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Ways To Use Your Tax Refund If You Want To Buy a Home
Have you been saving up to buy a home this year? If so, you know there are a number of expenses involved – from your down payment to closing costs. But did you also know your tax refund can help you pay for some of these expenses? As Credit Karma explains:
“If one of your goals is to stop renting and buy a home, you’ll need to save up for closing costs and a down payment on the mortgage. A tax refund can give you a start on the road to homeownership. If you’ve already started to save, your tax refund could move you down the road faster.”
While how much money you may get in a tax refund is going to vary, it can be encouraging to have a general idea of what’s possible. Here’s what CNET has to say about the average increase people are seeing this year:
“The average refund size is up by 6.1%, from $2,903 for 2023’s tax season through March 24, to $3,081 for this season through March 22.”
Sounds great, right? Remember, your number is going to be different. But if you do get a refund, here are a few examples of how you can use it when buying a home. According to Freddie Mac:
- Saving for a down payment – One of the biggest barriers to homeownership is setting aside enough money for a down payment. You could reach your savings goal even faster by using your tax refund to help.
- Paying for closing costs – Closing costs cover some of the payments you’ll make at closing. They’re generally between 2% and 5% of the total purchase price of the home. You could direct your tax refund toward these closing costs.
- Lowering your mortgage rate – Your lender might give you the option to buy down your mortgage rate. If affordability is tight for you at today’s rates and home prices, this option may be worth exploring. If you qualify for this option, you could pay upfront to have a lower rate on your mortgage.
The best way to get ready to buy a home is to work with a team of trusted real estate professionals who understand the process and what you’ll need to do to be ready to buy.
Bottom Line
Your tax refund can help you reach your savings goal for buying a home. Let’s talk about what you’re looking for, because your home may be more within reach than you think.
Don’t Let Your Student Loans Delay Your Homeownership Plans
If you have student loans and want to buy a home, you might have questions about how your debt affects your plans. Do you have to wait until you’ve paid off those loans before you can buy your first home? Or is it possible you could still qualify for a home loan even with that debt? Here’s a look at the latest information so you have the answers you need.
A Bankrate article explains:
“Roughly 60 percent of U.S. adults who have held student loan debt have put off making important financial decisions due to that debt . . . For Gen Z and millennial borrowers alone, that number rises to 70 percent.”
This includes one of the biggest financial decisions you’ll ever make, buying a home. But you should know, even with student loans, waiting to buy a home may not be necessary. While everyone’s situation is unique, your goal may be more within your reach than you realize. Here’s why.
Can You Qualify for a Home Loan if You Have Student Loans?
According to an annual report from the National Association of Realtors (NAR), 38% of first-time buyers had student loan debt and the typical amount was $30,000.
That means other people in a similar situation were able to qualify for and buy a home even though they also had student loans. And you may be able to do the same, especially if you have a steady source of income. As an article from Bankrate says:
“. . . you can have student loans and a mortgage at the same time. . . . If you have student loans and want a mortgage, there are multiple home loan programs you might qualify for . . .”
The key takeaway is, for many people, homeownership is achievable even with student loans.
You don’t have to figure this out on your own. The best way to make a decision about your goals and next steps is to talk to the professionals. A trusted lender can walk you through your options based on your situation, and share what’s worked for other buyers.
Bottom Line
Lots of other people with student loan debt are able to buy their own homes. Talk to a lender to go over your options and see how close you are to reaching your goal.
The Best Week To List Your House Is Almost Here
Are you thinking about making a move? If so, now may be the perfect time to start the process. That’s because experts say the best week to list your house is just around the corner.
A recent Realtor.com study looked at housing market trends over the past several years (with the exception of 2020, since it was an unusual year), and found the best week to put your house on the market this year is April 14-20:
“Every year, one week stands out from the rest as that perfect stretch of time when it’s great to be a home seller. This year, the week of April 14–20 is the best time to sell—that is, if sellers want to see lots of interest in their homes, sell quickly, and pocket some extra cash, according to Realtor.com® data.”
