Busting First-Time Homebuyer Myths

Volume 93
Busting First-Time Homebuyer Myths
AGENT NAME
lives. Without home buying experience, it's hard to separate fact from fiction.
Equity Real Estate
(555) 555-5555
[email protected]
"Buying a first home can be exciting and stressful for most young buyers, especially the
Inside This Issue
When buying a first home, most people are making one of the biggest purchases of their
financing process," says Clete Thompson, vice president at imortgage, a division of
loanDepot LLC. "There's a lot of paperwork, many choices, and sometimes budgets don't
stretch very far. Our licensed loan officers specialize in helping first-time buyers navigate the
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2.
home finance process, which can be stressful if you're not working with a seasoned
professional."
To help first-time buyers, the experts at imortgage are uncovering prevalent myths about
3.
financing a home purchase:
Myth: It takes a 20 percent down payment to buy a home.
Reality: Required down payment amounts vary by type of loan and they are on average
much smaller than people think. Last year, the median down payment for all first-time
buyers was 6 percent, according to the National Association of Realtors. One reason is that
many first-time buyers use FHA loans, which require down payments as low as 3 to 3.5
percent. VA loans require nothing down for qualified veterans or active military personnel. If
you want to take out a conventional loan, many lenders do require 20 percent down, but
you can lower that percentage with private mortgage insurance. There are also hundreds of
down payment assistance programs that eliminate or reduce down payment requirements
for qualified borrowers.
4.
Busting First-Time
Homebuyer Myths
Take The Sweat Out of
Your DIY Projects This
Year
The Secret to Mother’s
Day Gifting Success:
Give Time, Not Stuff
Fun Summer Activities
For The Whole Family
“Our greatest glory is not in
never falling but in rising every
time we fall” -Confucius
11 Ways you’re giving money away
when you buy a house
Mortgage lender Fannie Mae Just made
a move to make homeownership more
affordable, and it’s one of the many
things that can help you save some cash
when buying a home.
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Myth: If you owe a lot of student loan debt, there is no way you can get a mortgage.
Reality: Don't assume that having a lot of student loan debt automatically disqualifies you
from getting a mortgage. The key factor is not necessarily the size of your loan obligation,
but the amount of your total monthly debt payments compared to your monthly income.
This is called DTI. imortgage, for example, has approved thousands of loans to first-time
buyers whose monthly student loan payments were as high as $300, and many more could
qualify by increasing their monthly income.
Myth: If your credit score is low, you should not even try to get a mortgage.
Reality: Millions of potential buyers assume they will not be approved for a mortgage even
though many could qualify, according to a national survey commissioned by loanDepot LLC.
Today, median FICO scores for mortgages to buy a home are 683 for FHA loans and 754 for
conventional loans. But hundreds of thousands of buyers with scores lower than those are
getting mortgages if they have good income and low levels of debt.
Myth: Buying a home isn't a good investment.
Reality: Real estate, like other assets, rises and falls based on supply and demand. Over the
past two years, home values in most markets have been rising. While all real estate is local, if
you bought a home in March 2012, by August 2014 the national median home price as
measured by Case-Shiller had risen 29.6 percent.
Myth: The mortgage-interest tax deduction is going away.
Reality: Though the deduction has its critics, most observers believe it is unlikely that
Congress will eliminate the mortgage interest deduction any time soon. Many states also
allow homeowners to write off the interest they pay on their mortgages from their state
income taxes. Check with your accountant or CPA on if you can qualify for this type of tax
deduction.
Myth: I'm about to get married and the wedding is so expensive I won't be able to buy a
home.
Reality: According to TheKnot, the average wedding has 138 guests who typically give a gift
valued at $100 each. That's $13,800 in spatulas, baking pans and other things. If every guest
contributed to a Down Payment Fund, you could have enough saved for a down payment
on a $276,000 home in San Diego.
Should you wait for lower prices or
lower interest?
Right now, buyers have the best of both
worlds- home prices have risen, but
they’re still below the bubble of 2005,
and mortgage interest rates are just
above record lows. Yet, many buyers
are still waiting for a sign that it’s the
right time to buy.
Five landscaping ideas for sellers
You’ve probably heard how important
curb appeal is when you’re trying to sell
your home. The first thing buyers look
at when they pull up to your home is
the big picture – the house, the yard,
the trees, the flowers. It’s the
impression that counts, and all it takes
is one thing to ruin the effect – a
cracked walkway, dead branches in the
trees, leggy bushes.
http://realtytimes.com/consumeradvice
/homeownersadvice1
When it comes to housing, hope
springs eternal
Housing numbers are looking hopeful
for the spring season, according to
Clear Capital’s recently released Home
Data Index (HDI) Market Report with
data through April 2015
Generating Business: Keep It Simple
There are many ways to generate
business. Some agents thrive on FSBO’s,
others expireds. There is geographic
farming, open houses, contacting your
sphere of influence, and of course there
is the internet.
