East Tennessee Real Estate & Neighborhood Source
UNDER CONTRACT! How would you like to live on your own acre, surrounded by a 12 acre farm in a beautifully renovated home with a gorgeous kitchen? Here’s your chance!
For more information or to schedule a private showing contact me, Troy Stavros with CornerStone Realty Associates at 865-999-0925.
When you get a mortgage in Knoxville, there are several options you can choose from, including FHA, VA, USDA, and conventional mortgages. And the one you pick will determine how big of a down payment you’ll need, what credit score you should have, and all the other requirements you’ll need to meet, as well.
But choosing the right type of mortgage can be difficult — especially if you’ve never bought a home before.
Are you confused about your mortgage options? Maybe need dome help deciding which program is the best fit for your upcoming home purchase? Here are your choices:
FHA mortgages are insured by the Federal Housing Administration. They allow for lower credit scores than most other loans. In fact, with some lenders, you may be able to get approved with a credit score as low as 500 (as long as you make at least a 10% down payment).
The one caveat with FHA loans is that they require a Mortgage Insurance Premium both at closing and as part of your monthly payment. The exact cost of this varies based on your loan balance and down payment.
Minimum down payment: 3.5%
Minimum credit score: 500 to 580, depending on down payment size
Who they’re best for: First-time homebuyers, low-credit score buyers
VA loans are mortgage loans that are guaranteed by the Department of Veterans Affairs. Only homebuyers who are military veterans, current military members or their spouses can qualify for a VA loan. Applicants also need to meet certain service requirements, as well as obtain a Certificate of Eligibility from the VA.
VA loans come with some of the lowest interest rates around, and there are also no minimum credit score or down payment requirements.
Minimum down payment: Zero
Minimum credit score: None
Who they’re best for: Veterans, military members, spouses of veterans and military members
USDA loans are mortgages backed by the U.S. Department of Agriculture. They’re reserved for buyers in more rural parts of the country, and they’re only available in certain areas. Borrowers also need to fall under the set income threshold for their community. Like VA loans, USDA loans require no down payment. You can search for the eligibility of a particular address here: https://eligibility.sc.egov.usda.gov/eligibility/ If you don’t want to go through the hassle of searching every home we can set you up on a search that shows you only homes in areas that are eligible for USDA loans.
Minimum down payment: Zero
Minimum credit score: Typically 640, though it varies by lender
Who they’re best for: Rural homebuyers, low-income buyers, buyers who have no down payment savings
Conventional mortgages are loans issued without any government insurance or backing, like those mentioned above. Because of this, lenders tend to be more strict about which borrowers they’ll approve for these loans.
Typically, conventional mortgages require higher credit scores than other mortgage options, though it varies by lender. The minimum down payment is just 3%, but if you go that low — or make any down payment under 20% — you’ll typically have to pay for Private Mortgage Insurance. Unlike the mortgage insurance on FHA loans, PMI is cancellable after you’ve paid off enough of your loan.
Minimum down payment: 3%
Minimum credit score: Typically 620, though it varies by lender
Who they’re best for: Buyers with good credit
If you’re still not sure whether an FHA, VA, USDA, or conventional mortgage is the best fit for your home purchase in Knoxville, talk to a loan officer or mortgage broker in your area. They can help point you toward the best option for your budget and goals. We’re happy to recommend some excellent mortgage professionals so just give us a shout!
Call/Text me, Troy Stavros with CornerStone Realty Associates at 865-999-0925 today!
In a year when we’re learning to do so much remotely, homebuying in Knoxville is no exception. From going to work to attending school, grocery shopping, and even seeing our doctors online, digital practices have changed the way we live.
This year, rather than delaying their home purchases, buyers in Knoxville and nationwide – alongside their trusted real estate professionals – turned to the Internet to do more than just a typical home search. In some cases, they bought homes without even stepping foot inside (we’ve had clients do just that as well as buyers of our listings). Jessica Lautz, Vice President of Demographics and Behavioral Insights at the National Association of Realtors (NAR), says:
“People really didn’t buy houses sight-unseen, traditionally. It’s still not a huge number, but it has gone up, and we have definitely seen that trend accelerate.”
According to NAR, throughout the coronavirus pandemic, one in every 20 homebuyers purchased a house sight-unseen.
