Mortgages With Low Down Payments

Most of the news about the housing market has been good in recent months; we are recovered and moving on up. That's good news for buyers and sellers, but we are now seeing more buyers entering the real estate market than before the crash. At first the market recovery was almost too quick for many buyers; prices were rising fast, but we now see a steadier market with better affordability. The other big change we see is that the tightened lending regulations are able to open up at this point. More buyers are now able to buy with low or no down payment options.

VA Loan
The Department of Veterans Affairs provides guaranteed home loans to qualified veterans. Borrowers can buy with zero down payment, and there is no mortgage insurance. The borrower does pay a funding fee, which can range from 2.15-3.3%. That funding fee can be added into the total loan amount and paid as part of the monthly payment. The funding fee is determined by the type of service the veteran gave, whether it was National Guard, Reserves, or enlisted/officer in the military and by whether or not it is the borrower's first VA loan.

Navy Federal
Navy Federal Credit Union offers mortgages with no down payment to members of the military, Department of Defense, and their family members. The loan must be used for a primary residence, and it has a funding fee, like the VA Loan. The Navy Federal loan is only 1.75%, which gives it an edge over the VA Loan.

USDA
The Department of Agriculture supplies home loans, and not just for rural areas. They usually run out of money because of the popularity of this program. USDA loans have no mortgage insurance. They charge a 2% guarantee fee upfront, and then each year the borrower is charged 0.5% of the loan balance.

Mortgage Insurance
For borrowers with strong credit, this option allows a down payment as low as 3%. Private mortgage insurance (PMI) has stricter requirements than an FHA Loan (below), but it can cost less over the loan term. Another advantage of this over an FHA loan is that the PMI can be cancelled once the loan is under 80% of the mortgaged home's value.

FHA
The Federal Housing Administration offers loan products to borrowers with imperfect credit and not a lot of cash. This isn't the cheapest loan option, but it gives more buyers the opportunity to enter the real estate market, which is better for everyone. There is a premium of 1.75% charged at the start of the loan, and if the borrower paid the minimum down payment (3.5%), there is also an annual premium of 1.25%. This makes for a higher monthly payment on a similar property to a conventional loan, so borrowers' affordability is lowered in comparison.

No matter what your credit situation and down payment ability is, it is crucial to talk to a qualified mortgage professional before beginning your home search. Contact Preferred Realty Partners today for some great recommendations and to start your home search.

Originally posted on www.sarahknobbs.com.

5 Ways to Protect Your Finances When Buying a Home

The search for your next home is always exciting, but it can often be filled with traps and pitfalls if you are not careful. Below you'll find 5 great ways to protect yourself in your next home purchase. Don't be a statistic; do your due diligence and get settled in a home that you can afford comfortably.

1. Be cautious about distressed properties
Many buyers seek out short sale homes or homes in foreclosure as a way to get a bargain on a new home. While some of these homes are still in good condition, many are not. It's important when you are considering a foreclosure or short sale home to do your homework. Be sure to hire a competent home inspector, and if major issues are found, hire a licensed contractor to analyze the problem and see if you can afford the fix. Even if a home is priced below market value, a fixer-upper can cost you more at the end of the day.

2. Watch out for overpriced FSBOs
Some buyers will talk to FSBOs (For Sale By Owner) because they want to cut out the Realtor commission and save themselves 3% on the price of the home. In theory, that could work, but many times FSBOs are actually priced higher than the market value because they haven't been priced by a professional. Be sure to talk to your buyers agent about the neighborhood values to ensure that you are not being wooed by an enthusiastic owner to pay too much for your home.

3. Don't borrow the full amount your lender offers
When you sit down to talk to a lender, they will review your financial situation with you to determine what you are able to borrow. They all have their systems in place that will give you a price they feel you can afford in the long-term. However, it's not always the best idea to shop at the top of your budget. While the lender knows a lot about your credit and expenses, they can't decide what monthly payment you are comfortable with. That needs to be a discussion between you and anyone else who is sharing that monthly mortgage payment with you.

