Buying a Home in 2021?

04.15.21 by

Here Are Some Financial Steps to Take

Buying a Home in 2021? Here Are Some Financial Steps to Take

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Buying a home is a huge accomplishment and a major life milestone, but it’s typically not something you can do on a whim. And if you don’t already have your finances fully in order, it’s never too soon to begin the process. Here are a few quick tips on how to prepare your personal economy so that you can afford your own home by the end of the year.

Know if You’re Ready

First, you’ll want to decide if you’re truly ready for homeownership. PennyMac’s first house guide explains that this is a long-term investment. This means you’ll likely need to live in the same spot for five to 10 years and know that you are prepared to tackle common home maintenance issues, such as minor plumbing repairs and landscaping. You also have to look past a current proposed mortgage amount as your home insurance and taxes may go up. In other words, as your cost of living rises, you want to assure yourself that you are in a position for your income to grow along with it.

Find a Realtor

Perhaps one of the most financially impactful things you can do before you buy a home is to partner with an experienced realtor. Not only does Gabe of Stuart Florida Real Estate not charge a commission to buyers, but he can also help you identify great deals and help you haggle if the home you want is out of range.

Save for a Downpayment

Depending on the type of financing you choose, you may be able to get away with as little as 3.5% down. FHA loans typically have the lowest down payment, but a traditional loan may have more favorable long-term terms. To save for your down payment, you may need to make a few minor lifestyle adjustments in the interim. Skip vacations, cut back on discretionary spending, and consolidate high-interest credit cards into a singular lower-interest loan.

Check Your FICO Score

Your credit score can never be too high, but it can be too low. Typically, you’ll need a credit score of a minimum of 580 to purchase a home. Once you get up in the 700s, you’ll be eligible for a better loan rate.

According to Experian, there are many factors that affect your credit score, including your credit history and whether or not you make your payments on time. If your credit score could use a boost, pay down some debt and make sure that everything is up-to-date. You’ll also want to take a quick peek at your full credit report so that you will have time to dispute any inaccuracies before you apply for a loan.

Gather Your Documents

Buying a house today is not like buying a house pre-2007. So if it’s been a while, you may be surprised to find that your mortgage company may ask for everything from three years’ worth of tax returns to a full list of your assets and liabilities. And if you’re self-employed, be ready to jump through a few more hoops. You will have to prove, among other things, that you plan to continue to remain a contractor and that your earnings have been constant for the last few years.

Once you have these financial steps taken care of, you can begin your home search — ideally, three to six months before you intend to move. Having money matters mastered now will ensure a smoother process once you find the home of your dreams. Small steps, such as gathering your documents and deciding if you’re truly ready for homeownership, will have a positive impact on the entire home buying experience. Ready to get started? Reach out to the Gabe Sanders Stuart Florida Real Estate Team now at (772) 888-2885.

Guest post authored by Suzie Wilson

Buying a New Home for a New Year

12.28.16 by

Buying a New Home for a New Year

New Year

So with the dawn of the New Year you may find yourself wanting to make some major changes in your life; and whether this yearning takes the form of a fanciful New Year’s resolution or an organized certified life plan, these planned changes just might involve the purchase of a new home. If so, then have we got a deal for you….

Sure, as Realtors you would expect us to say that; the fact is though, that this may indeed be the most ideal time to purchase a new home; and for a vast variety of reasons.

1. The housing market is thriving. Showing a vast improvement over previous years, the real estate market is a rife with opportunities—and brimming with beautiful homes—for those interested in buying.

2. The start of a new year happens to be an optimum time for home sales. Many of the people who opt to acquire a new home with the start of the new year must sell their old homes first; and although pre-owned, one of these houses might very well qualify as your ultimate dream home. In addition, people looking to build their own new homes often must sell their old homes first, to accrue the capital needed for this major construction project.

3. If you do indeed wish to make a fresh start with the coming of the new year, then the selection of a new home base or residence just may be integral to these changes. A clean, beautiful new setting can give a person a fresh new perspective on life, helping to signal a very positive turning point throughout the course of that existence.

4. A new job or school arrangement often necessitates the purchase of a new home. If you are starting off the new year with the acquisition of a new job or perhaps enrollment in an institution of higher learning, then these exciting new changes also might necessitate a major geographic move. Or to phrase it another way, you might have to relocate in order to live closer to your new place of business or study. And while you might opt to rent an apartment or dorm, as opposed to making a major home purchase, many people use some of the money earned through newly acquired jobs or scholarships to purchase their own homes.

If you see the purchase of a new home in your future, then make the future now; buy a new home for the new year!

