first time homebuyers Archives

How Fast Can You Save For A Downpayment? You Might Be Surprised!

April 29, 2019 By Troy Stavros

Saving for a down payment is often the biggest hurdle for a first-time homebuyer. Depending on where you live, median income, median rents, and home prices all vary. So, we set out to find out how long it would take to save for a down payment in each state.

Using data from HUD, Census and Apartment List, we determined how long it would take, nationwide, for a first-time buyer to save enough money for a down payment on their dream home. There is a long-standing ‘rule’ that a household should not pay more than 28% of their income on their monthly housing expense.

By determining the percentage of income spent renting in each state, and the amount needed for a 10% down payment, we were able to establish how long (in years) it would take for an average resident to save enough money to buy a home of their own.

According to the data, residents in Kansas can save for a down payment the quickest, doing so in just over 1 year (1.12). Below is a map that was created using the data for each state:

What if you only needed to save 3%?

What if you were able to take advantage of one of Freddie Mac’s or Fannie Mae’s 3%-down programs? Suddenly, saving for a down payment no longer takes 2 to 5 years, but becomes possible in less than a year in most states, as shown on the map below.

Bottom Line

Whether you have just begun to save for a down payment or have been saving for years, you may be closer to your dream home than you think! Let’s get together to help you evaluate your ability to buy today. Call Troy Stavros with CornerStone Realty Associates at 865-999-0925

What If I Waited Another Year To Buy A Home?

December 11, 2018 By Troy Stavros

What If I Wait A Year to Buy a Home? | MyKCM

National home prices have increased by 5.4% since this time last year. Over that same time period, interest rates have remained near historic lows which has allowed many buyers to enter the market and lock in low rates.

As a seller, you will likely 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 Insights Report, home prices will appreciate by 4.8% over the next 12 months.

What Does This Mean as a Buyer?

If home prices appreciate by 4.8% over the next twelve months as predicted by CoreLogic, here is a simple demonstration of the impact that an increase in interest rate would have on the mortgage payment of a home selling for approximately $250,000 today:

Bottom Line

If buying a home is in your plan for this year, doing it sooner rather than later could save you thousands of dollars over the terms of your loan.

$15,000 for First Time Home Buyers in Knoxville, TN!

February 10, 2017 By Troy Stavros

$15,000 for FIRST TIME HOME BUYERS in Knoxville!! WATCH AND LEARN. Interested in a link to search in the specific Knoxville zip codes where this program is available? Shoot me your email and I’ll be happy to set you up! Troy Stavros, Gables & Gates, REALTORS 865-777-9191

Buying A Home Does NOT Have To Be Scary

October 27, 2015 By Troy Stavros

As we enter this spooky time of year, find out how buying a home in Knoxville can be scary, unless you know the facts. Knowing the facts (and not the myths) about buying a home can turn you from scared into fearless. Watch the video above to learn the truth about: Down Payment, Credit Score, Mortgage Approval, Buying vs. Renting. For more information contact me, Troy Stavros with Gables & Gates, REALTORS at 865-777-9191.

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Troy Stavros

Gables & Gates REALTORS

865-999-0925

troy@gablesandgates.com

You Do Not Need 20% Down or Perfect Credit To Buy A Home

July 3, 2015 By Troy Stavros

Let me repeat… You do not need a 20% down payment or perfect credit to buy a home!

A recent survey found that much of the American public is still misinformed about what is truly necessary to qualify for a home mortgage loan in today’s housing market. The two major misconceptions that the study pointed out were:

1. Down Payment

The survey showed that potential homebuyers overestimate the amount of money needed for a down payment to qualify for a home loan. The report noted that 36% of consumers think a 20% down payment is always required. In reality, there are a pretty large amount of loans written every day with a down payment of 3% or less. And while folks think that it’s harder now than before to get a loan, the truth is that the number of low down payment loans has actually increased through the first quarter of the year, as shown by the graph below:

2. Credit Scores

The survey also showed that 2/3 of the people that responded believe they need a very good credit score to buy a home. 45% of them are thinking a “good credit score” is over 780. But the truth is that the average FICO scores of approved conventional and FHA mortgages are much lower:

What does this mean for you?

If you are a someone thinking about buying a home, who is ‘ready’ and ‘willing’ to buy, but not sure if you are also ‘able’, sit down with someone who can help you understand your true options. I’d be happy to get you in touch with my preferred lender who has the heart of a teacher. She is always more that willing to take whatever time is necessary to educate you on the process and what is needed to get you into a home.

Have questions? Contact me (my contact info is below) and I’d be happy to help in any way that I can. I am here to serve you! You can also click below on “Mortgage & Refinance” to get the contact information of my preferred lender.