Here’s why this matters for you. While the spring market is a great time to sell no matter the week, this may be the peak sweet spot. And if you’ve been putting your plans on the back burner and waiting for the right time to act, this could be the nudge you need to make your move happen. As Hannah Jones, Senior Economic Research Analyst at Realtor.com explains:
“The third week of April brings the best combination of housing market factors for sellers. The best week offers higher buyer demand, lower competition [from other sellers], and fewer price reductions than the typical week of the year.”
But, if you want to get in on the action, you’ll need to move quickly and lean on the pros. Your local real estate agent is the perfect go-to when it comes to figuring out a plan to prep your house and get it on the market.
They’ll be able to offer advice to balance your target listing date with what you need to do from a repair and renovation standpoint. And they can walk you through exactly how to prioritize your list so you know what to tackle first.
For example, if your house is already in good shape, you’ll be able to really focus in on the smaller things that are easy to do and make a big impact. As an article from Investopedia says:
“You won’t have time for any major renovations, so focus on quick repairs to address things that could deter potential buyers.”
Here are some specific examples from that article:
Just remember, even if you’re not ready to list within the next couple of weeks, that’s okay. The window of opportunity doesn’t close when this week ends. Spring is the peak homebuying season and it’s still a seller’s market, so you’ll be in the driver’s seat all season long.
Bottom Line
Ready to get the ball rolling? Let’s connect and schedule a time to go over your next steps.
Does It Make Sense To Buy a Home Right Now?
Thinking about buying a home? If so, you’re probably wondering: should I buy now or wait? Nobody can make that decision for you, but here’s some information that can help you decide.
What’s Next for Home Prices?
Each quarter, Fannie Mae and Pulsenomics publish the results of the Home Price Expectations Survey (HPES). It asks more than 100 experts—economists, real estate professionals, and investment and market strategists—what they think will happen with home prices.
In the latest survey, those experts say home prices are going to keep going up for the next five years (see graph below):
Here’s what all the green on this chart should tell you. They’re not expecting any price declines. Instead, they’re saying we’ll see a 3-4% rise each year.
And even though home prices aren’t expected to climb by as much in 2025 as they are 2024, keep in mind these increases can really add up over time. It works like this. If these experts are right and your home’s value goes up by 3.78% this year, it’s set to grow another 3.36% next year. And another 3.87% the year after that.
What Does This Mean for You?
Knowing that prices are forecasted to keep going up should make you feel good about buying a home. That’s because it means your home is an asset that’s projected to grow in value in the years ahead.
If you’re not convinced yet, maybe these numbers will get your attention. They show how a typical home’s value could change over the next few years using expert projections from the HPES. Check out the graph below:
In this example, imagine you bought a home for $400,000 at the start of this year. Based on these projections, you could end up gaining over $83,000 in household wealth over the next five years as your home grows in value.
Of course, you could also wait – but if you do, buying a home is just going to end up costing you more.
Bottom Line
4 Tips To Make Your Strongest Offer on a Home
Are you thinking about buying a home soon? If so, you should know today’s market is competitive in many areas because the number of homes for sale is still low – and that’s leading to multiple-offer scenarios. And moving into the peak home buying season this spring, this is only expected to ramp up more.
Remember these four tips to make your best offer.
1. Partner with a Real Estate Agent
Rely on a real estate agent who can support your goals. As PODS notes:
“Making an offer on a home without an agent is certainly possible, but having a pro by your side gives you a massive advantage in figuring out what to offer on a house.”
Agents are local market experts. They know what’s worked for other buyers in your area and what sellers may be looking for. That advice can be game changing when you’re deciding what offer to bring to the table.
2. Understand Your Budget
Knowing your numbers is even more important right now. The best way to understand your budget is to work with a lender so you can get pre-approved for a home loan. Doing so helps you be more financially confident and shows sellers you’re serious. That gives you a competitive edge. As Investopedia says:
“. . . sellers have an advantage because of intense buyer demand and a limited number of homes for sale; they may be less likely to consider offers without pre-approval letters.”
