Danny Resendes' Blog
A real estate agent is a must-have for homebuyers, particularly in a highly competitive housing market. However, it is important to understand what it takes to work with a real estate professional to ensure you can enjoy a fast, seamless homebuying experience.
What does it take to get the best results from the homebuying journey? Here are three rules to follow so that you and your real estate agent can work together to find your dream house.
1. Establish Realistic Homebuying Expectations Before You Begin Your Home Search
Buying a home can be a long, costly process if you're not careful. But with the right real estate agent at your side, you can simplify your house search.
Ultimately, you should work with a real estate agent to establish clear-cut homebuying expectations before you embark on your search for the perfect residence. This will enable you and your real estate agent to work together to achieve a common goal.
With realistic homebuying expectations, you'll be able to help your real estate agent understand what you'd like to find in your dream residence. Meanwhile, your real estate agent can get to work and keep you up to date about available homes that will meet or exceed your expectations.
2. Understand Your Real Estate Agent's Role in the Homebuying Process
A real estate agent should define his or her role in the homebuying process. That way, you'll know exactly what to expect as you go from homebuyer to homeowner.
Typically, a real estate agent will set up home showings, negotiate with home sellers on your behalf and offer honest, unbiased homebuying recommendations. He or she also should be available to respond to your questions throughout the homebuying journey.
Your real estate agent will be happy to assist you in any way possible. By doing so, he or she will make it simple for you acquire to acquire your ideal residence at a price that matches your budget.
3. Ensure That Both You and Your Real Estate Agent Are Comfortable Working with One Another
Communication plays a key role in the success of a homebuyer and his or her real estate agent. If you keep the lines of communication open with your real estate agent, you should have no trouble staying on top of the housing market.
In most instances, a real estate agent will be able to keep in touch with a homebuyer via phone, email and text. At the same time, you should try to remain available to your real estate agent as much as possible.
With ongoing communication with your real estate agent, you'll be able to stay informed as new properties become available that fit your homebuying criteria. Furthermore, your real estate agent can help you alleviate stress by listening to your homebuying concerns at each stage of the homebuying journey.
Many real estate professionals are available in cities and towns nationwide. Start your search for a real estate agent today, and you can move one step closer to discovering your dream home.
Buying a home is a big financial endeavor that takes planning and saving. Aside from a down payment, hopeful homeowners will also need to save for closing costs and moving expenses.
When it comes to the down payment amount you’ll need to save, many of us have often heard 20%, the magic number. However, there are a number of different types of mortgages that have different down payment requirements.
To complicate matters, mortgages vary somewhat between lenders and can change over time, with the ebb and flow of the housing market.
So, the best way to approach the process of saving for a down payment is to think about your needs in a home, and reach out to lenders to start comparing rates.
However, there are a few constants when it comes to down payments that are worth considering when shopping for a mortgage.
In today’s post, we’re going to talk about some characteristics of down payments, discuss where the 20% number comes from, and give you some tips on finding the best mortgage for you.
Do I need 20% saved for a down payment?
With the median home prices in America sitting around $200,000 and many areas averaging much higher, it may seem like 20% is an unattainable savings goal.
The good news is that many Americans hoping to buy their first home have several options that don’t involve savings $40,000 or more.
So, where does that number come from?
Most mortgage lenders will want to be sure that lending to would be a smart investment. In other words, they want to know that they’ll earn back the amount they lend you plus interest. They determine how risky it is to lend to you by considering a number of factors.
First and foremost is your credit score. Lenders want to see that you’re paying your bills on time and aren’t overwhelmed by debt. Second, they will ask you for verification of your income to determine how much you can realistically hope to pay each month. And, finally, they’ll consider the amount you’re putting down.
If you have less than 20% of the mortgage amount saved for your down payment, you’ll have to pay for private mortgage insurance (PMI). This is an extra fee must be paid in addition to your interest each month.
First-time buyers rarely put 20% or more down
Thanks to FHA loans guaranteed by the federal government, as well as other loan assistance programs like USDA loans and mortgages insured by the Department of Veterans Affairs, buying a home is usually within reach even if you don’t have several thousands saved.
On average, first-time buyers put closer to 6% down on their mortgage. However, they will have to pay PMI until they’ve paid off 20% of their home.
So, if you’re hoping to buy a home in the near future, saving should be a priority. But, don’t worry too much if you don’t think you can save the full 20% in advance.
When it comes to buying a house, there is no need to deal with a stubborn home seller. However, you may encounter a stubborn home seller, regardless of how well you prepare for your homebuying journey. And if you're not careful, a stubborn home seller may cause you to miss out on an opportunity to purchase your ideal residence.
Don't let a stubborn home seller get the best of you. Instead, use these tips to ensure you can handle negotiations with a stubborn home seller like a pro.
1. Don't Panic
If you are forced to deal with a stubborn home seller, there's no need to get discouraged. Conversely, consider the property seller's perspective, and you may be able to get the best results out of a tough situation.
Open the lines of communication with a home seller – you'll be glad you did. If you maintain open communication, you may be able to find out the root cause of a home seller's stubbornness and plan accordingly.
Also, don't panic if a home seller fails to communicate with you, and try to avoid assumptions at all costs. By doing so, you'll be able to remain calm, cool and collected and maintain your patience as you try to figure out the best way to acquire your dream house.
2. Be Prepared for the Best- and Worst-Case Scenarios
In the best-case scenario, a stubborn home seller will explain his or her demands. Then, you can negotiate with a home seller, find common ground with him or her and work toward finalizing a home purchase agreement.
On the other hand, it is important to understand the worst-case scenario as well.
