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Singles Are Falling for Their Dream Home First

by Melissa Thompson

Some Highlights:

  • According to NAR’s Profile of Home Buyers & Sellers, the share of recent homebuyers who were single at the time of purchase held steady at 24% last year.
  • The percentage of first-time buyers who were single females rose to 17% (up from 16%), as the share of single men dropped from 11% to 8%.
  • The primary reason for buying a home amongst singles was the desire to own a home of their own (38% for women and 37% for men).

​​Contact your local expert’s at The Melissa Thompson Team 901-729-9526 to find out if you qualify to buy your dream home! 

By: KCM Crew

Get Pre-Approved and Stand Out from the Crowd!

by Melissa Thompson

Across the country right now, the number of buyers seeking homes far outnumbers the number of homes available.  Because of this, the housing market is super competitive and buyers often need to do something to stand out.  One way to show that you are serious about buying your dream home is to get pre-qualified or pre-approved for a mortgage before starting your search.

Even in a less competitive market, knowing your budget will give you security of knowing if a home is within your reach.

One of the many advantages of working with a local real estate professional is that many have relationships with lenders who will be able to help you with this process.  Once you have chosen a lender, you will need to fill out their loan application and provide them with vital information regarding your credit, debt, work history, down payment and residential history.

There are 4 Cs that aid in determining the amount you will be qualified to borrow:

  • Capacity: Your current and future ability to make payments.
  • Capital or cash reserves: The money, savings, and investments you have that can be sold quickly for cash.
  • Collateral: The home or type of home that you want to purchase.
  • Credit: Your history of paying bills and other debts on time.

Getting pre-approved not only shows sellers you are serious, but also speeds up the process of completing the purchase once your offer has been accepted.

Many people overestimate the down payment and credit scores needed to qualify for a mortgage.  If you are ready to buy, you may find yourself pleasantly surprised at what you can afford!

Thinking about buying your own Memphis TN home, Call your local expert’s at The Melissa Thompson Team 901-729-9526.

The Cost of Renting vs. Buying in the US

by Melissa Thompson

The Cost of Renting vs. Buying in the US [INFOGRAPHIC] | Keeping Current Matters

Some Highlights:

  • Historically, the choice between renting or buying a home has been a tough decision.
  • Looking at the percentage of income needed to rent a median-priced home today (29.2%) vs. the percentage needed to buy a median-priced home (15.8%), the choice becomes obvious.
  • Every market is different. Before you renew your lease again, find out if you can put your housing costs to work by buying this year!

Thinking about buying your own Memphis TN home, Call your local expert’s at The Melissa Thompson Team 901-729-9526.

 

 

Help for First Time Homebuyers

by Melissa Thompson

Have you been hesitant to purchase your first home because you are worried about having enough cash for a down payment or that you won’t qualify for a loan?  Don’t despair!  There is help out there for you.  Owning a home is a sound financial investment and there is no reason to keep paying a landlord’s mortgage when you could be paying your own and building equity for your future.

The Tennessee Housing Development Agency has the Great Choice Home Loan program which was designed specifically to help first-time homebuyers overcome obstacles such as:

  • Not enough savings for a down payment
  • Being unsure of how the home-buying process works
  • Worrying that you won’t qualify for a loan
  • Being concerned about high-risk mortgages

Most Great Choice Home Loans are insured by FHA or USDA-RD, which means that you can borrow up to 96.5% of the total price of the home you are purchasing. So, you will only need a minimum of 3.5% for a down payment.  In addition, financial assistance is available to every approved homebuyer!  You can utilize your financial assistance for any loan-related costs, including down payment and closing costs.

The THDA offers homebuyer education classes and taking one of these classes is a great first step toward understanding all you need to know before you start your home search.  The class teaches things such as:

  • What makes a home right for you
  • What questions to ask when looking at a home
  • How to qualify for a home loan
  • What’s involved in maintaining a home

If you plan to apply for down payment assistance, it is required that you take this class.

The real estate professionals at Your Key to Memphis can explain this program to you and answer any questions that you have.  Contact them and start your home search today!

 

http://www.yourkeytomemphis.com/Blog/What-Would-You-Sacrifice-to-Save-For-Your-Next-Home

http://www.yourkeytomemphis.com/Blog/Four-Reasons-to-Buy-a-Home-Now

http://www.yourkeytomemphis.com/Blog/Buying-a-Home-in-a-Sellers-Market

The Impact Your Interest Rate Makes

by Melissa Thompson

The Impact Your Interest Rate Makes [INFOGRAPHIC] | Keeping Current Matters

Some Highlights:

  • Interest rates have come a long way in the last 30 years.
  • The interest rate you secure directly impacts your monthly payment and the amount of house that you can afford if you plan to stay within a certain budget.
  • Interest rates are at their lowest in years… RIGHT NOW!
  • If buying your first home, or moving up to the home of your dreams is in your future, now may be the time to act!

