by Catherine "Cookie" Miller, PA | Jan 11, 2025 | Buying Tips, For Buyers
As a veteran or active-duty service member, you may be missing out on one of the most valuable benefits available to you: the VA Loan. This government-backed mortgage offers unique advantages that make homeownership more accessible and affordable for veterans, yet many remain unaware of its full potential.
1. No Down Payment Required
The most significant benefit of a VA Loan is that you don’t need a down payment. While traditional mortgages often require 5% to 20% down, VA loans allow you to finance 100% of the home’s purchase price—making it easier to become a homeowner.
2. No Private Mortgage Insurance (PMI)
Unlike conventional loans, VA Loans don’t require PMI, even with no down payment. This saves you money each month and lowers the overall cost of the loan.
3. Lower Interest Rates
VA loans often come with lower interest rates compared to traditional mortgages, meaning you’ll pay less over the life of your loan.
4. No Prepayment Penalties
You can pay off your VA Loan early without any prepayment penalties—giving you more flexibility and the chance to save on interest.
5. Higher Loan Limits
While there are limits based on the county and home price, the VA doesn’t impose a hard cap on the loan amount. In higher-cost areas, you can often qualify for a larger loan than you might think.
6. Flexible Eligibility Requirements
VA loans are available to veterans, active-duty service members, National Guard members, and qualifying surviving spouses. Eligibility is often more flexible than traditional loans, making it easier for veterans to qualify.
7. Closing Costs Are Limited
The VA limits the amount you can be charged for closing costs, which helps make the homebuying process more affordable.
8. Affordable Funding Fee
While there is a one-time funding fee, it’s typically much lower than private mortgage insurance (PMI), and it can be rolled into the loan.
9. Streamline Refinance Option
If you already have a VA loan, you can take advantage of a Streamline Refinance (IRRRL) to lower your rates with less paperwork and fewer fees.
10. No Minimum Credit Score Requirement
The VA doesn’t set a minimum credit score for eligibility, giving veterans with less-than-perfect credit a better shot at homeownership.
Final Thoughts
The VA Loan is one of the most powerful tools available to veterans, but many don’t fully understand its benefits. If you’re eligible, take advantage of these incredible perks—no down payment, no PMI, lower rates, and more—to make homeownership a reality.
Talk to a VA-approved lender today and start your journey toward owning a home. It’s a benefit you’ve earned, and it’s time to put it to use!
by Catherine "Cookie" Miller, PA | Jan 10, 2025 | Buying Tips, For Buyers, Mortgage Rates
Homeowners typically slow down their moving plans as the summer months wrap up, and as a result, fewer homes are listed for sale in the fall. It’s a predictable, seasonal trend in real estate. But this year, mortgage rates came down at the same time the number of homes on the market usually starts to decline. So, what happened? More homeowners decided to sell, so more homes came to the market.
The most recent data from Realtor.com reveals that in September, the number of homes put up for sale increased by 11.6% compared to this time last year.
As the green circle in the graph below shows, the typical September decline in homes coming to the market didn’t happen – that number actually went up (see graph below):
Ralph McLaughlin, Senior Economist at Realtor.com, explains why there was an unseasonable rise:
“This sharp increase is largely due to the decline in mortgage rates in mid-August, enticing homeowners to sell.”
So, as rates came down at the end of the summer, more people jumped into the market and decided to make their move.
What Does This Mean If You’re Looking To Buy a Home?
It means more fresh options to choose from than you’ve had in a while – not the ones that have been sitting around, unsold.
But keep in mind, mortgage rates have been volatile lately, ticking up slightly in recent weeks, which could limit the number of people who feel comfortable with the idea of selling in the months ahead. And in this market, it’s mortgage rates that are largely driving homeowner decisions.
Why Buy Now, Rather Than Wait?
Whether you’re looking for a starter home, an upgrade, or hoping to downsize, you have more homes to choose from right now. And if you can find what you’re looking for, know that these new, fresh options won’t be on the market forever. So, staying on top of what’s available in your local area with a trusted agent is key.
And remember, one month doesn’t make a trend. So, what does that mean going forward? Whether more homeowners than normal continue to put their houses on the market will largely depend on what happens with mortgage rates and the economic factors that impact them, like inflation, employment, and the reactions by the Federal Reserve.
With that in mind, now might be your moment, while more homes are available – if you’re ready, willing, and able to buy this fall.
Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), explains:
“The rise in inventory – and, more technically, the accompanying months’ supply – implies home buyers are in a much-improved position to find the right home and at more favorable prices.”
Bottom Line
As rates came down at the end of the summer, sellers started to trickle back into the market, which means buyers have more choices right now. And working with a trusted local real estate agent is the best way to take advantage of your new options before they’re all scooped up.
by Catherine "Cookie" Miller, PA | Jan 7, 2025 | Agent Value, Buying Tips, For Buyers, For Sellers, Selling Tips
When it’s time to buy or sell a home, one of the most important decisions you’ll make is who you’ll work with as your agent. That choice will have an impact on your entire experience and how smoothly it goes.
As you figure out who you’ll partner with, it’s important to know what to expect and what to look for. Unfortunately, there may be some myths holding you back from making the best decision possible. So, let’s take some time to address those, and make sure you have the information you need to find the right agent for you.
