How Millennials Can "Snag" a First Home

Photo: Millennials "Hanging Out" from Realtor.com

Only about 2% of the millennial generation (those born between 1981 and 2000) are in a position to buy their own homes and condos. Most face a host of financial hardships and challenges. But if you look past worries and fears, you'll find sources of potential.

According to an article written by Jonathan Smoke (a chief economist at Realtor.com), below are four areas of concern and strategies to offset them:

1) You are worried about debt, especially student loan debt

Debt can interfere with home-buying prospects. In order to qualify for a mortgage, you need a debt-to-income ratio (or DTI) of no more than 43%. A hefty student loan balance could easily disqualify you. Therefore, try to limit your total debt payments (student and auto loans, credit cards, etc.) to less than 15% of your income. Try to avoid racking up new debt, and look at buying more affordable homes. Also, when casting your vote in the next election, aim to select a leader who presents a plan to help lower payments.

2) You are worried about your credit score

Here are some interesting statistics: In 2015, the average FICO score for a millennial with a mortgage is 714. The average FICO for all Americans is 695. And the average FICO for a millennial with an FHA mortgage is 682.

A score of 750 will bring you the best rates, while a score of 650 lowers the odds of getting approved for a mortgage. Therefore, work to get your traditional credit score as high as you can. This will ultimately benefit you when buying.

3) You have no savings for a down payment

Keep in mind that you don't need to put 20% down on a property. In 2015, the average millennial has put down as little as 7% to finance a home. The more you put down, the better the rate. But don't be afraid to put down as little as 3% (0% if you are a veteran) and also look into the availability of local down-payment assistance programs.

4) You are angry and worried about ever-increasing rents

Rents are sky-high. The majority of renters in the US now have to spend more than 30% of their income to rent a typical home. Renting is also counterproductive to growing your savings and building a credit history. Therefore, consider making sacrifices now for the long term—join forces with other millennials and take on roommates, live in smaller places and if need be, spend a season moving back with your mom and dad. Aim to save money until you can afford to buy. The tide will turn!

To read more and access the entire article link HERE

Six Common Real Estate Mistakes

Buying and selling real estate in the market today is certainly NOT for sissies! The competition is steep, and the stakes are high. Making small mistakes can end up costing you thousands of dollars.

Be on the look-out for issues, such as:

1) Not Getting the Price Right: Your first line of defense is to hire a home appraiser who can accurately gauge the worth of a property. This service might cost you a few hundred dollars, but it is an investment that can, in the long run, save you money.

2) Overlooking "Pretty Is As Pretty Does": Tidy things up! Before you put a property on the market, be sure that everything is well-tended and looking its picture-perfect best.

3) Hiding Problems from the Buyer: Be up front from the get-go. Disclose any problems—in writing—so there will be no cause for dispute or litigation after the sale goes through.

4) Wrecking Your Credit at the Last Minute: Home buying and selling doesn't happen overnight. Be mindful of other purchases made during the process, such as buying a new car or missing credit card payments. Remember a pre-approval does not guarantee a finalized mortgage.

5) The Trap of Bidding Wars: Buying property can be an emotional process. Therefore, make sure you have an experienced agent in your corner who can advocate and negotiate the best deal on your behalf.

6) Not Taking the Inspection Seriously: Many buyers and sellers don't put enough credence in this step of the process. Take advantage of the home inspection and leverage the results to drive the price in your favor.

In the end, be mindful and proactive. Knowledge is power! To read more about each factor listed above, link HERE

Source Material: "6 Real Estate Mistakes That May Cost You" by Adam Verwymeren (Published 10/22/14 via FOX News) 

11 Good Reasons to List Property During the Holidays

1. People who look for a home during the holidays are more serious buyers! 

2. Serious buyers have fewer houses to choose from during the holidays and less competition means more money for you!

3. Since the supply of listings will dramatically increase in January, there will be less demand for your particular home! Less demand means less money for you!

@Big Stock Photo

4. Houses show better when decorated for the holidays!

5. Buyers are more emotional during the holidays, so they are more likely to pay your price!

6. Buyers have more time to look for a home during the holidays than they do during a working week!

7. Some people must buy before the end of the year for tax reasons!

8. January is traditionally the month for employees to begin new jobs. Since transferees cannot wait until Spring to buy, you must be on the market now to capture that market!

9. You can still be on the market, but you have the option to restrict showings during the six or seven days during the holidays!

10. You can sell now for more money and we will provide for a delayed closing or extended occupancy until early next year!

11. By selling now, you may have an opportunity to be a non-contingent buyer during the Spring, when many more houses are on the market for less money! This will allow you to sell high and buy low!