first-time home buyer tips Archives - Columbus Ohio Real Estate | Buyer's Resource Realty Services

4 Decisions for First-Time Columbus Home Buyers

RealSupport — Thu, 26 Nov 2020 09:21:18 +0000

Buying your first Columbus home requires planning! If you are daunted by where to start, here are four basic, but important, decisions to help you begin.

1. Choose your real estate agent. We recommend an Exclusive Buyer’s Agent or Exclusive Buyer’s Broker! We make a critical difference in the home search and purchase process, potentially saving you thousands of dollars!

We also protect you from pitfalls that traditional agents may not point out – because they represent the seller! Read our free e-book to learn what other agents aren’t telling you.

2. Choose your mortgage. Seek a mortgage pre-approval from a reputable Columbus area lender. We can personally refer you to local lenders! If you are our Buyer-Client, we can also help you compare your mortgage offers.

3. Choose your preferred home locations in the Columbus area. Your home buying power may go further in some communities than others. If you are set on a certain school district, or wish to be close to family, decide these priorities now.

4. Choose the kind of home you need for your budget and household. What are your priorities in the home itself? There may be tradeoffs in your home search. Decide your must-haves before you begin your search.

As our Buyer-Client, you’ll have the full benefit of our information, experience and guidance. This will give you the confidence to make the best possible decisions.

As your Exclusive Buyer’s Broker, we serve your best interests at all times! Unlike real estate agents and brokerages who represent sellers, as an Exclusive Buyer’s Broker, we only represent you, the buyer, getting you the best price and terms with no conflict of interest at all times.

Understanding this distinction could literally save you thousands of dollars not only on the purchase price and terms, but also on seller concessions and home inspection issues, whether you are a first-time homebuyer or an experienced homeowner!

Andrew Show
Exclusive Buyer’s Broker, CEBA-M, MCNE, CSP, PSA,e-PRO, CREM, ABRM, AHWD
Buyer’s Resource Realty Services www.BuyersHome.com
Serving Metro Columbus, Ohio with Exclusive Buyer’s Agents
7100 North High Street, Suite 204, Worthington, Ohio 43085
614-888-4110 | 888-888-4110 Toll Free | 614-839-4110 Fax

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Columbus Home Buyers and Homeowners Should Review Credit Reports

RealSupport — Tue, 05 May 2020 05:53:33 +0000

Monitoring your credit report is wise for everyone, but especially for Columbus home buyers and homeowners, who are attractive targets for scammers. According to data by Experian, Ohio ranks as the 14^th-highest state for credit fraud, based on the 2017 per capita rate of reported incidents.

Today there is a fresh wave of phishing attempts. Scammers are impersonating the IRS and state benefit agencies. They are also pretending to be from credit card companies and mortgage lenders. Wherever there’s money, there’s a scammer attempting to get it!

Thankfully, the three main credit bureaus are making it easier for you to monitor your credit report. From now through April 2021, you can obtain your credit history every week, for free! To access your free credit report, visit AnnualCreditReport.com. This is the official consumer webite authorized by Federal Law.

Please keep in mind that not every lender reports to all three bureaus. For this reason, you’ll want to pull a report from each bureau.

Monitoring your credit history helps you spot any unauthorized credit accounts that were opened in your name. It also allows you to address any errors in your personal info. If you see any issues in payment history or other data, you can file a dispute with the reporting bureau, which will investigate and respond within 30 days.

We hope you find this information helpful! As your Exclusive Buyer’s Broker, we serve your best interests at all times! Unlike real estate agents and brokerages who represent sellers, as an Exclusive Buyer’s Broker, we only represent you, the buyer, getting you the best price and terms with no conflict of interest at all times.

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5 New Year’s Resolutions for Columbus Home Buyers!

RealSupport — Sun, 30 Dec 2018 23:17:03 +0000

If owning a home is among your goals for 2019, you can start today by making several home buying resolutions! A wise home buying journey requires a sound financial plan, a good home buying education, and expert guidance from an Exclusive Buyer Broker! These steps will help you put a plan together.

1. Resolve to take control of your finances. If you are saddled with myriad financial obligations, begin with turning your budget around. Credit counseling services can help. If you’re in pretty good shape, it’s still smart to check your credit history and make sure it’s free of errors. You can check your credit score at MyFico.com.

2. Resolve to save money for a down payment. Ideally, you’ll want to keep an emergency fund set aside, in addition to having a savings plan for your down payment. Down payments can be as low as 3% for a Conventional mortgage, or 3.5% for an FHA mortgage.

