RENT OR OWN?

What comes with home ownership which could never come with renting? Financial freedom, investment, stability, generational wealth, equity, and security. How many apartments are you going to rent before you realize all that rent could be going into a mortgage on something you can own one day?

9 Hidden Costs of Buying A Home

9 hidden costs that come with buying a home: If you're considering becoming a homeowner, even years from now, recognize that there's a lot more to purchasing a house than saving enough money for a down payment. Additional expenses come up throughout the home-buying process. Some of these are upfront, out-of-pocket costs that are nonrefundable even if you end up not closing the deal. Others will hit your wallet after the home is in your possession. Experienced buyers probably are familiar with these charges, but first-time buyers can be caught off-guard.

Rent Vs. Buy

So you’ve thought about it over and over (and over) again, but you are still on the fence about whether you should continue renting, or start the process of buying your own home. Owning a home is part of the American dream, but it’s a huge step to make, we know! When you buy a home, you plan on staying in that home for much longer than a renter would, and are more likely to put down roots and build relationships.

Pre-Approval Should Always Be Your First Step

In many markets across the country, the number of buyers searching for their dream homes greatly outnumbers the amount of homes for sale. This has led to a competitive marketplace where buyers often need to stand out. One way to show you are serious about buying your dream home is to get pre-qualified or pre-approved for a mortgage before starting your search. Even if you are in a market that is not as competitive, knowing your budget will give you the confidence of knowing if your dream home is within your reach. Freddie Mac lays out the advantages of pre-approval in the My Home section of their website:“It’s highly recommended that you work with your lender to get pre-approved before you begin house hunting. Pre-approval will tell you how much home you can afford and can help you move faster, and with greater confidence, in competitive markets.”

1. One of the many advantages of working with a local real estate professional is that many have relationships with lenders who will be able to help you with this process. Once you have selected a lender, you will need to fill out their loan application and provide them with important information regarding “your credit, debt, work history, down payment and residential history.” Freddie Mac describes the 4 Cs that help determine the amount you will be qualified to borrow:Capacity:Your current and future ability to make your payments
2. Capital or cash reserves: The money, savings, and investments you have that can be sold quickly for cash
3. Collateral: The home, or type of home, that you would like to purchase
4. Credit: Your history of paying bills and other debts on time

Getting pre-approved is one of many steps that will show home sellers that you are serious about buying, and it often helps speed up the process once your offer has been accepted.

Bottom Line

Many potential home buyers overestimate the down payment and credit scores needed to qualify for a mortgage today. If you are ready and willing to buy, you may be pleasantly surprised at your ability to do so as well. 

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It's A Generational Thing

Generation X households are buying more homes, a growing number of Millennial and younger Baby Boomer households have children living at home, and more Millennials are buying outside of the city, according to the 2017 Home Buyer and Seller Generational Trends study published by the National Association of Realtors.

The Cost of Renting vs. Buying

Historically, the choice between renting or buying a home has been a tough decision. Looking at the percentage of income needed to rent a median-priced home today (29.2%) vs. the percentage needed to buy a median-priced home (15.8%), the choice becomes obvious. Every market is different. Before you renew your lease again, find out if you can put your housing costs to work by buying this year!

How To Choose A Lender

How do I choose a lender? This infographic will guide you through the process of selecting a lender that's right for you. Begin with researching your loan options and kinds of lender, while educating yourself on the fees associated. timgrissett.com

It's About to Become Easier to Qualify for a Mortgage—Here's Why

We're living in expensive times—when a bottle of fresh juice can run you $5, rents and home prices are soaring, and the bills never seem to stop piling up. But aspiring homeowners might soon get a break as it becomes a little easier for those with student, credit card, and car loan debt to qualify for a mortgage. Fannie Mae plans to increase its allowable debt-to-income ratio from 45% to 50% on July 29.

http://www.realtor.com/news/real-estate-news/easier-to-get-a-mortgage/?adbid=877700923031564289&adbpl=tw&adbpr=17351940&cid=soc_2017editorial_20170622_72991097

Do I Need Perfect Credit to Buy a Home? The answer is NO!

