Things To Consider When Buying A Home

Do Not Begin The Process To Buy A Home Until You Read Through This Information!

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CLICK HERE to start the prequalification process OR CLICK HERE to contact Tim direct.

Every quarter, the Federal Housing Finance Agency (FHFA) reports on the year-over-year changes in home prices. In this report we see that prices are up year-over-year in every region. Tennessee shows an 8.7% change over last year. Waiting to move may end up costing you more.

In the latest Rent vs. Buy Report from Trulia, they explained that homeownership remains cheaper than renting with a traditional 30-year fixed rate mortgage in the 100 largest metro areas in the United States.

A study by GoBankingRates looked at the cost of renting vs. owning a home at the state level and concluded that in 39 states, it is actually ‘a little’ or ‘a lot’ cheaper to own

In this report...owning a home in Tennessee is classified as “a lot cheaper”.

One of the main reasons owning a home has remained significantly cheaper than renting is the fact that interest rates have remained at or near historic lows. Freddie Mac reports that interest rates for a 30-year fixed rate mortgage have hovered around 4%.

Nationally, rates would have to reach 9.1%, a 128% increase over today’s average of 4.0%,for renting to be cheaper than buying. Rates haven’t been that high since January of 1995,according to Freddie Mac.

Buying a home with Tim Woodall makes sense socially and financially. If you are one of the many renters who would like to evaluate your ability to buy this year, let’s get together and find you your dream home. 

CONTACT TIM


When Buying a Home, Consider Cost, Not Just Price

As a seller, you would be most concerned about ‘short-term price’ – where home values are headed over the next six months. As a buyer, however, you must not be concerned about price, but instead about the ‘long-term cost’ of the home.

The Mortgage Bankers Association (MBA), Freddie Mac, and Fannie Mae all project that mortgage interest rates will increase by this time next year. According to CoreLogic’s most recent Home Price Index Report, home prices will appreciate by 4.7% over the next 12 months.

What Does This Mean To YOU as a Buyer?

If home prices appreciate by the 4.7% predicted by CoreLogic over the next twelve months, here is a simple demonstration of the impact an increase in interest rate would have on the mortgage payment of a home selling for approximately $250,000 today:

TODAY: $250,000 mortgage at an interest rate of 3.90% gives a principal and interest payment of $1,179.17

QUARTER 4 2018: $250,000 mortgage at an interest rate of 4.60% gives a principal and interest payment of $1,341.85

An INCREASE of $163.68!

CLICK HERE to calcualte your own Rent vs. Buy scenario.


5 Reasons Homeownership Is A Good Financial Investment

Owning a home has great financial benefits, yet many continue to rent. Let’s look at the financial reasons why owning a home of your own has been a part of the American Dream for as long as America has existed.

Zillow reported that:

“In reality, buying or renting a home is an intensely personal decision, with emotional andeven financial considerations that go beyond whether to invest
in this one (admittedlylarge) asset. Looking strictly at housing market numbers, there is a concrete point atwhich buying a home makes more financial sense than renting it.”

What proof exists that owning is financially better than renting?

  1. Here are 5 financial benefits of homeownership:
  • Homeownership is a form of forced savings.
  • Homeownership provides tax savings.
  • Homeownership allows you to lock in your monthly housing cost.
  • Buying a home is cheaper than renting.

No other investment lets you live inside of it.

  1. Owning Increases Your Net Worth

According to the Federal Reserve's Survey of Consumer Finances, a homeowner's net worth is 44x greater than that of a renter.

  1. Owning Builds Your Family's Wealth

Based on the results of Pulsenomic's latest Home Price Expectation Report, a family that purchased an average-priced home at the beginning of 2017 will build more than $48,000 in family wealth over the next five years.

  1. Owning Saves You Money

Some argue that renting eliminates the cost of taxes and home repairs, but every potential renter must realize that all the expenses the landlord incurs are already baked into the rent payment – along with a profit margin!

Bottom Line

Owning a home has always been, and will always be, better from a financial standpoint than renting. Call or text Tim Woodall at 678-410-0104 and let’s start looking for your home.


2 Myths That May Be Holding You Back From Buying

In Realtor.com’s article, “Home Buyers’ Top Mortgage Fears: Which One Scares You?” they mention that “46% of potential home buyers fear they won’t qualify for a mortgage to the pointthat they don’t even try.”

Myth #1: “I Need a 20% Down Payment”...WRONG!

