THE ROAD TO BUYING A HOME Things To Know Before Buying A Home Millennial Credit Scores Continue to Rise And FHA loans could be helping them buy homes

Things To Know Before Buying A Home

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If you are taking the next step in life and purchasing a home, chances are that you are feeling the pressure and the anxiety that goes along with this difficult decision. 

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Those who buy homes are very anxious, eager to get any information they can about real estate. Before you buy a home, it always helps to learn all that you can.

The first thing you’ll need to do when buying a home is to find out just how much you can qualify for or afford to borrow.  You should also make it a point to check your credit and know where you stand.  If you have any problems, you should strive to correct them for you attempt to borrow money for a home.  The higher credit rating you have, the lower your interest rates will be.

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If you can, you should always attempt to get pre approved by a mortgage broker or lender, as this will show your commitment to the mortgage.  Also make sure to look for any payment or prepayment options that can help you take a few years away from your mortgage.  Once you have been pre approved for a mortgage and know where you stand with your monthly payments, you can start shopping for property.

When you shop for a home, you should only buy real estate that is perfect for you.  Before you start looking, you should always make a list of everything you want your home to have, based on what you want and what you actually need.  You should also make sure that you mark out any areas that you are willing to come to a compromise on, just in case you have to.

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To assist you with finding the perfect home, you should enlist the services of a reputable real estate agent.  When you meet with your agent, you will go over how much you are willing to spend, and what type of home you are looking for.  You’re agent will know where ideal properties are, and help you find the home that is best for you.

Your agent will supply you with a list of potential properties that meet your budget and your features.  Once you get the list, you should drive by the homes and check out both the home and the neighborhood.  You should consider the appearance and location of the home, safety, access to the freeway, schools nearby, commute time to work, local shopping, and even recreational activities.  

If you don’t find something that interests you the first time, you should keep looking until you find the home that is best for you.  Your agent can help with tours of homes and such, even tell you information about neighborhoods that you aren’t familiar with.  If you have chosen a good real estate agent, he will care about helping you find a home and go out of his way to ensure that you get exactly what you want.

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To get the most from buying a home, you should always hire a real estate agent that you can trust. Your agent will go a long way in helping you buy a home, from finding properties to giving you pointers and tips along the way. Good real estate agents will care about your satisfaction, and will do all that they can to help you find the home of your dreams. You can always buy a home without a real estate agent, although it will take you longer and you won’t get the help and other amenities that a real estate agent will bring to the table.

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THE ROAD TO BUYING A HOME

1. MORTGAGE PRE-APPROVAL
2. This will tell you everything you need to know: down payment,
3. credit score, etc.
4. START SAVING
5. For down payment, closing costs and other fees.
6. HOUSE HUNTING
7. A real estate agent or licensed realtor can help you navigate the
8. housing market.
9. OFFER & NEGOTIATION
10. Here is where your real estate agent will go to bat for you.
11. HOMEOWNER’S INSURANCE
12. Insurance is required when financing your home.
13. HOME INSPECTION
14. An inspection protects you from buying a money pit and finds
15. any hidden problems.
16. THE CLOSING TABLE
17. Pay the seller, pay the fees and close the deal. Welcome Home!

Millennial Credit Scores Continue to Rise And FHA loans could be helping them buy homes

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FHA vs. conventional All the single ladies Where are the millennials moving to?

Many young people are hesitant about buying homes, but those that are jumping on board are doing it with better credit and relying more on Federal Housing Administration (FHA) loans.

For the third straight month, millennial credit scores have increased, according to mortgage automation company Ellie Mae. From April through June, average FICO scores of millennial home loan borrowers have gone up a point every month, with June’s average score at 723.

“Economic uncertainty may be contributing to a general tightening of credit, which could explain why we are seeing a slight uptick in the average FICO scores for closed loans to millennials,” says Joe Tyrrell, executive VP of corporate strategy at Ellie Mae.

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Americans know it’s a great time to buy a home, but other financial struggles are a big factor in why some millennials are holding back on buying. According to the Ellie May study, 23 percent of loans from all borrowers were through the FHA. However, when broken down by generation, millennials were taking out FHA loans at a much higher rate.

“For the third month in a row, FHA loans made up 37 percent of closed loans among millennial home buyers,” the study says. “Conventional loans represented 60 percent of total closed loans in June.”

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FHA mortgage loans are government-insured and typically have a lower interest rate than a conventional loan, which isn’t backed by the government. Borrowers can take out an FHA loan that only require a 3.5 percent down payment for a home. Recommended down payment in other programs can be as much as 20 percent — a huge difference and one that millennial home buyers are taking note of.

Last year, Bloomberg predicted that a surge in female homebuyers would happen this year, and they were so right. Ellie Mae’s Millennial Tracker shows that so far this year, 40 percent of home buyers were female. In 2015 it was 15 percent.

It’s more likely women will take an FHA loan over a conventional loan, as 42 percent of the loan types women took out so far in 2016 were FHA. On the other hand, men had FHA loans 35 percent of the time.

But it’s men that are getting the better deals. Even slightly better FICO scores (men are averaging 725 so far this year, compared to 723 for women) are giving men a higher average loan amount ($193,382 for men, compared to $180,482 for women) and a lower interest rate (3.25 percent for males and 3.29 percent for females).