6 Budgeting Tips to Help You Save for a Down Payment

6 Budgeting Tips to Help You Save for a Down Payment

Saving enough cash for a down payment may seem impossible, but with planning and discipline you can make it happen. It might not be tomorrow, but owning your own home is something worth waiting for, working for and, perhaps, sacrificing a few expensive coffee drinks for as well. Here are a few tips to help you get started.

1. Track every dollar. Find out exactly where your money goes each month by keeping track of every single thing you purchase over 30 days. Review your card and bank statements carefully to categorize where you spent each dollar (e.g., entertainment, food, clothing). Sites like mint.com can also help you track and categorize spending.

2. Rate every purchase. Using the month of expenditures, rate each item or service you bought as a "want" or a "need."

3. Set savings goals. Using your "needs" and "wants" list, determine where you can realistically cut spending. If it means that much, you don't necessarily have to cut out Starbucks altogether, but reducing your trips will certainly help. Use the budget to set monthly and yearly savings goals.

4. Set aside funds. Create a separate savings account for your down payment. It's not only easier to track, but blocking off the funds may make you think twice before dipping into that money for something other than your future home.

5. Save automatically. If you are paid through direct deposit, chances are you can split your paychecks into more than one account. Set up your new "down payment" savings account to take in a portion of your regular direct deposits. You can't miss money you don't see in the first place.

6. Maximize your returns. Once you have a bit of money saved, talk to a financial professional about other places you might invest it to get a bigger return than you would by keeping it in your savings account – perhaps a money market account or a certificate of deposit (CD).

When your down payment goal is in sight, find a Realtor who will help you take the next step in your home buying journey. Find a local RE/MAX agent who can help.

4 Resources for First-Time Homebuyers

4 Resources for First-Time Homebuyers

Surveys show that first-time buyers aren’t aware of how much they need to save for a down payment. Many people believe that buying a home requires they put down at least 20 percent of the purchase price, but down payments aren’t as big of an obstacle as people think. For example, a loan through the Federal Housing Administration could require a down payment as low as 3.5 percent; Fannie Mae and Freddie Mac have similarly low requirements.

If you qualify for a loan with a low down payment but still have trouble coming up with the cash, here are a few of the many programs out there that can help. Do some research to find out what’s available in your area.

1. Help getting down
The federal Department of Housing and Urban Development (HUD) gives community development block grants to states and local governments across the country to help revitalize certain areas. HUD’s HOME Investment Partnerships Program (HOME) is one such program. States often have their own programs for down payment assistance, too.

2. Opening up options for closing
The Federal National Mortgage Association, a.k.a. Fannie Mae, designed the HomePath Ready Buyerprogram to attract new homebuyers to the market. Through the program, qualifying first-time homebuyers can get assistance of up to 3 percent of closing costs after they pass an online homeownership course.

3. Making ownership less taxing
Some state governments provide first-time buyers with a tax credit to boost homeownership.

4. Helping heroes
The U.S. Department of Veterans Affairs (VA) Home Loan Guaranty Service helps veterans or surviving spouses obtain better terms for their mortgage by guaranteeing a portion of the loan. Some VA mortgages require no down payment.

Check the National Council of State Housing Agencies for more opportunities available in your state.

A buyer’s agent will be able to help you find the programs that operate in your area and are appropriate to your financial situation. A great agent is easy to find here.

Owning a home helps you building family wealth

Real Estate Shines as an Investment in 2015

A survey by The Joint Center of Housing Studies at Harvard University reveals that when a family is buying a home they consider the financial benefits of homeownership along with the social benefits. The survey mentions things like:

• Paying rent does not make sense
• Homeownership provides a good financial opportunity
• Owning a home helps you building family wealth
• Buying a home is investing in your retirement
• Home equity gives you something to borrow against

So how did homeownership match up against other investments in 2015? Here is a chart that compares its return on investment against precious metals and the stock market last year:

Bottom Line

Not only did homeownership offer all its social benefits. It also was a great investment financially.

5 Winning Tips for Writing an Offer Letter

5 Winning Tips for Writing an Offer Letter

In some hot housing markets, including a letter with your formal offer to buy a home is all but required. Unfortunately, Hallmark doesn’t make a card for the occasion (yet). Here are a few tips:

1. Get emotional.
Take advantage of this opportunity to sail beyond the facts and figures to convey a personal connection to the home. Pick one or two features and talk about how they fit into your vision of the perfect home. For example, “Holiday meals are important to my family. Your large kitchen has everything I need to re-create my grandmother’s recipes, and would fit all of my relatives who like to gossip while cooking.” Or, “During our showing my children escaped to climb trees in your back yard. They fell in love with the home as much as I did.”

2. Connect with the seller.
Find one or two similarities between your family and the seller’s, based on what you can discern from the home. Show you have something in common, but be careful not too dig too deep (nobody wants to sell to a stalker). For example: “We’re so excited that your home not only has a beautiful, fenced yard, but also a dog door. Our lives revolve around our two rescue pups, Sonny and Cher, who would literally leap for joy in a yard of their own.”

3. Don’t be afraid to flatter.
Tell the seller why you adore specific features that have been upgraded: “We love those colorful tiles you used on the kitchen back splash. They remind us so much of our honeymoon in Portugal.”

4. Don’t whine.
This is not the place to play the sympathy card. No sob stories about why you sold your last place, or how many deals have fallen through. You want the seller to feel good reading your letter.

5. Grammar matters.
Check spelling and grammar. Have a grammar-nerd friend triple check it for you. You want the seller to know you put time and care into your honest appeal.

Not sure where to start? Find a local RE/MAX agent who can help.

