No Money Down?

How can I Buy a House with no Money out of Pocket? The down payment is the one thing that keeps most people from buying a home. What if there was a way to buy a home without any money out of your pocket? It sounds too good to be true, but it’s possible. Today there are loan programs available that don’t require a down payment. Some programs allow gift funds for the down payment, which means no money out of your pocket. Below are a few of those options.

USDA Loans If you buy a home in a rural area according to the USDA boundaries, you don’t need a down payment. The USDA loan is for low to moderate income families who don’t qualify for any other financing program. If you are eligible, you can buy a home without a down payment, and ask the seller to cover the closing costs for you. Some lenders may do it too – they offer no-closing cost loans in exchange for a slightly higher interest rate.

VA Loans If you’re a veteran of the military or currently serving, you may get by without a down payment. The VA loan provides 100% financing and has some of the most flexible underwriting guidelines. Veterans can get a loan with less than perfect credit and higher than average debt-to-income raCos. Like the USDA loan, you can ask the seller to cover the closing costs or take a slightly higher interest rate and take a no-closing cost loan.

Gi= Money on Traditional Loan If you aren’t eligible for the USDA or VA loan, there are sCll other opCons. If you have a family member or employer who will provide gift funds to buy a house, you can use the funds to offset your down payment and or closing cost requirements. Both the conventional loan and FHA loan allow borrowers to use gift funds for 100% of the down payment. You’ll need to document the funds and prove they are a gift (and not a loan), but we can walk you through those easy steps.

Other Low Down Payment Options If you can’t get by with no money down on your home, there are low down payment opCons that require much less than the traditional 20% down payment. FHA loans require just 3.5% down and you don’t need perfect credit. With just a 580 credit score, you can qualify for FHA financing. If you have good credit (or at least decent), you may also qualify for a conventional loan and can put down just 3% on the home.

Buying a Home with No Money out of Pocket is Possible If you think outside the box, you can buy a home with no money out of pocket. We can help you exhaust all of your loan opCons so you know how to move forward. The down payment shouldn’t be the reason you don’t buy a home. Today some opCons help you become a homeowner and we’re here to help! 

Update Your Kitchen

Easy Kitchen Updates on a Budget

If there’s one area of your home that you can see the largest return on your investment, it’s the kitchen. It’s the heart of the home and the first area most buyers look at when considering buying a home.

Not all home renovations increase your home’s value or provide any return, but kitchen updates pay you back in spades.

Don’t worry, you don’t have to (and shouldn’t) do a complete kitchen remodel. It’s too expensive and you won’t see enough of a return on your investment. But moderate kitchen updates are the sweet spot when looking to increase your home’s value.

Here are the easiest and least expensive updates to make that give you the largest return.

Paint the Cabinets

If you feel like your kitchen is too dark or outdated, give your cabinets a fresh coat of paint and add new hardware. For less than $400 you can have a completely new look in your kitchen that takes only a few hours of labor. Choose a neutral and light color to make things brighter and your kitchen automatically seem larger.

Update your Appliances

Appliances are one of the fastest ways to update your kitchen. Even if you don’t update anything else, new appliances go far. Not only do they add to the kitchen’s functionality, but they make the kitchen look more modern and appealing. Update your refrigerator or range, and if you’re really feeling it, upgrade to a double oven versus a single. This is the most expensive update on the list but will pay you back significantly in dollars and interest in the home.

Update the Light Fixtures

Believe it or not, light fixtures can set the tone for the room. Go for a statement piece, or at least something modern and you’ll brighten up your kitchen and make it look more appealing. Pendant lights are trendy right now, but if you want something more basic, stick with a flushed light in a modern finish.

Update the Sink

A kitchen sink has more functionality than most people think. When you cook, entertain, and eat, where do you always end up? The sink, right? You need a sink that is roomy, attractive, and functional.

