First-time Homebuyer Archives

5 Reasons 2016 is the Year to Buy a House

What credit score is needed to buy a house?

How do I choose the right lender?

How much down payment do I need to buy a house?

Why Use a Real Estate Team Instead of a Single Agent

Can my real estate agent represent me on new construction?

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Renting vs Owning in 2016

January 22, 2016 by Eric Lowry

Renting vs Owning in 2016

Trying to decide between buying a home or renting another year? Recent data might help you make up your mind.

There are currently low rental vacancy levels and a lack of new rental construction, which are driving rents up significantly. Rents are expected to outpace home price appreciation in the upcoming year. What does that mean for you? It means that renting is going to be more expensive than owning a home.

A recent Wall Street Journal article reports that “rents rose faster last year than at any time since 2007”. On average rents rose by 4.6% in 2015; when over the previous 15 years they had only risen an average of 2.7% annually. Zillow‘s 2016 Housing Market Predictions state that “rising rents won’t let up in 2016, and will continue to set new records. [2016] will bring the least affordable rents ever.”

Many people choose to rent just because they aren’t comfortable taking on the obligation of a home mortgage. However, unless you are living with family or friends rent free, you are paying a mortgage – either your own or your landlord’s. Wouldn’t you much rather put that money back into your own pocket? A home mortgage is like a forced savings which builds you equity in your home that you can use later on in life. If you are renting, you are only building your landlord’s equity.

Right now interest rates are at historic lows, but they are projected to increase steadily throughout 2016. Your window of opportunity to get a low interest home loan is closing. An increase in mortgage rates of 0.5% is equal to a 10% increase in home prices and affordability, which significantly increases your monthly payment. So the question you should ask yourself is, can you really afford to keep renting?

Questions about buying a house? Contact The Lowry Team today at 513-874-1830.

Don’t Hire an Agent…Hire a Team. The Lowry Team.

Buyers and Sellers can reach The Lowry Team Keller Williams at 513-874-1830.

Other Articles You May Be Interested In:

What credit score is needed to buy a house?

How much down payment do I need to buy a house?

Buy a Home With a Low Down Payment

Buying a Home Step 1: Get Pre Approved

Search the entire Cincinnati MLS for Homes For Sale

5 Reasons 2016 Is The Year To Buy A House

January 22, 2016 by Eric Lowry

If you’ve been considering buying a house, 2016 is the year to take the plunge. Several factors have all come together, creating a perfect storm for home buyers to get out there and purchase a home. Here are the top 5 reasons why 2016 is the year to buy a house…

Reason #1: Interest rates are at record lows
While interest rates are at historic lows (hovering right around 4% on average), The Federal Reserve is expected to increase interest rates soon. That means your window for getting a record low interest rate is closing. It’s expected that we will never see interest rates this low again.

Reason #2: Down payment requirements won’t break the bank
The actual amount required for a down payment to buy a home is significantly lower than most people realize. There are currently many low or no down payment options for buyers purchasing a home.

Reason #3: Home prices are stabilizing
Home prices that have been climbing steadily over the last few years are finally stabilizing, creating a great opportunity for buyers to finally get out there and purchase a home. This creates a more level playing field for buyers so they can drive a harder bargain with sellers.

Reason #4: Credit Score requirements are low
The actual credit score needed to qualify to buy a house is currently much lower than many people think, and has been dropping steadily over the last several months.
Reason #5: Rents have skyrocketed
Rents have increased faster last year than at any time since 2007, and are expected to continue to climb throughout the year. Often times, buying is a better deal than renting. You could end up paying signficantly less each month for housing. Either way, you’re paying your landlord’s mortgage or you’re paying your own. Wouldn’t you rather put that money back into your own pocket?

Questions about buying a house?
Contact The Lowry Team today at 513-874-1830.

Don’t Hire an Agent…Hire a Team. The Lowry Team.

Buyers and Sellers can reach The Lowry Team Keller Williams at 513-874-1830.

Other Articles You May Be Interested In:

What credit score is needed to buy a house?

How much down payment do I need to buy a house?

Buy a Home With a Low Down Payment

Buying a Home Step 1: Get Pre Approved

Search the entire Cincinnati MLS for Homes For Sale

How much down payment do I need to buy a house?

