How Making Timely Rental Payments Can Help You Become A Homeowner

While timely rental payments have traditionally served to keep a roof over one’s head and keep one in a landlord’s good graces, it now also can help you to go from renter to homeowner. As of September 18, 2021, new guidelines from Fannie Mae allow potential homebuyers to use their most recent 12 months of on-time rental payments as a consideration when they seek preapproval for a home. Although this is not the only consideration, this change can help enhance an applicant’s eligibility, as it reflects an applicant’s ability to make payments on time, a core factor when it comes to the repayment of mortgage loans. One’s ability to repay a considerable amount of money in a timely fashion is paramount to mortgage loan professionals and the lending institution itself.

Keep those on-time rental payments coming and your path to homeownership could be easier.

P.S. The best part of the new guidelines: on-time rental payments are only considered if it helps bolster the applicant’s creditworthiness.

Navigating the Multiple Offer Landscape: Seven Steps to Crafting Winning and Compelling Offers in a Seller's Market

Anyone who has purchased a home recently can probably attest to the frenzied atmosphere propelling an overwhelming amount of buyers to compete for a limited amount of inventory. Back-to-back showings, multiple offers on one property, and sought-after properties going under contract within hours have become par for the course. So how does one actually get an offer accepted in a seller’s market? Here are a few ideas to help.

1. Set your expectations. With few exceptions, be prepared to offer the asking price or more for a property. ”Lowball “ offers will usually be dismissed first. If you are looking for a “deal”, consider homes that have been on the market awhile and may require repairs and/or updates.

2. No blind offers. Ensure that you view the property prior to submitting an offer. In this market, blind offers hold more risk for sellers and you want to do everything you can to remain competitive.

3. Make the offer as clean as possible. Try not to include anything that will require a seller to think twice. The more straightforward and the less you ask the seller to contribute, the better. Your realtor can advise you on items that may need to be included.

4. Don’t forget the preapproval. The listing agent needs to ensure you are preapproved, serious about closing the deal, and have the purchasing power to buy the home.

5. Make sure you review the paperwork to ensure everything is correct. You would hate for your offer not to be considered because of a typo or omission. Also, read the fine print on any listings and your agent should be reading the private remarks carefully.

6. Don’t forget to back-up! Back-up offers are often overlooked tools in this climate. A backup offer allows you to be the next offer in line should the original offer terminate for any reason.

7. Send a love letter. Include a letter to the seller indicating your interest in the property and introduce yourself to the seller. Hearing your story could convince a seller that you are invested in their property and will make it your home. Consult your realtor for specific laws and regulations governing this practice.

We understand that it may be challenging when you are competing with others for a limited amount of homes however, people are still buying homes and presenting winning offers. With a little motivation, creativity, and a positive outlook, you can craft an offer that gets you into your dream home.

Can YOU Live With Your Family? Is Multigenerational Living Right For You?

With continued advances in medical science contributing to the longevity and vitality of older Americans and the average age when couples marry continuing to creep up steadily, many American families are finding themselves living with multiple generations under one roof. The advantages of this type of living situation are numerous, including the cost of living spread across more people, combined incomes often contributing to being able to afford more house, and maintenance and upkeep being done by more people. According to the Pew Research Center, more than 64 million Americans were living in multigenerational housing, driving more people to consider living together in an expanded family situation.

The most important thing to remember is that you can live well together if you have a plan for expectations.

1. Set boundaries early. Especially in the case of adult children, it’s important to establish expectations as to what each family member needs as far as privacy, bills, maintenance/upkeep, and personal preferences.

2. Establish a household budget and plan how everything will be divided. Does the couple in the master suite pay more? Will bills be divided evenly? Who will park in the garage? Questions such as these help everyone feel comfortable since there won’t be surprises.

3. Plan for the challenges. It’s important that you discuss what happens if someone decides to move out, how the proceeds will be divided if the home is sold, and what happens if a family member loses their job or stops paying altogether. While you may hope that these scenarios don’t happen, it’s better to discuss these situations now while everyone can have time to reflect and make a decision without being in a stressful situation.

