in June, the National Association of REALTORS® reported this week. The median existing-home price for all housing types was $236,400 in June – surpassing the peak median sales price set in July 2006 at $230,400.

3. Sellers have less competition: Inventories of for-sale homes remains tight, which has forced buyers to have to compete for the limited supply. Distressed sales –properties in the foreclosure process or bank-owned – accounted for 8 percent of all single-family and condo sales in June, the lowest monthly share since January 2011. In 2011, the share of distressed sales had reached a monthly peak of nearly 46 percent of all single-family and condo sales.
source: realty trac, daily real estate news, realtormag 

 

Lapeer Michigan, Real Estate Market Report, 07/22/2015

Lapeer Michigan, Real Estate Market Report, 07/22/2015 …This report covers the last 45 days.

1)  6 months of available inventory
2)  18 homes sold, up 6%
3)  average sales price, $144,000.00
4)  average days on market, 32 days
5)  106 homes on the market


Search below to compare current homes for sale to yours.

6)  highest priced sale $359,000.00 / lowest priced sale $50,000.00
7)  highest priced listing $500,000.00 / lowest priced listing $35,000.00
8)  largest home on the market 4,300 sq.ft / smallest home on the market 900 sq.ft

This new tool allows homeowners and home sellers the ability to monitor their home’s current value. Keep an eye on your actual value here.

If you have any questions or concerns about selling your home or buying a home in or around Lapeer, please contact us direct at the numbers listed below or by email.

lapeer miDonald Horne, Team Success Listing
Associate Broker-Coldwell Banker Shooltz Realty
Search All Properties
Oxford Office   248-969-8065
Lapeer Office   810-338-0628
Homesnap App.
donaldhorne.realtor@gmail.com
Questions? Email Us Now!
Down Payment Resource Center

Buying vs Renting, Build Your Own Equity Not Your Landlords

Buying vs renting, build your own equity not your landlords … If you are renting, buying a home could very well be a financial move that benefits you in the long run, as you pay your own mortgage and build equity instead of paying your landlords mortgage.

What is your monthly rental payment? $450, $500, $600? A $100,000 home would have a payment of about $537 or less, depending on your credit rating. No money for a down payment? This program might just be the answer … Down Payment Resource Center.

Let us help you locate the financing, obtain the down payment and find you a new home!

Donald Horne, Team Success Listing
Associate Broker-Coldwell Banker Shooltz Realty
Search All Properties
Oxford Office   248-969-8065
Lapeer Office   810-338-0628
Homesnap App.
donaldhorne.realtor@gmail.com
Questions? Email Us Now!

Fear is Holding Many Buyers Back

Fear Is Holding Many Buyers Back, according to Wells Fargo, their newly released survey is covered in this article dated 09/15/2014 from RealtorMag…

Nearly two-thirds of Americans recently surveyed say they believed a stellar credit score was necessary to purchase a home, and more than 40 percent said they needed a down payment equal to or at least 20 percent of the purchase price to buy a home today, according to a new survey donald horne, realtorreleased by Wells Fargo.

Back in April, 56% of all potential home buyers said they were waiting to purchasebecause they feared being rejected by lenders.

However, the nation’s largest mortgage lender says many customers believe it’s much more difficult to get a mortgage than it really is.

Franklin Codel, Wells Fargo’s head of mortgage production, notes that the bank has lowered minimum credit scores for loans backed by the government in an effort to expand its eligible borrower pool.

“When we expanded FICO ranges, we saw not only an increase in applications but we also saw an increase in approval rates,” Codel says.

The lender acknowledges that mortgage credit has tightened since the financial crisis. But buyers’ fear of being turned down by a bank are needlessly keeping some of them out of the housing market, analysts note.

For example, in 2013, 19 percent of families said they did not apply for a consumer loan due to fear of rejection – which is above the 16.4 percent rate of families who actually are turned down for credit, according to a recent Federal Reserve survey.

Donald Horne, Team Success Listing
Associate Broker for Coldwell Banker Shooltz Realty
810-338-0628   donaldhorne.realtor@gmail.com

donald horne, realtor