Your Road to Buying A VA Home

Vets, you've served our great country, and it is only right that you have a piece of America: The Road to Buying a VA Home #Veterans http://timgrissett.com

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Buying Is Now 33.1% Cheaper Than Renting in the US

The results of the latest Rent vs. Buy Report from Trulia show that homeownership remains cheaper than renting with a traditional 30-year fixed rate mortgage in the 100 largest metro areas in the United States. The updated numbers actually show that the range is an average of 3.5% less expensive in San Jose (CA), all the way up to 50.1% less expensive in Baton Rouge (LA), and 33.1% nationwide! Other interesting findings in the report include:

• Interest rates have remained low and, even though home prices have appreciated around the country, they haven’t greatly outpaced rental appreciation.
• With rents & home values moving in tandem, shifts in the ‘rent vs. buy’ decision are largely driven by changes in mortgage interest rates.
• Nationally, rates would have to reach 9.1%, a 128% increase over today’s average of 4.0%, for renting to be cheaper than buying. Rates haven’t been that high since January of 1995, according to Freddie Mac.

Bottom Line

Buying a home makes sense socially and financially. If you are one of the many renters out there who would like to evaluate your ability to buy this year, meet with a local real estate professional who can help you find your dream home. 

4 Tips to Sell Your Home Quickly

5 Ways to Thrive in a seller's Market!

Play your cards right! Tips for New Home Buyers

FSBO - Oh, NO!

Why Should a Seller NOT sell -For Sale By Owner: Less exposure for marketing the home.

• NOT in MLS.
• NOT Featured on Zillow.com/Trulia.com/Realtor.com
• NO tracking stats on how many people viewed your home online (Where 97% of buyers are!)
• Agents will NOT show the home, unless there is an agreed commission. (You are missing 95% of the market!)
• For Sale By Owners usually over price their home.

Buying vs. Renting

Buying vs. Renting

Pros of Buying:

Monthly Payment Will Never Go Up

Financial Security

Tax Savings & Peace of Mind

Pride of Ownership

Make Your Home How You Want

Cons of Renting:

Can’t Earn Equity in Home

No Financial Benefits

No Control Over Price Increases

Can’t Personalize Home

Living in ‘Someone Else’s’ Home

What’s the Difference Between a Hard Pull and a Soft Pull?

3 WAYS REAL ESTATE AGENTS ARE BETTER THAN FOR SALE BY OWNER

6 Home Buying Tips

69% of Buyers are Wrong About Down Payment Needs

According to a recent survey conducted by Genworth Financial Inc. at the Annual Mortgage Bankers’ Association Secondary Market Conference, 69% of potential first-time buyers still believe a 20% down payment is necessary to buy in today’s market. Nearly 40% of mortgage industry professionals surveyed believe that a lack of knowledge about the home-buying process is keeping potential buyers on the sidelines.

Saving for a down payment is often cited as a huge barrier for first-time homebuyers to make the leap into homeownership. If homeowners believe that they need a 20% down payment to enter the market, they also believe that they will have to wait years (in some markets) to come up with the necessary funds to buy their dream homes.

The greatest source of confusion cited in the survey results centered around down payments. The results are broken down in the chart below:

Rohit Gupta, CEO of Genworth Mortgage Insurance had this to say,

"While first-time homebuyers continue to drive the purchase market, we believe many are staying on the sidelines due to the misconception that a 20 percent down payment is required to secure a mortgage. There are various low down payment options available today that allow prospective homebuyers to reach their dreams of homeownership sooner. It is crucial that, as an industry, we proactively educate eligible borrowers about solutions that will enable them to buy a home when they're ready."

Bottom Line

Don’t let a lack of understanding of the home-buying process keep you and your family out of the housing market. Meet with a local real estate professional who can show you your options today!

Why Housing in 2017 Will Be a Seller's Market

If you're planning to buy a house in 2017, be prepared for a rough ride. A number of factors are coming together to make buying a house particularly difficult (and expensive). It's predicted to be an especially tough year for first-time homebuyers, who already tend to have a harder time than experienced homebuyers.
Here's why.

Prices are up

As of October 2016, home prices nationwide had experienced a 5.6% year-over-year gain. The Pacific Northwest saw a particularly steep rise, with Seattle showing a 10.7% price increase and Portland close behind with a 10.3% increase.
"With the current high consumer confidence numbers and low unemployment rate, affordability trends do not suggest an immediate reversal in home price trends," said David Blitzer of S&P Dow Jones Indices. Blitzer noted, though, that housing pricing can't continue to rise faster than both incomes and inflation rates indefinitely. That's good news for buyers in future years, but it doesn't bode well for 2017. What's more, President Donald Trump's decision to suspend the reduction in FHA mortgage insurance premiums will raise the payments on government-backed mortgages even higher.

Interest rates are up

The interest rate on 30-year fixed-rate mortgages has risen to 4.17% in early 2017, as opposed to 3.72% in early 2016. The current rate is not exactly stratospheric by historical standards, but the uptick is enough to make it a little harder to get approved for (and to pay for) a new mortgage. This is a particularly big concern for first-time homebuyers, who already struggle to find affordable financing.

