Tips on How Millennials Can Build Their Credit Scores

Millennials are becoming more and more in touch with their credit scores. This is partly because many of them are coming to the age where they tend to be more interested in buying homes and having low insurance rates. Building credit at a young age can be beneficial down the road when it comes time for some of life’s big moments.

However, there’s so much misinformation about how to deal with credit. Believe it or not, more than 1 in 5 credit card users have wrongly carried a balance to help improve their credit scores. So, getting the right information about good credit management is key.

How can millennials build their credit score? See below for some helpful tips!

Keep Balances Low

When opening their first credit card, Millennials must make sure to only charge an amount they can afford to pay off every month. To avoid higher fees and big credit issues, try to pay it on time and continue to have a low balance.

Having lower credit card balances compared to your credit card limits will reward you with higher credit scores. If you want to improve and maintain a good credit score, it’s important to keep your balance at or below 30% of your credit limit.

Set up Automatic Payment

Missing a credit card payment will affect your credit score immensely. Unfortunately, missed credit card payments are one of the most common things Millennials tend to do because they seem to forget about them.

To avoid getting a red mark on your credit report, set up automatic payment on credit card accounts. This will help ensure that the bills don’t slip by.

Follow up

Millennials tend to forget that they had bills to pay in the first place. To avoid any conflict, try to follow up about bills and check to see if any debt is owed. Another way is to request a credit report from a national credit reporting company such as Equifax or Credit Karma. This can be done for free every 12 months to see where you stand on your balance.

In any case, do more research on credit scores before you purchase a home. It’s important to have some knowledge about what goes into your credit score, how to improve them, and news on changes to the credit scoring and reporting industry.

If you want a full team of Mortgage Professionals, we’re happy to help. Acting now is a wise way to achieve your goals for tomorrow!

Please don’t hesitate to reach out to us, we look forward to hearing from you!

3 Ways Kids Can Help Move

Moving into a new home can be a huge transition for anyone, especially children. And while you can’t do much about combining your job and your pets into the move, your children most certainly can give you a helping hand! It’s a great way for your kids to learn to pitch in with responsibilities and what better way than to help with such an “adult” task. So instead of getting them distracted by watching TV, show them how to stay productive.

Check out these 3 ways kids can help move:

House Hunting 

Kids and house hunting, is it possible? Oh yes, it is! Honestly, it’s important to get your kids involved in the search for a house. Taking your kids with you will help them get excited for the move and help you by providing some input on the house. By getting them involved, you’ll learn some important insight and what they consider to be a perfect home for all of you.

Of course, don’t drag them to every house since it can be tiring. Wait until you narrowed down your options before bringing your kids with you. That way, they will feel included in the process. Having those extra eyes for evaluating what you find would be worth it!

Getting rid of Stuff 

When packing, one of the important things you would want to do is bring less items to your new home. Toys are one of things you would want to consider getting rid of! This is a great opportunity for the kids to understand the importance of giving back - after all you don’t want unnecessary toys to overflow when packing. Give them an empty box and tell them to fill it up with things they don’t need anymore. So, whenever they are ready, you can go together to drop them off at a donation site.

Unpacking Assistance 

The moment you finally arrive at your new home, you turn the key and open the front door. You might feel relieved until you realize everything you own needs to be unpacked. Moving is a big transition, and it can be very overwhelming. Get your kids involved by allowing them to be in charge of unpacking things in their own room such as their clothes or putting books on their bookshelf. Items that are easy for them to carry. It’s a great way to include them by making them feel like they are in control of their space. Having the kids help you with this “adult” task can make life a little easier! There’s plenty to be excited about when you move into a new house.

Thinking about buying a house? You don’t want to miss out finding the right house to call your home sweet home! Give us a call or send us an email! We look forward to hearing from you!

A Pet Lover’s Guide to Buying a Home

If you’re thinking about purchasing your new home, don’t forget to think about your pets. Life wouldn’t be complete without a four-legged friend by your side.  With that said, you would want to search smarter for pet-friendly homes since certain homes and neighborhood may not roll out the welcome mat for your furry friend.

So, here are 3 questions to ask that will keep you, your pet, and the people around you peaceful.  

What are the local pet laws?

You should be familiar with the city & county’s rules when it comes to pets.

There are certain locations that your pets might not be welcome, since there can be restrictions within an HOA, condo development, or even the city or state.

Some HOAs or condo developments restrict the number of pets you can have as well as the type of pet. It is your responsibility to know the law.  

Some laws concern the behavior of the dog. Dogs bark naturally, however constant barking can be disturbing for your neighbors. There are noise ordinances for almost every city.  Better to be safe than sorry!

Is the neighborhood good for pets to roam?

You’ll want to find a neighborhood that will be good for walks. A location that’s close to a park, trail, doggy park, or other green area. With dogs, they would want to roam around, especially on bathroom walks.

Another thing is being cautious on choosing a location right near a busy road or highway. Dogs and cats that like to roam could be in danger in a high traffic area.

Should you check your dream home layout?