If you wish to avoid paying mortgage insurance, you usually need a down payment of 20%. However, we know of an excellent local lender who offers no-PMI mortgages with 15% down, and no rate bump – contact us for a referral!

Remember too, that cash gifts can be used towards your down payment! If you are counting on gift funds for your down payment, see these important tips!

3. Resolve to get pre-approved for your mortgage. Before starting your home search, you need a realistic idea of your buying power. We can refer you to reputable lenders in Central Ohio who will explain all of your mortgage options. Contact us for a referral!

4. Resolve to learn about home buying from a reliable source. There’s tons of home buying “advice” on the Internet, but typical real estate websites stop short of giving buyers the complete truth – because they’re trying to attract sellers, too. Our free e-book, “How to Buy a Home like a Pro” gives you valuable insights to the home buying process, all without charge or obligation.

5. Resolve to work with an Exclusive Buyer Broker! We provide our Buyer-Clients with true fiduciary representation. We protect you throughout the home buying process, negotiating exclusively on your behalf to get the best possible price and terms. We can also show you any home on the market, including homes for sale on the Columbus Regional MLS, homes For Sale by Owner, and new construction for sale by home builders!

Andrew Show
Broker, CEBA-M, MCNE, CSP, PSA,e-PRO, CREM, ABRM, AHWD
Buyer’s Resource Realty Services, www.buyershome.com
Serving Metro Columbus, Ohio with Exclusive Buyer’s Agents
7100 North High Street, Suite 204, Worthington, Ohio 43085
614-888-4110 | 888-888-4110 Toll Free | 614-839-4110 Fax

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Mortgage Strategies for Columbus Home Buyers

RealSupport — Sat, 24 Nov 2018 07:39:43 +0000

Making wise mortgage decisions can save you money as a Columbus home buyer! While you can’t control the direction of interest rates, you can put yourself in a position to receive the best possible mortgage offers. Here are mortgage tips and strategies every home buyer should know!

Strengthen your credit. Your credit score, loan-to-value ratio, and debt-to-income ratio are all considered by the lender. It’s easiest to look at it this way:

The higher your credit score, the better.
The larger your down payment, the better.
The lower your monthly debt payments, the better.

The lowest interest rates are awarded to borrowers who have the very best credit, and the lowest risk profile. Mortgage underwriting is complicated, and involves more than the items above – but this gives you a good start!

Pay attention to rates. Each week, Freddie Mac publishes the Primary Mortgage Market Survey (PMMS), which shows the national average for mortgage interest rates. This snapshot includes three main mortgage types. It includes the average points, if any, lenders are charging to issue those rates. As of November 21, 2018, the PMMS looked like this:

30-year fixed-rate mortgage = 4.81% with 0.4 points

15-year fixed-rate mortgage = 4.24% with 0.5 points

5/1 adjustable-rate mortgage = 4.09% with 0.3 points

These rates are subject to change daily, and are for example purposes only.

Consider your mortgage loan options. While the 30-year, fixed-rate mortgage is popular, you’ll enjoy a lower rate, and pay less interest overall with a 15-year mortgage. Keep in mind, the shorter term will mean a larger monthly payment.

You can consider adjustable-rate mortgages, which offer low introductory rates. In the example above, the 5/1 ARM means your interest rate stays the same for the first five years. Afterwards, it will adjust every year for the remainder of the mortgage.

Do the math on mortgage points. A point equals one percent of the principal amount borrowed. When you pay points, you’re basically paying interest in advance. In return for this up-front money, the lender grants you a somewhat lower mortgage rate. As you saw in our PMMS rate examples above, points may be shown in any fractional amount.

Points are paid at closing with other out-of-pocket costs. If you wish, you can opt to “roll” your points into the mortgage loan with other closing costs. Remember that paying points at all is completely optional!

Lock the rate. A rate lock means your lender promises to honor the offered rate for a specific amount of time. This protects you from the daily changes in rates that happen in the financial markets. Generally, the rate lock gives you enough time to get through the closing process.

When you’re happy with the mortgage offer, and you don’t want to gamble with the future rate environment, lock it in! But if you think rates might be heading lower, you can opt to wait a bit, or try shopping rates with another lender. (Remember, your personal creditworthiness plays a large role in the rates you’ll be offered.)

Educate yourself! Our free e-book explains these matters in detail! Obtain your copy of “How to Buy a Home like a Pro” by clicking here. There’s no charge, no obligation, and we never share your email address with anyone else.