The Dream Home

12.09.16 by

The Dream Home

Dream Home

In today’s revitalized economy, I as a Realtor am often approached by potential buyers who come in search of their dream home. These buyers finally have accumulated the money and resources to buy the home they’ve always wanted; not just a temporary shelter that will get them by until something better comes along.

It is truly a joy and a privilege to be the merchant of dreams; to help my clients find the home they have wanted and envisioned for years. It can however be a challenge if they do not have a clear idea of what they want in a residence. It may be difficult for them to describe and pinpoint the traits and qualities that constitute their dream home; and in that case, I will ask a series of questions that will help them realize the dream:

1. Describe the home of your dreams.  I have them describe in detail the home of their fantasy; the place that they’ve always wanted to come home to, the house that truly would feel like a home. I ask them to specify the look and style of this residence, as well as other traits and characteristics that they consider to be must haves.

2. Who will live here with you?  How many people will live in the house, in order to determine the number of bedrooms and bathrooms that need to be included in the residence as well as its square footage. Beyond the basics, the wants and opinions of these other residents also should be considered before any final purchase is made.

3. Where is your dream home? Do you have a specific location in mind? Or, will you let me do my job to locate the home of their dreams; but I can’t do this until I get a general idea of a preferred location or feel of a community. Do you wish to make their home in the city or the country, or perhaps in the suburbs? Is there a particular community that you enjoy visiting on a regular basis? Do you need a place that is located in close proximity to a particular school or workplace? As the old saying goes, “Location, location, location!”

4. What extras and accents do you want? Does your dream home include a fireplace, a swimming pool, a rec room? Little things mean a lot, especially if they’re fun and luxurious; the stuff of dreams, so to speak.

I can help you find your dream home.  Call me at 772-232-5966!

 

Make the Most of It: Make any house the home of your dreams

10.19.16 by

Make the Most of It: Make any house the home of your dreams

Dream home

So it is time for you to buy a new home. And you just happen to have the perfect manse in your sights: the lavish, large scale Victorian style mansion conveniently located right in your neighborhood.

The home may not, however, be conveniently located within your relative price range. Indeed, while you may be more than ready to settle down in the home of your dreams, your pocketbook and family budget may not be at all ready to facilitate that move.

Please be rest assured that, with a little creativity and just the right mindset, you can morph just about any house into the beautiful—and livable—home of your dreams.

1. Consult a Realtor. You just knew we’d say that right off the bat, now didn’t you? Seriously though, folks; regardless of your price range, a trained and experienced Realtor should be able to find you the home of your dreams—even it’s on a slightly reduced scale. These people have access to a vast network of sellers and their homes—and, much like a personal shopper, he/she will work hard to pinpoint a selection of homes within your budget and specifications.

2. Scale down your expectations. You may not be able to afford that extravagant Victorian manse down the lane—but would you like a Victorian cottage? You likely could find your preferred style or color of home in just about any price range.

3. And while you scale down, spruce up. If you manage to purchase a fixer upper, don’t regard it as ‘the settlement that you settled for’; rather, regard it as an architectural challenge that you can make over—and make your own. Once you buy the home, you can feel free to remodel it from the inside out. It could be that all your home needs is a fresh coat of paint on the exterior or some new carpet and furnishings on the interior to become a veritable dream house. And even if this isn’t the case, please keep this in mind:

4. Providing that your home is clean, structurally sound and located in a safe neighborhood, then it can be considered a suitable shelter for you and your family. Also remember that any house can become a beloved home with the addition of a few key ingredients: namely, your family, your pets, your stories and memories, and—of course—you!

Why You Should Buy a Home Now Instead of Waiting

01.05.16 by

Why You Should Buy a Home Now Instead of Waiting

Why You Should Buy a Home Now Instead of Waiting

One of the biggest decisions that a single person or a couple can make is to purchase a home. It is a tremendous investment and a long-term commitment. This leads many to consider waiting until “the time is right.” However, there may not be a better time than right now!

Renting and buying each has benefits and drawbacks that you will need to weigh when making your choice. Your current and projected financial situation is likely the largest factor regarding your ability to purchase a home. If you have a good credit score, a comfortable savings account and secure employment, consider investing in a home rather than continuing to give that money to someone else each month in the form of rent.

The words Interest Rates on a blacktop road and a percent sign at the top of the street, symbolizing the rising interest rates due to economic factors and conditions

As the housing market continues to recover, interest rates everywhere are on the rise. On top of that, the asking price of residential properties in many parts of the country is steadily increasing. This combination is anticipated to create a seller’s market in the foreseeable future. The longer you wait, the more money you will pay long-term and the more difficult it may be to find that ideal property.

