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Category Archives: Buyer’s Advice

When Do Mortgage Points Make Sense?


Right now, mortgage rates are rising fast following several years of record lows. This leaves potential homebuyers wondering how they can beat the rates, and one option is buying mortgage points. With mortgage points, you can save money, but they don’t always make sense in every situation.

Mortgage points are a fee you, as a borrower, would pay a lender to reduce your interest rate on a home loan. You’ll hear it referred to as buying down the rate.

Each point you’re buying will cost 1% of your mortgage amount. If you’re getting a $400,000 mortgage, a point would cost $4,000.

Each point will usually lower your rate by 0.25%. One point would reduce your mortgage rate from, let’s say, 6% to 5.75% for the life of your loan.

However, there’s variation in how much every point will lower the rate. How much mortgage points can reduce your interest rate depends on the loan type and the general environment for interest rates.

You can buy more than a point, or you can buy a fraction of a point.

Your points are paid when you close, and you’ll see them listed on your loan estimate document. You receive the loan estimate document after applying for a mortgage, and you’ll also see them on your closing disclosure, which you get right before you close on your loan.

There are also mortgage origination points and fees you pay to a lender for originating, reviewing, and processing your loan. These usually cost 1% of the total mortgage.

These don’t directly reduce your interest rate. Lenders might let a borrower get a loan with no origination points, but usually, that’s in exchange for other fees or a higher interest rate.

To determine when mortgage points make sense, you have to calculate what’s known as your breakeven point. This is when borrowers can recover what they spent on prepaid interest. To calculate this, you start with what you paid for the points and divide that amount by how much money you’re saving each month with the reduced rate.

Let’s say the figure you get when calculating your breakeven point is 60 months. That means you would need to stay in your home for 60 months to recover what you spent on discount points.

If you’re buying a home you plan to stay in for a long time, then the additional costs of mortgage points to lower your interest rate can make financial sense.

If you doubt you’ll stay in your home for the long term, it’s probably not right for you.

If you don’t stay in the home for long enough, you will ultimately lose money.

At the same time, as you consider whether or not mortgage points are right for you, you should consider your down payment. You could be better off putting money towards a more significant down payment than points. If you make a larger down payment, you might be able to secure a lower interest rate. Plus, if you make a down payment of at least 20%, you can avoid the added cost of PMI.

Bigger down payments mean you’re lowering your loan-to-value ratio or the size of your mortgage in comparison to the value of your home.

The takeaway is not to assume that buying mortgage points is always the right option. You need to consider how long you will stay in the home and your breakeven point.

Seller Concessions:
In today’s market, sellers are offer large concessions to get their properties sold and as your realtor, we can help you lower your interest rate by having the seller pay for all or a portion of the rate buy-down. Give us a call today to find out how you can save thousands over the life of your loan.

Position Realty
Office: 480-213-5251

Four Things That Will Hurt Your Credit Scores


Credit scores are simply a numerical reflection of your current credit and payment patterns. Typically, the higher the score the better the credit. Building solid credit, especially at a young age, is relatively easy to do. Open up a credit account and pay it back on time. Conversely there are things that will lower your credit scores. Here are four of them.

The first and foremost is your payment patterns. Scores will drop precipitously when payments are late. Not late if your payment is due on the 15th and you pay on the 17th, but more than 30 days past the due date. That’s when scores will drop the most and the quickest. Avoiding these late pays will help scores but making payments more than 30 days past the due dates certainly will. They’ll fall even further if a payment is made more than 60 and 90 days late.

The next way your scores can falter looks at the outstanding balances compared to credit lines. If for example a credit card has a $5,000 limit and the balance is say $4,500, scores will fall and your overall credit profile will be damaged. Going over the credit line will cause scores to fall even more.  Scores will improve when the balances are kept near one-third of credit lines. For a $10,000 limit then the scores will rise if the balances are approximately $3,000-$4,000. Interestingly, keeping balances at zero won’t actually help scores. The scoring system looks at payment history and if there are no balances there won’t be any payments to observe.

A bankruptcy filing, be it Chapte 13 or 11, will of course hurt scores. Lenders can work around a bankruptcy if it can be shown the bankruptcy was out of the borrower’s control. A situation where there is a divorce and there are disputed credit accounts is perhaps one example. Another would be a death or extended illness in the family.