Buyers overestimate the down payment funds needed to qualify for a home loan. According to a study released by NerdWallet, 44% of Americans believe they need to put down 20% or more to buy a home.

The article explains that:

"VA loans require no down payment; Fannie Mae and Freddie Mac have 3% downprograms; FHA loans allow down payments as low as 3.5%; many banks and onlinelenders now offer their own low-down-payment mortgages.”

Tim have extensive knowledge of local and State programs that offer down payment assistance programs and grants up to $15,000 to residents.

Many renters may actually be able to enter the housing market sooner than they ever imagined with new programs that have emerged allowing less cash out of pocket.

Myth #2: “I need a 780 FICO® Score or Higher to Buy”...WRONG!

A survey revealed that 59% of Americans either don’t know (54%) or are misinformed (5%) about what FICO® score is necessary to qualify.

Many Americans believe a ‘good’ credit score is 780 or higher.

To help debunk this myth, EllieMae’s latest Origination Insight Report, which focuses on recently closed (approved) loans shows that 53.1% of approved mortgages had a credit score of 600-749.

Whether buying your first home or moving up to your dream home, knowing your options will make the mortgage process easier. 

We would love to guide you through your options.

Your dream home may already be within your reach!


Why Working With Tim Woodall Makes All The Difference

If you’ve entered the real estate market, as a buyer or a seller, you’ve inevitably heard the real estate mantra, “location, location, location” in reference to how identical homes can increase or decrease in value due to where they’re located.

Well, a recent survey shows that when it comes to choosing a real estate agent, local, local, local” is very important to buyers as they choose their real estate agent.

CentSai, a financial wellness online community, recently surveyed over 2,000 prospective buyers and found that 75% of respondents would use a local real estate agent over an online agent, and 71% would choose a local lender over an online lender.

Survey respondents cited many reasons for their choice to go local, “including personal touch & handholding, long standing relationships, local knowledge, and amount of hassle.”

Doria Lavagnino, Cofounder & President of CentSai, had this to say:

“We were surprised to learn that online providers are not yet as big a disrupter in this sector as wefirst thought, despite purported cost savings. We found that prospective buyersplace a high value on the personal touch and knowledge of a local agent. Buying a home for the first time is daunting, andworking with a local agent could providepeace of mind.”

The findings of the CentSai survey are consistent with the Consumer Housing Trends Study, which found that prospective buyers prefer a more hands-on approach to their real estate experience:

“While older generations rely on real estate agents for information and expertise, younger generations expect real estate agents to become trusted advisers and strategic partners.”

When it comes to choosing an agent, the top priority is:an agent that is trustworthy and responsive to their needs.

That said, technology still plays a huge role in the real estate process. According to the NationalAssociation of Realtors®, 94% of home buyers look for prospective homes and neighborhoods online, and 74% also said they would use an online site or mobile app to research homes they might consider purchasing.

CLICK HERE to search properties or CLICK HERE to get our mobile app to assist in your home search.

Bottom Line

Many wondered if this tech-savvy generation would prefer to work with an online agent or lender, but more and more studies show that when it comes to real estate, buyers want someone they can trust, someone who knows the neighborhood they want to move into, leading them through the entire experience. For YOU that is Tim Woodall!


Why Prequalification Should Be Your First Step

In many markets across the country, the number of buyers searching for their dream homes greatly exceeds the number of homes for sale. This has led to a competitive marketplace where buyers often need to stand out. One way to show you are serious about buying your dream home is to get prequalified for a mortgage before starting your search.

But even if you are in a market that is not as competitive, knowing your budget will give you the confidence to know if your dream home is within your reach.

Freddie Mac lays out the advantages of prequalification in the 'My Home' section of their website.

“It’s highly recommended that you work with your lender to get prequalifiedbefore you beginhouse hunting. Prequalificationwill tell you how much home you can afford and can help you movefaster, and with greater confidence, in competitive markets.”

One of the many advantages of working with Tim Woodall is that we have relationships with lenders who will be able to help you with this process. Once you have selected a lender, you will need to fill out their loan application and provide them with important information regarding “your credit, debt, work history, down payment and residential history.”

FreddieMac describes the '4 Cs' that help determine the amount you will be qualified to borrow:

  • Capacity: Your current and future ability to make your payments
  • Capital or Cash Reserves: The money, savings, and investments you have that can be sold quickly for cash
  • Collateral: The home, or type of home, that you would like to purchase
  • Credit: Your history of paying bills and other debts on time

Getting prequalified is one of many steps that will show home sellers that you are serious about buying and it often helps speed up the process once your offer has been accepted.