Today, some real estate professionals, like myself, are using digital practices to help homebuyers and sellers walk through many steps in the process virtually. While following the regulations set forth by the CDC and all local guidelines, this year, we were able to quickly empowered buyers and sellers with virtual tours, video tours, 360 degree walkthrough tours, high-quality photos, videos, online open houses, and more. For those who had homebuying and selling needs in 2020, trusted advisors made it possible in many markets.
Here’s a graph showing some of the digital options buyers found most helpful in their searches this year, as noted by NAR in the 2020 Profile of Home Buyers and Sellers: The report also mentions that buyers this year generally searched for eight weeks. Throughout that search, they viewed a median of 9 homes, but not all of them were seen in-person. Yahoo Finance notes:
“Buyers viewed five homes online and four homes in-person during the pandemic, compared to nine homes in-person in 2019, according to NAR. This was the first year NAR asked buyers to specify the number of homes toured virtually.”
In true 2020 fashion, virtual practices helped buyers safely narrow down their top choices, so they didn’t have to unnecessarily walk into more homes than they needed to see throughout the process. This is actually great for both buyers and sellers as it cuts down on wasting precious time and leads to only serious buyers touring homes. Here’s the breakdown by region: At a time when health and safety are top priorities, current technology is making it possible for buyers and sellers in Knoxville to move their real estate plans forward at their own comfort levels, even through a worldwide pandemic. For many, this means buyers no longer have to physically tour every home they want to see, and sellers don’t need to open their doors over and over again throughout the process. Safety can come first, and trusted real estate professionals are here to help.
If you’re ready to make a move to or within Knoxville, you may not have to press pause on your plans this season. Let’s connect to determine the safe and effective options to buy or sell a home in our area or wherever you’re looking to move.
Call/Text me, Troy Stavros with CornerStone Realty Associates at 865-999-0925 today!
Homeownership is on the goal list for many young adults in Knoxville, but sometimes it’s hard to know exactly how to get there. From understanding the home buying process to pre-approval and down payment assistance options, uncertainty along the way can ultimately hold some buyers back.
Today, there are over 75 million Millennials and 67 million Gen Z’ers in the U.S., making up a significant number of both current and soon-to-be homebuyers. According to a recent Fannie Mae survey of more than 2,000 of these individuals:
“88% said they are confident they will achieve homeownership someday.”
In addition, the survey also reveals that for younger generations, the motivation to own a home may be more emotional than financial compared to previous generations:
Whether homeownership goals come from the heart or are driven by financial aspirations (or maybe both), the obstacles standing in the way don’t have to bring these dreams to a screeching halt. The same survey also reveals two key roadblocks for potential buyers. Thankfully, they’re both easily overcome with the power of knowledge and trusted advisors leading the way. Here’s a look at these two challenges potential homebuyers face today:
For those who want to purchase a home, low-down-payment options are instrumental to affording one sooner rather than later, especially given the amount of debt many younger adults have accumulated. Fannie Mae also notes:
“Among the challenges they face is an unprecedented amount of debt, along with a lack of understanding of the mortgage process and their own purchasing power. Debt, in particular, creates many obstacles such as a limited ability to save and the fear of taking on more debt.”
Today, there are more than 2,340 down payment assistance programs available nationwide to help relieve this pressure. Understanding what’s out there and the options available may help many buyers become homeowners faster than they thought possible. In a year like this, with record-low mortgage rates making their mark in the history books, being able to take advantage of the opportunity home buyers in Knoxville have right now is essential to long-term affordability.
While many people love to do a quick search online to find instant answers to their questions, it isn’t the only way younger generations want to consume information or build their knowledge base. As the survey mentions, having trusted professionals help them learn what it takes to achieve their dreams is definitely on their wish list too.
If you’re aiming for homeownership someday, it may be in closer reach than you think. Let’s connect so you can learn about the process and get the guidance you need to make it happen.
Call/Text me, Troy Stavros with CornerStone Realty Associates at 865-999-0925 today and let’s set up a time to talk!
Today’s real estate market has high buyer interest and low housing inventory. With so many buyers competing for a limited number of homes in the Knoxville area, it’s more important than ever to know the ins and outs of making a confident and competitive offer. Here are 5 keys to success for this important stage in the homebuying process.
A recent article from Freddie Mac offers guidance on making an offer on a home in today’s market. Right off the bat, it points out how emotional this can be for buyers and why trusted professionals can help you stay focused on the most important things:
“Remember to let your homebuying team guide you on your journey, not your emotions. Their support and expertise will keep you from compromising on your must-haves and future financial stability.”
