The Perfect Holiday Gift: A New House!

How many of you read that title, said "Yeah right" but had to read more any way?  Was that you?

Well never fear because it definitely could be a possibility!

One of the reasons that I am given most (after credit) when asked why someone isn't buying their own home instead of renting is that the potential buyer doesn't have the funds for a down payment.  

I have a couple different solutions that could help you this holiday season to buy your very own home as your present.  And I know the perfect Realtor to help you find that dream house :0)

There are loans out there that don't even require a down payment.  Some people don't even know this.  

• USDA is a loan that is offered in rural areas.  There are requirements on the price of the home and an income cap that you have to meet to qualify, but it could be a good thing to look in to.  
• VA loans don't require money out of your pocket either.  Of course there are items that have to be met in order to get one of these.

When talking with friends and family about your wish list, ask them to simply make a deposit into a savings account that you are using as your down payment money.  This is something that is completely acceptable and will be recorded by the bank about who the transactions are from.  Speak with a lender first, but for most this will be satisfied as a gift letter.  Parents, grandparents and older family members will usually be especially responsive to this and may give more than $20 if they know that you are using it towards something for your future.

If you would like other creative ideas about getting the money down for your home, contact me today and we can work together to figure out a way to help you.  Remember, FHA loans are usually on 3% of the purchase price ($100,000 home purchase price would only require $3,000 down).

Happy Holidays!

How Much Does A Realtor Cost?

Guess I gave it all away at the beginning with this cute picture, huh?

Seriously, in most cases you are able to use a real estate professional to help you purchase a home at no cost to you.  It is traditional in Central Ohio for the seller to pay the fee for both their agent helping sell their home as well as the agent that is helping the buyer.  There are a few times that this rule doesn't apply and your real estate agent should discuss it with you if this arises.  

Instance 1 is when working with a For Sale By Owner (FSBO).  Because the inventory has been so low lately, we are finding buyers are seeking out these properties and the sellers are not willing to pay the commission fees.  You will find in another of my blogs why you should use a real estate professional.  But most of all, it is to make sure that everything is completely legal for you.  If this happens, the agent should discuss with you the possibility of your paying the negotiated fee.

Instance 2 is when working with investment properties.  There are times when the purchase price is very low and the commission rate offered is very low as well.  Again, the agent should discuss with you before starting this process.  What generally happens is that there could be a flat rate set that would be paid to the real estate person by the buyer to compensate for their time and effort.

Don't feel that you cannot ask your professional right up front if you can expect to pay for their services.  It's all part of the job.