Thinking about buying or selling a Memphis TN home, Call your local expert’s The Melissa Thompson Team 901-729-9526.

 

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What Would You Sacrifice to Save For Your Next Home?

by Melissa Thompson

Some Highlights:

  • 95% of first-time homebuyers are willing to sacrifice to make homeownership a reality.
  • The top item that buyers sacrifice is new clothes, at 54%.
  • Even repeat or experienced buyers say they sacrificed taking a vacation or buying a new car to buy their last home.

Contact Melissa Thompson at Your Key To Memphis to find your dream home today! 901.729.9526 or Melissa@YourKeyToMemphis.com.

 

 

How Much Do Schools Matter When Buying Your Home?

by Melissa Thompson

When choosing a new home, there are usually several items on the buyer’s list of priorities, but when kids are involved, school systems often top that list.  People are often willing to pay more and sacrifice other desires to make sure they are in the best school district for their children.  Private schools may be a feasible alternative for some, but that is not the case for many. Even if buyers don’t have children (or plan to have them), they may want to buy in where the schools have the best reputation because it will have a positive effect on resale value down the road. However, it’s important to remember that a poorly ranked school district does not automatically mean that the overall quality of local education in an area is poor.  You have to do your research. Consider the age of the schools, their physical condition, the student-to-teacher ratios and standardized test scores. Understanding how the school system works in Tennessee will be helpful in your search as well. In Tennessee, your child can attend any school in your district (called “intradistrict choice”), and students at low-performing schools, as designated by the state, can attend a different school in their district.  Some districts allow student to transfer to schools either in or outside their district (“interdistrict choice”).  There are also charter schools available.  Low-income students are eligible for scholarship funding to attend private schools.  Under the federal No Child Left Behind Act, students attending a Title I school designated as “in need of improvement” have the right to attend a higher performing in the district.  So, as you can see, there are a lot of options!

Finding the best place to live near Memphis for you and your family is something the real estate professionals at Your Key To Memphis can help you do. Contact Melissa Thompson and begin your search today!

Four Reasons to Buy a Home Now!

by Melissa Thompson

You may be wondering if this is the best time to buy a home.  Spring is a busy time in general for real estate transactions and right now it’s a seller's market, meaning supply is low and demand is high. But the truth is, there are always excellent reasons to buy a house, regardless of market activity.

First, buying is cheaper than renting. The results of the latest Rent vs. Buy Report from Trulia show that homeownership remains cheaper than renting with a traditional 30-year fixed rate mortgage in the 100 largest metro areas in the United States. The report reveals that:

“Interest rates have remained low, and even though home prices have appreciated around the country, they haven’t greatly outpaced rental appreciation…Nationally, rates would have to reach 9.1% for renting to be cheaper than buying. Rates haven’t been that high since January of 1995, according to Freddie Mac.”

Another benefit of homeownership is that it forces you to save money. The financial commitment you make when you buy a home means that your monthly housing cost must be paid, no matter what.  When you take on this responsibility, it may inspire you to be more frugal and to save more.

Tax deductions are also a perk of owning a home. There are many tax advantages, including (but not limited to) reducing your taxable income by deducting interest paid on a home mortgage and deducting property taxes paid.

Finally, experts expect home price appreciation to continue. Every quarter, Pulsenomics surveys a nationwide panel of over one hundred economists, real estate experts, and investment & market strategists about where they believe prices are headed over the next five years. They then average the projections of all 100+ experts into a single number.

Over the next five years, home prices are expected to appreciate 3.22% per year on average and to grow by 17.3% cumulatively, according to Pulsenomics’ most recent Home Price Expectation Survey.

The bottom line is that buying a home now will prove to be a sound financial decision for years to come. Don’t wait!  Contact Melissa Thompson at Your Key To Memphis to find your dream home today!

Financial Planning: 4 Reasons to Buy a House Today

by Melissa Thompson

Financial Planning: 4 Reasons to Buy a House Today | Keeping Current Matters

Homeownership will always be a part of the American Dream. There are advantages to owning your own home (educationalhealthsocial) that far transcend any economic impact. However, we want to look at several of the financial advantages of homeownership in today’s post.