Your Knoxville real estate professional should be your primary source for answers to the questions you have when you’re ready to make an offer. Taking advice from friends and family is OK, but remember they may not have bought a home recently and don’t know how to navigate the current market.
Having a complete understanding of your budget and how much house you can afford is essential. The best way to know this is to reach out to your lender to get pre-approved for a loan early in the homebuying process. Only 44% of today’s prospective homebuyers are planning to apply for pre-approval, so be sure to take this step so you stand out from the crowd. It shows sellers you’re a serious, qualified buyer and can give you a competitive edge if you enter a bidding war.
According to the Realtors Confidence Index, published monthly by the National Association of Realtors (NAR), the average property being sold today is receiving more than three offers and is only on the market for a few weeks. These are both results of today’s competitive market, showing how important it is to stay agile and vigilant in your search. As soon as you find the right home for your needs, be prepared to work with your agent to submit an offer as quickly as possible.
It’s only natural to want the best deal you can get on a home. However, Freddie Mac also warns that submitting an offer that’s too low can lead sellers to doubt how serious you are as a buyer. Don’t submit an offer that will be tossed out as soon as it’s received. The expertise your agent brings to this part of the process will help you stay competitive (once again, your friends and family who bought years ago when low-ball offers were OK can give you advice that will significantly hurt your chances at buying a home in today’s market. Low-ball offers don’t fly right now):
“Your agent will work with you to make an informed offer based on the market value of the home, the condition of the home and recent home sale prices in the area.”
After submitting an offer, the seller may accept it, reject it, or counter it with their own changes. In a competitive market, it’s important to stay nimble throughout the negotiation process. Your position can be strengthened with an offer that includes flexible move-in dates, a higher price, or minimal contingencies (conditions you set that the seller must meet for the purchase to be finalized). There are, however, certain contingencies you don’t want to forego. Freddie Mac explains:
“Resist the temptation to waive the inspection contingency, especially in a hot market or if the home is being sold ‘as-is’, which means the seller won’t pay for repairs. Without an inspection contingency, you could be stuck with a contract on a house you can’t afford to fix.”
Today’s competitive Knoxville market makes it more important than ever to make a strong offer on a home, and a trusted expert can help you rise to the top along the way.
Ready to get he home buying process started? Call/Text me, Troy Stavros with CornerStone Realty Associates at 865-999-0925 today!
There’s no doubt 2020 has been a challenging year. A global pandemic coupled with an economic recession has caused heartache for many. However, it has also prompted more Americans to reconsider the meaning of “home.” This quest for a place better equipped to fulfill our needs, along with record-low mortgage rates, has skyrocketed the demand for home purchases in Knoxville as well as nationally.
This increase in demand, on top of the severe shortage of homes for sale in Knoxville, has also caused more bidding wars and thus has home prices appreciating rather dramatically. Some, therefore, have become cautious about buying a home right now.
The truth of the matter is, even though homes nationally have appreciated by a whopping 6.7% over the last twelve months, the cost to buy a home has actually dropped. This is largely due to mortgage rates falling by a full percentage point.
Let’s take a look at the monthly mortgage payment on a $300,000 house one year ago, and then compare it with that same home today, after it has appreciated by 6.7% to $320,100. Compared to this time last year, you’ll actually save $87 dollars a month by purchasing that home today, which equates to over one thousand dollars a year.
Yes, it is. That, however, may make it the perfect time to buy your first home or move up to a larger one. Tom Gil, a Harvard trained negotiator and real estate investor, recently explained:
“When volatile assets are facing recessions, hard assets, such as gold and real estate, thrive. Historically speaking, residential real estate has done better compared to other markets during and after recessions.”
That thought is substantiated by the fact that homeowners have 40 times the net worth of renters. Odeta Kushi, Deputy Chief Economist for First American Financial Corporation, recently said:
“Despite the risk of volatility in the housing market, numerous studies have demonstrated that homeownership leads to greater wealth accumulation when compared with renting. Renters don’t capture the wealth generated by house price appreciation, nor do they benefit from the equity gains generated by monthly mortgage payments, which become a form of forced savings for homeowners.”
With home prices in Knoxville still increasing and mortgage rates perhaps poised to begin rising as well, buying your first home, or moving up to a home that better fits your current needs, likely makes a ton of sense.
Have questions or want to get the process started? Call/Text me, Troy Stavros with CornerStone Realty Associates at 865-999-0925 today!
