Trusted Real Estate Expert Advisors

TOP HOME BUYER MYTHS: Most buyers think they need these things to qualify for a mortgage.

MYTH: You need a 20% down payment
REALITY: There are loan programs available that require as little as 3.5% as well as first time home buyer programs that can help knock that down even lower (if you qualify).

MYTH: You need a perfect credit score
REALITY: Your credit score will play a role in your financing so your lender may suggest ways you can increase that before getting a mortgage but you don't need a perfect credit score to buy a house.

MYTH: YOU HAVE TO HAVE YOUR STUDENT LOANS PAID OFF TO BUY A HOUSE
REALITY: Your debt to income ratio will be taken into consideration when applying for a mortgage but that doesn't mean student loans will ruin your chances. Connect with a lender (ask me for a great recommendation!) to find out more about what you can actually afford.

MYTH: YOU HAVE TO HAVE ZERO DEBT
Reality: Again, the amount of debt you have will be a factor in how much you're approved for but having debt doesn't mean you can't buy a house.

THE REALITY OF HOME BUYING: You need a plan! A smart buyer is a prepared buyer and it's never too early to set yourself up for success.

The to do list before putting your house on the market can seem daunting! I wanted to help you out and give you just a few things to focus on first!

Save this post for a list of some "must do's" that will make a big difference.

Q: Is the real estate market heading in the same direction as 2006-2008? A: While I can’t predict the future, I do spend a lot of time researching the market and seeing what economists are predicting.

One thing to keep in mind is that our current market is drastically different from our market in 2006-2008. We have an extremely low supply of inventory in the majority of the country (meaning there are more buyers looking for homes than there are homes for sale) which has driven up home prices.

Secondly, homeowners have a substantial amount of equity.

I pulled this from the Homeowner Equity Report on CoreLogic’s website: “In the third quarter of 2020, the average homeowner gained approximately $17,000 in equity during the past year. This marks the largest average equity gain since the first quarter of 2014.” This creates peace of mind for anyone who may need to sell (in the fact that it's not likely many sellers are underwater on their mortgage).

There are also higher standards for loan qualification today than there were in 2006-2008.

Lastly, there are a lot of buyers on the market right now who want to take advantage of our historically low interest rates.

I want to help my clients to make smart real estate decisions so with all the madness in the market and the “headlines” out there that might scare people into thinking we’re heading into another housing bubble, I thought it would be helpful to share these details.

If you’re considering leveraging the equity in your home while also taking advantage of low interest rates, let’s chat! I can put together an equity analysis based on your home’s current market value vs what you owe and we can take a look to see if now is a good time for you to make a move!

Coffee Q&A: How much money do I need to have saved for the home buying process?

A: Some of the expenses you’ll want to prepare for when house hunting go beyond the down payment (but the good news is, you don't need 20% down to qualify for a mortgage)! Here are a few things you’ll want to keep in mind when budgeting for the home buying process.

🔍 Home Inspection ($400-500)
💰 Earnest Money (1-3% of the purchase price)
📊 Appraisal (Around $500)
🧾 Down Payment (Depending on the loan type you qualify for, this can vary but can be as low as 3% - check with a mortgage professional for exact numbers and percentages)!
💵 Closing Costs (Some of the items I mentioned above are part of your closing costs but the total closing costs may vary and can be determined by your lender)
🏡 Taxes & Homeowner's Insurance

If you want to learn more about these expenses and the details on what you can expect to spend for each of them, I cover all of this in my home buyer consultations where my goal is to set you up for success and on the road to homeownership!