Finally, credit inquiries can negatively impact scores. There are two types of inquiries, a hard and a soft inquiry. A soft inquiry is when a credit card company takes a peek at your credit profile to see if they want to extend a credit offer. These have no impact as they’re not initiated by you. A hard inquiry however is a different story. A hard inquiry is a direct request by you for a new account. An isolated hard inquiry won’t hurt credit but several such inquiries within a shortened period of time will.

Position Realty
Office: 480-213-5251

Getting Help with a Down Payment


A down payment is something you’re likely going to need to get a mortgage to buy a home unless you’re using a Veterans Affairs (VA) loan. Saving up for a down payment is one of the more significant barriers for many people that prevents them from achieving homeownership.

A down payment is an initial payment you make when you buy a house. Down payments are usually calculated as a percentage of the purchase price. The amount can be as little as 3%, but conventional mortgages are generally around 20%.

The specifics of a down payment requirement depend on the type of mortgage you’re applying for, the kind of property you’re buying, and your financial situation.

If you can make a larger down payment, you might be able to get a lower interest rate or buy a more expensive house. Large down payments can also mean you’re responsible for smaller monthly mortgage payments.

Lenders require down payments because it helps reduce their risk exposure. You’re investing in the home, so if you were to stop making your mortgage payments, you’d be walking away from a lot of money. Down payments also reduce how much a lender has to give you to make the purchase.

Not everyone has a large chunk of cash sitting aside to use to buy a house, however. There are down payment assistance programs available, some of which are detailed below.

The Basics of Down Payment Assistance Programs

Down payment assistance programs usually come from state housing finance agencies. Sometimes these programs are also managed and offered by cities and counties and nonprofit organizations.

Types of assistance might include:

• Grants, which are a gift of money that doesn’t need to be repaid.

• Forgivable, zero-interest loans, which don’t have to be repaid as long as the borrower still owns the home and lives in it after whatever the period is—usually somewhere around five years.

• Deferred payment, zero-interest loans, often require no payments until the home is sold, the mortgage reaches the end of its term or the mortgage is refinanced.

• Low-interest loans are available and have to be repaid over a certain period of time. These help homeowners spread their down payment and closing costs over a more extended period rather than having to come up with the money all at once.

Who Can Access Down Payment Assistance?

Most programs offering down payment assistance are geared toward first-time buyers, but not all.

Even if you’ve already owned a home and a program says it’s for first-time buyers, often the program will define a first-time buyer as someone who hasn’t owned a home in the past three years.

There are also programs for specific demographics, like teachers or first responders.

Most down payment assistance programs will require that you complete specific steps, which vary depending on the program itself. For example, you might have to meet income limits or take a homebuyer education course. You could be required to buy in a particular location or stay below a certain maximum purchase price. Sometimes you’ll have to contribute your own money to your down payment too.

How Can You Find a Program?

If you’re interested in learning more about down payment assistance programs, you can contact the housing finance authority in your state or your local city or county government. The U.S. Department of Housing and Urban Development (HUD) also has state-specific information.

The Consumer Financial Protection Bureau has a tool that will link you to housing counselors where you live.

If you are going to apply for a mortgage and use down payment assistance, you’ll have to find a list of mortgage lenders who are approved to work with that particular program. Often, the local agencies and programs assisting can connect you with experienced loan officers.

Position Realty
Office: 480-213-5251

How Does a Pocket Listing Work?


If you watch real estate shows, you might occasionally hear a reference to a pocket listing. A pocket listing is a way for real estate agents to intentionally keep a home off the Multiple Listing Service (MLS) as they look for the right buyer.

A pocket listing isn’t publicly listed, even though it’s for sale. The real estate agent does private showings with potential buyers instead of putting it on the MLS, which is public-facing.

Pocket listings aren’t the same as having a coming soon listing. Coming soon is a way for an agent to designate that a home isn’t listed yet, but shortly will be on the market.

Pocket listings aren’t illegal, but they are frowned upon. The National Association of Realtors, the largest real estate agent professional organization in the country, essentially banned pocket listings for members in 2019. The NAR handbook says that within one business day of marketing a property to the public, the listing broker has to submit it to the MLS.

The NAR wants to ensure cooperation among real estate agents, which was one reason it cracked down on pocket listings. The organization also wants to ensure competition, meaning all buyers have a chance for a listing, and sellers get the chance for the best price.

Some agents can bend the rules to ensure they’re compliant with NAR guidelines while still keeping a listing to themselves.

