NOW IS A GREAT TIME TO BUY A HOME! INTEREST RATES ARE NEAR THEIR LOWEST RATES EVER! AND, THE HOME YOU HAVE BEEN THINKING OF BUYING IS NOW LOWER IN PRICE AND MUCH MORE AFFORDABLE THAN IT’S BEEN IN A LONG TIME. QUALIFYING FHA LOANS CURENTLY HAVE DOWN PAYMENTS STARTING AT ONLY 3.5%. IF YOU ARE RENTING YOUR MONTHLY MORTGAGE PAYMENT COULD BE LESS THAN YOUR RENT! AND THE INTEREST PORTION OF YOUR MARTGAGE IS TAX DEDUCTABLE MAKING OWNING A HOME EVEN MORE AFORDABLE. IT IS POSSIBLE THAT REQUIRED DOWN PAYMENTS WILL INCREASE BY THE END OF THE YEAR. ACT NOW, LOW INTEREST RATES, LOW HOME PRICES, A LARGE INVENTORY OF HOMES TO CHOOSE FROM. THE TIME TO BUY IS NOW. CALL ME AT 216-224-1027 OR EMAIL DANIELKILBANE@HOWARDHANNA.COM
Why rent when you can own?
Monthly Rent Purchase Price
Based on an interest rate of 3.875% APR of 4.8317%,
FHA loan 3.5% down payment. Taxes estimated at
1.65% of sales price.
Your Dream Home Is Out There!
As of July 10, 2012 Number Of At Least 3 Bedroom/2 Bath Homes
For Sale In…..
Mayfield Heights 34
Highland Heights 11
South Euclid 201
Richmond Heights 59
University Heights 117
I have the information on all of these homes: Pictures, histories, price changes, analysis for offer pricing. Contact me and let’s go find your dream home!
Ohio Home Buyer and Seller Statistics
All values are for home buyers and sellers in the State of Ohio in 2011.
Figures for FIRST TIME home buyers…
32% of all home buyers were first time buyers.
Average age of first time home buyers was 34.
Median household income of first time home buyers was $53,800
64% were married couples, 19% single females, 12% single males.
The median purchase price was $117,000 or $65 per square foot of home space.
Of all homes BOUGHT in 2011…
The typical home had 1,800 sf. of space, 3 bedrooms and 2 bathrooms and was built in 1974.
The median purchase price was $139,500.
88% of the home’s value was financed.
12% of homes purchased were new construction.
79% of home purchases were single family detached properties.
88% of home buyers used the internet to search for their home.
92% of home buyers used the services of a real estate professional to find and buy their home.
The typical home buyer searched for 10 weeks and visited 10 homes.
39% of all home buyers thought the mortgage application and approval process was more difficult than expected.
National Home Buyer
Active home search (median):
· Number of weeks searched: 12
· Number of homes seen: 12
First-Time vs. Repeat Buyers:
· First-time buyers: 37%
· Repeat buyers: 63%
· Median age of first-time buyers: 31
· Median age of repeat buyers: 53
Buyers who definitely would use same agent again: 72%
Actions taken as result of Internet home search:
· Walked through a home viewed online: 63%
· Found agent used to search/buy home: 10%
· Drove by/viewed a home: 63%
Information sources used in home search:
· Internet: 88%
· Real estate agent: 87%
· Yard sign: 55%
· Open house: 45%
· Newspaper ad: 30%
· Home book or magazine: 19%
Source: 2011 National Association of REALTORS® Profile of Home Buyers and Sellers
Avoid making some of these mistakes when buying your home!
1. Not checking your credit beforehand
Get preapproved for a loan before you start looking at properties so you don't set unrealistic expectations and eventual disappointment. A preapproved buyer has submitted pay stubs, bank statements and other paperwork and received a commitment for a specific mortgage amount from a lender. When it comes time to apply for a mortgage loan, some first-time home buyers may find themselves scrambling to fix their credit. Damaged credit can in turn harm your credit score, which could negatively affect your mortgage payments. Your best negotiation tool is being a preapproved buyer. In fact, many sellers will not even look at an offer that is not from a preapproved buyer. Which leads to….
2. Not knowing how much house you can afford.
Many home buyers spend a lot of time researching homes comparing kitchen layouts and backyard square footage but very little time researching their financing options. Without first figuring out how much house you can afford, you risk falling in love with one you can't.
Did you know Howard Hanna has an in office financial manager who can, free of charge, sit down with you and look over your finances to get you preapproved for a dollar amount you know you should be able to afford. You will also have an excellent idea of what home price ceiling you can afford. Contact myself or Joe Strumbly at 440-461-0100 to set up an appointment. Howard Hanna is also is one of the largest mortgage lenders in Northeast Ohio!
3. Not considering the future enough in their purchase.
Buyers should consider what they want out of a house not just for today but also five or 10 years down the road. Do they plan to expand their family? If so, they may need a bigger home and want a different location. Also, how long do they plan on staying at the home? That can help determine the type of mortgage that makes the most sense for them too.
4. Extreme Bargain-hunting
Potential home buyers who only want short sales and foreclosures because they are looking for a bargain could be making a mistake. Many don't realize that although the home is priced well under market value, the amount of money that it would cost them to repair the accumulated damage could become an unbearable burden on their finances. Not to mention the time and inconvenience countless contractors are going to cost you. Also, by focusing solely on short sales and foreclosures, you might miss out on the real bargains motivated sellers of owner owned properties have to offer.
5. None or just a bare bones home inspection
Many homes on the market today are distressed properties -- foreclosures and short sales -- and that only increases the importance of good inspections, according to David Tamny, president of the American Society of Home Inspectors. "The owners usually didn't have the money to keep up these homes," he said. " So there's a lot of deferred maintenance." A home inspection can find problems with the foundation, electrical, plumbing, roof, attic insulation, and heating and air conditioning. Often homebuyers, who may be strapped for cash, stint on inspections and look for the cheapest way to go. That can lead to disaster. "The cost of repairs far exceeds the cost of inspection," said Tamny.
Who is a first time home buyer?
If you have either never owned a home OR have not owned a home for the last three years (36 consecutive calendar months) then you qualify as a FIRST TIME HOME BUYER!
Let FHA Loans Help You
FHA loans have been helping people become homeowners since 1934. How do we do it? The Federal Housing Administration (FHA) � which is part of HUD � insures the loan, so your lender can offer you a better deal such as:
- Low down payments
- Low closing costs
- Easy credit qualifying
What does FHA have for you?
Buying your first home?
FHA might be just what you need. Your down payment can be as low as 3.5% of the purchase price, and most of your closing costs and fees can be included in the loan. Available on 1-4 unit properties.
203(b) Mortgage Insurance
What is the purpose of this program?
To provide mortgage insurance for a person to purchase or refinance a principal residence. The mortgage loan is funded by a lending institution, such as a mortgage company, bank, savings and loan association and the mortgage is insured by HUD.
What are the eligibility requirements?
- The borrower must meet standard FHA credit qualifications.
- The borrower is eligible for approximately 96.5% financing. The borrower is able to finance the upfront mortgage insurance premium into the mortgage. The borrower will also be responsible for paying an annual premium.
- Eligible properties are one-to-four unit structures.
For More Information
Contact FHA approved lenders in your area. Names of lending institutions can be found in the yellow pages of the telephone directory under the heading of "Mortgages." or you can search for an FHA lender on HUD's website:
Visit the FHA Resource Center for more information on all FHA programs at: http://www.hud.gov/offices/hsg/sfh/fharesourcectr.cfm
Have questions about FHA home financing? Contact me (Dan Kilbane) and I will walk you through it!