Making online lead systems work for
you
Generating, managing and
communicating with leads are vital to
your success as a top agent or broker.
How do you choose the online lead
systems that work best for you?
http://rismedia.com/category/homeowner-news
"These are just a few of the myths about home buying that surface frequently in our
conversations with first-time buyers," says Thompson. "I always advise potential buyers,
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especially first- time buyers, to get in touch with one of our local imortgage loan officers if
they're interested in straight answers to specific questions about financing a home. We are
here to help."
Take The Sweat Out Of Your DIY Projects This Year
Movie Trivia
What animated feature film was
chosen as a 2009 Golden Globe
winner?
You've been dreaming about digging in your garden, changing your landscaping or
improving your house all winter long. Finally the weather is nice, your yard is clear and dry,
and it's time for you to get your hands dirty. With the right tools and equipment, you can
get all your DIY tasks done while saving time, money and elbow grease.
Look for products that can help make lawn care, gardening, home improvement and other
a.
Bolt
b.
Kung Fu Panda
c.
WALL-E
According to the American Film
Institute, this is ranked as the
“Greatest American Movie of All
Time”
a.
The Godfather
b.
Citizen Cane
c.
Gone with the Wind
What was the first animated feature
film produced in America?
DIY projects easier to accomplish. For example, instead of laboring to push an aerator
a.
Bambi
around your lawn, consider a liquid dethatcher. You apply the dethatcher using a sprayer on
b.
Snow White and the
the end of the garden hose and the formula works to aerate soil and break up the layer of
thatch that hinders grass growth.
Renting tools or equipment you use occasionally or only once a year can save you time and
money. Many home improvement stores now offer a wide range of tools for rent, from
bench saws and floor sanders to augers and overseeders. By renting, you avoid storage
issues and maintenance chores.
Seven Dwarfs
c.
Mighty Mouse
What was the Best Picture-winning
film in the year that the Academy
Awards (Oscars) TV show was the
most watched, at 55.2 million
viewers?
a.
American Beauty
b.
Forrest Gump
c.
Unforgiven
d.
Titanic
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One piece of equipment a DIYer can use all summer long is an off-road vehicle. By using
your off-road vehicle for heavy jobs, you can avoid the expense of hiring additional workers
for project such as:
* Hauling rocks or mulch around your yard. Get more done with the family of versatile
What Adam Sandler comedy
featured Bob Barker’s screen debut?
a.
Happy Gilmore
b.
Big Daddy
c.
Billy Madison
Polaris RANGER side-by-sides. Their rear dump box allows you to move and distribute these
materials in different garden beds or around all your trees.
* Removing dead branches and towing out bushes and trees. By either using a winch,
installed on the front of the vehicle, or a tow strap attached to the rear, you can pull out old
brush easily.
* Smoothing out fresh dirt with a plow. Raking by hand is messy, and takes a lot of time.
Instead, hook up a plow to your off-road vehicle and gently smooth out the dirt with the
plow lowered to the level you want. If the dirt is already level, attach a pull-behind rake to
Who is the voice behind Woody, the
cowboy doll in Toy Story?
a.
Clint Eastwood
b.
Eddie Murphy
c.
Tom Hanks
d.
Bill Murray
Primavera With Prosciutto,
Asparagus and Carrots
Recipe Courtesy of foodnetwork.com
your vehicle to make the dirt perfect for planting or seeding.
* Carting lumber from the driveway to the back patio for easier access to the house project
you're working on. This will allow you to take fewer trips and saves your muscles from a few
aches and pains, and also splinters. You also can reduce the number of helpers you need for
the project - just make sure you have another person handy to help you load the vehicle.
* If you have a boat dock, use your off-road vehicle to tow it into the water for some
summer fun.
After all the hard work, take your vehicle out on the trail for a bit of fun. The two-passenger
Ingredients:
1.
Kosher salt
RANGER side-by-sides fit into the bed of most full-sized pickups, making it easy for you and
2.
1 pound penne or farfalle
a family member to take a break from the work and hit the trails.
3.
1 pound asparagus
spears, stems trimmed,
cut into 1 1/2-inch
With the right tools, you can accomplish everything on your DIY list this summer, and enjoy
the satisfaction of a job well done without the sweat of going it alone.
lengths
4.