The policy of the NAR is that listings must be added to the MLS within one business day of the seller signing the listing contract. If a seller signs with a listing agent on a Friday, for example, the agent can use the weekend to do private property marketing.

Why Do Sellers Like Pocket Listings?

It sounds somewhat counterintuitive to do a pocket listing, but there’s a reason some sellers prefer this option. Sellers might like pocket listings because they want to maintain privacy. They control who has access to the property and when, and everyone won’t know they’re selling immediately.

Some sellers like pocket listings to test the market to see what the response will be like to their selling price. With pocket listings, it’s possible to adjust the price without making it look like a price cut that would otherwise show up on the MLS.

The third reason for a pocket listing is that the seller might already have a buyer. A seller might want a listing agent who will sell their property to a specific buyer.

There are ways outside of a pocket listing to achieve the things above, though.

For example, if someone wants the privacy of their listing, they can ask their agent to put the details in the agent’s remarks so they aren’t in the public sections of the listing. They can also ask the agent to verify financing before they agree to showings.

You might miss out on the best possible offer with a pocket listing if you’re a seller. You cannot know whether the buyer you’ve chosen actually has the strongest offer.

There’s also the potential for a listing agent to violate Fair Housing laws if they choose who can see a home. There may be a greater risk of discrimination in these situations, so an agent has to be very careful.

Finally, pocket listings can affect home values negatively. If the sale isn’t in the MLS, it will not show up as a comparable listing if an appraiser or agent tries to determine its worth.

Again, while a pocket listing might have its advantages, they’re something to be cautious of for sellers and their agents because they also have risks.

Position Realty
Office: 480-213-5251

What’s the Difference Between a Vacation and Investment Home?


If you’ve ever considered buying a second home, the mortgage rules are a bit different from your primary residence.

There are also key differences between buying a second home and an investment property, and you should be aware of these distinctions because often the two terms are used interchangeably.

The Meaning of “Second Home”

The term second home refers to a property that you will live in for part of the year, in addition to your primary residence. It’s usually a vacation home, but a second home might also be somewhere you go for work. For example, maybe you have a condo in a city where you often work, but it’s not your main home.

If you’re going to get a mortgage for a second home, it will usually need to either be in an area known as a vacation or resort location, or it might need to be a specific distance from your primary residence.

A second home loan will often have a lower interest rate than an investment property loan.

Your loan will probably also have what’s called a Second Home Rider.

The rider says that as the borrower, you’ll occupy the property and use it as your second home. The property can’t be part of a rental pool or timeshare agreement, and there can’t be agreements requiring you to rent the property or give a management company or third-party control over the property’s use.

While the above is the general definition a lender might use, every lender is going to have their own specific requirements that might be different from these.

Some lenders, for example, won’t give you a second home loan if you’re going to rent out your home at all. Others will give you a loan as long as you plan to stay in the home for a certain number of days annually, even if you’re also going to rent it out.

What About Financing An Investment Property?

One of the reasons it’s important to understand the differences between a second home and an investment property is because the financing process is different. It tends to be significantly easier to finance a second home compared to an investment property.

Usually, a second home mortgage is going to have an interest rate that’s fairly comparable to those for buying a primary home, and credit requirements tend to be in line with one another too.

It’s harder to qualify for an investment property mortgage, and the interest rate is probably going to be higher, as are the origination fees.

That doesn’t mean an investment property mortgage isn’t without its own benefits.

With an investment property, some lenders are willing to give you a loan more easily because the idea is that the property will generate the cash flow needed to pay your loan and other expenses.

What About the IRS?

The IRS has its own guidance as far as the comparison between a second home and an investment property.

A property can be a second home if you use it for at least 14 days each year, or 10% of the days you rent it. If you don’t meet that standard, it’s an investment property.

Why does it matter?

If you have a second home, you may qualify for a mortgage interest tax deduction. That can be used on interest paid on up to $750,000 in qualifying residential debt.

If you have an investment property, you can use the deduction the same way, but you can deduct interest on your mortgage as a rental income expense.

As an owner of an investment property, you can claim an annual depreciation expense, which would lower the amount of your rental income that was taxable.

No matter how the home is specifically classified by the IRS, if you use it and rent it, you have to divide expenses by the time it’s rented and the time you use it personally.

Finally, if you’re thinking about fudging the truth a bit, that’s not a good idea. You will have to sign off on what your intended use of the property is going to be, and if you aren’t honest, it can be considered mortgage fraud, which is illegal.