1. Buying is Cheaper Than Renting

The results of the latest Rent vs. Buy Report from Trulia show that homeownership remains cheaper than renting with a traditional 30-year fixed rate mortgage in the 100 largest metro areas in the United States. The report reveals that:

“Interest rates have remained low, and even though home prices have appreciated around the country, they haven’t greatly outpaced rental appreciation…Nationally, rates would have to reach 9.1% for renting to be cheaper than buying. Rates haven’t been that high since January of 1995, according to Freddie Mac.”

2. Homeownership “Forces” You to Save

According to SavingAdvice.com, homeownership is a great way to save. Their advice is quite simple:

“Homeownership is a “forced” savings account because you own the home, you have no choice – that monthly housing cost has got to be paid no matter what…Homeownership can be an outstanding way to force yourself to be more frugal in the rest of your spending so that you can save and build equity in your home.”

3. Homeownership Offers Several Tax Deductions

According to the Tax Policy Center’s Briefing Book -“A citizen's guide to the fascinating (though often complex) elements of the federal Tax System” - there are several tax advantages to homeownership. Here are three:

  1. Homeowners who itemize deductions may reduce their taxable income by deducting any interest paid on a home mortgage.
  2. Homeowners who itemize deductions may also reduce their taxable income by deducting property taxes they pay on their homes.
  3. Taxpayers who sell assets must generally pay capital gains tax on any profits made on the sale.

4. Experts Expect Home Price Appreciation to Continue

Every quarter, Pulsenomics surveys a nationwide panel of over one hundred economists, real estate experts, and investment & market strategists about where they believe prices are headed over the next five years. They then average the projections of all 100+ experts into a single number.

Over the next five years, home prices are expected to appreciate 3.22% per year on average and to grow by 17.3% cumulatively, according to Pulsenomics’ most recent Home Price Expectation Survey.

Bottom Line

Some are afraid that home values may have already peaked. However, we believe that purchasing a home now will prove to be a sound financial decision for years to come. As Warren Buffet said, “When others are greedy, be fearful. When others are fearful, be greedy.”

Learn more about buying Memphis Real Estate at YourKeyToMemphis.com. 901.729.9526 or Melissa@YourKeyToMemphis.com.

 

Buying a Home in a Seller’s Market

by Melissa Thompson

It’s a challenging time to buy a home this spring because you not only have to find a property you want; you must also beat out all the other homebuyers who want to make an offer on it as well.  It is a seller’s market right now and that means supply is low and demand is high. This is especially true in the price ranges desired by first time homebuyers. The latest figures from the National Association of Realtors show that that there was only a 4.4-month supply of homes for sale in February, which is lower than the six-month supply that indicates a balanced market. One-quarter of February’s transactions were all-cash sales, per the NAR, and investors bought 18 percent of the homes that were sold.

So, home sales are moving quickly and often have multiple offers.  That means you need to be strategic to get into the home of your dreams.  Going to open houses and perusing listings is not enough to acquire the house you want in this market.

Seeking out an experienced realtor to assist you in your search is vital to your success in buying a home this spring.  Realtors can help you with everything from finding properties, to placing appropriate offers and negotiating terms.   Knowing what is most important to sellers is key to winning a bidding war.  A good agent will know what motivates sellers.

Take the following steps to prepare and you will have a better chance at success:

  • Get your finances in order and shop for a mortgage pre-approval prior to making an offer on a house.
  • Move quickly once you find the house you want.
  • Don’t make snap judgements based on listing photos. You must see a home in person to know if you truly love it or hate it.  Pictures do not tell the whole story!
  • Be realistic about the inspection and repairs.  In a competitive market, owners don’t need to make repairs in order to sell.  Inspections should be utilized to find major flaws that may be deal breakers for prospective buyers.
  • Start with your best offer. A competitive market is not the right market for negotiating a bargain.
  • Write a personal letter to the seller. You never know what might influence their decision.  Some homeowner love their house so much they want it to go to someone who will love it as much as they do.
  • Make a big earnest money deposit. A large deposit will let sellers know that you are serious about the purchase.
  • Make a backup offer. Even if a house is already under contract, the deal might still possibly fall apart for various reasons such as inspection issues or financing.  If you love a house, put a backup offer on it so that you will be first in line if the initial buyer walks away.
  • Consider waiving or shortening contingencies. Most offers are made contingent on the buyer being approved for a mortgage, the appraisal being equal to the purchase price and the buyer approving  the inspection.  Waiving any one of those contingencies can be risky, but may be worth taking a chance on in some circumstances.

http://www.yourkeytomemphis.com/Blog/Dont-Let-Your-Luck-Run-Out

Learn more about buying Memphis Real Estate at YourKeyToMemphis.com. 901.729.9526 or Melissa@YourKeyToMemphis.com.

Displaying blog entries 1-10 of 61