It’s important for you to consider if the home’s layout is safe enough for your furry friend. You need to be mindful of getting a home that has a fenced in yard. Depending on the size of your pet, the amount of space varies. Definitely take into consideration their needs.

Managing a massive dog can be a massive challenge, but the right fence goes a long way in terms of keeping your dog safe and secure.

Also, see if the property is safely fenced and if the stairs are safe enough for them to go up and down easily, in case you have elderly pets or pets with disabilities.

So, take the time to consider what will best suit your four-legged companion before making a decision.

With these tips in mind, there will surely be one that’s perfect for you and your furry friend. If you want a full team of mortgage professionals at your disposal to help you make the best decisions, please don’t hesitate to reach out to us. We look forward to hearing from you!

What is an FHA Loan?

Buying a home is exciting, however, figuring out the right home loan can be stressful. Home loans, called mortgages, come in numerous types. Choosing the right mortgage loan is very important, after all it is a major purchase in your life. To have a better idea of what loan works best for your needs, let’s dive into the FHA loan program.

What is an FHA loan?

The Federal Housing Administration (FHA) mortgage offers down payments as low as 3.5 percent.

The credit score and down payment amounts are just two requirements of FHA loans. You can qualify with a credit score as low as 500 with a 10% down payment unlike many conventional loans. Just keep in mind that the lower the credit score the higher the interest rate the borrowers will receive.

Majority of first-time home buyers don’t realize that the down payment can be obtained from a financial gift.

FHA lets borrower’s spend up to 57 percent of their income on monthly debt obligation, this includes credit cards, student loans, car loans, and mortgages. On the other hand, conventional mortgage guidelines tend to cap debt-to-income ratios at around 43 percent.

FHA offers several other loans programs, including:

• Home Equity Conversion Mortgage
• FHA 203k improvement loan
• FHA’s Energy Efficient Mortgage Program
• Section 245 (a) Loan

What was the purpose of the FHA?

Congress decided to create the Federal Housing Administration in 1934 which was amid the Great Depression. During that time, the housing industry was in crisis. There was an increase of foreclosure, loans were limited to 50% of a property’s market value. The government created these loans to stimulate the housing market and reduce lender risk which made it easier for borrowers to apply for home loans. This has helped the homeownership rate to increase overtime.

While an FHA loan may sound great, you’ll want to make sure this type of mortgage is right for you.

 

If you want a full team of mortgage professionals to help with your decision on what is the best loan options for you, we’re happy to help. To learn more about an FHA loan, please don’t hesitate to reach out to us, we look forward to hearing from you!

Why is Fall a Good Time to Buy a New Home?

The housing market flows just like the seasons. Fall is an amazing season for many different reasons. It’s a chance to fill up on hot pumpkin spice lattes every morning and stay warm and cozy by a fire. Fall may be a great time to buy a house as well.

Believe it or not, November is among the greatest time of the year to find your dream home. Here are three reasons why fall can be a great time to buy.

Fewer Buyers are competing

During the summer, there’s competition everywhere! When a buyer sees a house they like, they start the home process in a blink of an eye. However, it starts to slow down when families are already in their new home by the beginning of the school season. That’s when you’ll likely notice not as many buyers are at the open house.

So, what happened?

Buyer’s demand has finally slowed down this time of year, meaning less competition. Sellers might be willing to negotiate with home buyers.

If you didn’t get the chance to buy your dream home during the busy summer season, right now is a great time to buy a home.

Price Reductions

Sellers tend to put their homes on the market in the Spring season. When homes listed didn’t sell, it’s probably because they were overpriced. Homebuyers might find the house prices falling more towards the actual market value during this season.

The longer a home lingers on the market. The more willing a seller may become on a flexible closing date or making certain repairs. Most importantly, they are willing to negotiate the price.

Holidays motivate Sellers

Holidays are a great time to spend with family, but it’s also a great time to snag a deal on a house. Sellers aren’t as motivated in the home buying process during the holidays months. However, holidays are just around the corner, sellers are eager to close so they can move on to planning their holiday dinner. Lenders, brokers, and realtors are often motivated to get a deal done before the end of the year.

So, don’t miss out the opportunity to search for a home during fall season.

Before you decide to buy a house, find out if you can put your housing costs to work by buying this year! If you have any questions for us, don't hesitate to give us a call at 770-552-1000. We look forward to hearing from you soon!

Homebuyers’ Top Mortgage Fears

The day you decide to purchase a house is the day you feel adrenaline rushing through your body. Having that constant fear in the back of your mind, afraid of not having enough down payment or maybe your credit score is too low. Possibly, your debt is too high. Those fears are what might make you take a step back and ask yourself if it’s worth going through the home process.

But did you know it’s very possible you won’t be turned down for a loan? That’s because there are three types of home loans. A lot of those fears might just simply be misconceptions.

Here’s how you can overcome your mortgage fear:

“I don’t have enough for a down payment”

According to the National Association of Realtors, the average median down payment has been 5% for first time buyers for decades. People don’t realize there are different kinds of mortgage loans that requires less than 20% down. Many borrowers put down less than 2%.