BottomLine

Many potential home buyers overestimate the down payment and credit scores needed to qualify for a mortgage today. If you are ready and willing to buy, you may be surprised at your ability to do so as well.

Call Tim Woodall at 678-410-0104 and let’s get started!


Starting To Look For A Home? Know What You Want vs. What You Need!

In this day and age of being able to shop for anything anywhere, it is really important to know what you’re looking for when you start your home search.

If you’ve been thinking about buying a home of your own for some time now, you’ve probably come up with a list of things that you’d LOVE to have in your new home. Many new homebuyers fantasize about the amenities that they see on television or Pinterest, and start looking at the countless homes listed for sale with rose-colored glasses.

Do you really need that farmhouse sink in the kitchen in order to be happy with your home choice? Would a two-car garage be a convenience or a necessity? Could the man cave of your dreams be a future renovation project instead of a make or break now?

The first step in your home buying process should be to get prequalified for your mortgage. This allows you to know your budget before you fall in love with a home that is way outside of it.

The next step is to list all the features of a home that you would like, and to qualify them as follows:

  • 'Must Haves' – if this property does not have these items, then it shouldn’t even be considered. (ex: distance from work or family, number of bedrooms/bathrooms)
  • 'Should Haves' – if the property hits all of the 'must-haves' and some of the 'should- haves,' it stays in contention, but does not need to have all of these features.
  • 'Absolute Haves' – if we find a property in our budget that has all of the ‘must-haves,’ most of the ‘should-haves,’ and ANY of these, it’s the winner!

Bottom Line

Having this list fleshed out before starting your search will save you time and frustration, while also letting Tim know what features are most important to you before we begins to show you houses in your desired area.


Ready To Make An Offer? 4 Tips For Success

So we’ve been searching for that perfect house to call a ‘home’ and we’ve finally found it! The price is right and, in such a competitive market, you want to make sure you make a good offer so that you can guarantee that your dream of making this house yours comes true!

Freddie Mac covered “4 Tips for Making an Offer” in their latest Executive Perspective. Here are the 4 tips they covered along with some additional information for your consideration:

  1. Understand How Much You Can Afford

“While it's not nearly as fun as house hunting, fully understanding your finances is critical inmaking an offer.”

This ‘tip’ or ‘step’ really should take place before you start your home search process.

Getting prequalified is one of many steps that will show home sellers that you are serious about buying, and will allow you to make your offer with the confidence of knowing that you have already been prequalified for a mortgage for that amount. 

  1. Act Fast

“Even though there are fewer investors, the inventory of homes for sale is also low andcompetition for housing continues to heat up in many parts of the country.”

The inventory of homes listed for sale has remained well below the 6-month supply that is needed for a ‘normal’ market. Buyer demand has continued to outpace the supply of homes for sale, causing buyers to compete with each other for their dream home.

Make sure that as soon as you decide that you want to make an offer, you contact Tim to complete the paperwork in order to present it as soon as possible. 423-463-0024

  1. Make a Solid Offer

Freddie Mac offers this advice to help make your offer the strongest it can be:

“Your strongest offer will be comparable with other sales and listings in theneighborhood. Alicensed real estate agent (Terry & Susan) active in the market you are considering will be instrumentalin helping you put in a solid offer based on their experience and other key considerations such asrecent sales of similar homes, the condition of the house and what you can afford.”

Tim are well versed in the local real estate market and have over 45 years of combined real estate experience to offer you. We will discuss ways that you can make your offer stand out in this competitive market!

  1. Be Prepared to Negotiate

“It's likely that you'll get at least one counter offer from the sellers so be prepared. The two things most likely to be negotiated are the selling price and closing date. Given that, you'll be glad you did your homework first to understand how much you can afford.

Tim is key in the negotiation process, giving you guidance on the counter offer and making sure that the agreed-to contract terms are met.”

If your offer is accepted, Tim along with Freddie Mac urges you to "always get an independent home inspection,so youknow the true condition of the home." 

Bottom Line

Whether buying your first home or your fifth, having Tim Woodallwho are experts in their market on your side is your best bet to make sure the process goes smoothly.

Let’s talk about how we can make your dreams of homeownership a reality!

Call us direct at: 678-410-0104.

We are sure you have questions and concerns…

We would love to talk with you more about what you read here, and help you on the path to buying your new home. Our contact information is on the bottom left. We look forward to hearing from you…

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