January 16, 2016 by Eric Lowry

How much down payment do I need to buy a house?

Many Americans are unclear on how much of a down payment they need in order to buy a home. Misinformation about down payment requirements is one of the biggest reasons why more people don’t even consider buying a home. They simply don’t think that they can.

In a recent study done by Fannie Mae, 40% of Americans “Don’t Know” how much down payment is required to buy a home, while another 15% think you need at least 20%. A further 21% think you need at least 10%. That’s 76% of people who are misinformed about their ability to buy a home.

You may be wondering what the actual amount of down payment needed to buy a home is. The answer is that it depends on the type of loan you want to get.

The accompanying chart illustrates the average down payment amount that buyers put down based on loan type. For all loans across the board, the average down payment is 21% of purchase price. For a Conventional Loan, the average is quite high at 31%, but can go as low as 3%. VA Loans, which are known for the option of putting 0% down, average at 2%. FHA loans allow as low as 3.5% down, however the average falls around 4%.

The actual amount required for a down payment to buy a home is significantly lower than most people realize. Don’t let a common misconception keep you from buying your dream home.

Contact The Lowry Team to evaluate your ability to purchase your dream home. 513-874-1830

The Lowry Team – Keller Williams Realty is an award winning, full service real estate firm specializing in West Chester, Liberty Township, Mason, Monroe and the Northern Suburbs of Cincinnati. The Lowry Team is “Different By Design”… taking a team approach to home buying and selling. The Lowry Team consists of members that are focused on areas of specialization including Listing Specialists, Buyer Specialists, Transaction/Listing Coordinator, Inside Sales Associate and a Marketing Director.

Don’t Hire an Agent…Hire a Team. The Lowry Team.

Buyers and Sellers can reach The Lowry Team Keller Williams at 513-874-1830.

Other Articles You May Be Interested In:

First Time Homebuyers Frequently Asked Questions

Increase Your Family’s Net Worth

Common Real Estate Terms You Should Know

What credit score is needed to buy a home?

Search the entire Cincinnati MLS for Homes For Sale

Buying a Home in the Winter

January 16, 2016 by Eric Lowry

Buying a home in the winter is quite different from buying a home in the peak market of Spring and Summer. However, it can be very beneficial to you as a buyer.

While there are fewer homes on the market in the winter, there are also fewer buyers. That mean less competition for you as a buyer. When the market is hot in the Spring and Summer, buyers are out full force and your chances of getting into a multiple offer bidding war are much higher.

The sellers who put their homes on the market in the winter, generally do so because they need to sell. All the low activity on the market also results in sellers being much more motivated to sell. Buying a home in the winter months can benefit you when it comes to negotiating. The sellers are more likely to accommodate buyers in the winter regarding things such as selling price, closing costs, closing date, etc.

You also have more time to make decisions in the winter. Not to say, you should wait too long to make a decision on a home, but you have more time than you would otherwise. In the Spring and Summer, if you find a home you love, you need to act fast and submit an offer. If you wait to “sleep on it” in the Spring, you likely won’t ever be sleeping in it. Another buyer will likely buy it right it out from under you when the market is hot.

Buying a home in the winter also allows you a unique opportunity – assessing the home’s winter fitness. You get to see how a home holds up to the weather. You will be able to tell how well insulated the home is, if the windows let cold air in, and how well the heating system is working.

Since there is less activity in the winter months, real estate professionals, such as Realtors and lenders, are also much more likely to be available to you. They will be able to dedicate more time and focus to helping you buy a home. Lenders sometimes even are willing waive various fees in the winter months in order to encourage buyers to use their services. In addition, a lot of moving companies lower their prices in the winter.

So if you are thinking of buying a home in the winter search homes for sale here, then throw on a warm coat and get out there house hunting!

Ready to get your home search started? Contact The Lowry Team today! 513-874-1830

Don’t Hire an Agent…Hire a Team. The Lowry Team.

Buyers and Sellers can reach The Lowry Team Keller Williams at 513-874-1830.

Other Articles You May Be Interested In:

First Time Homebuyers Frequently Asked Questions

Increase Your Family’s Net Worth

Common Real Estate Terms You Should Know

What credit score is needed to buy a home?