Homebuyers who go with an FHA (Federal Housing Administration) loan type can put down as low as 3.5%. Borrowers who take out a VA (U.S. Department of Veterans Affair) mortgage have the offer of 0% down.

While many believe a 20% payment is a requirement, you can see that there are different loan options available.

“I have too much debt.”

Don’t assume no one will lend you money to buy a house or a condo just because you have debt to pay off.

Lenders typically want to see that you spend less than a certain percentage of your total income on recurring monthly debts. When looking for a home, most lenders look at the borrower’s debt-to-income ratio.

Let’s say you’re paying $300 a month on your student loans, another $400 on credit card debt, $300 on your car loan and expect a mortgage payment, including taxes and insurance, of $800.

The lender will find this ratio by adding your monthly debt payments and then dividing that number by your income. So, with that monthly pre-tax income of $5000, your debt-to-income ratio is right at 36% where it lies for conventional loans.

“My credit score is too low.”

The minimum credit score for conventional loans is 620. FHA loans require a minimum of 500. The VA does not impose a minimum credit score requirement. However, most lenders would want to see you have a minimum credit score between 580-620 before approving a VA loan. This can vary lender by lender.

“I don’t make enough money.”

Most lenders expect borrowers to have monthly housing costs consume less than 28% of gross income. The lenders will measure housing expenses as a percentage of gross income which indicates if a borrower can make the payments on their mortgage loans.

For instance, if a borrower’s salary were $5,000 a month, a lender would want to see the housing expenses were less than $1,400 per month.

Budgeting is key, so don’t lose hope!

 “Getting turned down for a loan.”

When searching for a home, you should consider getting pre-approved. It can get you a very good idea of where you stand, and this will help you boost your confidence when buying your dream home.

The pre-approval process is free and it’s one of the most important steps when getting a mortgage.

Before you decide to buy a house, find out if you can put your housing costs to work by buying this year! If you have any questions for us, don't hesitate to give us a call at 770-552-1000 or send us an email at skatz@vandykmortgage.com. We look forward to hearing from you soon!

How to get a Mortgage

The best part about house hunting is finding “the one”, but it’s important not to rush things and take the time to understand the home buying process. You don’t want to overwhelm yourself. So, before you set foot in your new home, make sure you know the step by step of getting a mortgage.

Here are some simple steps that you can follow to help make the most out of the mortgage process. 

Step 1: Get your credit in check    

Your credit score tells lenders just how much you can be trusted to repay your loan on time. 

Usually, first time home buyers are unsure of what their credit score is. When you look at your credit report, make sure there aren’t any credit errors. Having a credit error removed has the potential to boost your score, but keep in mind it can take up to 30 or more days to get corrected.

If you discover your credit report has errors, do what you can to improve your credit score, so you’ll be ready for the next step of researching and choosing the best mortgage type for you.

Step 2: Get pre-approved for a mortgage

Once you are prepared with your credit score, getting a pre-approval is the next step. A mortgage pre-approval is a letter from a lender that determines the loan amount you could qualify for. This will help you eliminate disappointment! Also, without it, the seller has no guarantee you can afford their home.

Step 3: Choose the right mortgage options

The most important thing is deciding the right type of mortgage for you! There are three main factors to consider when you are comparing loan options: The term, the interest rate type, and the loan type.

• The loan term indicates how long you pay off the loan: The most popular loan terms than homebuyers get would be a 15-year or 30-year mortgage.
• There are two types of interest rates: fixed and adjustable. Fixed rates will stay the same while adjustable rates change over the life of the loan.
• There are three main types of loans: Conventional, FHA and special programs loans.

Once you have a sense of the type of loan you want, you can compare lenders and offers.

Step 4: Be patient

Don’t rush through the process. Buying a home requires a lot of time and effort, so you want to be fully prepared and make the best decisions possible.

Make sure you are ready to purchase a home, emotionally and financially!

If you want a full team of mortgage professionals to help with your decision on what is the best mortgage option for you, we’re happy to help. Please don’t hesitate to reach out to us, we look forward to hearing from you!

Trying to Buy a house in your 20s?

In your 20s, there’s so much going on with your life, especially figuring yourself out! It’s about fulfilling and preparing yourself for success. Just trying to have fun and being young, but you also go through the quarter-life crisis better known as your 20’s which could include college loans, extra expenses, and your first entry-level job.  When you think about homeownership, you think it’s beyond your reach. Believe it or not, that’s not the case!

Anything is possible, becoming a first-time home buyer is a big life decision!

So, if you think you’re ready, what are you waiting for? Here’s how you can make your first home-buying dream come true! 

Handle your Student loan debt

If you have student loan debt, you are not alone! College debt shouldn’t prevent you from buying a house.

When looking for a home, most Mortgage lenders look at a borrower’s debt-to-income ratio. The lender will find this ratio by adding your monthly debt payments and then dividing that number by your income. This will help determine the amount you can afford for a mortgage loan.

Another way to make room for mortgage payment is to refinance your student loans and extend it.