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Home Buyers Carrying Heavier Debt Loads

RealSupport — Sun, 15 Apr 2018 04:01:18 +0000

How much debt would you be willing to carry to achieve home ownership? For an increasing number of home buyers, the answer is nearly half of their monthly income. According to a recent report by CoreLogic, as published in the Wall Street Journal, 1 in 5 home buyers have debt-to-income ratios of 45% or more.

This is the highest percentage of heavily-leveraged home buyers since the run-up to the housing bust. While there’s some concern among industry analysts, the general consensus is that today’s buyers have better credit scores, and therefore represent less risk, despite the uptick in debt loads.

The rising debt levels follow the loosening of mortgage underwriting standards by Freddie Mac and Fannie Mae during 2017, which allowed borrowers to have debt-to-income ratios as high as 50%. This ratio refers to “back-end” DTI, meaning that the debt load calculation includes the new mortgage payment, as well as any consumer debt payments, such as car loans, student loans, credit card payments and so on. (Read more about mortgage financing in our free e-book, “How to Buy a Home like a Pro!”)

In essence, it’s “ok” by this underwriting standard to devote half of your gross monthly income to making debt payments! The problem is, gross income is not the same thing as monthly take-home pay. What may sound workable on paper, may not be a comfortable, practical or wise situation for home buyers to place themselves in.

To their credit, Freddie Mac and Fannie Mae increased the allowable DTI ratios to help more home buyers stay in the market. Rising home prices and rising mortgage interest rates have crimped home affordability around the country. As a result, average mortgage payments have risen by 5% during the first quarter of 2018, compared to the same period a year ago. Economists expect that average mortgage payments will rise by 10% or 15% by the end of the year.

While home buyers may be tempted to do “whatever it takes” to buy a home, you must think twice before accepting indebtedness that could hurt your ability to save for emergencies, or put away money for retirement and other needs. If you are marginally qualified to buy a home now, you might be better off paying down others debts first, or saving longer to make a larger down payment. Plan well, and buy smart! You’ll thank yourself later!

Andrew Show
Broker, CEBA-M, CNE, CSP, PSA, e-PRO, CREM, ABRM, AHWD
Buyer’s Resource Realty Services, www.buyershome.com
Serving Metro Columbus, Ohio with Exclusive Buyer’s Agents
7100 North High Street, Suite 204, Worthington, Ohio 43085
614-888-4110 | 888-888-4110 Toll Free | 614-839-4110 Fax

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Too Many Americans Busting Budgets to Buy a Home

RealSupport — Fri, 06 Apr 2018 18:20:52 +0000

About one-third of buyers are exceeding their budgets when buying a home, according to a 2018 survey by Owners.com, published by USA Today. The survey sampled 1,214 home buyers of various age groups throughout the U.S, who purchased a home during the past 4 years.

The average amount over-spent by respondents was $16,510. When the results were broken down by generation, Millennials over-spent the most, compared to their older cohorts:

40% of Millennials went over budget by an average of $24,545
34% of Generation X went over budget by an average of $13,996
19% of Baby Boomers went over budget by an average of $8,024

Perhaps the most telling element of the survey, is how each age group made their home buying decisions. The survey found that the Millennial respondents were the most reliant on the advice of their real estate agents! About 1 in 5 Millennial respondents, or 19%, admitted to being “indecisive at times.” They also said they “relied on their agent to tell them what homes they should be considering and touring.”

Since the vast majority of real estate agents serve the best interests of the home seller, and usually promote the listings of their own brokerages first, it’s easy to see how buyer over-spending can occur. This is because a typical agency has no fiduciary obligation to the home buyer, and does not protect the buyer’s best interests whatsoever!

There is nothing to stop such agents from steering you towards listings that represent their best interests and biggest commissions. Such agents are also prone to dispending bad “home buying advice” that serves every advantage of the seller.

Only an Exclusive Buyer Agent or Exclusive Buyer Broker provides you with 100% buyer loyalty and fiduciary representation, 100% of the time! Since we never represent sellers or accept listings, we have no vested interest in what home you choose to buy. We can show you homes For Sale by Owner and homes for sale directly by builders, as well as home listed through the Columbus Regional Multiple Listing Service. We also “tell it like it is” when it comes to home condition and the market value of the property!

Our Buyer-Clients are not encouraged to become “house poor”, or told to waive protective contingencies that provide critical legal protections! Buying smart is the best way to obtain the long-term benefits of successful home ownership. Learn more buy getting our free e-book, “How to Buy a Home like a Pro!”