4. Maintain a cash reserve 
Besides determining the amount of money you want to borrow to buy a house, you have to look at what liquid funds you have at your disposal. It's never a good idea to spend your entire savings on a down payment for a house. Keep a reserve available for taxes, utilities, repairs, and maintenance. Many homebuyers don't realize how much they will need to spend to move into a new home, especially first-time homebuyers. Keep your spending conservative with your home purchase, and you will be able to comfortably enjoy it for years to come.

5. Hire a strong buyer agent
This is perhaps the single best thing you can do to protect yourself when buying a home. A strong buyer agent will guide you through all of the above and more. They will make sure you see the best homes in your price range, and that you understand all of the costs involved in living there. A knowledgeable agent will know about the local HOAs, any special assessments, and they will be able to negotiate the best sales price for you. Don't sell yourself short; hire a strong buyer agent to help you and get to closing without the headaches.

Are you buying a home in Cincinnati or Northern Kentucky this year? Contact Greater Cincy Homes today to get started!

Originally posted on www.sarahknobbs.com.

5 Tips for Selling a Greater Cincy Home in Winter

Many people say that spring and summer are the best times to sell a home. While each season has its advantages and disadvantages, winter is actually a great time to sell your home in Cincinnati and Northern Kentucky. Keep reading to get tips and advice to make your home stand out and get it sold for the best value in winter.

 

1. Dress up the front of your house to make it feel warm and inviting. Don't go overboard!  You want to make sure that you enhance the curb appeal of your home, not hide it. Strategically placed lights and greenery are often enough to create the idea of a welcoming home.  As in other seasons, you want to create that great first impression with curb appeal.

 

2. One of the biggest things is a simple one-- make sure to keep the house clean and all walkways clear of leaves, snow, and other debris. If buyers need to trek through a few inches of snow on the way into your home, or if they enter a kitchen with dirty dishes all over the counter, that sets the wrong tone for the showing.

 

3. Don't be shy with the light and the heat. When you sell a home in the winter, turn on all the lights before showings and open the blinds. Allowing more light creates a more welcoming atmosphere, and buyers will see your home at its best. Also be sure to keep your thermostat set at a comfortable temperature all day when you have a showing. Not only does a cold home make buyers feel uncomfortable, but they will also start questioning whether your HVAC system is working.

 

4. Something many do not consider when preparing a home for showing is providing sound, specifically music. You could put on jazz, classical, or any other music you feel wouldn't distract from the house. Having soft music in the background makes the home feel more alive, and buyers will be more comfortable moving around and evaluating the home.

 

5. Be sure to take advantage of the lower inventory in the wintertime and highlight the unique features of your home. Your Realtor should have all items of significance listed in the MLS and in their in-home flyer, but you might take the time to place a small notice outside of each room to point out the important features. If you have a new water heater, you might notate that outside of your utility room, or you could list the materials used in your beautiful kitchen renovation so buyers know exactly what they are getting.

Are you buying or selling a home in Cincinnati or Northern Kentucky this year? Contact Greater Cincy Homes today to get started.

DIY Guide to Decluttering Your Greater Cincy Home

The new year causes many of us to reflect on the previous year and set goals to improve. For some, they decide to go to the gym more often or eat better. Others set work or professional goals to achieve.

This post is for the people who want to take back their homes from the clutter in the new year. Clutter often builds up slowly over time until you look around and wonder how it all got there. Fear not! There is a simple 3-step method to make it all go away.

Define Your Goals
Before beginning, you want to take the time to make a plan. Go through each room of your house and decide what needs to be done in each location. Track this either with pen and paper, or use something like Google Docs or Evernote to ensure you don't forget the details.

Once you know what has to be done, determine the priority of each area. Is your office overflowing with outdated paperwork? Are your kitchen cabinets bursting with cookware you never use? Decide which location will give you the most satisfaction when it is not full of clutter, and make that your #1 priority. Rank the other areas in relative importance from high to low.