Purchase your dream home

When looking for your home as a first-time home buyer make sure to find the best house for you and your needs. A starter home may be the best option! After all, it’ll be your first, not your last! You don’t have to buy your forever home just yet.

Remember, make sure it’s something you’d be happy living in 5 years or so. 

Prepared for home expenses

Always be prepared by having emergency money for home repairs. Homeowners handle all the home repairs. If renovations need to be made, you are left to hire the right contractor and pay the bill. If you need to renovate the kitchen or repair roof damage, for instance, it’s up to you to take on responsibility as the home owner. All this in the long run can add up to a fairly large amount of money.

Remember to keep track of your budget!

In the end, owning a home is the best thing that can happen especially in your 20s. The best way to ensure your home-buying process is a confident one, please don’t hesitate to reach out a full team of mortgage professionals. Call us at 770-552-1000. We’re happy to help you make the best decision.

Is a One-Story Home better than a Two-Story Home?

You probably have an idea of what type of home appeals to you most. People will find one-story homes also known as Ranch style more appealing than a two-story home, but that’s a matter of personal taste and architectural style. Whether you have an eye on a bungalow or a colonial house, one-story ranch home has plenty of positive aspects.

Here are some factors to consider on a one-story ranch style home:

Quieter living

Let’s face it, there’s no up-stairs so you won’t hear a lot of jumping and running around from above. If you have kids, a one-story home might be a nice quiet option.

Easier to clean

It’s easier to access and clean gutters, roof, and outside walls. Let’s not forget, you don’t need to worry about vacuuming up and down stairs.

Safer than 2-story homes

Child safety plays a big factor when you have a family. People with children, are not big fans of stairs. It’s too easy to slip and fall down the stairs, so it’s best to eliminate that risk.

Easier to age in place

If you plan on staying in your dream home until retirement, then a one-story ranch style home is easier to get around than a two-story home. As people age, stairs become more difficult to climb. So, might as well make it become a forever home.

So, what do you think?

In the end, I believe it comes down to personal taste. Once you have your down payment saved up, you will be ready to shop for a home. Owning a home is one of the best thing that can happen. What is the right choice, for you?

Additionally, why not learn all about mortgage loans for first-time home buyers while saving for your house? If you want a full team of Mortgage professional, we’re happy to help you make the best decision.

Please don’t hesitate to reach out to us for more details: 770-552-1000. We look forward to hearing from you!

Questions You Should Consider Asking a Real Estate Agent

Are you a first-time home buyer and ready to purchase a home?

Finding the right real estate agent can be a struggle, especially one that meets your needs! So, how do you really know which agent is right for you? 

To help you figure this out, you need to throw a few curveballs by asking them questions. Here are two questions you probably should ask a real estate agent.  

If you were looking to buy a place, where would you move and why?

This question will help you align with the right agent. Having a similar lifestyle can make things easier and help your agent find homes with characteristic’s that might matter to you.

For instance, if you and your agent both have kids. She’ll mention which neighborhoods have the best school and parks to go to. Ultimately, your agent will help you drastically narrow your search results to find something your entire family will be happy with.

You want to find the right agent that can put themselves in your shoes. 

How do you help buyers come to a decision?

By first finding out what the buyers really want and managing their expectations.

A list of all the pros the home should have can only take you so far. Although, this will reduce your search process as you look online, having professional input from a real estate agent is always helpful.

You want to find an agent that will make you feel comfortable, especially an agent that will help you focus on what you really need in a home.

Additionally, why not learn all about mortgage loans for first time buyers while looking for a real estate agent? If you want a full team of mortgage professionals, we’re happy to help you make the best decision.

Please don’t hesitate to reach out to us for more details: 770-552-1000. We look forward to hearing from you!

Should you Buy your Forever Home First?

The best thing about searching for your dream home is finding all the things you want in a home. It’s one thing when you buy a starter home but purchasing a forever home you need to think about what might meet your future needs. Let this sink in and ask yourself, “Do you know where you are in life? And is a starter home or a forever home best for you?”

We’ll help you decide if a forever home is calling your name. Let’s dive into things to consider when you buy your forever home.

A Forever Home

A forever home is generally occupied for much longer periods of time than a starter home. When you start searching for a forever home, a big factor might be the entry into the home. The optimal entry into your forever home is zero-step. Keep in mind, if you’re living there the rest of your life you don’t want to walk up numerous steps or hike up a hill just to get in front of the door. 

Also, you may want to consider on how big of a space you want instead of waiting until you really need that extra room.  

Think about it: What if you’re planning a wedding or expecting a child? Might as well skip the starter home to save some trouble and jump right into your forever home.

Tips for Buying a Forever Home

So how much can you afford? It depends, the amount of down payment you have will help you narrow down the price range on your forever home. Try to match your expectation with your budget.

Remember to look beyond your monthly mortgage and take into consideration costs such as utilities, homeowner’s association fees, cable, and internet. Although for someone who has never owned a home before, it does bring a good amount of responsibilities that might take some by surprise.  

If you’re a millennial and ready to purchase your forever home, please don’t hesitate to contact us at 770-552-1000. We look forward to hearing from you! 