One of the most important benefits that you will receive by purchasing now is that you will build equity in your investment. Remember that many experts anticipate a seller’s market in the near future. If you decide at some point down the line to relocate, that seller’s market will work to your advantage. The equity you build will prove far more useful than a good rental history!

Concept of your home equity safe. Or keeping your home safe..

If you have never owned your own house before, you may not realize the tremendous tax benefits of home ownership. By itemizing your federal income tax return, you can deduct the money you pay for interest on the mortgage and your state property taxes. This perk offsets some of the costs associated with purchasing a piece of property.

By selecting a fixed-rate mortgage, you can keep the same monthly payments for the term of your loan. Unlike rental prices, which can rise dramatically with little warning, you can rest assured that your mortgage payment remains the same. Property taxes and insurance costs may still go up over time, but these are often easier to budget for than rising rental costs.

House keys over the hundred dollar banknotes against wooden background

You may be able to turn the house into a rental property further down the line. When you and your family are ready for a larger home, you may decide to rent out your first one, rather than selling it outright. Make certain that you will be able to cover all of the expenses associated with the property with the payments, or you will end up operating at a loss. If you decide that this route is the right one for you, consider using a real estate rental agency or professional property management company instead of finding renters yourself.

color your home

color your home

While not a financial reason to buy now, the freedom to change your décor is also something to consider if you’re looking at buying. As long as you are living in the home, you have the right to decorate in any manner you wish. Change the paint colors, update the flooring, add granite or remodel your bathroom. The choice is yours and can even add equity to your house. This is a freedom that many apartment dwellers crave but simply aren’t privy to.

Buying a home now makes sense if you can afford it. Some of the advantages are outlined here, and there are many others to consider as well. Discuss your choices with a qualified Realtor and mortgage broker, and you just might find that the keys to your new property are soon in hand.

Sold Sign

About the Author

Patrick Rogers runs Asurent Property Management based out of Medford Oregon. If you are needing property management services in that area, you can learn more at <a href=”http://www.medfordpropertymanagement.com/“>MedfordPropertyManagement.com</a>.

A First Time For Everything

10.19.09 by

An article appeared recently in the New York Times that beautifully illustrates the opportunities today’s real estate market offers. A mother working two jobs saved up for a downpayment and managed to buy a large home with a pool for $187,000. Three years ago, that same home had sold for $370,000!

While sellers are still feeling the pressure, buyers with stable incomes and good credit histories are beginning to spread a “feel good” vibe throughout the industry. Conditions have literally never been better for first-time buyers. Affordability has seldom been higher and interest rates have hardly been lower. The selection of inventory is vast, and sellers are highly motivated.

As more buyers enter the marketplace, the ripple effect will be felt far and wide. When they purchase a highly affordable foreclosure or “short sale,” they have removed a distressed property from the listings, improving values for other homes in the area. When they buy a “traditional” listing, that in turn sets off a chain reaction whereby the sellers in turn will purchase another home, from sellers who will, in turn, buy another home, and so on and so on.

You probably get the picture now. As we approach some stability in real estate, all indications are that prices will begin rising again. As the market approaches recovery, don’t miss your opportunity for the buy of a lifetime.

Stuart Florida Real Estate

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Waterfront and Golf Course Communities in Martin and Saint Lucie Counties

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Luck Is A Four-Letter Word

07.04.09 by

A “buyers’ market” is just what it implies – a market in which buyers have the advantage and exploit it. It’s not a market that rewards foot-dragging, hesitation or indecision.

Unfortunately, all the factors that created the buyers’ market we have today have been reported so negatively and rampantly by various media outlets that buyers are themselves too spooked to even enter the fray. Strangely, people were buying like crazy during the previous sellers’ market, when the advantage was actually all to the sellers.

That’s when buyers didn’t fear paying too much, and now that prices are so low and inventories so high, suddenly buyers DO fear paying too much! However, it’s impossible to purposefully time the market to buy at the bottom and sell at the top.

Once the market begins to settle and subsequently improve (and it will), the amazing buying opportunities we’ve been seeing will begin to disappear. With decreased buying activity now, pent up demand for homes will explode when the market recovers, and buyers will once again be competing for the best homes.

Don’t rely on luck in the marketplace – rely on planning. Make a careful decision with a predictable outcome. Has the market dropped enough, right now, to make such a purchase? Absolutely! Forget about the top and the bottom and enter your “safe zone” with confidence.

If you’re considering purchasing a home, and want to know what’s really happening in real estate visit our website GabeSanders.com or call us at (772) 888-2885.

