Buying

Are You Serious about Buying a New Home?

If so, then you’d best be serious about putting together enough cash for a down payment.  The minimum amount required depends upon the type of financing you’ll be using- VA, FHA, Contract, RD, Cash or Conventional.  (If you’re unsure then give me a call and we’ll come up with the best strategy for your situation!)

Ok, here’s 10 Ways to Get Your Downpayment—

  • Save it. Takes a budget and some discipline.  Set a goal and go to work!
  • Borrow from your 401k. (No taxes due going this route.)
  • Withdraw from your 401k.
  • Sell that extra car or truck.
  • Sell some other asset you own. I’ve seen people sell all kinds of things to raise money for a down payment- baseball card collection, horse tack, boat, stocks, bonds, and more.  Be creative!
  • Borrow against your car, truck, boat, life insurance policy, credit card, etc.
  • Gift from family.
  • Sell a house.
  • Take out a second mortgage or home equity line of credit on a house you own.
  • Combine two or more strategies- divide and conquer!

K

P.S.  If you want to talk through any of these ideas just give me a call.  I’ll be happy to help.

“I work harder to make good things happen!!”
  -Bob

How Much is the Payment?

It’s a question I get asked a lot (like all the time, and understandably so).  However, it’s actually a more complicated question than most people think, because it involves loan calculations, property taxes, home owners insurance, maybe even flood insurance or HOA dues.  Payments are also affected by the type of financing (ie. FHA, VA, RD, Conventional, Contract or RTO) and the amount of the cash down payment.

But, there are some averages you can use to arrive at a “quick n’ dirty answer”.  Today I’ll give you what the AVERAGE payment looks like for a home bought on contract with a $5,000 cash down payment.  Here goes—

PRICE               PAYMENT

50,000             360

70,000             520

90,000             680

110,000           840

130,000           1000

150,000           1160

170,000           1320

190,000           1480

210,000           1640

230,000           1800

250,000           1960

Keep in mind that contract terms are always negotiable between the buyer and seller, and that can sometimes result in payments that are more or less than the averages I’ve listed here.  But, these average numbers should work for you when looking at houses and evaluating whether they’re in your pricing wheelhouse or not. K

Now, if you’d like to put together a strategy to get the best terms— then give me a call.

 “I work harder to make good things happen!!”
  -Bob

Look Who’s Buying Homes

Well, it’s not first time home buyers.  That cohort is usually the driver of a strong housing market.  They feed the bottom of the pyramid, buying someone else’s starter home so they can move up.  However, only 33% of all home buyers in the central Indiana market in 2015 were first time home buyers.  That was the lowest that cohort has been since 1987!  Analysts attribute that to heavier student loan debt, not enough breadwinner jobs, and an aversion to use of credit among millennials.

Ok, let’s talk about who the average buyer in central Indiana was this past year.  They were a married couples, 39 years old, and making $77,800 a year.  This was about five years younger than what was seen nationally; and that could probably be accounted for by the fact that our prices are so much more affordable than most other places.

Two out of three buyers were married couples, followed by 15% single females, 9% single males, and 7% unmarried couples.  11% of all homes purchased were done so to include multi-generational living arrangements.

Need a plan to sell your house?  Call me… I work harder to make good things happen!!