1 large carrot, cut into
matchsticks
(Retrieved from brandpointcontent.com
5.
1 cup snap peas
6.
1 tablespoon extra-virgin
olive oil
7.
8 ounces sliced
prosciutto, jamon iberico
or other high-quality
ham, diced
8.
1 large shallot, sliced 1/8
inch thick
9.
1 clove garlic, minced
10. 1/2 teaspoon red pepper
flakes
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11. 1 cup heavy cream
12. 1 cup chicken stock,
preferably homemade or
low-sodium store-bought
The Secret to Mother’s Day Gifting Success: Give Time,
Not Stuff
Directions:
Bring a pot of water to a
boil, salt it generously
and cook the pasta for 8
minutes; add the
asparagus, carrot and
snap peas and cook for 3
minutes. Check the pasta
and vegetables to make
sure they're cooked
through but still have
texture, then drain.
While the pasta is
cooking, heat the olive oil
in a large sauté pan, add
the ham and shallot and
cook until lightly
browned, 3 minutes or
so. Add the garlic and
pepper flakes and cook
until fragrant, 1 minute.
Add the cream, stock and
mustard and simmer for a
minute or two, scraping
up any brown bits.
She nursed you through countless cases of childhood sniffles, taught you to tie your shoes
and make a mean omelet, and she's still your go-to source for good advice and your favorite
Add the pasta and
vegetables to the pan.
Toss and cook for another
2 minutes, until cooked
through and the pasta is
coated. Taste for
seasoning, add salt if
necessary and serve
immediately in warm
bowls.
home-baked cookies. Are you really going to just give Mom a pair of socks and some
flowers for Mother's Day? You can do better than that.
In the tradition of a current pop-culture meme, here's a "give this, not that" list of Mother's
Day ideas:
Give: Your time. Last year, 44 percent of mothers surveyed by online deal site PriceGrabber
said they wanted quality time with their family for Mother's Day. Whether your family
includes adult children who live and work far from their childhood home (and Mom) or a
busy family with young children, it can be hard to find time to spend with each other on a
regular basis. On Mother's Day, make a point of devoting the day to Mom. Whatever you
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choose to do together - dine out, visit a botanical garden or just hang out at home - you'll
be giving her the gift she wants most: time with you.
Don't give: Stuff. There's a difference between a thoughtful gift that has meaning to the
recipient, and something clearly bought out of desperation just so the giver has something
to hand over on Mother's Day. Moms know the difference. Things like cowboy boots,
sunglasses and even designer purses were among the items mothers said they didn't want in
a survey by Ebates. Don't wait until the last minute to buy something she may not want. Put
some thought into the gift a week or two before the big day so you can be sure you're
giving her something she really wants, like a piece of unique jewelry, her favorite bath
products, or an attractive scarf.
Give: A great meal out. It's easy to understand why dining out was on the list of mostwanted gifts for mothers in every geographic area surveyed by Ebates. What could make
Mom happier than enjoying a great meal with her family? Not having to cook it herself or
clean up afterward! Taking Mom out for meal is a time-honored Mother's Day tradition and
restaurants can be busy on the first Sunday of May. In fact, Chris Ciavarra, senior vice
president of marketing for Cracker Barrel Old Country Store, reports that Mother's Day is
one of the busiest days of the year for their restaurant locations across the country. When
choosing a place to take Mom, look for a place that will please her palate with familiar
flavors, good food and the kind of warm, comforting ambience she creates in her own
dining room or kitchen. Family-style restaurants like Cracker Barrel are a good choice for
Mother's Day because there's something on the menu for everyone. Plus, when Mom's done
with her meal, she can pick out the perfect gift from the store's collection of nostalgic items.
Don't give: Practical kitchen items. No matter how much Mom says she wants a new electric
can opener or how much she needs a new set of pots and pans, don't give these items on
Mother's Day. Moms are more than just the sum of the time they spend in the kitchen. If she
really needs and wants those things, why not give them to her at some other time of year,
for no other reason than she's a great mother? Or, if you must give something kitchenrelated for Mother's Day, consider something that's pretty and fun, too, like decorative serve
ware. Buy from a store that offers free gift wrapping services - like Cracker Barrel - and it's
even easier to give a good-looking gift.
Give: Gift cards. A gift card to her favorite store was another popular selection of moms
surveyed by Ebates. But don't think giving her a gift card is all you have to do. Research to
find just the right card for her, and then offer to accompany her on a shopping excursion to
her favorite store. That way, you'll be giving her two things she wants most - a gift card and
time spent with you.