Repeat buyers are fueling a turnaround in housing

06.20.09 by
Present homeowners are the group contributing most right now to the monthly increase in existing home sales.
They are an especially big factor in the uptick in midprice home sales. Additionally, they are reducing the national inventory of unsold homes, according to the National Association of Realtors.
First-time buyers are playing a role in allowing homeowners to move up to larger or more expensive homes. When first-timers buy an existing home, the owners are free to trade up.
It’s a great move for both buyer and seller. The first-time buyers can take advantage of the government program that subsidizes their purchase. Homeowners moving up have many choices, some of which are priced well below what they would have sold for a few years ago.
Multiple offers
The bargains are not so cut-and-dry. If the home is in a good neighborhood and is a good value, it could draw multiple offers. Title service companies say one in 10 such homes draw multiple offers at this time, as opposed to one in 30 last fall.
Multiple bids usually indicate a market in which prices are rising and buyers outnumber sellers. Right now, however, most properties that receive multiple bids are distressed or foreclosed homes on which buyers are competing while still looking for a bargain.
Bidders need help
Bargain hunters can be deceived about the true value of a property. They could end up saddled with one in a declining area or one that has basic construction flaws.
Going it alone in a property search takes a great deal of time and expertise the buyer probably doesn’t have.
A real estate agent can make important recommendations, arrange for inspections, and guide the buyer through the entire buying and financing process.
With the agent’s help, a successful and trouble-free purchase can be arranged.
If you’re looking to purchase a home on Florida’s Treasure Coast, we know our neighborhoods, why not visit our website GabeSanders.com or call us at (772) 888-2885.

A Portfolio of Commodities

05.09.09 by

Have you ever thought of a home as a commodity? A commodity can be defined as a raw material or product that can be bought and sold. A home is not a raw material, but it is certainly built out of many, like a box full of wood, steel, cement, glass, and copper.

Over the long term, home prices usually rise along with the cost of the commodities it takes for construction. While high inventories of housing may be keeping prices lower right now, the cost of the raw materials that are intrinsically tied to a home’s value is rising, and rapidly.

With increasingly higher construction costs on the horizon, buying now is an ideal investment and a hedge against the rising cost of commodities. Every home is a store of value for all the materials, the land, and the labor involved in its construction. So the long-term value of a home is tightly connected to the cost of its production, making it a very different type of investment from stocks or bonds.

Investing in commodities has always been a great way to make lemonade from the economy’s lemons. And what better way to buy into the commodities market than by purchasing a home? Sooner or later, home prices will be pushed higher by the rising cost of raw materials, so make your move now!

For more info, visit our website GabeSanders.com or call us at (772) 888-2885.

Mortgage rates are historically low right now!

04.16.09 by

The 30-year mortgage: In mid-March, 30-year conventional mortgages carried interest rates of from 4.875 percent to 5.125 percent depending on the lender, the state, and the buyer’s credit score. (See bankrate.com and others)

At 5 percent interest, the monthly payment on a 30-year mortgage for a $100,000 loan is $536.83, which many homeowners could easily afford.

The 15-year mortgage: Some home buyers look forward to paying off the mortgage before they retire or before their children enter college. The 15-year mortgage is a good choice for them.

It’s nice to know that while it will pay off in half the time, they won’t be paying twice as much each month. The 15-year payment for a $100,000 loan is less than you would think. At an interest rate of 4.25 percent, it would be $752.28 a month. Over the life of the mortgage, they would save almost $67,000 in interest.

Buyers Are Gaining Steam

04.11.09 by

A recent profile of buyers and sellers compiled by the National Association of REALTORS® has revealed promising, if not surprising statistics about the changing face of the marketplace. The percentage of first-time buyers is on the rise, and they are making their purchases for the long term.

Frankly, this makes sense, because first-time buyers aren’t struggling with the sale of an existing home. Combine that advantage with low home prices, large inventories, and low interest rates, and the result is a positive trend for both buyers and sellers.

Recently enacted tax credits and modifications in the Federal Housing Administration are also helping buyers, along with predicted increased credit flow from a federal funds injection into the banking system. More buyers entering the marketplace means more sales, reduced inventories and increasing home values.

The profile of sellers shows that over 90% used a real estate brokerage to market and sell their property. Buyers profiled listed the most important agent services as helping to find the right home and negotiate satisfactory terms and prices.

If you’re planning a purchase, and need funds for a down payment, learn from buyers in the study who mostly used savings or a gift from family, and who also chose a fixed-rate mortgage over 90% of the time. Consult with a trusted agent today, and get on board the homeownership train.

We know and understand all the financing methods available on the Treasure Coast of Florida. Why not give us a call at (772) 323-6996 or visit us on the web at www.GabeSanders.com or www.TreasureCoastFLHomes.com. Our office is located at 2391 SE Ocean Blvd. in Stuart, Florida; please ask for Gabe Sanders.