Paint the Walls

A fresh coat of paint goes a long way when you’re trying to sell your home, especially in the kitchen. If you have wallpaper, remove it. If your walls are painted a bright or unique color, change it. Stick with something neutral, yet light. You want your kitchen to seem roomy and inviting because remember, it’s the heart of the home.

Don’t go overboard renovating your kitchen, but definitely make it more modern and functional with these simple tips. These renovations cost a fraction of what a full kitchen remodel would cost and yet give you the best return on your investment. You’ll have more buyers interested in the home from the kitchen alone, and you’ll have a better chance of securing the price you want.

First-Time Homebuyer Mistakes to Avoid

First-Time Homebuyer Mistakes to Avoid

Buying your first home is one of the most exciting decisions you’ll make in your life! It comes with a lot of responsibility, but a lot of excitement too.

Before you jump in and buy your first home, know the most common first-time homebuyer mistakes people make.

Not Getting Pre-Approved

The pre-approval is like your ticket to homes for sale. Sellers want that piece of paper that says ‘yes, they are approved to get financing.’ Getting pre-approved is easy and it makes sellers much more willing to consider your bid.

What to do: Find a lender and get pre-approved. Get quotes from a few lenders (three is a good number) to find the best offer.

Spending too Much on a Home

It’s tempting to want the very best (and we want that for you too) but buying more than you can afford only creates financial problems. Just because a bank says you qualify for a certain amount doesn’t mean you have to spend that much. 

What to do: Before you buy a home, play with the numbers. See how a mortgage payment fits into your budget. Don’t be afraid to borrow less than you qualify for.

Not Leaving Money in your Savings Account

Putting everything you have down on a home leaves you without a cushion. What happens when the A/C breaks or there’s a plumbing leak? When you own a home, you’re responsible for the maintenance and repairs. It’s an eye-opener when that first repair hits.

What to do: Leave some money in your savings account as a buffer, especially if you can’t contribute to your savings for a while after buying a home.

Ruining your Credit before you Close

Lenders pull your credit a couple of times during the loan process. They pull it during the pre-approval process, sometimes again during underwriting (if more than 60 days pass from the pre-approval date) and again before closing. If you hurt your credit score during this time, you could lose your approval.

What to do: Keep your credit as stable as possible. Keep paying your bills on time, don’t apply for new credit, and don’t use your credit cards.

Making Large Deposits in your Bank Account before Closing

Lenders source every deposit on your bank statement. They track where the money originated to ensure you didn’t borrow it. If you suddenly have large deposits on your bank account, it could delay underwriting and even cause you to lose your loan.

What to do: If you have large deposits, wait until they are in your account for at least 2 months before applying for a mortgage. Lenders consider funds in your account for 2 months ‘seasoned’ and they usually don’t source them then. 

The more time you spend preparing for your first home purchase, the easier the process goes. Finding a home is the fun part, but qualifying for financing and finalizing the transaction requires careful planning and avoiding the top mistakes first-time homebuyers make.  

Top 5 Improvements That Increase Home Value

Top 5 Improvements that Increase Home Value

Did you know that not every home improvement gives you a dollar-for-dollar return or even a ‘good’ return on your investment? Knowing which home improvements matter and will give you a good return on your investment is important, especially if you’re thinking about selling your home soon.

Minor Kitchen Renovations

Renovating your kitchen doesn’t mean demolishing the entire room rendering it useless for a week. Instead, the best return on your investment results from minor, yet helpful kitchen renovations. Many consider them giving your kitchen a ‘facelift’, such as:

• A fresh coat of paint

• Upgraded appliances

• Refinishing the floors

These simple changes may provide as much as a 100% return on your investment.