Should you Buy your First Starter Home?

There’s so many good reasons to own the roof over your head rather than living under your parent’s roof or renting. For a first-time home buyer, saving for a new home can be one of the challenging and exciting chapters of your lives. But, many wonder what type of home they would like to purchase.

What is considered the right home for a first-time buyer? That depends on the person, it all comes down to what suits their lifestyle and income.

If you’re thinking about getting a starter home, here is some guidance to help you explore entry level housing options. 

The Starter Home

The term starter home is a small home that meets requirements for a first-time buyer with 2 or 3 bedrooms and possibly a garage. It’s something you’d be happy living in for around five years or so.

Whatever type of starter home you get, that home is generally priced at a reasonable price point.

It’s not just your mortgage payment that will be lower, your property taxes will be more manageable. Other expenses that you might not think about like electricity and gas will be less as well.

Everybody at some point in life should start at an entry-level home.

Tips for Buying a Starter Home 

Take time to research homes online to see what’s out there. You should make a list of features and narrow down the location you prefer. It’s good to set expectations and know what you want but remember you might have to compromise when looking for a starter home.

Don’t get carried away with falling in love with your first home, you want to do it based on knowledge and common sense. You especially don’t want to be caught over paying your monthly mortgage once you buy a home.

Not to mention, use a pre-approval letter from a mortgage lender in your area. A pre-approval letter will help eliminate disappointment and make the search for an affordable home easier. 

So, what’s your decision?

In the end, I believe it comes down to personal preference. Owning a home is the best thing that can happen. What is the right choice, for you?

Additionally, why not learn all about mortgage loans for first time buyers while saving for your house? If you want a full team of experts, we’re happy to help you make the best decision.

Please don’t hesitate to reach out to us for more details: 770-552-1000. We look forward to hearing from you!

When Should You Make an Offer on a Home?

Buying a home can be the most exciting part of your life. Let’s face it, buying a home is a huge deal. Too often, people rush into homeownership without realizing that a home can be overpriced.

What if you have found your dream home? You don’t want to lose this opportunity, yet you don’t want to over pay on your mortgage either. To be clear, it’s best to play your cards right when you make an offer.

Not sure where to start? Take a look at these 3 signs to determine when the time is right to make an offer. 

How long has the home been on the market?

It’s simple, supply and demand. It’s best to look around at the houses in the area that are similar and up for sale or recently sold. Once you do, check to see how long the houses stayed on the market. If it’s more than average, then you are in a buyer’s market. That might tell you that the seller has overpriced the home. However, it will be easier to negotiate at a better price since the house has been on the market for so long. 

When you’re not picky

Many people have a preference on how their future house should look. Others, maybe planning a full renovation no matter how the house looks. However, if the price is all that matters then you shouldn’t be afraid of throwing offers left and right. When you are searching for a home, go around every house and negotiate. Granted, you will eventually find a seller who is willing to compromise. 

When the Home is outdated

Trends comes and go, but when a home is completely outdated that’s when you swoop in with a low offer. So, how do you know when a home is outdated?

For instance, whether its flower’s or busy patterns, nothing makes a home look outdated quicker than wallpaper. Let’s not forget those wood wall panels. Or, if the house still has an old thermostat to control your home’s heating and cooling system.

If your home has any of these, your house is completely outdated. So, play your cards right and negotiate for a better deal. 

Bottom line, when you shop for a home, it really does help to do your homework and know the environment you are buying. Having enough information will help you submit an offer that meets the market value.

Find out if you can put your housing costs to work by buying this year! If you have any questions for us, don't hesitate to give us a call at 770-552-1000 or send us an email at skatz@vandykmortgage.com. We look forward to hearing from you soon!

Why You Need A Mortgage Pre-Approval

Are you starting the house hunting process to find a home and haven’t been approved yet for a mortgage loan? So, how do you know which type of loan is going to be the best for your situation? Getting pre-approved is the answer!

A mortgage pre-approval is a document that indicates how much of a loan you can get approved to borrow.

Let’s dig in a little further as to why you should get pre-approval before you shop for your dream home…

Potential Credit Problems

Usually first-time homebuyers are unsure what their credit score is. It’s common when buyers are unaware if they have a credit problem. When they get pre-approved, the buyer will be made aware if they have any issues their credit reports.

Many people don’t monitor their credit score and usually can have a credit error. Having a credit error removed can have a long process and sometimes it can take a couple months for it to get corrected. So, this can all be fix when getting it pre-approved.  

Eliminate Disappointment

Pre-approval letter will help eliminate disappointment and same goes for someone who is purchasing a home.

This happens because when the buyer is searching for a home with an agent, either of them wouldn’t know if the buyer can afford a house. This can possibly lead to a disappointment. Who knows, they would probably fell in love with the one and submit an offer. The next thing they know the buyer won’t be able to afford the house due to credit problems or other situations.

It’s very understanding when leaving the buyer heartbroken and disappointed! Here’s a thing, this can all be avoided once they get pre-approval before looking for a home. Don’t miss an opportunity looking for your dream home without getting it pre-approved. You don’t want to miss out! 