In the worst-case scenario, you and a home seller may be unable to find common ground. And if this occurs, you should be prepared to walk away from a potential homebuying negotiation and restart your search for the perfect residence.
3. Consult with a Real Estate Agent
Are you unsure about how to deal with a stubborn home seller? There's no need to worry, especially if you consult with a real estate agent.
With an expert real estate agent at your side, you should be able to overcome any potential homebuying hurdles.
An expert real estate agent will act as a liaison between you and a home seller. He or she will learn about the needs of a homebuyer and home seller and ensure both parties can achieve their ideal results.
Furthermore, an expert real estate agent can respond to any homebuying concerns and questions. This housing market professional can teach you about the ins and outs of purchasing a residence and provide honest, unbiased homebuying recommendations. As a result, a real estate agent can help you simplify the homebuying process and ensure you can secure a first-rate house that matches or exceeds your expectations.
Ready to streamline the homebuying journey? Take advantage of the aforementioned tips, and you can get the support you need to deal with a stubborn home seller.
We all know that buying a home is a significant decision that comes with a great deal of financial planning and preparation. However, few of us are taught the ins and outs of actually obtaining a mortgage to make your dream of homeownership come true.
Mortgages are a complicated business that is always changing, both with fluctuations in market rates and with policy decisions.
But, if you’re hoping to buy a home in the near future, it’s important to understand all of your options when it comes to mortgages.
In today’s post, we’re going to address the 20% down payment myth, where that number comes from, and what your options are when it comes to applying for a mortgage.
Where does the 20% down payment number come from?
For most people, 20% of a house is a serious amount of money that would take years to save up. If you’re a first-time homebuyer and don’t have any equity to use from selling another house, 20% may seem like an impossible amount to save within the time you want to buy a home. Fortunately, there are several ways to buy a home without having 20% in cash saved up.
But first, let’s understand where that number comes from.
Most mortgage lenders will want to ensure that lending to you is a safe investment of their money. They want to know that they’ll earn back what they’re spending. To do this, they use several methods.
First, they’ll check your credit history to see how often you pay your bills in time. Then, they’ll want proof if your income and financial stability. Finally, they’ll ask for either a down payment or a guarantee that you will pay them back. Here’s where that 20% comes in.
If you don’t have 20% of the mortgage amount saved for a down payment, you will typically have to pay something called private mortgage insurance. This is an extra monthly fee, on top of your mortgage payments with interest, that you pay to ensure the lender that they’re seeing a return on their investment.
Most homeowners put much less than 20% down
If you’re feeling bad about the amount of money you have saved for a down payment, don’t be! In fact, most first-time homebuyers put, on average, just 6% down on their first home.
Since first-time homeowners don’t have the benefit of equity they’ve accumulated by making payments on their previous mortgage, they often have to come up with down payments out of pocket.
Other options besides a 20% down payment
There are several ways to secure a mortgage without putting 20% down on the home. First, check to see if you are eligible for any loans that are guaranteed by the government. These can come from the Department of Veterans Affairs (VA), or the USDA single-family home program.
The third option is to take on private mortgage insurance until you’ve paid 20% of your mortgage payment.
Private mortgage insurance can be paid to an insurance company or to the federal government in the case of FHA loans, you can put down as low as 3.5%.
Between these three options, you should be able to find a mortgage that you can afford and one that will give you the best possible financial stability in the long-term.
A homebuyer must stay focused throughout the property buying journey. Otherwise, a buyer risks missing out on an opportunity to acquire the right house at the right price.
Now, let's take a look at three tips to help you stay on course during the homebuying journey.
1. Craft a Homebuying Strategy
Creating a homebuying strategy enables you to outline the steps that you'll need to take to make your homeownership dream come true. Plus, with a homebuying plan in place, you'll be better equipped than ever before to streamline your house search.
Think about where you want to live and what you want to find in your ideal residence. Then, you can make a checklist of home must-haves and wants. And once you develop this list, you can enter the housing market with a plan in hand.
2. Get Pre-Approved for Home Financing
Home financing plays an important role in a buyer's ability to acquire a residence. If you ignore home financing as you move along the homebuying journey, you may struggle to get the finances you need to purchase your dream house.
Oftentimes, it helps to get pre-approved for a mortgage so you won't have to worry about home financing as you move along the property buying journey. To get pre-approved for a mortgage, you should meet with a variety of banks and credit unions. That way, you can learn about all of your mortgage options and select a mortgage that matches your finances.
As you review your mortgage options, don't hesitate to ask questions. Banks and credit unions employ home financing specialists who can remove the guesswork commonly associated with getting a mortgage. These specialists are happy to respond to your mortgage concerns and questions and ensure that you can make an informed home financing decision.
3. Work with a Real Estate Agent
When it comes to staying focused during the homebuying journey, it generally is a good idea to hire a real estate agent. This housing market professional can offer plenty of assistance throughout the property buying journey. And by doing so, a real estate agent will ensure that you can seamlessly navigate the property buying journey and achieve your desired results faster than ever before.
A real estate agent understands the challenges that buyers frequently encounter when they pursue houses and can help you plan accordingly. Furthermore, a real estate agent will guide you along each stage of the homebuying journey and do everything possible to help you avoid potential pitfalls.
Also, a real estate agent provides comprehensive support as you get ready to finalize a house purchase. He or she will help you get ready for a home inspection, appraisal or closing and ensure that you can purchase your ideal house at a budget-friendly price.
Don't lose focus as you pursue your dream residence. Instead, use the aforementioned tips, and you can stay on course and accomplish your homebuying goals.