Position Realty
Office: (480) 213-5251

Why FHA Loans Are So Popular


FHA loans are a popular choice for a lot of people, especially first time homebuyers. Why especially so for first time homebuyers? FHA loans require a low down payment, just 3.5% of the sales price. It’s easier for first timers to come up with enough money for a down payment and for closing costs. Plus, sellers can help out with the closing costs as well, further adding to potential cash savings. Down payments can also come in the form of a gift from a family member or qualified non-profit. While conventional loans also allow for down payment assistance, they require a minimum amount from the buyers.

FHA loans in general are easier to qualify for as well. Debt to income ratios are relaxed, especially when compared to low down payment conventional programs. That means having the ability to comfortably afford a slightly higher loan amount. FHA loans are available from most every single mortgage company and mortgage broker, too.

FHA loans also more easily allow for a coborrower to help out. If someone is buying a home but the payments are a bit out of reach, FHA programs allow for a co-signer to help relax debt ratios to a qualifying level. It should be noted here that a co-signer will have to qualify for the new mortgage as well as any current debt. This could very likely mean the co-signer would be responsible for two mortgages. The one they have now plus the new FHA loan.They must also qualify based upon credit scores. If there are multiple people agreeing to take on a new home loan, lenders will request credit scores and use the lower one of the group.

Lenders like FHA loans as well. As long as the lender uses appropriate FHA guidelines when evaluating and approving a mortgage, the loan carries a guarantee to the lender. Should the loan ever go into default, the lender is then compensated for the loss. This guarantee is financed with two different forms of a mortgage insurance policy. There is an upfront insurance premium that is rolled into the loan amount and there is an annual premium that is paid in monthly installments, included with the monthly mortgage payment, insurance and property taxes.

FHA loans are not for investment properties, but available for owner occupied units. This means financing for a rental property or second home is not available. Conventional loans can be used for non owner occupied units, but not FHA loans. There are also loan limits for FHA loans and these limits can vary based upon location. FHA loan limits are based as a percentage of the median home price for the area in which the property is located.

However, for most first time homebuyers, FHA mortgages are the loan of choice. Low down payment, easier qualifying, relaxed debt ratios and credit make these programs ideal for many first time homebuyers.

Position Realty
480-213-5251

More Americans Are Saying It’s Not A Good Time To Buy


It is not exactly surprising, given the stunning jumps in both home prices and mortgage rates, but Americans have never been more bearish on buying a house.

Just 30% of adults surveyed by Gallup said now is a good time to buy a home, down 23 percentage points from a year ago. That is the first time the share has been below 50% since the question was first asked in 1978. (The results are from Gallup’s annual Economy and Personal Finance poll, which was conducted April 1-19.)

Home prices are up 34% since the start of the pandemic, according to the S&P CoreLogic Case-Shiller National Home Price Index. The record increase in prices was fueled by mortgage rates, which set more than a dozen record lows in the first year of the pandemic. Rates, however, have shot up more than two full percentage points in just the last few months.

Home affordability is nearly the worst its ever been. Due to higher prices and interest rates, the mortgage payment on an average home is now nearly $800 more than just before the pandemic began.

The supply of homes for sale is also still historically low, and even the usually busy spring market has done little to boost inventories. Demand, especially from the millennial generation, is strong, but buyers are stepping back due to the costs. Home sales have fallen for five straight months.

“All major subgroups of Americans are significantly less positive about the housing market now than they were a year ago,” the Gallup report says. Those who were more positive about the market last year seem most dejected, with larger declines among Midwest residents, suburban residents and upper-income Americans.

By age, about a quarter of young adults age 18 to 34 say now is a good time to buy, down from 42% a year ago. For those age 35 to 54, 28% say the market is favorable, down from 52% a year ago. Older adults are slightly more positive, with 35% saying now is a good time to buy, down from 61% in 2021.

Activity in home sales is still strong on the higher end of the housing market, where there is more supply.

Despite higher mortgage rates, most still think home prices will rise further. Analysts vary but most believe the current double-digit annual gains will shrink to around 4% to 6%. Consumers have long been bullish on home prices, except following the Great Recession and the subprime mortgage crash between 2008 and 2012.

While Americans may be pessimistic about the current state of homebuying, more than ever now think real estate is the best long-term investment. About 45% choose real estate, while 24% pick stocks, and 15% say gold. Real estate used to trail gold when Gallup first asked this question in 2011, but since 2014 it has been the winner.