Minor Bathroom Renovations

Minor bathroom renovations are just as profitable as minor kitchen renovations. In the bathroom, buyers are concerned about square footage, so don’t think you have to add in a soaker tub – if anything, opt for the walk-in shower and updated cabinets and countertops. If your bathroom has any of the following issues, repair/replace them and you’ll see around a 75% ROI:

• Replace cracked tiles

• Update light fixtures

• Update faucets

• Replace/repair countertops

• Refinish the floors

Update the Curb Appeal

It may not seem like much, but your curb appeal can increase your home’s value. Many sellers see well over a 100% return on their investment. Curb appeal is important because it’s the first thing buyers see. A well-kept exterior often means the interior is in good condition too. Poor curb appeal turns buyers away. To update your curb appeal:

• Manicuring the lawn and landscaping

• Replacing dead/ugly bushes or trees

• Adding a few flowers

• Cleaning the siding/painting it if necessary

Paint your House

It’s amazing what a fresh coat of paint can do to a house. This is especially important if you painted in colors that may be more of a personal preference than well-liked. Stick with neutral colors and paint the entire level. A neutral white/tan or gray color will open things up and make your house look more welcoming to buyers. Painting doesn’t cost much but you’ll see well over a 100% return on your investment.

Repair/Replace Flooring

Flooring is a focal point in the house. If your flooring isn’t ‘pretty’ or needs repairs, it could take away from the home’s value. If you can repair it, go for it. Otherwise, consider an affordable and neutral flooring option that opens things up and really makes the house feel ‘new.’ It’s amazing what a new floor can do. Like paint, flooring can provide a return that’s well over 100%.

Choose your Home Improvements Wisely

While you should fix up what you want on your house, if you’re doing it for value, focus on the home improvements that provide a decent return on your investment. Why throw money out the window when it won’t affect buyers? If you’re moving within the next few years, these are great improvements to keep in mind to make the most of your investment. 

Selling Your House As-Is

Selling your House As-Is, What it Means for the Buyer

If you want to sell your home without doing any repairs, you’re looking at an ‘as-is’ sale. While it may seem more convenient at the time, it’s important to know what it means for the buyer and what it does to your chances of selling the home.

What Does it Mean to Sell a Home As-Is?

Before you sell a home as-is, it helps to know what that means. No home is perfect, so not every home is an as-is sale. Common issues that make it an as-is sale include:

• Foundation cracks
• Mold in the home
• Leaky roof
• Termite damage
• Plumbing issues
• Electrical issues
• Title issues

If your home has any of these issues (or other major issues) and you don’t want to fix them, it’s an as-is deal. Here’s what it means for the buyer.

Buyers Want a Deal

Buyers won’t pay the true market value for a home sold as-is. Instead, they want a below market value knowing they will need to make repairs to fix up the home. Many buyers of as-is homes are investors who fix and flip homes, but not always.

Buyers May Have a Harder Time Securing Financing

If a buyer needs financing, they may have trouble getting approved. Most buyers of as-is properties are cash buyers, meaning they don’t have to worry about a lender or loan approval. Sometimes, though, if the issues aren’t ‘serious’ the home may pass an appraisal and traditional lending is still an option.

Buyers Want a Disclosure Report

You must disclose that you’re selling the home as-is in the listing, but that’s not all. They’ll want you to disclose everything that’s wrong with the home before they buy it. This helps them make a decision and protects you from the buyers backing out after signing the contract, especially if they have an inspection contingency on it.

Buyers Will Negotiate

If you want to arm yourself with the right information, have your home inspected before you put it on the market. This does two things:

• Tells you what is wrong with the home before you list it
• Gives you time to get quotes from contractors so you know the accurate price of repairs

When buyers negotiate, you’ll be more informed. You’ll know exactly how much potential repairs would cost so you know which offers are legit and which are lowballing you when you receive offers.

Should you Sell your Home As-Is?

Every seller is different. Think about your reasons for selling your home without repairing it. Are you in a hurry? Do you not have the funds? Do you just not want to be bothered?

I can help you decide if selling your home without repairing it is the right choice. We’ll discuss your options, find out how much your home may cost to improve, if the issues aren’t too extensive, and determine what you might lose if you skip the repairs and sell the home as it stands.