4. More house for your dollar. By combining funds, you may be able to afford a bigger home or a home in a neighborhood that you want but, didn’t think you could afford. Be on the lookout for en suites, basements, and homes with guest houses. This could allow more family members to live together more comfortably.

While multigenerational living certainly has its benefits, it’s crucial that everyone be completely realistic about whether this living situation could work for them. If this is the right choice for you, contact your local lender and see what the best programs and products are for you and your family’s needs. Cheers to the family home.

Your Weekday Time-Saving Hacks

As schoolage children around the country don new gear and pose for the iconic "First Day of School" photos and adults wax nostalgic about summer vacation memories, it’s time to get back into the swing of a routine. From the fall through the spring, there is a high premium placed on conserving resources and saving time. Although the old adage is that "there are no shortcuts in life", there are life hacks that will help you adhere to your schedule, spend more quality time with your family, and reduce the time you spend on repetitive tasks. Here are some great weekday life hacks that will keep you on track:

1. Prep your wardrobe so you can forget about it. On Sunday night, have the family choose clothing for the week ahead. If you have children, get them excited by letting them put on a fashion show and choose their favorite accessories. Consider purchasing clear bins for each day of the week and labeling the bins. Each day's outfit can be placed in the bin, making it easier to simply select that day's outfit. For the adults, clear a small space in the front of your closet and hang your selected outfits. An easy way to separate each day is by placing a different colored hanger in between to signal a new day.

2. Don't let lunch be a chore. When you are in a rush, you are more liable to end up buying lunch or dinner or throwing together a quick meal that may not meet your needs. Place a set of clear bins packed with non-perishable snacks and drinks, such as drink boxes and water bottles, granola bars, chips, fruit cups, and other snacks. These easy-access meal items will help you create a packed lunch quickly and help you identify when you are running low on items. On Sunday night, add fresh fruit and veggies to wax paper or plastic sandwich bags for the entire week. Instead of sandwiches, consider crackers or pita slices and the fillings of your choice in separate containers; the ingredients stay fresh and everyone can grab and go each day. For salads, put fresh greens in a separate container and separate ingredients into smaller containers.

3. It's on the calendar. Managing multiple schedules can be a challenge, particularly with children participating in extracurricular and school activities. Put an oversized calendar in the kitchen and color code based on each family member. Once you receive a calendar of activities, add it to the shared calendar. If the whole family is tied to technology, use the family version of the Google calendar to keep everyone up to date.

While things can get frenetic during the weekday, these time-saving hacks can help you shave time from your day and avoid the frantic daily rush. While we cannot avoid the last-minute surprises, spending some time on the weekend prepping for the week ahead will save you a lot of time during the week.

I’m Interested in Buying a Home. Where Do I Start?

Can I afford it? My credit is not perfect. Don’t I need to put 20% down? These are only some of the questions and comments we have heard time and again from prospective buyers. You are not alone in questioning whether you can transition from renter to homeowner. Purchasing a home is one of the most significant investments you can make within your life. It allows you to put down roots, customize and design an environment to meet your needs, and in many cases, can include tax and investment savings. While many of our parents and grandparents were able to achieve the dream of homeownership through dedication, hard work, and perseverance, you may be pondering if, and how, you will become a homeowner yourself.

The good news: you may be closer to homeownership than you think. There are many paths to owning a home and you don't have to be perfect. There are a variety of products that your lender can offer that can meet your needs based on a variety of factors—from creditworthiness to income. Your lender may have programs aimed at down payment assistance/low down payments, those with credit blemishes, and those in certain professions, among other factors. Your first step is to determine where you stand in the process by contacting your preferred lender (or contacting a realtor for recommendations for preferred lenders). The mortgage specialist can explain your options and can help you determine if there are further steps you will need to take to position you as an ideal prospective buyer. Once you have been pre-approved for a loan, it's time to contact your realtor to guide you through the homebuying process.

The homebuying process is within reach. The most important step you can take to achieve homeownership is the first step. Contact us with any questions you have. Take your first steps toward your dream home.