Buying a home

Renters Have the Advantage Over Home Owners

Good Morning Friends!  It's Friday!

I have just been thinking a little bit about renters.  I am geeking out on real estate facts here.  So, I just wanted to share with you a little bit of what I have been thinking about and why renters have the advantage in buying a house over current home owners.

There are a couple reasons for this:

1. Renters are free to act. They see a home come on the market, they are pre qualified.  They can get that house, the can put an offer in.  Usually in a multiple offer situation, a seller is going to choose a buyer that doesn't have complications.  A renter that dosent' have to sell a home first is pretty appealing, especially if that home owner is wanting to buy a house as well.  They don't want to be contigent upon a contigency.  So renters look much more apeealing in that situation.

2. Renters are free to look.  They ahve simonth or a year lease and they have time on their side to look.  So they can wait out the market.  During the winter months we tend to have lower inventory but in the Treasure Valley, we don not have  decreasse in activity.  winters are very busy around here for home buying.  Lots of people are moving here.  We have a great market, really, year round.  Our challenge right now is low inventory.  Renters have those searches set up whre they automatically get listings everydat and they can go look at a home on a moments notice.  Where as a seller, if they know they have to sell a home first and don't have that hoe on the market yet, they are ata disadvantage.

3. Easy to get out of a lease.  Because we have such low rental inventory righ now in addition to love inventory of houses...

First Time Buyers Face Obstacles On Path to Homeownership

First-Time Buyers Face Obstacles on Path to Homeownership

For people with good jobs and strong credit, today’s real estate market is an attractive one - with low mortgage interest rates and continued affordability. However, some buyers, especially first-time buyers, are struggling to enter the market and don’t always find the home buying process easy.

According to the National Association of Realtors®, first-time buyers accounted for 26 percent of home purchases in January. This is down from 27 percent in December and 30 percent a year ago, making it the lowest level for first-time buyers since October 2008. This group of buyers should normally be closer to 40 percent of the market.

Why is the number of first-time buyers so low? Ada County Association of REALTORS (ACAR) says several factors are making it difficult for these buyers to purchase a home in today’s market. “Things like tight credit, limited inventory, higher home prices and higher mortgage interest rates are hindering first-time buyers,” said Dave Ferguson, ACAR President. “Traditionally, first-time buyers are instrumental in housing recoveries because they help existing homeowners sell and make a trade up to a larger home. Therefore, it’s important to make sure first-time buyers who are willing and able to purchase a home have the opportunity to do so.”...

10 Ways To Prepare for Homeownership

10 Ways to Prepare for Homeownership

  1. Decide what you can afford. Generally, you can afford a home equal in value to between two and three times your gross income.
  2. Develop your home wish list. Then, prioritize the features on your list.
  3. Select where you want to live. Compile a list of three or four neighborhoods you’d like to live in, taking into account items such as schools, recreational facilities, area expansion plans, and safety.
  4. Start saving. Do you have enough money saved to qualify for a mortgage and cover your down payment? Ideally, you should have 20 percent of the purchase price saved as a down payment. Also, don’t forget to factor in closing costs. Closing costs — including taxes, attorney’s fee, and transfer fees — average between 2 and 7 percent of the home price.
  5. Get your credit in order. Obtain a copy of your credit report to make sure it is accurate and to correct any errors immediately. A credit report provides a history of your credit, bad debts, and any late payments.
  6. Determine your mortgage qualifications. How large of mortgage do you qualify for? Also, explore different loan options — such as 30-year or 15-year fixed mortgages or ARMs — and decide what’s best for you.
  7. Get preapproved. Organize all the documentation a lender will need to preapprove you for a loan. You might need W-2 forms, copies of at least one pay stub, account numbers, and copies of two to four months of bank or credit union statements.
  8. Weigh other sources of help with a down payment. Do you qualify for any special mortgage or down payment assistance programs? Check with your state and local government on down payment assistance programs for first-time buyers. Or, if you have an IRA account, you can use the money...