Many homebuyers have a tough time saving up 20 percent of a home’s purchase price to use as a down payment. In fact, it can seem like such a big task that many people choose to continue renting rather than building up such a substantial amount of money.

However, there are programs available, including the VA loan program and the FHA loan program, that don’t require a 20 percent down payment. Recently, the Freddie Mac Home Possible Advantage loan program has made it possible to buy a home with as little as 3 percent down.

Could that be the right program for you if you’re buying a home in Franklin, Brentwood or any of the surrounding communities?

What is the Home Possible Advantage Mortgage Program?

Designed for low- to moderate-income buyers, the Freddie Mac Home Possible Advantage Mortgage program helps people buy homes when they have limited savings.

The program requires only a 3 percent down payment with qualifying credit. Some participants – particularly those on the lower end of the credit score spectrum – may need to come up with a higher down payment.

Who Qualifies for Home Possible Advantage Mortgages?

To qualify for a Home Possible Advantage Mortgage loan, you’ll need to:

• Meet Freddie Mac’s minimum credit requirements, which means you need a credit score of at least 660.
• Earn no more than 100 percent of your area’s median income. You can find your county and the maximum income eligibility here.
• Participate in a qualifying borrower education program if you’re a first-time buyer. The program must meet the National Industry Standards for Homeownership Education and Counseling.

Will You Need Private Mortgage Insurance With a Home Possible Mortgage?

Any mortgage loan backed by Freddie Mac that requires less than a 20 percent down payment will require the borrower to purchase private mortgage insurance, or PMI. Private mortgage insurance protects the lender if you later default on your loan.

The amount of money you pay for PMI will depend on your loan-to-value ratio, which simply refers to what you owe on your mortgage versus its value.

Are You Buying a Home in Williamson County or Davidson County?

If you’re buying a new home in Williamson County or Davidson County, we can help you.

While you’re here, please explore our:

• Nashville real estate listings
• Brentwood real estate listings
• Franklin real estate listings
• Spring Hill and Thompson’s Station real estate listings
• Nolensville real estate listings

Call us at 615-473-5973 or contact us online to tell us what you’re looking for in your next home. We’ll be happy to help you find the perfect place to live.

 

If there’s one thing you should do before you start house shopping, it’s getting preapproval from a lender.

Preapproval is a conditional commitment from a lender. That means if you continue to meet the same conditions you meet when you apply, the lender will likely approve you for financing when the time comes.

Why Should You Get Preapproval Before House-Shopping?

A preapproval from a lender will help you with three key aspects of the home-buying process: knowing your price range, competing with other buyers, and expediting the buying process.

If you’re not sure which lender might be right for you, or whether you should apply for home financing as a couple or fly solo, talk to your Realtor®. We’ll be able to point you in the right direction.

Preapproval Lets You Shop in the Right Price Range

While you may have an idea about how much house you can afford, lenders consider a number of factors that most people don’t. A lender’s preapproval will provide you with a specific price range.

Your preapproval will help you determine how much money you’ll need for a down payment and what your monthly payments may look like. Further, lenders offer several types of mortgages. You may find that one type of home loan suits you better than others do.

A Preapproval Shows Sellers You’re Serious

The real estate market moves quickly. Many homeowners receive multiple offers, and it’s safe to say that sellers are likely to consider buyers who have been preapproved before those who haven’t. If you don’t have a preapproval, you could be sending sellers a signal that you’re not prepared to buy.

In some cases, this document can even get you a better price or more advantageous terms, such as cash at closing or a home warranty. Many sellers may be willing to forego a higher price in order to ensure a smooth transaction (and to prevent a deal from falling through due to financing problems).

A Lender’s Preapproval Can Speed Up the Process

Financial institutions can take several weeks to underwrite and approve your loan. Because the mortgage lender has already reviewed your financial information, preapproval puts you on the fast track to final loan approval.

A word of caution: prequalified and preapproval aren’t the same thing. Prequalification doesn’t include an in-depth examination of your financials, nor does it carry the weight of a preapproval.

Already Have a Preapproval?

Even if a lender hasn’t preapproved you for a loan, let’s talk about Middle Tennessee real estate. Call me at 615-473-5973 or contact Mallard Property online and tell me what type of home you’re looking for – I’d love to help you find it.

Neighborhoods in Middle Tennessee are famous for one common thread: a sense of community. With that said, each neighborhood has its own character. How will you know when you’ve found the perfect one for your needs?

What to Look for in a Neighborhood

Before you start listing the pros and cons of each subdivision and neighborhood in the Greater Nashville area, decide what you’re really looking for.

Do you want walking trails along tree-lined streets? Proximity to work, school or recreation? Maybe you need a place that’s extremely dog-friendly, or you want to live in a community where you can hear kids laughing until the street lights come on.

