Buying a Home

Did You Know You Can Buy a Home With No Money Down?

Contrary to popular belief, you don’t need to put down 20% to buy a home.

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Do you still need a 20% down payment to buy a home? We still get asked this question a lot by homebuyers, and the answer is no. In fact, you can buy a home with no money down. The Illinois Housing Development Authority offers several programs that allow you to buy a home with little-to-no money down, and there are other options you can pursue as well. For example, if you purchase a HUD-foreclosed home, you can do so with just $100 down. You can also borrow against your 401(k). In any case, remember that you don’t necessarily have to go into your own pocket if you’re thinking of buying a home soon. If you’d like to know more about your down payment options or you’d like to get started on your home buying journey, don’t hesitate to reach out to me. I’d love to help you.


Pre-Approval: Your 1st Step in Buying a Home

In many markets across the country, the number of buyers searching for their dream homes outnumbers the number of homes for sale. This has led to a competitive marketplace where buyers often need to stand out. One way to show you are serious about buying your dream home is to get pre-qualified or pre-approved for a mortgage before starting your search.

Even if you are in a market that is not as competitive, understanding your budget will give you the confidence of knowing if your dream home is within your reach.

Freddie Mac lays out the advantages of pre-approval in the ‘My Home’ section of their website:

“It’s highly recommended that you work with your lender to get pre-approved before you begin house hunting. Pre-approval will tell you how much home you can afford and can help you move faster, and with greater confidence, in competitive markets.”

One of the many advantages of working with a local real estate professional is that many have relationships with lenders who will be able to help you through this process. Once you have selected a lender, you will need to fill out their loan application and provide them with important information regarding “your credit, debt, work history, down payment and residential history.”

Freddie Mac describes the ‘4 Cs’ that help determine the amount you will be qualified to borrow:

  1. Capacity: Your current and future ability to make your payments
  2. Capital or cash reserves: The money, savings,...

Buying a Home is Cheaper than Renting in 38 States! [INFOGRAPHIC]

Renting vs Buying

Some Highlights:

  • According to a study by GOBankingRates, it is cheaper to buy a home than rent in 38 states across the country.
  • In six states the difference between buying & renting would account for less than a $50 monthly difference, leaving the choice up to the individual family.
  • Nationwide, it is now 26.3% cheaper to buy.

Millennial's are using there 401k to become homeowners

Why are Millennials scared to buy a home with there 401k?

There have been a lot of scary news stories out there lately suggesting that Millennials are making a big mistake by taking from or borrowing against their 401k to help buy their first home. But is it a mistake to invest in yourself to start building equity in a home. Most Millennials haven't even hit their peak earning years yet and have plenty of time to build that retirement portfolio. And besides, that isn't equity in a home an asset. Traditionally homes have been safe investments that are appreciated over time now before making any big decision.

It's always a good idea to talk to a trusted family members and some friends as well as a reputable real estate agent preferably a buyer specialist who can help lead you to that first home. One that won't make you house poor. Isn't it better at the end of the day to be paying your own mortgage rather than somebody else's? Which is exactly what you're doing when you're paying rent. I'm Cynthia Bowers a member of the Amy Kite team of Keller Williams Infinity.

Amy has been nationally recognized for her unique team approach to buying and selling real estate. Give us a call at 847 - 877 - 9881. And let us guide you to the American dream. Now is a great time to invest in yourself and your future.


3 Profit Centers for Beginner Real Estate Investors

For those looking to start their careers as real estate investors, here
are three options you can try to begin making a profit.

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If you’re looking to get started with real estate investing, we have a lot of opportunities that come across our desks every week, so today I want to discuss three different avenues that you could take to kickstart your investment career.

1. The “fix and flip.” This is when you purchase a home to repair it and elevate its condition and presentation to then turn around and resell it for more than you paid for it.

2. Cash flow from holding a property. This is when you purchase a property to rent out to tenants, which creates money for you on a monthly basis.

3. Appreciation. This means to buy and hold a property with the intention of allowing it to appreciate over time and then selling it once it has gained enough value.


What to Know to Tackle the Home Buying Process

The home buying process can seem very stressful. Here are a few tips to help you wrap your head around this life decision.

Make sure you talk to a trusted Mortgage Advisor: Your Realtor should be able to provide you with great mortgage companies. They will know which ones to stay away from as well. Once you talk to an advisor you will know where to start.

This is not your forever home: Buying a home is not a one time experience. Your needs change as you advance through your life. Your home you buy in your twenties might not fit the same needs that you want in your 60s.

There is no such thing as the “Perfect Home”: If you go out with an agent and think that you will find a home that fits every need and want and in your price range you will drive yourself crazy. Tradeoffs need to happen such as: “The house is on the Lake, but the house is not the right color.” Home inspections will help you determine if the house is worth buying a lot of times. It depends on what you are willing to change as well.

Cosmetic issues can be fixed: Obviously, you will not have the same taste as other people. If they have the urge to paint their bathroom lime green and have zebra carpet in the master bedroom and that does not float your boat you must look at the house for what it is. Look at the layout, how many bedrooms and bathroom it has, how big the yard is, the location and school districts or any other things that you cannot change that are important to you.

Ask lots of questions: An agent is supposed to help you through this process. Anything you do not understand ask away. Attorneys, Agents and Home Inspectors are full of valuable information. The more you know the more you will feel secure in your decision.