Tag Archives: East Nashville

10 Steps to Home Ownership – Step 4:Look at Homes

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Welcome to the fourth in my series of 10 blog posts. Stick with me for all 10 steps, and you’ll be armed with all of the information you need to get out there and purchase a home. Previous post: Step 3: Get Loan Pre-Approval.

Step 4: Look at Homes

There is no shortage of homes on the market, especially right now. Millions of homes are sold each year. With so many choices, the challenge comes in finding the right property for your specific needs.

The housing market is complicated. The inventory is constantly in flux; new homes come on the market at all times of the day. Also, homes are put under contract and taken off the market in the same fashion. It’s like trying to hit a moving target. The best way to find what you need is to work with a good Realtor.

Know what you’re looking for! Homes are more than just a collection of bedrooms and bathrooms. Make sure your Realtor asks a lot of questions about exactly what you need in a home. You don’t want to waste your time looking at homes that don’t suit your needs.

Although there are plenty of homes on the market, there is not always one that fits your every desire exactly. It’s important to prioritize your needs. Would you trade a bedroom for a bigger kitchen? Would you trade a shorter commute for a bigger lot and a lower price?

Location, location, location! Every neighborhood has a unique feel about it. There are different types of homes, different people, and different environments to consider. You should make sure that your prospective neighborhood is a good fit for you. Neighbors make much better friends than enemies!

So how do you find the right house? Work with a Realtor! Realtors have real-time access to the local real estate inventory, as well as much more powerful tools to use in the search for your perfect home. A good Realtor can also set you up with valuable services to keep you up to date with what’s available.

Stay tuned for Step 5:Choose a Home.

Give me a call at (615)336-6638 and I’ll be happy to help you find the perfect home!

Greater Nashville Home Sales Increase More Than 50% in November!

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This data comes straight from the Greater Nashville Association of Realtors.

There were 1,973 home closings in Greater Nashville during November, representing a 58.7 percent increase from the 1,243 closings reported during November of 2008. And, there have been 19,571 closings so far in 2009, which is 14.3 percent lower than the 22,824 closings for the same period in 2008.

The median residential price in November of this year was $158,500 and for a condominium the median price was $144,400. That compares with median prices of $165,500 and $150,000 respectively in November of last year.

Inventory is down to 22,528, compared with 23,467 in November of 2008.

Now is a GREAT time to buy a house. Rates and prices are both about as low as they can go! First timers, don’t forget about that $8000 tax credit. The window of opportunity is closing, however, because more and more buyers are seizing the opportunity. Don’t let it shut and leave you out in the cold.

Give me a call so we can talk about your options.

10 Steps to Home Ownership – Step 3:Get Loan Pre-Approval

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Welcome to the third in my series of 10 blog posts. Stick with me for all 10 steps, and you’ll be armed with all of the information you need to get out there and purchase a home. Previous post: Step 2:Get a Realtor.

Step 3: Get Loan Pre-Approval

Very few people can afford to pay cash for a home. According to the National Association of REALTORs, 9 out of 10 buyers finance their home purchase. That means pretty much everybody is going to need to get some kind of a home loan.

The issue with financing your home isn’t really whether or not you can find a home loan. There are plenty out there if you aren’t selective about your terms. The challenge is to find the one that’s right for you. You want the lowest cost and the best terms.

That’s where a good lender comes in. Your Realtor can suggest one. Most likely, they’ll have you see the lender before you even meet to discuss your specific needs. It’s extremely important that you meet with a lender before you go out looking for homes. There’s nothing worse than finding that perfect house and finding out the next day that you won’t be able to afford it.

When you meet with the lender, be prepared. He or she will likely ask you for employment information(past and present,) tax information, bank account balances, retirement account holdings, etc. It’s good to compile this information beforehand to avoid and delays. Many lenders use an online form process, which allows you to provide all of this information from home; where it’s easy to find and compile all of the necessary numbers.

At the end of your meeting, the lender will provide you with a pre-approval letter. This letter is not a commitment by either party, but it does demonstrate your buying power and your ability to obtain the financing that will lead to a successful transaction. Many sellers will not accept an offer unless it is accompanied by a pre-approval letter.

If you need help finding a good lender, your Realtor will be happy to recommend a few. Herein lies another advantage to using a Realtor. They won’t recommend someone who isn’t knowledgeable and competent enough to do a good job.

A Realtor is in a much better position than the common home-buyer to identify a truly excellent lender. Ultimately, this means better options for you, lower costs, and better terms.

Next time, we’ll talk about actually getting out there and finding yourself a great house!

See ya next time for Step 4:Look at Homes.

Why Now is a Great Time to Look For a Home

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As the winter months creep in, real estate activity has had the historic tendency to slow down. The weather gets colder, planning for the holidays takes up a lot of our time, and most people push the thought of buying a new home to the backs of their minds. This reduction in buyer activity leads to frustration on the part of home-sellers, because they just can’t seem to get their homes sold. Some decide to take their homes off the market and wait for better weather in Spring. Buyers anticipate this market shift and wait until Spring to start looking for a home, searching for the better deals that accompany the impending increase in inventory.

Unfortunately, these natural tendencies can work against you if you are in the market for a new home. With interest rates at historic lows, the buyer is stronger than ever. Your money has more purchasing power now than it ever has before. It is very important to note that these interest rates will not stay at their current levels. Increased home sales, coupled with an ever-increasing national debt, will drive the Federal Reserve to increase index rates in the near future. The result passed on to home-buyers will be a significant decrease in buying power.

Take the following example:

Buyer A finds his or her dream house on November 15,2009.

Purchase price is $150,000 on a 30-year loan with a 5% interest rate.

Under these conditions, this buyer will pay $805.23 a month on principal and interest. After 30 years, the buyer will have paid $139,883.68 in interest in addition to the original loan amount, a total of $289,883.68.

Now lets say that Buyer A waits until February, 2010.

Congratulations, Buyer A, you managed to get that same home for $142,500! You saved 5% on the purchase price, a nice chunk of change! However, the Fed decided to rase interest rate by 1%, effective January 1st. Now lets do the math…

Purchase price is $142,500 on a 30-year loan with a 6% interest rate.

Under these new conditions, the buyer pays $854.36 a month. Hmm, you’d think 5% savings on your home purchase price would save you some on your monthly payment. It gets worse… After 30 years, you will have paid $165,069.42 in interest!! That brings your total payment to $307,569.42.

When it’s all said and done, you pay an extra $17,685.74 over the life of the second loan. Congratulations, Buyer A, you lost at total of $10,435.74 after subtracting out your “savings” on the deal.

In summary, after waiting a few months for a better deal, Buyer A does manage to get the price down on his new home, but at what cost? His monthly payment was about $50 higher and he ended up paying an extra $10,435 for the same home.

Are you comfortable with these numbers? What if you were purchasing a home for $250,000? How about $400,000? The amount you would lose waiting gets exponentially worse the more you spend.

Long story short, waiting for that supposed “deal” in the spring could be a terrible financial mistake for the aspiring home-buyer. Do yourself a favor, if you’re looking for a home, do it now! “Strike while the iron is hot” and find yourself the most house for the least money with today’s outrageously low interest rates.