The last (and often overlooked) part of goal-setting is choosing a timeline. If your kitchen is the first location to tackle, maybe you want to sort out all the old cookware by Sunday evening, so you can cook without the clutter through the workweek. Whatever the timeline is, make sure you stick to it so you complete the other items on your list.

Decide How to SortSorting as you go through the clutter is important. You can make your sorting process very simple by dividing everything you encounter into 3 categories: Keep, Trash, and Storage. 

Keep - these are items that you use on a regular basis that are functional or items that bring you joy. What does that mean? Anything that you can instantly recall the last time you used it and you know it works, keep it. If you have something that you would use if it wasn't broken, but it just sits on a shelf waiting for you to fix it for months and months, just get rid of it. An item that brings you joy could be anything from a sports jersey to a toy from your childhood to a family heirloom. These items might not be very practical, but their existence makes you happy.

Trash - If an item is broken and can't be easily fixed, trash it. If you haven't used something in over a year (and it's not a seasonal item), trash it. If you're keeping a horrible gift solely out of obligation to Great Aunt Mildred, trash it. Trashing it doesn't have to mean you fill endless garbage bags as you go through your house, however. Many items can be recycled or donated, or you could have a yard sale. 

Storage - For seasonal items, or for things with emotional significance that don't fit elsewhere in your home, storage is the way to go. Whether it's your own attic/basement storage, or you pay for a storage unit, take the time to organize what you store. Items that you pull out for holidays should be easily accessible. If you are keeping things because you plan to buy a larger house one day, those might not need to be as accessible.

Set Aside Time to Work
Even if it's only 15 minutes a day, or 1 hour on Saturdays, commit to that time. If you skip it, the clutter will stay. If you struggle with this, make it a game. Get someone to join you in the activity and make it a contest, or give yourself a reward for keeping to your schedule. However you do it, you just have to make sure that it gets done. The best reward to keeping to your schedule will be the new, clean look your home has when you are done. 

Thinking of selling a home in Northern Virginia in 2016? Contact Greater Cincy Homes today to get started.

5 Reasons to Buy a House in Cincinnati & Northern KY before the New Year

The New Year is approaching quickly, but there's still time for you to find your dream home in Cincinnati and Northern Kentucky this year. Many buyers take time off at the holidays if they haven't found a home, so for the serious buyer, it is an ideal time to ramp up the home search. Here are 5 reasons why you should buy a home in Cincinnati and Northern Kentucky before January:

#1: Competition is low
Serious buyers will be looking at homes no matter the time of year, through rain, sleet, snow, or hail. Not all buyers are serious, however, or at least not serious enough to keep up the same pace through the holiday season. If you are still actively searching around the holidays, you will be one of the few.

#2: Sellers are motivated
If a home is still on the market during the holidays, chances are it's been there for a while. Usually that means the house was overpriced for a time and missed the "sweet spot" to sell quickly. What that means for you is that you can get a great house that may have been overlooked when the market was hot, and you can get it at a lower price from the motivated seller.

#3: Rates are going up
Just this month, the Fed upped the mortgage rates for the first time since 2006, and every prediction has them going even higher in 2016. Secure a lower monthly payment for yourself by making an offer on a house now. Waiting for the spring market could cost you more than you realize.

#4: Inventory will go down
New Year's Eve brings about many thoughts for change in the new year, and many sellers decide that they will wait for the spring market to sell if they haven't sold their home in December. It serves you well to take the time to search for homes now before the inventory is too low and your selection is limited.

#5: Start the new year fresh
While it's important to make sure your new home meets your needs, it will also be a huge weight off your shoulders to know that you are under contract on your new home and well on your way to a brand new home for a brand new year. You will have beat the rush, earned a great value on the new house, and bought yourself some peace of mind. What a great way to start 2016!

Are you buying a home in Cincinnati or Northern Kentucky? Whether it's this year or next, contact Greater Cincy Homes to help you get the best value of the season!