If you want a full team of experts, we’re happy to help you make the best decision. Please don’t hesitate to reach out to us, we look forward to hearing from you!

Kids are Back to School: Why Fall Might be the Best Time to Buy a Home

Summer is coming to an end. Kids are getting back into the school routine. Fall is just around the corner. The return of cooler temperatures, beautiful fall colors, and pumpkin-spiced coffee is on our minds. It’s also an opportunity to search for your dream home and hopefully snag a great deal!

Many people wonder if the best time to buy a house is during the spring/summer season. In a way yes, however, there are a lot of buyers out at that time trying to purchase a home. Once buyer demand slows down this time of year, sellers might be willing to negotiate with home buyers. If you didn’t get the chance to buy your dream home during the busy summer season, or are starting the process as a first-time homebuyer, here are reasons why buying a home is the best move to make.

Less Competition & Price Match Market Value

Usually, during the summer when a buyer sees something they like; they need to jump on it immediately or it will be to late. There’s competition everywhere trying to find the perfect home. However, once kids are back to school, fall is a perfect time to search for a home as most summer buyers would be already out of the picture.

On the other hand, if the homes listed during the summer didn’t sell, it’s probably because they were overpriced. Homebuyers might find the house prices falling more towards the actual market value during this season.

For instance, in 2017, the US, median sale price dropped 4% from $265,000 in June to $261,000 in October, according to Zillow home value index.

When searching for a home, try to do an estimation on the house price, submit an offer that meets the market value. It’s easier for buyers to negotiate a better price. You will be surprised how tables turn around. 

For example, Buyers have the upper hand more so than the sellers do. During the slower market, Buyers are willing to give the seller more time to close. This usually happens because they might sweeten the deal by leaving behind a hot tub. So, don’t miss out the opportunity to search for a home during Fall Season.

Before you decide to buy a house, find out if you can put your housing costs to work by buying this year! If you have any questions for us, don't hesitate to give us a call at 770-552-1000 or send us an email at skatz@vandykmortgage.com. We look forward to hearing from you soon!

Buying is Now Cheaper than Renting in Georgia

As the cost of renting is increasing, it gets easier to decide whether it’s a smarter choice to buy or rent. A new study indicates that buying is now 26.3% cheaper in the United States, with a traditional 30-year fixed rate mortgage. It indicates that 98 out of 100 United States housing markets buying is more affordable.

According to Trulia’s data, it’s no shocker that renting comes out best in two areas: San Jose and San Francisco, California. In contrast, in most places buying is still expressively better financial proposition.

Is Buying a Home cheaper than Renting in Georgia?

Atlanta posted an 11.6% increase in home values, trailing only San Jose. But Atlanta is also where buying saves the most over renting – 36.1% over seven years. Although Atlanta home values have gone up considerably, the median remains relatively low – just over $209,235. Change in median Rent is 1.3%, buying makes more sense.

Of course, what is not really mentioned in the study is that paying rent and paying mortgage are not equal things. When you pay rent, it entitles you to stay in a place. However, when you pay a mortgage, not only do you stay in a place, but also grants you ownership of your home.

So, buying is cheaper than renting in Atlanta. When you buy a home, it is a good investment. Your cost is predictable and more stable than renting because they’re ideally based on a fixed-rate mortgage. Homes typically increase in value, which build equity. Homeowners receive various tax benefits and gain control over their space as they can make modifications without permission.

If you have any questions, please don’t hesitate to give us a call or send us an email. We look forward to hearing from you soon!

Property Taxes: What You Need to Know

There are things you might not know enough about when it comes to property taxes. For those who haven’t bought a home yet it’s time to break the ice, you need to gain a deeper knowledge about property taxes.

So, what is property tax? It’s a tax on real estate you own, both the value of your home and the land. The funds collected from property taxes are used for road construction, libraries, public schools, and a good number of other programs.

If you are a new homeowner, you probably pay a big property tax bill every year depending on the regulations you live off.

Here’s some things every homeowner should know about their property taxes.

Paying Your Property Taxes

The best thing to know is how much you will pay in property taxes.

So how would you know that? A tax assessor will determine your property tax where you live and the amount the house is valued.

 You should receive an Annual Notice of Assessment (this is NOT a bill) which will inform you, the property owner, of the current fair market value as calculated by the Board of Tax Assessors as well as the assessed value of your property. 

The Annual Notice of Assessment also includes estimated taxes that are based on the previous year's millage rate and the current year's value. The actual tax bill will be calculated on the millage rates set by the Board of Commissioners and the Board of Education for the current year. Tax bills are usually issued by the Tax Commissioner in August but all depends on your state/county.

Property Tax Exemptions May Apply to You

In some cases, you might be eligible for a property tax exemption. Tax exemption reduce your obligation to pay tax. It may vary by state and by local tax judication. The best way to figure out if you’re eligible is to contact your local tax assessor.

If you are a military veteran, more than likely you are qualified for exemptions.

You Can Appeal Your Assessment or Property Value

Many homeowners don’t realize that they can lower their property taxes. Believe it or not, only 2% of homeowners appeal their assessments.

