Purchasing a home can be a daunting endeavor, even for those who may have done it many times previously. Home ownership can represent so many different things to individuals and families; depending on the particular stage of life they’re in. For those embarking on this journey for the first time, I thought I’d share a few tips and things to consider as you begin the process. Even those who may have previously done so may find some of this information helpful.
In 1989, Steven Covey published a ground-breaking book titled The 7 Habits of Highly Effective People. In it, he outlines habits that, when practiced in most any area of life, can often produce better results. A couple of his ideas come to mind as it relates to purchasing a new home and I want to share how they may be helpful…particularly, if this is the first time!
Begin With The End In Mind. I always ask my clients “what are your goals and dreams associated with this home purchase?” Or…”what will life look like in 5 years from now for you/your family?” While some will answer right away with “…this is a starter home for us;” or “…we want our children to go to a specific school;” some haven’t really thought about home ownership in those terms. From my perspective, I want to know this so I can help them choose the best loan program that will help them fulfill their goals. Here are some typical questions First-Time Homebuyers may want to ponder as it relates to financing a home purchase:
Why do we really want to buy a home?
How long do we plan to live in this home?
How does a mortgage fit into our current budget?
What are the “other” costs of home ownership… beyond the monthly payment?
There may be several “ends” associated with the purchase of a home. The first may be Closing Day! The last one may be the day you decide to sell it! There could be many in-between…such as starting a family or launching a home-based business. Whatever they are…I encourage folks to be thoughtful! Knowing what those “ends” are can be helpful in articulating your “why!”
First Things First! The idea behind this habit is to prioritize the activities related to shopping and purchasing a home in a manner that puts the most urgent and important ones at the beginning! While it may be exciting to jump on a real estate website and start browsing listings right away to find that “dream home,” there’s a danger of creating an emotional attachment to a beautiful home, only to discover that it doesn’t fit into your budget, family needs, goals, or…isn’t even available for sale any longer. Here are a few suggested “First Things” for new homebuyers:
Know your budget: monthly payment, cash available for the purchase, as well as ongoing (future) maintenance costs.
Know your needs (vs your wants): establish the things that the home must have in order to accomplish your goals for purchasing.
Know your “why:” be able to articulate exactly why you want to buy a home. For some families…it may be related to a school choice. For others, it’s proximity to job, family or other factors. There is no “wrong” answer…just know your own “why!”
Finally, choose trusted advisors to guide you along the way. The 2 most important advisors to identify early in home buying process are a licensed Realtor and a Mortgage Lender. Since a home purchase represents both the largest asset and largest debt most families will ever incur, the guidance and professional advice from a trusted Realtor and Lender will be invaluable. When they get to know you and understand your particular “why,” they can help you choose the best home and financing options to meet your individual needs.
Tim Britt is a Senior Mortgage Loan Officer (NMLS 1369718) with Fifth Third Bank in Brentwood, TN. He can be reached at 615-415-8887 or [email protected]. The statements or opinions expressed are his own and do not necessarily represent those of Fifth Third Bank.
Housing inventory is still under the 6-month supply that is needed for a normal housing market.
Buyers are often competing with one another for the listings that are available.
Perhaps the time has come for you and your family to move on and start living the life you desire.
Spring will always remain the most popular time to buy or sell a house. That’s not to say Fall can’t be just as productive for both buyers and sellers. If you’re on the fence or have any questions we’ll be glad to talk to you, and if you decide to buy or sell we would be honored to assist you!
Having two fearless boys in the family who would much rather watch “It” than any animated film means we probably have a few trips to haunted houses in our near future even though they’re reallynotmy cup of tea!
Local Country Ham Store Featured on Tennessee Crossroads
Did you know that October is National Eat Country Ham Month? Well, now that you know, you need to head over to Rice’s Country Hams in Mt. Juliet to get ya some. Started by Ed Rice, Sr. (Ron’s great uncle), Rice’s Country Hams is a third generation, family owned and operated business, and in fact, it’s the oldest retail business still in operation in Mt. Juliet. The Rice family has been curing country hams for over 60 years and has won countless blue ribbons and trophies over the years for their hams. They’ve been featured on Tennessee Crossroads, and in 2014, Ed Sr. and Ed Jr. were inducted in the Wilson County Agricultural Hall of Fame. This family knows their hams, and their store has been a staple of the community for decades.
Salt-cured, hickory smoked and naturally aged to perfection
Rice’s hams are salt-cured, hickory smoked and naturally aged, and from start to finish, they take the better part of a year before they’re ready to sell. While their mouth-watering hams may be the star attraction, Rice’s thick sliced smoked bacon and hickory-smoked sausage are crowd pleasers too. The store also offers specialty items, such as pepper jelly, apple butter, grits, and sorghum, as well as gift packs which will shave some time off your holiday shopping.
