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How To Prepare For Homeownership In 2022

Dec 23, 2021

As we gear up for the new year, you’re liking creating a list of new goals you want to achieve. While things like working on making healthy choices or advancing in your career are great goals, a big one you may be considering is achieving homeownership. If you are dreaming of a place to call your own, instead of putting it on a list and wishing for it to come true, you can create an actionable plan to turn that goal into reality. 


Homeownership is a part of the American dream right? You imagine your dream home filled with your family and loved ones decorated in all the things you have saved on your Pinterest board. But buying a home is also one of the largest investments you could make in your lifetime. For that reason, it’s important to put a plan behind your dreaming that accounts for everything from the perfect location to your financial situation.


What Are You Looking For?

The first thing to define is exactly what you’re looking for in a home. Whether this will be your first time buying a house or you’re looking to upgrade your current home, getting clear about what you want and need is the perfect place to start.


Consider things like location, type of home, community, and lifestyle when making your list of wants and needs in your new space. Where you live is super important as you will likely stay in this home for a long time (the average home buyer stays in their home for at least 10 years!) This means factoring in where you work, where your children will go to school, community organizations you want to be a part of, and proximity to amenities, urban centers, and especially your extended family. 


Make a list of your non-negotiable's (i.e. number of bedrooms, yard space, price) and the things you can compromise on (i.e. finishings, neighborhoods, floor plans). This list will give you a base for what you’re looking for and help narrow down your home search once you start the process.


Asses Your Finances

A common new years goal is getting your finances in check. While this is a great stand-alone goal, it is also an important part of the home buying process. Looking at your current financial picture as well as your future finances can help you create a realistic budget for buying your home. 


When you buy a home, there are a lot of costs to consider. The first is the upfront investment of buying a house. When you buy a home, you will need to pay a downpayment as part of your mortgage process. On average, home buyers will pay a downpayment of around 3-6% of the home price. This is a large sum of money to start saving towards and is usually one of the first steps in achieving the goal of homeownership. 


Along with the downpayment, you will be responsible for closing costs when you buy your home. These costs cover the services of things like insurance and taxes, appraisals, and loan origination fees. You can expect to pay around 3-5% of your loan amount in closing costs. 


Downpayment and closing costs make up the bulk of the initial home buying investment. The next thing to consider is budgeting for your monthly mortgage payment and regular home maintenance once you become a homeowner. Planning for these costs in your plan can help you better determine your home-buying budget and what makes the most sense for you and your current situation.


Research Agents & Lenders

Buying a home can be a complicated process that you don’t have to do alone. The best advice in finding your real estate agent and a loan officer is to ask family and friends for their referrals. This will give you a list of people you can trust as they are already vetted by the people you know best. 


Do your own research too and shop around to find the best matches for you. Your real estate agent and loan officer should be experienced experts in the area you intend to buy your home who will support you through the entire home buying process. It’s important that you choose people you like and trust as they will be handling some of your most personal information during the process and helping you make one of the biggest decisions of your life.


Make Your Home Buying Plan & Go

Once you’ve created your plan to achieve homeownership, it’s time to hit the ground running. Whether your first step is saving for your downpayment or finding your home buying team to get pre-approved, taking the first step is the most important part. 


You may have heard there is a perfect season to buy a house, or you should watch the market and wait for the lowest rate, however, this advice may not be the best to take. Buying a home is a personal choice and when you’re ready to take the plunge you’ll know. The best thing you can do is to start now as you will never be able to predict when the exact best time is to buy a house and waiting could mean missing out on your perfect home. 


So make your home buying plan and start today. If you’re looking for more advice on where to start with the home buying process or feel like you’re ready to take the first step, contact one of our loan officers today! We are always happy to help you find the best solution for you and your specific situation.