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Strong Central Ohio Home Sales Set Tone for 2018

RealSupport — Fri, 12 Jan 2018 09:43:13 +0000

Central Ohio home buyers have been busy during the waning months of 2017! Central Ohio home sales were up 3.2% in November 2017, with 2,377 transactions recorded. This was the highest of any November on record. Homes spent an average of 36 days on market, beating the November 2016 rate of 42 days on market.

Central Ohio home prices saw a boost as well. The average home sale price in November reached $213,962. Doing the math another way, the median home sale price reached $180,000.

Please keep in mind that industry statistics do not include For Sale by Owner homes, or homes sold directly by builders, as these sale occur without the involvement of a listing agent. (That doesn’t stop Exclusive Buyer Brokers from showing these homes to you, and representing you in the purchase negotiations!)

If all of these hot sales trends are sounding familiar, there’s good reason! About a year ago, we posted a blog about the robust Central Ohio home sales of November 2016. At that time, the median home sale price had reached $172,000.

Go back further, and you’ll find we reported how the 2016 Columbus home inventory could remain lean – and it did! Go farther back, and you’ll see how we helped first-time home buyers succeed during a very competitive market in 2015.

The Central Ohio real estate market conditions we have today have been with us for quite a while. They are likely to stick with us for the foreseeable future.

While these conditions can be challenging to home buyers, it does not mean you should give up your rights to protective contingencies! Nor should you feel compelled to accept a home price that is too high for the property condition or local market factors. There’s plenty of bad advice out there from typical agents, because they represent the seller!

We’ve helped home buyers succeed in these competitive conditions for years, and we’ve helped our Buyer-Clients navigate the volatile and varied Central Ohio markets of the past two decades. If you plan to buy a home in 2018, be sure to work with an Exclusive Buyer Broker!

Contact us with your home buying questions! Remember, we are with you every step of the way…all the way home!

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How to Use Holiday Cash Gifts for Your Columbus Home Purchase

RealSupport — Fri, 08 Dec 2017 06:34:55 +0000

If buying a Columbus home is on your holiday wish list, a little help could put you closer to your goals! But before you ask Santa for money, there are some rules you need to be aware of. Here’s what you should know!

FHA and Conventional mortgages allow you to use cash gifts from family, friends, buyer assistance programs and your employer. However, you cannot accept cash contributions from a lender, home builder, home seller or real estate agent – basically, from anyone who stands to benefit from the transaction.

FHA loans allow all of your down payment funds to be sourced from a cash gift. The minimum down payment of 3.5% can come entirely from gifted funds, or a combination of your own funds and gifted funds. However, if you have a low credit score, the lender may require you to contribute some of your own money, even if the gifted funds meet the minimum.

Conventional loans are a little different. If you put less than 20% down with gifted funds, the lender may require you to contribute some money of your own. The exact amount depends on your credit score, the loan parameters and the PMI company. (If you have at least 20% down and it’s entirely from gifted funds, that’s fine.)

USDA loans and VA loans do not require a down payment. Gifted down payment funds are allowed if the borrower wishes to use them.

In all cases, a gift letter must be provided to prove that the funds are free and clear of any repayment obligation. You can see a gift letter example by following this link.

Next, there must be a paper trail for the funds that are gifted. The person issuing the gift should supply the following:

Bank statement showing proof of funds, before the gift is issued.
Bank statement showing the same account directly after the gift was issued.
If a personal check is issued for the gift, a copy of the cleared check will be required.

You should open a new account upon receipt of the gift funds. Deposit the full amount of the gift by itself; do not add or subtract any funds, and don’t swap money around from other accounts. If more gift funds are received, you can add them to this account, but the issuer must follow the same documentation steps. Keep proof of your gift deposits! Your lender will want all this paperwork, and perhaps more, so maintain good records.

This might seem like a lot of red tape, but it could bring you closer to home ownership! We’ll be happy to refer you to trustworthy, local lenders who can walk you through your mortgage options.

Contact us with your home buying questions! Remember, we are with you every step of the way…all the way home!

Andrew Show
Broker, CEBA, CEBA-M, CNE, CSP, ABR-M, e-PRO, GREEN
Buyer’s Resource Realty Services
Serving Metro Columbus, Ohio with Exclusive Buyer’s Agents
7100 North High Street, Suite 204, Worthington, Ohio 43085
614-888-4110 | 888-888-4110 Toll Free | 614-839-4110 Fax

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Mortgage Mistakes for Central Ohio Buyers to Avoid

RealSupport — Wed, 27 Sep 2017 20:00:30 +0000

The great thing about becoming a homeowner in Central Ohio is that many have come before you! You can learn from their mistakes so that you avoid making them altogether. As you Exclusive Buyer’s Agency, we are here to fill you in on some of the most common mortgage makes that first-time buyers make. By avoiding these, you could save yourself heartache and a lot of money in the long run!