  • Just 30% of adults surveyed by Gallup said now is a good time to buy, down 23 percentage points from a year ago.
  • That is the first time the share has been below 50% since the question was first asked in 1978.
  • Home prices are up 34% since the start of the pandemic, according to the S&P CoreLogic Case-Shiller National Home Price Index.

The Worst Parts of Buying a House

It’s normal to romanticize buying a house. It’s one of the biggest things you do in life, and you may have dreamed of the time when you could become a homeowner. While there’s a lot to be said for the upsides of purchasing a home, that doesn’t mean it’s not a tough process.

Particularly in the current market, buying a house can be frustrating and demoralizing.

Sometimes, knowing to prepare yourself for letdowns and challenges can help you make a smarter decision overall.

According to homebuyers, the following are the worst parts of the process with that in mind.

Dealing with High Prices

Home prices are at historic highs right now. Certain markets are more affected than others, but almost across the board, this is true.

There are many reasons for the high prices, from inflation and supply chain issues to low inventory.

It’s tough because what someone could have afforded in the market that existed just a few years ago isn’t today’s reality.

Avoiding Overbuying

In line with the high prices buyers are facing universally right now, you have to make sure that you’re not overbuying. What happens to many people when they buy a home, particularly if it’s their first time, is that they let emotion take over.

You might have gone into the process with a clear budget, determined to stick with it.

Then, you get into the heated, competitive marketplace and fall in love with a home out of your budget.

You might develop an emotional attachment to that home, and you could spend either more than you can afford or more than it’s worth.

Keeping your emotions in check is one of the most difficult parts of buying a home for a lot of people.

You have to remind yourself repeatedly to stick with the facts rather than emotions.

Being in a Bidding War

Bidding wars are everywhere right now, as you might realize. Some people put in a full-ask, all-cash offer for a home and are promptly outbid. It’s such a competitive marketplace, and the emotional component can again come into play.

If you’re part of a bidding war, it’s easier to get caught up in what’s going on at the moment and pay more than you should. You might theoretically be the winner, but you could be the loser because you’re paying more than the house is worth.

There can be significant financial consequences of overpaying for a property, no matter what the market is like right now. Mortgage lenders only give loans based on the property’s actual value, not what you want to pay. Even if you bid the price up, that doesn’t mean that’s the loan you’re getting.

At the same time, if you keep getting outbid, it can also make you feel frustrated and like you’re never going to find a home. Plus, if you’re renting, you’re continuing to put money toward that.

The Paperwork

The paperwork that comes with getting a mortgage and buying a home is challenging.

Just how complex and burdensome the paperwork is can vary depending on the type of loan you’re trying to get and your financial situation.

If you’re self-employed, you’re probably going to find the loan process is the worst part of buying a house. You have to show years of bank statements and tax returns.

As you wait to finalize your loan, you might feel anxious about everything. Your loan might not even be finalized until a few days before closing, and there’s uncertainty as you feel like you’re in limbo.

While there are certainly downsides that come with buying a house, the reward will be worth the sacrifice if you take your time and make a good financial choice.

Position Realty
480-213-5251

Signs You’re Overpaying for a House

Unfortunately, overpaying for a house is a common issue among buyers right now. The market is incredibly hot across the country. The demand for homes is high, and the supply is low. Many people are trying to buy houses only to find themselves in bidding wars.

Bidding wars can make it more likely that you overpay for a house.

When you overpay for a house, you’re going to spend more on everything, including the down payment, the closing costs, and the thousands more you pay in interest over the years.

So how do you know you could potentially be overpaying? No matter what your emotions are telling you, the following are signs and red flags to watch out for in the process.

The Listing Price Is Different From Comps in the Area

If you find a home that you feel is what you’re dreaming of, but the listing price seems out of line with the sales of comparable properties in the area, it’s potentially a red flag.

It could be that the seller priced their home based on the values of neighboring homes instead of what they’re selling for.

Working with an experienced real estate agent who understands the current market can help you a lot here.

You have to look beyond the value of a home. You have to consider the community, the local school district, and many other factors. Again, your realtor should already understand these factors and be able to negotiate on your behalf with these in mind.

Homes in the same neighborhood should be similar in price. There will be variance based on things like size, but generally, the features will be similar enough that you can use comparables as a good guide.

Online Estimates Are Lower

Online valuation tools have their flaws, but they’ve gotten significantly more accurate over the past few years.