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Q1 Recap

By Mikaylah Collins • 12 Apr, 2023
We've begun to see signs that the Spring Market is here and could be robust! Here is what we know: According to NAR, home sales were up 14% in February over the previous month which marked the biggest monthly increase since July 2020. While March results are not yet published, the mortgage industry saw an increase in purchase applications for the 3rd straight month; a great sign for the housing market. Driving much of this activity is the stabilization of rates in January & February and lower interest rates this past month. We’re starting to see signs of a slowing economy and the markets are now pricing this in. This week we saw the 10-yr Treasury drop under 3.4%, a level it has not reached for quite some time and the lowest it’s been since September 9, 2022. This is great news for consumers as decreasing rates mean more home affordability. Over the past year, most markets have seen home prices stabilize if not even decline, albeit by a very small amount. This stabilization was still a relief for homebuyers as it helped to offset higher interest rates. As rates continue to decrease, we would expect home prices to again increase due to demand increases. In addition to increased demand, there is still a shortage of homes for sale nationwide and that will continue to worsen as more and more homebuyers enter the market.  So what does it all mean? Now is a GREAT time to buy a home! Rates and home prices are stable, there is not as much competition as there will be when rates do decrease, and buying a home is still extremely affordable for most. Once rates fall, we will likely see home prices rise and the competition for the shortage of homes will increase alongside it making the window of a buyer-dominated market very small.

Q1 2023 Market Outlook

By Sarah Rubin • 10 Feb, 2023
We are well into Q1 and feel confident saying that the market appears to be stabilizing. Before we start looking forward, let’s quickly look back at the end of 2022.

Finding The Right Listing Agent For You

By Sarah Rubin • 15 Dec, 2022
Buying a home is a huge investment and one we talk about often - BUT the flipside is that you have an opportunity to cash in on that investment when you’re ready to sell your home! While you do have the chance to cash-in, a lot more work goes into selling a home than you might think! If you are considering selling your home, working with a listing agent will help you market your home, negotiate with potential buyers, work through paperwork, and ultimately close on your home! So what is a listing agent? In its most basic terms, a listing agent is a real estate professional who represents the seller in a real estate transaction. The listing agent lists the home for sale and works on behalf of the seller to sell the home at the best price and terms for their client. Listing your home is a BIG deal and it is not a place to try and DIY. But why can’t you just grab a sign at Home Depot and try and sell yourself? Well, there are lots of reasons some of which include: Professional consultation: A listing agent will walk you through each step and tell you what to expect along the way! They should understand the specific community you’re in and the current market environment and will help you determine a competitive but realistic asking price for your home. Marketing and selling your home: Your listing agent will list your home on the multiple listing service (MLS) in order to better market your home to potential buyers. They also can make staging recommendations and hire a photographer to best show off your home and its features. They’ll schedule house showings, and can be present to answer any questions. Communication and negotiation: Communication is key to both buying and selling a home in order to minimize stress and misunderstandings. Listing agents take care of this important task, by staying in touch with interested buyers and their agents, fielding questions, handling paperwork, and negotiating the final sale price and terms. Recommendations: Seasoned listing agents might come with a list of professionals who they have worked with in the past that they enjoy working with in order to make the selling process smoother for you! Some of these professionals include: real estate attorneys or title companies, inspectors, stagers, those who specialize in home improvement AND of course trusted Loan Officers. How do I find the right listing agent for my situation? In order to find the right listing agent for you, make sure your agent is licensed and has experience, references, and a professional website where you can learn more about them and their qualifications. Most real estate agents work with both buyers and sellers, but some might specialize in one or the other. Once you find a few agents through referrals or online research, meet with them in person to ensure they meet your needs and work well with your personality. It is also important to ask questions during your meeting with them and it’s imperative that you determine what you’re looking for in an agent so you make sure you are happy with the product being delivered. Selling a home can be stressful, especially for first-time sellers. A listing agent can help by taking on some of the burden and providing the information and resources needed to help sellers make informed decisions. We work with agents on both sides of the transaction – if you have any questions or would like a recommendation for an agent in your area, please reach out to us!
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