3. Make a Strong, but Fair Offer
It’s only natural to want the best deal you can get on a home, especially when affordability is tight. However, submitting an offer that’s too low does have some risks. You don’t want to make an offer that’ll be tossed out as soon as it’s received just to see if it sticks. As Realtor.com explains:
“. . . an offer price that’s significantly lower than the listing price, is often rejected by sellers who feel insulted . . . Most listing agents try to get their sellers to at least enter negotiations with buyers, to counteroffer with a number a little closer to the list price. However, if a seller is offended by a buyer or isn’t taking the buyer seriously, there’s not much you, or the real estate agent, can do.”
The expertise your agent brings to this part of the process will help you stay competitive and find a price that’s fair to you and the seller.
4. Trust Your Agent During Negotiations
After you submit your offer, the seller may decide to counter it. When negotiating, it’s smart to understand what matters to the seller. Once you do, being as flexible as you can on things like moving dates or the condition of the house can make your offer more attractive.
Your real estate agent is your partner in navigating these details. Trust them to lead you through negotiations and help you figure out the best plan. As an article from the National Association of Realtors (NAR) explains:
“There are many factors up for discussion in any real estate transaction—from price to repairs to possession date. A real estate professional who’s representing you will look at the transaction from your perspective, helping you negotiate a purchase agreement that meets your needs . . .”
Bottom Line
In today’s competitive market, let’s work together to find you a home you love and craft a strong offer that stands out.
747 Windham Way
SOLD
→ 747 Windham Way, Chico
$585,000
| MLS ID: 223100750
Bedrooms: 4 Bathrooms: 2.5 Square Feet: 2,523 Year Built: 2012 |
Lot Size: 11,326 sq. ft.
Subdivision: Creekside Landing Size: Two Story Parking: Garage (2 Car) HOA: No |
- Bed & Bath Downstairs
- Bonus Room Upstairs
- Primary Bedroom Upstairs
- Granite Countertops
- Breakfast Bar
- Laundry Room Upstairs
- Huge Lot 11,326 sq. ft.
- Covered Back Patio
- RV Parking
- Planter Beds
- Firepit
- 2 Car Garage
With Navigate Real Estate, the process of selling homes and land transcends the conventional approach; it's an artful orchestration of strategy, storytelling, and cutting-edge marketing techniques. Each property is meticulously assessed, and a tailored plan is strategized to ensure maximum exposure and appeal. This approach begins with understanding the unique features and selling points of the home, allowing us to craft a compelling narrative that resonates with potential buyers.
411 Jacquelyn Lane stands as a prime example. Sold by Bebe Sorenson, this meticulously marketed property exemplifies Navigate's dedication to delivering results that exceed expectations.
HOW WE DO IT
- Starts With A Consultation
- 4kHD Video Walkthrough
- Schedule Broker Open
- Create Property Website
- Install For Sale Sign
- Send Through Navigate Network
- Strategically Stage Home
- Drone Airel Photo/Video
- Schedule Open House
- Mass Email Campaign
- Invite Neighbors
- Share Through Social Networks
- Professional Photography
- Professional Written Description
- Create Floor Plans
- Create Brochures
- Advertise your Home
- Folow Up On All Leads
Every Home Has A Story. ..
With our navi in-house marketing agency, we believe each property is different and requires a unique approach to marketing. We will work together and agree upon the best strategy for positioning your home for sale. We approach each real estate transaction differently - working diligently to ensure that each property has its own unique personality and purpose. Our team of designers, analysts, artists and technology gurus are constantly offering strategically driven marketing solutions and custom tailored work to meet the individual needs of our clients.
navi
When Bebe Sorenson started her real estate career in 2005 she knew she would enjoy helping others achieve their real estate goals. As time went on she realized that buying or selling real estate is one of the most significant decisions a person will make in a lifetime. Since then it's been her mission to create a smooth efficient experience expertly handled from start to finish.
Bebe prides herself on being attentive to her clients' needs so she can help them make the best choices for their families.
As a forty-five+year resident of Solano County, she has a native's understanding of the area and understands that selling a home is more than putting a sign in the yard. That's why buyers sellers and investors depend on her to guide them and say she is knowledgeable present available and always dedicated to serving their needs.
When not helping her clients Bebe enjoys spending time with her family. She's been happily married for thirty-five+ years and has four children and 9 grandchildren she adores.