1. Don’t begin your home search before finding your mortgage. Talk to a mortgage lender three months to a year before you plan to buy. Have a pre-approval in hand before seriously beginning your search. This will allow you to know exactly what budget to search in, and you will be a better candidate in the eyes of sellers. If you make a bid over what you can afford, this could cost you tens of thousands of dollars over the life of a loan.

2. Don’t skip the process of comparing loans. First-time buyers may focus only on a low interest rate and not take the cost of fees into account. When comparing loans, compare them by the annual percentage rate, or APR, not just by interest rate. If your lender doesn’t provide you with the APR in the loan estimate, find a different lender! This will help you understand exactly what you’ll be paying over the life of a loan, and by comparing and choosing the best options, you could again save thousands.

3. Don’t fall for marketing gimmicks from lenders. Mortgage lenders may try to get you into their doors by offering a deal you can’t refuse, like paying your mortgage insurance or paying your closing costs. Don’t believe them. Mortgage experts say that lender always make up for the deals they make, so if you’re not paying for one thing, you’re making up for it in your interest rate. This adds up quickly if your interest rate is higher than it should be.

4. Don’t take the highest loan offered to you. A mortgage lender may offer you the highest loan that you can technically handle, but that doesn’t mean you should accept and then buy the most expensive Central Ohio home you can! You have to budget in the rest of your life, such as what you spend disposable income on. What are your passions and hobbies? Do you enjoy going to the gym or taking yoga classes? Do you love your morning coffees or happy hour drinks? Track your monthly spending and factor this in when choosing a mortgage loan.

It’s important to shop around, to read through all of the documents you receive, however daunting it may seem, and to speak up with questions or concerns. As your Exclusive Buyer’s Agents, we can recommend some local lenders and help answer any of the home-buying questions you may have.

Contact us with your home buying questions! Remember, we are with you every step of the way…all the way home!

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What Columbus Home Buyers Should Know About Homeowner Associations

RealSupport — Fri, 16 May 2014 22:59:05 +0000

If you’re a first-time homebuyer, you may be unfamiliar with homeowner associations – except for examples publicized in the media. While there can be some contentious relationships between homeowners and their respective associations, you can avoid headaches if you do your homework.

First, it’s important to understand that not all housing developments have homeowner associations. They are usually found in condominiums and planned communities. As future developments form in central Ohio, it’s likely that more homeowner associations will be created.

Joining a homeowner association is easy – you simply have to buy a home that is located within the association’s boundaries, and you’re an instant member. You are also instantly obligated to follow all the rules of the association, which may regulate everything from the type of fencing you can install, to the color of your garage or front door, to the kind of patio you may build. As a rule of thumb, you shouldn’t make any exterior modifications or cosmetic changes to your home or yard without checking the restrictions.

Homeowners can run afoul of their associations when making assumptions about what is permitted. For example, if you install an above-ground pool, and it isn’t permitted by your association, the association may fine you for the infraction on a daily basis until the offending pool is removed.

Please keep in mind that the objective of these associations is to preserve property values and ensure upkeep of common areas. As municipal budgets tighten, homeowner associations have taken a larger role in providing services within planned communities. This can include snow removal, park maintenance, private road paving and so on. In return, homeowner associations charge dues to their members to cover these costs. The amount of the dues may change according to operating expenses.

Homeowner association dues are non-negotiable; you cannot simply refuse to pay them. If you refuse, the association may place a lien on your property and initiate foreclosure. To avoid this risk, your mortgage company may treat association dues just as they would property taxes. The dues would be included in your mortgage payment, and the bank would pay the association directly.

Homeowner associations in Ohio and their governing boards are regulated under the Ohio Planned Community Law and the Condominium Property Law. When buying a Columbus home that rests within a homeowner association, you should carefully review all covenants, restrictions and by-laws that apply to your specific association. These may be posted online or available in hardcopy. If there is a special area of concern, voice your questions right away, and use the appropriate contingencies in your purchase offer. We will help you!

As your Exclusive Buyer’s Broker, we serve your best interests at all times. Unlike real estate agents and brokerages who represent sellers, as an Exclusive Buyer’s Broker, we only represent you, the buyer, getting you the best price and terms with no conflict of interest at all times.

Contact us with your home buying questions! Remember, we are with you every step of the way…all the way home!

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