Ham this good isn’t available year round
Rice’s is open only a few months of the year, usually from early October until Christmas Eve. Currently, the store hours are 9:00-4:00 Tuesday through Saturday, and you can also order through the website. A little tip we learned the hard way: when you stop by to pick up your holiday ham, don’t forget to buy extra for your freezer so you can get your fix in the summertime when the store is closed!
Rice’s Country Hams with homemade biscuits and Broken Comb Honey from Wilson County, Tennessee
Rice’s Country Hams is located at 12217 Lebanon Rd, Mt Juliet, TN 37122 and can be reached at (615) 758-2362 or through their website at RicesCountryHams.com.
Here are this weekend’s Open Houses for residential real estate in Nashville and surrounding areas! If you would like to customize this search to meet your needs, click on “See All Results” at the bottom of this page and modify the search fields on the next page.
Please let us know if you would like information about these, or any other properties. Please let the hosting agents know that we sent you!
Open House 09/14 at 1PM
1 / 30
Single Family Home For Sale
1027b Battery Lane Nashville, TN 37220 Battery Cove Subdivision
Open House 09/14 at 2PM
1 / 29
Single Family Home For Sale
1806 Terrabrooke Ct, Lot 7 Brentwood, TN 37027 Terrabrooke Subdivision
Last month, we began the conversation about Credit by discussing the Mystery of the Credit Score. As I mentioned, the numerical score is only half of the story! This month, we’ll talk about, as Paul Harvey would say “…the rest of the story!”
In addition to the score, a borrower’s Credit History can also be a determining factor in qualifying for a particular home loan program, or if they qualify at all. When a credit report is generated, the borrower’s history of credit usage is reflected on that report. Keep in mind that this history may continue to report for up to 10 years or more. This history includes:
Credit Accounts (open or closed)
Date(s) accounts were established
Last Activity Date
Credit Limit/Balance/Minimum Payment
History of Late Payments
Public/Private Liens or Judgements
Any Accounts in Collection (past or present)
The numerical score is the first indicator of qualification for a mortgage loan, however; certain derogatory events may disqualify a borrower whose score otherwise meets the minimum requirements for a particular program. The severity and timing of these events will determine how they impact qualification. Here are a few examples that may preclude qualification for someone who may otherwise meet the minimum numerical score guidelines.
Housing Payment History: Some loan programs (e.g. Conventional) will not allow any housing-related late payments (mortgage or rent 30 days late or more) within the last 12 months.
Revolving Charge: Accounts with late payments more than 60 days late, or in some cases, a single account with a 30-day past due can be disqualifying.
Other Examples Include:
Nonpayment of Child Support
IRS Tax Liens
Foreclosure, Pre-Foreclosure, Short Sale, or Deed-in-Lieu Actions
Open or Closed Collection Accounts
Delinquent Student Loan Accounts
While the above list is not all-encompassing, there are many cases where a client may have a qualifying score for a particular loan program, but one or more of these derogatory events will preclude mortgage approval. Not to worry, though…it’s not a life sentence!
In most, if not all cases, there are either “waiting periods” or rehabilitation plans whereby a potential borrower can remedy the disqualifying event and eventually put them into a position to qualify and purchase in the future. In some instances…Bankruptcy, for example: simply shifting loan programs from Conventional to FHA may reduce the waiting period and possibly allow for qualification. With IRS Tax Liens, establishing a payment plan and making the first payment may satisfy that requirement.
In many instances, clients aren’t even aware of derogatory information on their credit report until they apply for a mortgage. It’s this reason that I encourage everyone, once a year, to get a free copy of your credit report from www.annualcreditreport.com. This site is jointly owned by all 3 of the major credit bureaus, and is the only source of information authorized by Federal Law. While this report will not produce your numerical score for mortgage qualification, it will provide all historical information reported to the credit bureaus and enable you to ensure you’re not a victim of fraud, identity theft, or errant reporting by a creditor. It will also reflect any public information (liens, judgements, etc.) reported by other agencies or municipalities to the bureaus.
To wrap up this topic – think of your credit history as one of your most important assets! The information contained therein can be of tremendous value, or detriment…not only for mortgage qualification, but in some cases, even for future employment. Know where you stand, and protect yourself by knowing your credit history!
Tim Britt is a Senior Mortgage Loan Officer (NMLS 1369718) with Fifth Third Bank in Brentwood, TN. He can be reached at 615-415-8887 or [email protected].