+1 707-803-0598 | BebeSorenson@Gmail.com | DRE Lic# 01723224
WHO YOU WORK WITH MATTERS
OUR
PHILOSOPHY
Better companies make better communities.
We believe our business has a responsibility to serve, connect, grow and protect the communities we operate in.
OUR VALUES
Independence is worth preserving.
Our independence matters more than our size. It allows us to prioritize our community involvement and better serve our agents and clients.
Social impact at the center.
Everything we do has a cause and effect. We maintain a responsibility to contribute to every community in which we operate.
Communities over shareholders.
If our business has to grow at the expense of the communities around us, it isn't worth it. It is important to us to continually invest in building community.
Growth for the sake of bigger impact.
We grow our business to become a stronger, independent network of individuals who benefit as a result of more resources.
Every Home Has A Story...
Every Home Has A Story...
Raving Fans...
"Could not have done this process.without Ms Bebe Sorensen at our side. She walked My Wife and I slowly and patiently through the whole complete painstaking process of selling our home and the great process of buying a home. And whatever we needed, she took care of it without even blinking.. Extremely Professional and knowledgeable Real Estate Agent., you cannot go wrong."
-mrcheek052
Bought and sold a Single Family home in 2023 in Fairfield, CA.
"Bebe did an excellent job of guiding us through selling our home. The process was smooth and we felt confident that everything was getting taken care of. We closed on time and there were no surprises. We highly recommend her."
-Sharon A Gonzalez, Sold a home in 2023.
"Bebe has sold two of our properties. This recent sale was a rental. She was instrumental in coordinating the inspections, repairs and final tenant move out concerns with the property manager. She ensured the smooth flow of disclosure signing, kept us apprised of any issues and changes, and seamlessly worked through the Title Company to drive this sale to close. I would recommend her as a great selling agent."
-Rich Stockand, Sold a home in 2023.
Ready To Get Started?
We see home as more than a house, so we approach real estate as more than a transaction. It’s how we build relationships – by making people feel happy and confident about the biggest investment of their lives. This is more than our profession; it’s our passion because our family never forgets how much home truly means to you and your family. So when you’re ready for your next moment or your next adventure, call Bebe and she will help you get there.
Finding Your Perfect Home in a Fixer Upper
If you’re trying to buy a home and are having a hard time finding one you can afford, it may be time to consider a fixer-upper. That’s a house that needs a little elbow grease or some updates, but has good bones. Fixer-uppers can be a really great option if you’re looking to break into the housing market or want to stretch your budget further. According to NerdWallet:
“Buying a fixer-upper can provide a path to homeownership for first-time home buyers or a way for repeat buyers to afford a larger home or a better neighborhood. With the relatively low inventory of homes for sale these days, a move-in ready home can be hard to find, especially if you’re on a budget.”
Basically, since the number of homes for sale is still so low, if you’re only willing to tour homes that have all your dream features, you may be cutting down your options too much and making it harder on yourself than necessary. It may be time to cast a wider net.
Sometimes the perfect home is the one you perfect after buying it.
Here’s some information that can help you pinpoint what you truly need so you can be strategic in your home search. First, make a list of all the features you want in a home. From there, work to break those features into categories like this:
- Must-Haves – If a house doesn’t have these features, it won’t work for you and your lifestyle.
- Nice-To-Haves – These are features you’d love to have but can live without. Nice-to-haves aren’t dealbreakers, but if you find a home that hits all the must-haves and some of these, it’s a contender.
- Dream State – This is where you can really think big. Again, these aren’t features you’ll need, but if you find a home in your budget that has all the must-haves, most of the nice-to-haves, and any of these, it’s a clear winner.
Once you’ve sorted your list in a way that works for you, share it with your real estate agent. They’ll help you find homes that deliver on your top needs right now and have the potential to be your dream home with a little bit of sweat equity. Lean on their expertise as you think through what’s possible, what features are easy to change or add, and how to make it happen. According to Progressive:
“Many real estate agents specialize in finding fixer-uppers and have a network of inspectors, contractors, electricians, and the like.”
