How many times have you said to yourself after the fact, “If only I had”.  If only I had bought Apple stock when it was $100 per share. If only I had said something sooner that wouldn’t have happened. If only I had known back then what I know now.  Well, now is an opportunity for you to do now, what you will wish you had done a year from now.

• What is that?  Buying a Knoxville home.
• Why is that?  Because all signs are pointing to both mortgage rates and Knoxville home prices rising.
• What does that mean for you? Two things:

1. Your monthly mortgage payment will be significantly higher if you wait.
2. The dollar amount of home you can qualify for will be less.

History is a good teacher.  The graph below shows you what happened to buyers that waited to buy a house between 2012-1013.

 

If you are considering buying a Knoxville home, contact me, Troy Stavros, today so we can sit down and formulate a plan for taking advantage of the current rates and prices.

How do you find a great mortgage lender in Knoxville? 

Your first thought may be “just find the lowest rate” but in the complex landscape of mortgage financing, there are other factors to consider.  Here are some simple basics to guide you through the process, without adding unnecessary stress and anxiety to your home buying experience.

• Ask for a referral.  The best way to find a superior product or service is through word of mouth.  If I have had a fantastic experience with someone or I know them personally, and I refer them to you – chances are you are going to get great service too!!  Your real estate agent knows the most important qualities to look for in a mortgage consultant.  If they know and trust them – you can too.  One of the benefits of using a REALTOR is they have already done the research for you.  They know if a mortgage consultant returns calls promptly, works with integrity, and can get your loan closed on time.

• Go with someone local.  Really, do yourself a favor and stay away from “internet shopping”.  The total loan package (rates and fees) can be advertised one way to entice you, only to find that at application or worse yet, at closing – things change.  What if your loan can’t close on time?  Or, close at all?  The exception to this advice would be the above paragraph.  If you get a referral to someone out of state from a REALTOR, friend or family – check it out.  If they are licensed to do business in that state, and you feel confident after talking to them, then referral trumps location!!  Ask your lender if they attend closings – this is critical to give you peace of mind as you finalize the transaction.  If you are working with a referral out of state – make sure they are available by phone during your closing appointment.

• Shop programs, then rates and fees.  Notice I did not say find the lowest interest rate.  It’s important to look at all loan programs that are available to you especially if you are a first time buyer.  Make sure you find someone who is going to walk you through the comparison of any program you qualify for and help you make the best decision.  If you feel uncomfortable or like you are being pushed into one program – find someone else!!  It’s important to compare rates and fees but make sure you look at all the other factors.  Remember, if it sounds too good to be true – it probably is and no matter how good it looks, if you can’t get to the loan closing, any “deal” is irrelevant.

• Look for persistence and communication.  You want to work with a mortgage consultant who will be fully engaged through the entire process; looking out for you and communicating each step of the way.  Feel free to ask them how they communicate and let them know your preference (email, phone, text).   Persistence is especially important if you have challenged credit or other factors that make it difficult to get a mortgage right now.  You want to find someone who will look at every scenario and work with you through the challenges to help you become a homeowner.  They may be able to help you with a unique situation today or counsel you so you can take the necessary steps for the future.

• Look for a relationship in your mortgage lender.  In the future, you will likely purchase another home or refinance your existing mortgage.  You want a lender who will keep in contact with you, give you helpful advice as a homeowner, and periodically connect with you to review your current financial situation.  Your mortgage should be more than just a loan but a financial tool to help you achieve your long term financial goals, and your mortgage consultant should be a resource to assist you in that process.  My best advice – ask your Knoxville real estate agent for a referral, be comfortable asking questions, look at the total package and work with a professional who will set your mind at ease.

(Guest post and great advice by Betsie Hughes, Senior Mortgage Consultant at Movement Mortgage, a preferred lending partner of 865RealEstate.com and Troy Stavros).

Whether you are a first time home buyer or have bought a home before, there are BIG mistakes you must avoid when buying a Knoxville home.  Instead of a laundry list of issues that could be a concern, we are going to hit on what we feel are two huge mistakes Knoxville home buyers could make when buying a home.

Both of these mistakes are typically the direct result of a Knoxville home buyer trying to save themselves some money.  While we are all for saving money, these mistakes could cost you exponentially more than what you would possibly save.

1. Buying A Home Without Doing A Home Inspection

A home inspection will typically cost a few hundred dollars. Saving a few hundred bucks is good right? NOT IN THIS CASE! The money you spend on a home inspection is probably the best few hundred dollars you’ll ever spend.  Without knowing what current and potential issues your future house is subject to, you are walking into some serious potential for high dollar repairs.  The home inspection will look closely at the homes structural, roofing, plumbing, electrical, and HVAC systems.  In the home buying process, information is critical for decision making and negotiations.  The home inspection report can offer the following benefits:

• Comfort in knowing you are buying a sound investment (especially if you are buying the home AS-IS).
• Detailed data, for negotiations with the seller, in order to either fix the problems or reduce the price.
• Information to let you know when to walk away from a transaction.

2. Buying A Home Through The Listing Agent

While we know many trustworthy listing agents (HEY, WE ARE ONE OF THEM!), don’t make the mistake of going unrepresented in your transaction. A seller’s listing agent is bound by fiduciary responsibilities (mumbo jumbo for “they have to legally”) look out for the best interests of their client.  Guess what, you aren’t their client, the seller is! Buying a home is typically the largest investment you will make in your entire life.  Why would you go into such an enormous, financially important life decision, without a professional looking out for YOUR best interests. You need to be working with a Knoxville buyer’s agent.  A buyer’s agent’s job is not only to show you properties, but to assist you in negotiations and make sure you are making a sound decision.  Study’s show that a buyer’s agent, on average, saves you 5% on the purchase of your home.  That’s $12,500 on a $250,000 home.  That is way more than you would save, even if a seller’s listing agent took less of a commission for helping you facilitate your offer.  So not only do you save more money, but you get representation to boot.  That’s a no brainer!

To talk with someone about representing you in buying or selling a Knoxville home, call Troy Stavros at 865-999-0925 to schedule a time to sit down and talk about your goals and formulate a strategy for reaching them.