Tag Archives: down payment

Money Monday: New Year, New Financial Resolutions

It’s the start of 2018, and a great time to make financial resolutions!

Need to save more? Check out my posts on saving (here), with topics on easy ways to save, changing your spending impulses, and saving for a house down payment, just to name a few.

If you’re delving into the life stage of buying a house, find all sorts of real estate financial tips and advice here.

For advice on spending money responsibility, click here.

Check out all of my Money Monday posts!

Photo from Pictures of Money

Money Monday: Saving enough for a house down payment

“Saving up a down payment to buy your first house can seem a pretty daunting task. However, getting a down payment together is not as difficult as you may think — if you go about it the right way.”

Personal finance and money

There are a few steps you need to consider, from CNN:

  1. How much house can you afford? You typically need to keep it below 28% of your pre-tax monthly income.
  2. “Figure out how much you can set aside each month. That will also help you determine how long it will be before you’ll have the full down payment and can start house-shopping.”
  3. Invest it to speed up the process.
  4. Borrow from your 401(k).

Read the full article from CNN here: “How to save enough money for a down payment on a home.”

Money Monday: Preparing to Buy a Home

Buying a home — it’s a big decision; one that you should prepare for in advance.

buyers and sellers real estate disclosures“One of the most important things a first-time homebuyer can do is prepare their budget for this big financial event.” (“How to Prepare Your Budget for Buying Your First Home”. http://finance.yahoo.com/news/prepare-budget-buying-first-home-123000854.html)

And there’s a few key ways that you can get your budget in order:

  1. Work on getting your credit score up
  2. Save for a down payment on a house
  3. Prepare for extra costs when buying

Read more on Yahoo’s financial advice on prepping your budget before buying here: “How to Prepare Your Budget for Buying Your First Home”.

Money Monday: Renters have affordability challenges when buying a home

Renters value homeownership but face affordability challenges when it comes to buying a home, C.A.R. survey finds.

upside-downCurrent renters value homeownership and want to buy a home, but many are encountering affordability and financial obstacles that prevent them from buying, according to the CALIFORNIA ASSOCIATION OF REALTORS®’ (C.A.R.) “2016 Renter Survey. Making sense of the story:

  • Nearly half of renters (48 percent) plan to buy a home in the future, with 10 percent saying that they plan to buy within a year.
  • For those not planning to buy, an improvement in finances, lower housing prices, and saving enough for a down payment would motivate them to buy now.
  • Of the 28 percent of renters who don’t plan to buy in the future, 50 percent said they can’t afford to buy, 20 percent will not buy because they prefer to rent, 19 percent said they can’t qualify for a mortgage, and 15 percent lack a down payment.
  • Job uncertainty (9 percent), economic uncertainty (12 percent), and housing market uncertainty (6 percent) were among other reasons renters cited for not buying a home.
    Homeownership remains important to renters, with nearly half (45 percent) rating it 8 or higher in importance on a scale of 1-10, with 10 being extremely important. The average was 6.8.
  • Nearly all renters (95 percent) see advantages to homeownership; freedom to do what you want with your home, building equity, and having permanence and stability were the top benefits mentioned by renters.
  • One of the surprising findings of this survey is that more than one in four millennial renters said they plan to purchase a home that will accommodate their parents, and about one in five millennials indicated they plan to pool funds with family members to buy a home.

Read the full story from KPCC: www.scpr.org/news/2016/06/08/61459/homeownership-is-valued-but-remains-expensive-and/

Money Monday: 5 things homebuyers need to do

If you’re looking to purchase a home in the near future, start planning now on what you need to do before actually looking for a home.

buyers and sellers real estate disclosures

There’s a lot on your to-do list when it comes time to buy a home, but you can avoid making some big mistakes and hurdles by realizing these five helpful pieces of information (tips from the Bankrate’s helpful article here: “5 first-time homebuyer mistakes“):

  • Realize that you’ll be paying more than just mortgage payments
  • Get loan preapproval before starting the house hunt
  • Get professional help from a real estate agent (In San Diego County and don’t have a Realtor? Call me at (619) 890-3648!), loan agent, and perhaps a lawyer)
  • Don’t use all your savings on the down payment
  • Wait until you’ve officially closed to make any other big purchases

Bankrate’s article is full of many more details and information on these tips, so click over to their website and read their article here: “5 first-time homebuyer mistakes“.

Real Estate Purchases in 2015

In 2015, the majority of home buyers financed their real estate purchase.

In 2015, 86% of home buyers used financing (first-time buyers were more likely to utilize financing) to purchase their homes, but there were also high numbers of all-cash buyers.

CallingAllFirstTimeBuyersThis infographic is from CALIFORNIA ASSOCIATION OF REALTORS, at CAR.org.

Money Monday: Buying a home without a 20% down payment 

Are you thinking of buying a home, but don’t have 20% of the purchase price for a downpaynent?

That doesn’t necessarily mean that you’re out of luck. 
  

With the national average listing price for a four-bedroom, two-bathroom home at $302,632, according to Coldwell Banker Real Estate, home buyers need to come up with $60,526 to put 20% down.

A recent article from Money.CNN.com has some helpful ideas for hopeful homebuyers:

1. Apply for an FHA loan. These require as little as 3.5% down. 

2. See what your options are through the government. 

“The Department of Veteran’s Affairs guarantees VA home loans with 0% down to former and current service members… 

“The Department of Agriculture has a home loan program to increase homeownership in more rural and less-populated areas…

“Many cities and municipalities offer down payment assistance programs to help potential buyers…”

3. Ask family members for a loan.

4. Get the money as a gift 

5. Use retirement funds 

Read CNN’s full post on this here: “How to buy a home without a 20% down payment“.

Amount of First-Time Home-buyers is Down

Share of First-Time Home Buyers Hits 27-Year Lowbuy home

According to the Wall Street Journal, first-time home buyers represent a traditionally reliable slice of the housing market, but they now comprise the smallest share of U.S. buyers in nearly three decades. Their absence in the market is raising questions about the impact of the crash on potential homeowners. Continue reading