It’s best to pay attention to assessment and reassessments. The assessor compares your property to similar properties that have sold in the area, such as the same age, size, and similar amenities. It’s based on variables that make your property valuable. You never know, it’s worth a try to lowering your tax bill.

In any case, do more research on property taxes, before you purchase a home. It’s important to have some knowledge about what percentage of your budget will go toward them.

If you want a full team of experts, we’re happy to help you make the best decision. Taking action now is the wisest way to achieve your goals for tomorrow!

Please don’t hesitate to reach out to us, we look forward to hearing from you!

First Time Home-Buying Mistakes People Make

When you’re in the 20’s or 30’s you don’t think about those questions home buyer should ask. Assuming you know the steps to buy a house and the type of mortgage you need. Realistically, you have no clue what you’re doing. Whether it’s choosing the wrong location or buying an overpriced home, buying a home is major part of your life.

You want to purchase a home with confidence. Here are common mistakes first time home-buyers make and ways to avoid them.

Buying a House Knowing you are Moving Again Soon

We all go through this transition from living in your parent’s house to starting your independent life renting an apartment. As we build our careers and save money, many choose to take the huge step of buying a home. Your job is a big impact in your life just like owning home. You don’t want to buy a property knowing you have a job offer in a different state.

So, is 2018 the year to buy a house? If you are a renter and ready to buy a house, ask yourself if you’re going to stay put for a few years. If yes, it’s the right time to buy. You want to figure out your five-year plan before pulling the trigger on buying a house.

Getting the Wrong Type of Mortgage

Making your first home purchase is a great accomplishment as long as you did your research on mortgage options. Many first-time home buyers hear false statements about putting a 20% down payment. Honestly, that’s not the case, you can buy a house for much less than 20 percent down. Along with popular programs, such FHA Loans and VA Loans, the average median down payment has been 5 percent for first time buyers.

There are loan options available, just be aware of the types of loan products. It’s best to consult with a mortgage expert to help your decision on what is the best loan option for you.

Rushing into a Purchase

Once you find a home, you of course don’t want to miss the opportunity of buying it before someone else does. The next thing you do is rush through the home process. Truthfully, rushing into the process could take money out of your pocket in the long run. For instance,

·         If you are new to the area, give yourself some time looking for a home and getting to know the area. Knowing the area you’re interested in is important.  Don’t settle in when you aren’t sure about the location.

·         If you are newlyweds, give yourself time to adjust to couple life before searching for a home.

·         When purchasing a home, make sure to compare interest rate quotes to insure you are getting the best options for your mortgage.

Buying a home requires a lot of time and effort, you want to be fully prepared and make the best decisions possible.

Make sure you are ready to purchase a home, emotionally and financially! When you look for your dream home, remember it’s a huge commitment. Like I said, “You want to purchase a home with confidence.”

If you want a full team of experts to help your ways to avoid them we’re happy to help! Please don’t hesitate to reach out to us, we look forward to hearing from you!  

Considering a Dream Home with a Long Commute?

Location, location, location…. After weeks of searching for a home you start to wonder if you will find all the things you want in a home. There’s many factors that should be put into consideration. Let’s face it, we want it all: an easy commute, nice school district, low taxes, and a great lifestyle. The one thing that sticks out is commute. A nice neighborhood with an easy drive to work is golden. However, what if your dream home means a long commute? Is it worth it? Trust me, it won’t be worth driving through traffic countless hours every week.

Getting everything you want might not be as easy as you think. So, here’s how to factor your commute so you can decide where you would like to live.

Commuting

Commuting is usually defined as travel between the home and the office. So, what’s the issue? Commuting isn’t getting any better and it’s not a bonus for a homeowner. The average Atlanta commutes takes up to an hour.

It’s best to calculate your commute costs, vehicle maintenance, even insurance, before choosing the neighborhood. Sometimes, adding a long commute can double the cost of your expenses.

Lifestyle

This is one of the most important priorities in your decision. Your lifestyle! The generation of young Millennials usually focuses on the night life, restaurants, and outdoor parks. On the other hand, those who have a family and are raising children, would consider what is best for the kids: likely want a short commute and the best school.

Job flexibility

It’s tough to find the balance between work and commute, but adjusting your work schedule to avoid rush hour traffic makes life easier. So, is it worth the commute? It all depends on your job flexibility, whether you work remotely or telecommute. However, if you work from 9 to 5, five days a week, then this may be an issue with the long commute. Those who have the option to adjust their work schedule shouldn’t worry as much about a longer commute.

When you make a big lifestyle change like moving to a new house, make sure it’s about the balance between the price, location and amenities. Waiting to buy until you are comfortable with a home will be a long-lasting accomplishment. Life will be easier for you! To help you weigh the pros and cons, we’re happy to help you make the best decision. Please don’t hesitate to reach out to us, we look forward to hearing from you!

Which Documents Should You Keep After Buying a Home?