Your agent can also offer advice on which upgrades and renovations will set you up to get the greatest return on your investment if you ever decide to sell down the line.
Bottom Line
If you haven’t found a home you love that’s in your budget, it may be worth thinking through all your options, including fixer-uppers. Sometimes the perfect home for you is the one you perfect after buying it. To see what’s available in our area, let’s connect.
4401 Avondale Cir
SOLD
→ 4401 Avondale Cir. Fairfield
$1,400,000
| MLS ID: 324004514
Bedrooms: 4 Bathrooms: 3 Square Feet: 3,477 Year Built: 2012 |
Lot Size: 26,589 sq. ft.
Subdivision: Paradise Valley Size: Multi Story Parking: 3 Car Garage HOA: Yes $49/Month |
- Paradise Golf Course
- Views
- Personal Retreat
- Travertine Floors
- Grand Living Room
- Large Granite Island
- Expresso Cabinetry
- Bed & Full Bath Downstairs
- Office Furniture to Convey
- Putting Green
- Pool
- Firepit
With Navigate Real Estate, the process of selling homes and land transcends the conventional approach; it's an artful orchestration of strategy, storytelling, and cutting-edge marketing techniques. Each property is meticulously assessed, and a tailored plan is strategized to ensure maximum exposure and appeal. This approach begins with understanding the unique features and selling points of the home, allowing us to craft a compelling narrative that resonates with potential buyers.
411 Jacquelyn Lane stands as a prime example. Sold by Bebe Sorenson, this meticulously marketed property exemplifies Navigate's dedication to delivering results that exceed expectations.
HOW WE DO IT
- Starts With A Consultation
- 4kHD Video Walkthrough
- Schedule Broker Open
- Create Property Website
- Install For Sale Sign
- Send Through Navigate Network
- Strategically Stage Home
- Drone Airel Photo/Video
- Schedule Open House
- Mass Email Campaign
- Invite Neighbors
- Share Through Social Networks
- Professional Photography
- Professional Written Description
- Create Floor Plans
- Create Brochures
- Advertise your Home
- Folow Up On All Leads
Every Home Has A Story. ..
With our navi in-house marketing agency, we believe each property is different and requires a unique approach to marketing. We will work together and agree upon the best strategy for positioning your home for sale. We approach each real estate transaction differently - working diligently to ensure that each property has its own unique personality and purpose. Our team of designers, analysts, artists and technology gurus are constantly offering strategically driven marketing solutions and custom tailored work to meet the individual needs of our clients.
navi
WHO YOU WORK WITH MATTERS
When Bebe Sorenson started her real estate career in 2005 she knew she would enjoy helping others achieve their real estate goals. As time went on she realized that buying or selling real estate is one of the most significant decisions a person will make in a lifetime. Since then it's been her mission to create a smooth efficient experience expertly handled from start to finish.
Bebe prides herself on being attentive to her clients' needs so she can help them make the best choices for their families.
As a forty-five+year resident of Solano County, she has a native's understanding of the area and understands that selling a home is more than putting a sign in the yard. That's why buyers sellers and investors depend on her to guide them and say she is knowledgeable present available and always dedicated to serving their needs.
When not helping her clients Bebe enjoys spending time with her family. She's been happily married for thirty-five+ years and has four children and 9 grandchildren she adores.
+1 707-803-0598 | BebeSorenson@Gmail.com | DRE Lic# 01723224
Raving Fans...
"Could not have done this process.without Ms Bebe Sorensen at our side. She walked My Wife and I slowly and patiently through the whole complete painstaking process of selling our home and the great process of buying a home. And whatever we needed, she took care of it without even blinking.. Extremely Professional and knowledgeable Real Estate Agent., you cannot go wrong."
-mrcheek052
Bought and sold a Single Family home in 2023 in Fairfield, CA.
"Bebe did an excellent job of guiding us through selling our home. The process was smooth and we felt confident that everything was getting taken care of. We closed on time and there were no surprises. We highly recommend her."
-Sharon A Gonzalez, Sold a home in 2023.