Don't give: Technology. Do you really want to give Mom a smartphone that will be obsolete
by next Mother's Day? Or a tablet so complicated she'll never figure out how to use it on her
own? If your mother's digitally inclined, chances are she already has the tech she needs and
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wants. And if she doesn't, trying to choose it for her can be like trying to pick a pet for
someone else - never a good idea. Instead, keep gift items simple, personal and nostalgic.
For more Mother's Day gift ideas, gift cards and to learn about special menus for Mother's
Day, visit www.crackerbarrel.com.
(Retrieved from brandpointcontent.com)
6 Things You Should Never Do When Renovating a
Kitchen
Whether you've heard it in the office, a classroom or a soccer field, that old saying about
mistakes being valuable learning tools really rings true, doesn't it? If those mistakes occur
during the course of a kitchen renovation, however, it may be difficult to be philosophical
about them. Bungle a kitchen redesign, and you'll either have to live with the consequences
for a long time or invest even more money to correct them.\It's better by far to avoid
making a big mistake when renovating a kitchen. Here are six totally wrong moves that you
should never make when improving the most-used room in your home:
1. Give up cabinets.
Maybe you long for a window over the kitchen sink. Perhaps replacing or upgrading all the
cabinets in the kitchen will take too big a bite out of your budget. Or maybe you intend to
become a minimalist and need storage space for only two plates, two mugs and two wine
glasses. Whatever you think your "reason" is for reducing the number of cabinets in your
kitchen - don't do it. Cabinet storage space is a top priority in any kitchen; it can help keep
clutter off your countertops, and improve the room's appeal to potential buyers. Never give
up cabinet space unless you have a ridiculous number of cabinets, in which case, see move
No. 2 ....
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2. Cover every inch of wall with cabinets.
The only thing worse than not enough cabinets is having too many. We've all seen kitchens
where the cabinets visually overwhelm the space. Sometimes they're too large for the scale
of the room. Other times there are just too many of them. Keep in mind the need for visual
balance, and turn to online calculators to help you understand how much cabinetry is
appropriate for your kitchen.
3. Cheap out on appliances.
New appliances can be a large part of your kitchen renovation budget, and the temptation
to cut costs by buying cheaper quality products can be compelling. Yet kitchen appliances
are among the most-used in any home. When you consider how often you'll use them, how
much wear and tear they'll endure, and how great their impact is on the usability of the
room, it makes sense to invest in the best appliances you can afford. What's more, if you
choose cheaper models - or worse yet, keep old, inefficient appliances - you may miss out
on the energy savings that new appliances can deliver.
4. Give up even a single ray of sunlight or breath of fresh air.
More than one kitchen renovator has chosen to solve the problem of too little cabinet space
by covering up a window. Not a smart move, especially when you consider the value of
natural light and fresh air in a kitchen. If you have no wall space to spare for windows,
adding Energy Star-qualified no-leak fresh-air skylights, like those from Velux America, can
solve the problem.
Modern skylights are as dependable as high quality vertical windows and they admit much
more natural light. Solar powered fresh air skylights passively vent humidity and cooking
fumes from the kitchen while bringing in light. Pair them with solar-powered designer
blinds, and your skylights become not just more energy efficient, but more functional, since
both are operated by a programmable remote control. As an added plus, solar powered
skylights, blinds and installation costs are eligible for a 30 percent federal tax credit for
energy-efficient home improvements.
5. Pick materials that are too fragile for life in the kitchen.
Just as you never pick a partner or a vehicle based on their looks alone, choosing kitchen
materials based on beauty is doomed to disappoint. For example, recycled glass countertops
can chip, scratch or crack more easily than other options, and may not stand up to rigorous
use. Limestone has a lovely, luminous look but is vulnerable to stains. Before you choose a
material for its looks, find out its durability and weigh that against your tolerance for
cleaning and repairs, as well as how brutal you're likely to be on the surfaces in your kitchen.
And in that vein ....
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6. Let looks trump practicality.
Choosing an overall design or materials that look great and are fashionable, but that aren't
practical for your lifestyle, is a recipe for regrets. Whether it's buying a refrigerator that's too
big for the scale of the room, or opting for a countertop color that's too unusual to be
universally appealing, conceding practicality to appearance will make the kitchen harder to
work in and harder to sell down the road.
A well-executed kitchen renovation can boost home value and improve your enjoyment of
the kitchen, which is the heart of the home. With planning and care, it's possible to avoid the
kind of renovation mistakes that no one wants to live with.
(Retrieved from brandpointcontent.com)
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