Throughout your home-buying process, you will receive a load of real-estate paper work. The question is, how do you know which documents you should keep after buying a home? After all, you don’t want to keep all the paperwork. Here are the files you should keep and why:

Buyer’s Agent Agreement

When you start looking for a home, you choose an agent that will represents you in the purchase. This means you sign a buyer’s agent purchase agreement, a contract between you and the brokerage.

Why do you need it? This contract provides information on what the agent agreed to provide you with, such as who pays commission and terms of terminating. It’s best to keep it just in case there’s any issues.

Purchase Agreement

When you buy a home, you signed a binding contract by you as the home buyers and seller that confirms that they agreed on the terms.

Why you need it? It contains legal ramifications in case you and the seller fail to fulfill the agreement. 

Addenda, Amendments, or Riders

For any reason, these types of documents modify the terms of your purchase contract. They are related to home inspections or appraisals, because the original document was changed, it’s best to hold on to these papers.

Insurance Policies

Insurance is a safety net for when risks go wrong. It’s best to keep this document just to reassure any competing claims to the home, such as liens against the property, especially fraudulent signatures.

Property Deed

When you become the owner of the house, you will receive the deed.  This document is the only way you can prove to others that you are legally the owner. You do not want to lose it!

For the most part, be careful not to throw out these important documents.

If you want a full team of experts, we’re happy to help you make the best decision. Taking action now is the wisest way to achieve your goals for tomorrow.

Please don’t hesitate to reach out to us, we look forward to hearing from you!

4 Tips for Home Buying in Another State

Buying a home out of state can be very stressful, especially if you don’t have the time to travel there on your own. It can be very frightening to not know the best neighborhood without any guideline. It’s unfortunate how you might be gambling for your dream home. That’s just plain stressful!

In case you don’t have a friend or relative living in the state you want to move to, here are a few tips on what you need to know to make a purchase with no regrets.

Do your Research about the House’s Area

The number one thing you should do is research before you buy your dream home. It doesn’t matter if its in-state or out-of-state, but it’s the primary thing to do.

Go online and read about different cities and neighborhoods, including online listing homes. You will be familiar with the different agents that focus in the local community. The earlier you start the process, the less stressful it’ll be.

Find the Right Real Estate Agent

Many buyers are usually referred by family and friends to an agent. It is the best way to find an agent; however, home buyers who are relocating out-of-state usually have a hard time finding the right agent. So, it’s best to be picky when choosing an agent.

After searching online for homes, you can recognize which agents list the most in the neighborhood area. After recognizing different agents, it’s not a bad idea to email a few of them.

Don’t be Afraid to Ask Questions

If you get a little confused on a situation, don’t be afraid to ask questions. The process in another state will most likely be very different. Every situation is different, so just know that things might take a little longer than usual.

Again, don’t hesitate to ask any questions and be patient during the process.

Closing Process

Once you find your dream home, you will have to do a home inspection. If you have a chance to travel, try making it to the inspection as well as the closing date. If there’s any problem during the inspection, it’s easier to understand the issues in person.

After the inspection, the process should be the same as if you were buying a home in-state. Once you have closed on your home, the best way to make a long-distance move less boring is treat it like a road trip. Your move will be exactly what you make of it.

Newer or Older Home?

Life is full of exciting moments, especially purchasing your first home. Whether you are ready to move out of your parent’s home or ending your rental lease, purchasing your first property is a big step. You want to get it right. The one big decision you are facing is whether you should get a newer or older home.

 So, should you buy an old or new-construction home?

Age considerations tend to be the least of the home buyers worry. However, they naturally focus on the price and location of the home they want to buy. Here are advantages and disadvantages to consider when trying to decide which is best:

Old home benefits

The benefit of buying an older home is that they are going to be located in established neighborhoods and ideally near local stores such as shops, restaurants, parks, and public transportation.

Advantage of buying an older home:

• It’s ideally in a more central location
• Can buy in an established school district
• Old house might have new upgrades
•  Older homes have more character, custom design
• Possibly cheaper

The disadvantage of buying an older home:

•  Harder to find your dream home
•  Financing could be tricky
• Possibly be more expensive than buying a new home based on location
•  Might have to settle for a smaller ideal home to live in the right location

New home benefits

The benefit of buying a new construction home is it’s never been lived in, meaning everything in the house is in good working order and nothing needs to be repaired.

Advantage of buying a new construction home:

• Move-in ready (no wait or work to be done)
• Updated technology
• Ability to customize
• Able to finance additions into mortgage
•  Less competition more choices on floor plans

The disadvantage of buying new construction home:

• More expensive than buying old home
• Location might not be ideal
• Construction nearby (hearing noise)

So, what do you think?

In the end, there’s no easy question. It really depends on the first-time buyer’s situation and goals. I believe it comes down to personal preference. Once you have your down payment saved up, you will be ready to go and know exactly what you’re looking for. Owning a home is the best thing that can happen. What is the right choice, for you?

Additionally, why not learn all about mortgage loans for the first-time buyers while saving for your house? If you want a full team of experts, we’re happy to help you make the best decision.  Please don’t hesitate to reach out to us for more details: 770-552-1000.

We look forward to hearing from you!