Demand is up

The climb in prices and interest rates seems to have many homebuyers thinking, "Grab it now before it gets even more expensive!" According to realtor.com, home listing views in December 2016 were up by 40% to 80% compared to the same time in 2015, despite the fact that December is historically the slowest time of year for home sales. The high level of competition will inevitably make it even harder to buy a house.

Inventory is down

Realtor.com also reports that active inventory on the website was down 11% in December of last year compared to inventory in December 2015. And that's after 51 straight months of already below-normal inventory levels. As a result, 2017 is starting out with the smallest inventory of available homes since the last recession, if not longer.

A perfect storm for homebuyers

Rising demand, coupled with a shrinking supply, is the textbook definition of a seller's market. This is great news for anyone trying to sell their house, but not so good for buyers. If you're looking to buy a house in 2017, allow plenty of time to shop around for a good deal. Also get a mortgage pre-approval early so you'll be ready to buy the second you find the right house.

The $16,122 Social Security bonus you could be missing

If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income. For example: one easy trick could pay you as much as $16,122 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after.

So You Want to Build A New Home

Remember that the builder's sales agent works to protect the builder's best interest. It is up to you to protect your right to independent representation who can give you objective professional advice. Your new construction buyers representative is YOUR advocate, so choose the best agent with the knowledge, experience to negotiate a great deal, ability to guide you through the process and looks out for YOUR best interest. Buying a new construction home can be overwhelming and what always truly matters are the small details. I want you to have certainty in your decision. Contact us here if you would like to get answers to your question and our expert advice.

5 Reasons You Should Sell This Summer

Here are five reasons listing your home for sale this summer makes sense.

1. Demand Is Strong The latest Buyer Traffic Report from the National Association of Realtors (NAR) shows that buyer demand remains very strong throughout the vast majority of the country. These buyers are ready, willing and able to purchase… and are in the market right now! More often than not, multiple buyers are competing with each other to buy a home. Take advantage of the buyer activity currently in the market.

2. There Is Less Competition Now Housing inventory is currently at a 4.2-month supply, well under the 6-months needed for a normal housing market. This means, in the majority of the country, there are not enough homes for sale to satisfy the number of buyers in that market. This is good news for home prices. However, additional inventory could be coming to the market soon. There is a pent-up desire for many homeowners to move, as they were unable to sell over the last few years because of a negative equity situation. Homeowners are now seeing a return to positive equity as real estate values have increased over the last two years. Many of these homes will be coming to the market this summer. Also, builder's confidence in the market has hit its highest mark in over 11 years. Experts are predicting that new construction of single-family homes will ramp up this summer. The choices buyers have will continue to increase. Don’t wait until all this other inventory of homes comes to market before you sell.

3. The Process Will Be Quicker Fannie Mae anticipates an acceleration in home sales that will surpass 2007's pace. As the market continues to strengthen, banks will be inundated with loan inquiries causing closing-time lines to lengthen. Selling now will make the process quicker & simpler. According to Ellie Mae’s latest Origination Insights Report, the time to close a loan has dropped to a new low of 42 days, after seeing a 12-month high of 48 days in January.

4. There Will Never Be a Better Time to Move Up If you are moving up to a larger, more expensive home, consider doing it now. Prices are projected to appreciate by 4.9% over the next year, according to CoreLogic. If you are moving to a higher-priced home, it will wind up costing you more in raw dollars (both in down payment and mortgage payment) if you wait. You can also lock in your 30-year housing expense with an interest rate around 4% right now. Rates are projected to increase in the next 12 months.

5. It’s Time to Move on with Your Life Look at the reason you decided to sell in the first place and determine whether it is worth waiting. Is money more important than being with family? Is money more important than your health? Is money more important than having the freedom to go on with your life the way you think you should? Only you know the answers to the questions above. You have the power to take control of the situation by putting your home on the market. Perhaps the time has come for you and your family to move on and start living the life you desire. That is what is truly important.

What Would You Be Willing to Sacrifice to Buy A Home?

What Would You Sacrifice to Save For Your Next Home? 95% of first-time homebuyers are willing to sacrifice to make homeownership a reality. The top item that buyers sacrifice is new clothes, at 54%. Even repeat or experienced buyers say they sacrificed taking a vacation or buying a new car to buy their last home. timgrissett.com

Ask Me About Real Estate

Whether it's selling your home, buying a new home, investing in income-producing rental properties, or flipping a house, I am here to serve. timgrissett.com #Atlanta #realestate