If you go online and valuation tools value a home lower than the list price, you could be in the danger zone for overpaying.

Of course, you have to keep everything in context, so maybe the kitchen is recently remodeled, in which case the home might have a bit of a higher value.

The Listing Price is Similar to Homes No Longer on the Market

This red flag can take a little more research to figure out but if you’re looking at a home with comps similar to sellers who have taken theirs off the market, keep this in mind.

An agent will have access to homes that were taken off the market. If the asking price on these unsold homes is similar to what you’re looking at, it could be overpriced.

It’s Been on the Market for a Long Time

If a home has been on the market a long time, you could be at risk of overpaying. A home that’s priced too high doesn’t get showings or interest and then doesn’t get offers. You need to think carefully about why other people might be passing on the home.

Of course, if you’re in the situation where you’re in a bidding war, it can be different. You might be at risk of overpaying simply because you’re caught up in the emotion and the competitive element. If you’re going well beyond your budget simply because you end up in a bidding war, it’s probably time to take a step back and reassess.

No matter the value of a home, if you pay more than what you can comfortably afford, then you’ve ultimately overpaid.

Position Realty
480-213-5251

How to Save for a Down Payment While You’re Renting

Rent prices continue to rise throughout the U.S., which creates a disheartening and discouraging scenario for many people.

As of February 1 2022, median rents for one- and two-bedroom units are up 26% since last year.

One-bedroom rentals are at an all-time median high right now.

High rental prices coincide with a housing market that’s overheated. Demand, inflation, and reductions in home construction have led to record-setting home prices. Potential homebuyers are being priced out, requiring them to stay in the rental market, putting pressure on rent prices.

For renters, it can seem like a difficult cycle to break—how can you save for a down payment when such a large chunk of your income is going toward rent? Homeownership feels unattainable for a large portion of the population.

It’s decidedly not an easy issue to work your way out of, but it is possible.

Figure Out What You Need

The first thing you can do is start to crunch the numbers. If you have a concrete number for the down payment you need, it will be easier to work toward your goals. If you don’t have a plan in mind or a set number to work toward, you’re going to feel scattered, and it will be much harder to get out of the rent cycle.

The down payment will depend on the type of loan you hope to get and where you plan to buy.

There are mortgages with a down payment as low as 3%, giving you opportunities to save up in a shorter period of time.

You may have to pay for private mortgage insurance if you don’t put down 20%, however.

You have to think about other costs that you’ll need upfront money for to buy a home. These costs include closing fees and the costs of moving.

Open a Dedicated Down Payment Savings Account

Once you have a concrete number in mind and have explored the mortgage options available to you, and know which you’d like to ultimately get, you can create a savings account. This account will only be for your down payment and nothing else.

It should be liquid but separate from anything else so that you aren’t tempted to spend the money in it.

Deal with Debt

You’re going to need to find ways to cut costs if you want to put more money aside to buy a house. Cutting your debt is going to be one way to do that.

If you have a balance on a credit card with a high interest rate, you might try to do a balance transfer. You can transfer the expensive debt to a card with a zero-percent interest period.

If buying a house is your goal, try not to add any more debt during this time.

To qualify to get a mortgage, you’ll have to meet the debt-to-income requirement.

Find Ways to Cut Back

It’s hard to give things up, but if you’re putting a fair amount of money into your rent, there’s not a lot you can do about that unless you’re willing to move.

You’ll have to find other ways you can cut your costs. That might mean skipping meals out or delivery food or going through your subscriptions to see what you can eliminate.

Think About Moving

We mentioned moving above, and you may not be willing or able to do it, but if you can, cutting down on what you’re paying for rent is one of the best ways to have more money to put toward a down payment.

If you can’t move to a smaller or less expensive home, you might try to renegotiate your lease with your landlord, or you could get a roommate. If you can move, along with getting a smaller place, another option is to move outside of the center city area, if you live there currently. Typically, the further out you move from the central area of your town or city, the lower the rent.

Explore Assistance Programs

Finally, many mortgage lenders have programs and loans for first-time homebuyers that cover part or all of a down payment. There are also grants, which require you to complete a homebuyer education course before you get the financial assistance.

If you work in certain fields, like as a first responder or teacher, homebuying assistance programs are often available.

A lot of lenders are looking to reach out to underserved communities to help them make homeownership a reality, so make sure to explore everything that’s out there.

Position Realty: 480-213-5251

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