"Bebe has sold two of our properties. This recent sale was a rental. She was instrumental in coordinating the inspections, repairs and final tenant move out concerns with the property manager. She ensured the smooth flow of disclosure signing, kept us apprised of any issues and changes, and seamlessly worked through the Title Company to drive this sale to close. I would recommend her as a great selling agent."
-Rich Stockand, Sold a home in 2023.
Ready To Get Started?
We see home as more than a house, so we approach real estate as more than a transaction. It’s how we build relationships – by making people feel happy and confident about the biggest investment of their lives. This is more than our profession; it’s our passion because our family never forgets how much home truly means to you and your family. So when you’re ready for your next moment or your next adventure, call Bebe and she will help you get there.
What To Know About Credit Scores Before Buying a Home
If you want to buy a home, you should know your credit score is a critical piece of the puzzle when it comes to qualifying for a mortgage. Lenders review your credit to see if you typically make payments on time, pay back debts, and more. Your credit score can also help determine your mortgage rate. An article from US Bank explains:
“A credit score isn’t the only deciding factor on your mortgage application, but it’s a significant one. So, when you’re house shopping, it’s important to know where your credit stands and how to use it to get the best mortgage rate possible.”
That means your credit score may feel even more important to your homebuying plans right now since mortgage rates are a key factor in affordability. According to the Federal Reserve Bank of New York, the median credit score in the U.S. for those taking out a mortgage is 770. But that doesn’t mean your credit score has to be perfect. The same article from US Bank explains:
“Your credit score (commonly called a FICO Score) can range from 300 at the low end to 850 at the high end. A score of 740 or above is generally considered very good, but you don’t need that score or above to buy a home.”
Working with a trusted lender is the best way to get more information on how your credit score could factor into your home loan and the mortgage rate you’re able to get. As FICO says:
“While many lenders use credit scores like FICO Scores to help them make lending decisions, each lender has its own strategy, including the level of risk it finds acceptable. There is no single “cutoff score” used by all lenders and there are many additional factors that lenders may use to determine your actual interest rates.”
If you’re looking for ways to improve your score, Experian highlights some things you may want to focus on:
- Your Payment History: Late payments can have a negative impact by dropping your score. Focus on making payments on time and paying any existing late charges quickly.
- Your Debt Amount (relative to your credit limits): When it comes to your available credit amount, the less you’re using, the better. Focus on keeping this number as low as possible.
- Credit Applications: If you’re looking to buy something, don’t apply for additional credit. When you apply for new credit, it could result in a hard inquiry on your credit that drops your score.
Bottom Line
Finding ways to make your credit score better could help you get a lower mortgage rate. If you want to learn more, talk to a trusted lender.
More from the front porch...
Ways To Use Your Tax Refund If You Want To Buy a Home
Have you been saving up to buy a home this year? If so, you know there are a number of expenses involved – from your down payment to closing costs. But did you also know your tax refund can help you pay for some of these expenses? As Credit Karma explains: “If one of your goals is to stop renting […]
Read More
Don’t Let Your Student Loans Delay Your Homeownership Plans
If you have student loans and want to buy a home, you might have questions about how your debt affects your plans. Do you have to wait until you’ve paid off those loans before you can buy your first home? Or is it possible you could still qualify for a home loan even with that debt? […]
Read More
The Best Week To List Your House Is Almost Here
Are you thinking about making a move? If so, now may be the perfect time to start the process. That’s because experts say the best week to list your house is just around the corner. A recent Realtor.com study looked at housing market trends over the past several years (with the exception of 2020, since it was an unusual […]
Read More
Does It Make Sense To Buy a Home Right Now?
