Today, we have a guest on Sacramento Real Estate Voice…
Wendy Cutrufelli is a Certified Mortgage Planner who has her clients best interest in mind.
Not only does Wendy accomplish your goal of home ownership with the best possible loan for your circumstances but she actually takes the time to talk to you about your future goals to enhance your financial future.
Each person is an individual with Wendy and each loan is tailored to meet the Home Buyer’s needs.
I have personally worked with Wendy Cutrufelli and I was impressed with her and highly recommend her. The First Time Homebuyer that I represented also agrees that Wendy is the BEST!
We are pleased to have Wendy here today on Sacramento Real Estate Voice to let you know what is available especially for First Time Home Buyers.
Now, without further adieu, here’s Wendy…
The market has shifted from a Sellers Market to a Buyers Market. Why is this important to you as a First-Time Homebuyer?
In the past real estate frenzy, many First-Time Homebuyers were squeezed out of purchasing a home due to multiple offers with large down payments or another buyer’s willingness to waive property inspections and repair requests. For the first time in years, the market has shifted to your advantage.
$0 downpayment loans are still available up to a sales price of $532,000. Lenders still want to assist First-Time Buyers safely enter the community of homeowners. $0 down payment mortgages are still available and require verified employment, income, assets and a minimum credit score ranging from 620 to 680. A portion of the monthly payment applies toward your mortgage balance so you build your equity over time.
Due to the amazing tax deductions from homeownership, you can legally take money you normally pay toward income taxes and apply it to your new house payment! The best news is that you don’t have to wait until your tax refund to get the benefit. As soon as you close on your home purchase you can adjust your W-4 Withholding form with your employer and immediately receive more net take-home pay.
Sellers are offering incentives to buyers which could represent thousands of additional dollars in savings. The additional costs to purchase a home (credit report, appraisal, lender fee, title insurance, escrow fee, etc.) are approximately 1.5% – 2% of the sales price – even with a $0 down payment mortgage. Many sellers are willing to pay these costs at closing and, in some cases, even more to “buy” a lower interest rate (resulting in a lower payment) for qualified home buyers. Let’s put this in perspective. If you are house-hunting in the $300,000 price range and negotiate a 3% seller credit toward your costs and to lower your interest rate, the seller will pay $9,000 on your behalf. How long will it take you to save that amount of money?
Should you wait for the prices to drop even more? This is the burning question on everyone’s mind and “timing the market” is very tricky. Think of it like the sale rack at a department store. You can wait for further price reductions, but the choices become fewer and fewer as the inventory decreases and the bargains may be on the houses that don’t really “fit”. That being said, it is vitally important to choose a Realtor with experience, one who knows the local market (what are the neighborhoods that tend to hold their value? What are the price trends in each localized area?), knows how to negotiate the best possible price and terms and knows when to tell you to walk away because it isn’t in your best interest.
Gena Riede demonstrated all of these qualities (and more!) for one of my First-Time Homebuyer clients. I encourage you to call Gena if “home” is more than a place to hang your hat. You don’t have to wait to open the door of your new home.