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Sellers: How to Decide Between Multiple Offers

Sellers: How to Decide Between Multiple Offers

What a splendid dilemma! You’ve received several offers on your property. Which one should you choose? It’s not always the highest one.

Here are just some of the areas your agent could ask you to pay particularly close attention to as you're weighing the options.

1. Do the math.
This goes beyond simply calculating the dollar difference between the various offer prices. Before you do that, be sure to do all the math. Subtract things like closing costs, fees and potential repairs to determine the net proceeds of each offer.

2. Consider the financing.
Can the buyer provide proof from the bank that there are funds to back the offer? Your agent can help verify this – and help you understand the terms of the buyer's financing.

3. Motivation.
Do the buyers have a baby-sitting parent in the neighborhood? A new job just around the corner? Buyers with extra motivation to purchase your home are less likely to press for concessions and more likely to work harder to close the deal. Some buyers even include a personal letter with their offer to explain why they want the home. These letters can be particularly helpful in multiple-offer situations.

4. Timeline.
Note the closing date each offer proposes. You'll want a closing date that best meets your needs. You can always counter a closing date, too, if the best offer doesn't quite meet your timeline.

Weighing the pros and cons of each offer can be tricky. An experienced agent can help you clarify, calculate and secure the very best deal for you. Find a local RE/MAX agent who can help.

6 Questions to Ask Yourself Before Buying a Vacation Home

6 Questions to Ask Yourself Before Buying a Vacation Home

Have you and your family fallen in love with a vacation spot and you're wondering whether it makes sense to buy there? Here are some key questions to ask yourself (And keep in mind that a great real estate agent can always help you talk through them!).

1. Do you really, really love the location?
It's a good idea to visit the area during the low season. Do you still enjoy it when the ski slopes are green, or when those ocean breezes are too chilly for lounging on the sand?

2. How often can you get there?
Calculate how many times a year you'll be able to use the home. Carefully consider the commute as well as your career and family commitments to determine how much time you realistically can spend there relative to the costs of owning and maintaining the property.

3. Have you talked to the locals?
Spend some quality time at the local coffee shop or microbrewery and chat with people who live in the area year-round. Ask them what they like, and don't like, about living there – and about any cultural trends they've noticed.

4. Could you rent your place if you had to?
Renting out the home when you're not there brings with it a host of other considerations. Does the HOA allow rentals? Would potential renters be interested in the property's amenities, such as a fireplace in a ski town or an inviting deck or patio in a beach community?

5. What about the taxes?
Taxes for a second home can be more complicated than those for your primary residence. Talk to a tax pro and learn more about the tax implications for your specific situation, including taxes on rental income if you plan to rent out the place for part of the year.

6. What's the tab when you're not there?
Calculate the true, year-round cost of owning the home, including utilities and property management when the home isn't occupied.

Looking for more guidance on vacation properties? Find a local RE/MAX agent who can help.

11 Things to Know About VA Loans and Housing Programs

11 Things to Know About VA Loans and Housing Programs

As part of its mission to serve the nation’s vets, the U.S. Department of Veterans Affairs provides several housing benefits to service members and their families, including assistance with home loans. If you or someone close to you has a military affiliation, it’s a good idea to know about the resources available. Here’s an overview.

1. Who's eligible: Current service members, veterans and eligible surviving spouses of members of the armed forces can take advantage of VA home loan guaranty benefits and other housing programs.

2. The VA's role in the mortgage process: Unlike what you may assume from the name, VA loans are provided by private lenders such as banks and mortgage companies, not the VA. The VA guarantees a portion of the loan, which allows private lenders to offer better terms to borrowers.

3. The advantages of VA loans: They often include no down payment, no required mortgage insurance, a limit on the amount vets can be charged for closing costs and possible assistance from the VA if the homebuyer has trouble making payments.

4. How VA loans can be used: The loans are just for primary residences. You can’t get a VA loan for a vacation home or an income property.

5. How many times vets use VA loans: Vets may be able to use their VA entitlement more than once, but the original loan must be paid off and the amount of the benefit may be reduced. As you may expect, each case is unique.

6. There are no prepayment penalties: Buyers through the program can’t be punished for paying off their loans early, which can happen with other mortgages.

7. Home equity loans are an option: The VA also offers Cash Out Refinance Loans for vets that allow homeowners to take money out of their home equity to pay for things like school and home improvements.

8. There are special provisions for Native Americans: Native American veterans may be eligible for additional home-financing help. The Native American Direct Loan Program can further reduce the interest rate on a VA loan, or can help pay for the purchase, construction or improvement of homes on Federal Trust Land.

9. There are additional resources for disabled vets: The VA also helps disabled vets buy, build or adapt a home to make it more accessible.

10. States sometimes offer additional benefits: Some states provide additional home-financing resources to eligible veterans, such as reduced property taxes. You can find out more here:http://www.va.gov/statedva.htm.

11. Refinancing is an option: The VA can also help eligible veterans who need to refinance their VA loan through an Interest Rate Reduction Refinance Loan (IRRRL).

For more information about the resources available through the U.S. Department of Veterans Affairs, visit their website at http://www.benefits.va.gov/homeloans/.

An experienced Realtor can help veterans and their families navigate through the VA loan process.Find a RE/MAX agent near you.

2016 brings two new agents to RE/MAX REALTY CENTER office

2016 welcomes two new faces to the office..... Cheryl Creydt has joined us, as has my brother Terry Bear. Both bring experience and a vast knowledge of the real estate industry!

Great additions to the office

Secrets of Top Real Estate Sales Agents

Lets get this new year started........