Thinking about buying a home? If so, you’re probably wondering: should I buy now or wait? Nobody can make that decision for you, but here’s some information that can help you decide. What’s Next for Home Prices? Each quarter, Fannie Mae and Pulsenomics publish the results of the Home Price Expectations Survey (HPES). It asks more than 100 experts—economists, real estate professionals, and […]
Read More
4 Tips To Make Your Strongest Offer on a Home
Are you thinking about buying a home soon? If so, you should know today’s market is competitive in many areas because the number of homes for sale is still low – and that’s leading to multiple-offer scenarios. And moving into the peak home buying season this spring, this is only expected to ramp up more. Remember these […]
Read More747 Windham Way
SOLD → 747 Windham Way, Chico $585,000 MLS ID: 223100750 Bedrooms: 4 Bathrooms: 2.5 Square Feet: 2,523 Year Built: 2012 Lot Size: 11,326 sq. ft. Subdivision: Creekside Landing Size: Two Story Parking: Garage (2 Car) HOA: No 🗓️ Schedule Showing 📧 Contact Bebe 📞 707.803.0598 Bed & […]
Read More
Finding Your Perfect Home in a Fixer Upper
If you’re trying to buy a home and are having a hard time finding one you can afford, it may be time to consider a fixer-upper. That’s a house that needs a little elbow grease or some updates, but has good bones. Fixer-uppers can be a really great option if you’re looking to break into the housing market […]
Read More
4401 Avondale Cir
SOLD → 4401 Avondale Cir. Fairfield $1,400,000 MLS ID: 324004514 Bedrooms: 4 Bathrooms: 3 Square Feet: 3,477 Year Built: 2012 Lot Size: 26,589 sq. ft. Subdivision: Paradise Valley Size: Multi Story Parking: 3 Car Garage HOA: Yes $49/Month 🗓️ Schedule Showing 📧 Contact Us 📞 […]
Read More
What To Know About Credit Scores Before Buying a Home
If you want to buy a home, you should know your credit score is a critical piece of the puzzle when it comes to qualifying for a mortgage. Lenders review your credit to see if you typically make payments on time, pay back debts, and more. Your credit score can also help determine your mortgage rate. An […]
Read More
The Truth About Down Payments
The Truth About Down Payments If you’re planning to buy your first home, saving up for all the costs involved can feel daunting, especially when it comes to the down payment. That might be because you’ve heard you need to save 20% of the home’s price to put down. Well, that isn’t necessarily the case. Unless specified by […]
Read MoreThe Truth About Down Payments
The Truth About Down Payments
If you’re planning to buy your first home, saving up for all the costs involved can feel daunting, especially when it comes to the down payment. That might be because you’ve heard you need to save 20% of the home’s price to put down. Well, that isn’t necessarily the case.
Unless specified by your loan type or lender, it’s typically not required to put 20% down. That means you could be closer to your homebuying dream than you realize.
As The Mortgage Reports says:
“Although putting down 20% to avoid mortgage insurance is wise if affordable, it’s a myth that this is always necessary. In fact, most people opt for a much lower down payment.”
According to the National Association of Realtors (NAR), the median down payment hasn’t been over 20% since 2005. In fact, for all homebuyers today it’s only 15%. And it’s even lower for first-time homebuyers at just 8% (see graph below):
The big takeaway? You may not need to save as much as you originally thought.
Learn About Resources That Can Help You Toward Your Goal
According to Down Payment Resource, there are also over 2,000 homebuyer assistance programs in the U.S., and many of them are intended to help with down payments.
Plus, there are loan options that can help too. For example, FHA loans offer down payments as low as 3.5%, while VA and USDA loans have no down payment requirements for qualified applicants.
With so many resources available to help with your down payment, the best way to find what you qualify for is by consulting with your loan officer or broker. They know about local grants and loan programs that may help you out.
Don’t let the misconception that you have to have 20% saved up hold you back. If you’re ready to become a homeowner, lean on the professionals to find resources that can help you make your dreams a reality. If you put your plans on hold until you’ve saved up 20%, it may actually cost you in the long run. According to U.S. Bank:
“. . . there are plenty of reasons why it might not be possible. For some, waiting to save up 20% for a down payment may “cost” too much time. While you’re saving for your down payment and paying rent, the price of your future home may go up.”
Home prices are expected to keep appreciating over the next 5 years – meaning your future home will likely go up in price the longer you wait. If you’re able to use these resources to buy now, that future price growth will help you build equity, rather than cost you more.
Bottom Line
Keep in mind that you don't always need a 20% down payment to buy a home. If you're looking to make a move this year, let’s connect to start the conversation about your homebuying goals.
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