What type of home do you want to live in? Is condominium living your style, or would you prefer to have more than a few walls separating you and your neighbors?

If you have children, or if you plan to have children, you’ll probably want to look at the local schools and their ratings, as well. You can also ask local police departments for neighborhood crime statistics.

Write down your list of “must-haves.” You’ll need it once you start narrowing down your choices.

Play Neighborhood Detective

Start exploring Middle Tennessee real estate listings for homes that meet your needs. This is the fastest way to pare down your list of potential neighborhoods.

Once that’s done, take a leisurely drive (or two) through the communities that still interest you. Visit in the morning, in the afternoon and in the evening to see how the time of day affects the area. A neighborhood that’s peaceful and serene between noon and 3 p.m. might become party central at 7:30 p.m., so you’ll be able to get a great snapshot of each community’s ins and outs by visiting at various times.

You’ll need to look for “For Sale” and “For Rent” signs; they can signal that a neighborhood is declining in popularity and, in some cases, that property values are dipping.

When it comes to neighborhoods, your first impression is usually trustworthy. It’s always okay to trust your gut while you’re finding the perfect place to live.

Ready to Find Your Dream Home?

Call me at 615-473-5973 or contact Mallard Property online. I’ll use my extensive experience to help you find a home you’ll love.

Most of us have wondered whether renting suits our purposes or buying a home in Middle Tennessee would be a better choice.

Unfortunately, there’s no one-size-fits-all answer—every situation is unique.

You can determine which is right for you with a candid evaluation of your financial circumstances (and maybe a little number-crunching).

Rent vs. Buy: What’s Right for You?

Let’s start with the number-crunching to get it out of the way.

If you’re currently renting, write down your monthly rent amount. Put a symbol next to it that reminds you that renting doesn’t build equity; you’ll never see any return on your investment except to have a roof over your head. If you stop paying on your rental property after 10, 15 or even 30, that roof disappears.

Now take out your calculator and multiply your gross monthly income by 0.28. According to Bankrate, mortgage lenders typically worry about whether you can make mortgage payments; they often assume that as long as your payments are below 28 percent of your gross monthly income, you’ll be able to do so.

If you make $4,000 per month in gross (pre-tax) income, $4,000 x 0.28 is $1,120. That means you could—theoretically—afford a mortgage payment of $1,120 per month. However, that amount needs to include:

• Your principal payment (the amount of your payment that actually repays the debt)
• Your mortgage interest (the amount of your payment that pays the bank for lending you the money in the first place)
• Your homeowner’s insurance
• Your property taxes

Assuming you’re happy with the number you got when you calculated 28 percent of your income, let’s look at your goals and consider other financial questions.

Ask yourself:

• Do you plan to stay in one place for 5 or more years? Will you be able to conduct or pay for routine home maintenance? Many homeowners pay about 1 percent of their home’s value each year in maintenance.
• Can you afford closing costs?
• Do you qualify for a special type of loan, such as a VA loan after military service?

If you’re sitting on the fence, start looking at Middle Tennessee real estate listings. When you are ready to buy, call me at 615-473-5973 or contact Mallard Property online. I’d love to help you find the perfect space.

When you’re shopping for a homebuilder, you need to know that the company you hire is worth their salt. After all, you’re going to live in your new house for a while; the last thing you want to deal with is shoddy workmanship or unexpected costs that crop up at the worst times.

Other than reading website reviews, which can be helpful, how are you supposed to find out whether a builder is trustworthy?

It’s simple. Put them through an interview process.

10 Things to Ask Your Custom Homebuilder

Any good homebuilder will welcome you to come by the office, ask questions and (hopefully) have a cup of coffee. When you’re there, looking at glossy photos of the builder’s recent work, here’s what you need to ask.

1. How many homes have you built during the years you’ve been in business?

2. How would you compare yourself with other local builders as far as benefits and costs?

3. What type of warranty do you offer on the homes you build?

4. Can I provide my own floor plans or modify yours?

5. What are the standard features in all of your homes?

6. When will you determine the final price of my home, and how will you arrive at that figure?

7. How long do you anticipate a home like mine will take to complete?

8. Will I be able to walk thru the home while it’s under construction?

9. What do I do if I have questions or concerns during the process?

10. How do you handle upgrades and changes?

While this is by no means a comprehensive list of questions you’ll have for a potential homebuilder, it’s a start. By finding the answers to these questions before you agree to work with a builder, you’ll save yourself several headaches down the road.

Let’s Talk About Your Real Estate Options

If you’re set on finding a vacant home site where you can build your dream home from the ground up, I can help. I also have extensive access to the MLS, where you’ll find real estate listings in Franklin, Brentwood, Nashville and many other cities across Middle Tennessee.

Call me at 615-473-5973 or contact Mallard Property online. I’d love to find out what you’re looking for… and then help you find it.