Myth #1: All Real Estate Agents Are the Same
You might think all agents are the same – so it doesn’t matter who you work with. But, in reality, agents have varying levels of experience, specialties, and market knowledge, which can have a big impact on your results. For example: you’ll get much better service and advice from someone who is a true expert in their field. As Business Insider explains:
“If you were planning to get your hair done for a special event, you’d want to visit a stylist who specifically has experience doing that type of work — you wouldn’t make an appointment with someone who primarily does kids’ hair. The same concept applies to finding a real estate agent. If you have a smaller budget, you probably don’t want to work with an agent who exclusively sells multimillion-dollar properties.”
Take some time to talk with each agent you’re considering. Ask about their experience level and what they specialize in. This will help you find the one that’s the best fit for your search.
Myth #2: You Can Save Money by Not Using an Agent
As a seller, you may think you can save money by not working with a pro. However, the expertise, negotiation skills, and market knowledge an agent provides generally saves you money and helps you avoid making costly mistakes. Without that guidance, you could find yourself doing something like overpricing your house. And that’s a misstep that’ll cost you when it sits on the market for far too long. That’s why U.S. News Real Estate says:
“When it comes to buying or selling your home, hiring a professional to guide you through the process can save you money and headaches. It pays to have someone on your side who’s well-versed in the nuances of the market and can help ensure you get the best possible deal.”
Myth #3: Agents Will Push You To Spend More
You may also be worried an agent will push you to buy a more expensive house in order to increase their commission. But that’s not how that should go. A good agent will respect your budget and work hard to find a home that truly fits your financial situation and needs. With their market know-how, they’ll point you toward the best option for you, rather than try to pad their own pockets on your dime. As NerdWallet explains:
“Among other things, a good buyer’s agent will find homes for sale. A buyer’s agent will help you understand the type of home you can afford in the current market, find listed homes that match your needs and price range, and then help you narrow the options to the properties worth considering.”
Myth #4: Market Conditions Are the Same Everywhere, So Why Do I Need a Pro?
Maybe you believe housing market conditions are the same no matter where you are. But that couldn’t be further from the truth. Real estate markets are highly localized, and conditions can vary widely from one area to another. This is why you can’t pick just anyone you find online. You should choose an agent who’s an expert on your specific local market. As a recent article from Bankrate says:
“Real estate is very localized, and you want someone who’s extremely knowledgeable about the market in your specific area.”
You’ll know you’ve found the right person when they can explain the national trends and how your area stacks up too. That way you’re guaranteed to get the full picture when you ask: “how’s the market?”
Bottom Line
Don’t let myths keep you from the expert guidance you deserve. With market knowledge and top resources, a trusted local real estate agent isn’t just helpful, they’re invaluable.
In what could be one of the biggest financial decisions of your life, having the right pro by your side is a game changer. Connect with an agent to make sure you get the best outcome possible.
by Catherine "Cookie" Miller, PA | Jan 5, 2025 | Buyers, Buying Tips
Now that you’ve decided to buy a home and are ready to make it happen, it’s a good idea to plan ahead for the costs that are a typical part of the homebuying process. And while your down payment is probably the number one expense on your mind, don’t forget about closing costs. Here’s what you need to know.
What Are Closing Costs?
Simply put, your closing costs are the additional fees and payments you have to make at closing. And while they’ll vary based on the price of the home and how it’s being financed, every buyer has these, so they shouldn’t be a surprise. It’s just that some people forget to budget for them. According to Freddie Mac, this part of the homebuying process typically includes:
- Application fees
- Credit report fees
- Loan origination fees
- Appraisal fees
- Home inspection fees
- Title insurance
- Homeowners insurance
- Survey fees
- Attorney fees
Some of these are one-time expenses that are baked into your closing costs. Others, like homeowners’ insurance, are initial installment payments for ongoing responsibilities you’ll have once you take possession of the home.
How Much Are Closing Costs?
The same Freddie Mac article goes on to say:
“Closing costs vary greatly depending on your location and the price of your home. Typically, you should be prepared to pay between 2% and 5% of the home purchase price in closing fees.”
With that in mind, here’s how you can get an idea of what you’ll need to budget. Let’s say you find a home you want to purchase at today’s median price of $422,600. Based on the 2-5% Freddie Mac estimate, your closing fees could be between roughly $8,452 and $21,130.
But keep in mind, if you’re in the market for a home above or below this price range, your numbers will be higher or lower.
Tips To Reduce Your Closing Costs
If you’re wondering if there’s any way to inch that down a little bit, NerdWallet lists a few things that could help:
- Negotiate with the Seller: Some sellers are willing to cover part or all of these expenses — especially since homes are staying on the market a bit longer now. Sellers may be more motivated to compromise, and you’ll find you have a bit more negotiation power. So don’t hesitate to ask them for concessions like paying for the home inspection or giving you a credit toward closing costs.
- Shop Around for Home Insurance: Since rising home insurance is a challenge in many areas of the country right now, take the time to get a clear picture of all your options. Each insurance company offers their own policies and coverage, so get multiple quotes and see how they compare. Choosing a policy that provides reliable coverage at a competitive rate can make a difference.
- Look into Closing Cost Assistance: Just like there are programs out there to help with your down payment, options exist to get support with closing costs too. While they’ll vary by area, there are programs for various income levels, certain professions, and specific towns or neighborhoods too. If you want to learn more, Experian says:
“Your real estate professional should be able to steer you toward applicable programs, and the U.S. Department of Housing and Urban Development (HUD) maintains a helpful resource for finding homebuying assistance programs in every state.”
Bottom Line
Planning for the fees and payments you’ll need to cover when you’re closing on your home is important – and it doesn’t have to be a big surprise. For more tips and expert advice, partner with a team of trusted real estate professionals, including a trusted agent and lender.
