Hybrid Real Estate
Hybrid Real Estate
Robin Troy, Hybrid Real EstatePhone: (541) 914-0214
Email: [email protected]

Financial Tips Every New Homeowner Should Know

by Robin Troy 10/10/2021

Photo by William Fortunato from Pexels

Buying a home is a big decision made up of dozens of smaller decisions. With so many moving parts in the process it's difficult to know you’re making the best choices. Some of the most important choices in buying a home have to do with finances. Here we will go over some tips to avoid common financial mistakes when buying a home.

Talk to More Than One Lender

One of the biggest mistakes first-time homebuyers can make is talking to only one lender. It’s extremely beneficial to shop around for mortgage quotes and carefully weigh the different term options. Getting quotes from multiple lenders will help you find the best interest rate, down payments and closing costs for your situation. Talking to multiple lenders also means you can negotiate for a better deal by leveraging another lender’s offer. It might feel like a lot of back-and-forth, but the more you prepare and educate yourself about a mortgage decision, the happier you’ll be.

Look Into Other Loan Programs

Don’t forget that there are other mortgage options than banks and lending firms. Look into other options like FHA, VA or USDA loans, especially if you want a low down payment. There are also first-time homebuyer programs run by state governments that are available to help you afford a mortgage. Research these options and see if you qualify, otherwise you might miss out on a big savings opportunity.

Keep Your Credit Stable

The home buying process can take a long time. Even after the seller approves your offer, it can be weeks or more until the transaction fully closes. Many homebuyers use this period to plan for things like appliances or other moving costs, which is always a good idea. However, avoid opening up a new line of credit or applying for any sort of short-term loan before you close. It might feel like the process is stagnated, but mortgage lenders will pay attention to the stability of your credit score. If your score changes due to applying for credit, your lender may even change the terms of the mortgage—typically by increasing the interest rate. Avoid the temptation to borrow more money until after the closing date, and you’ll avoid the risk.

Don’t Forget the Ongoing Expenses

Planning for all the upfront costs of buying a home is important but so is planning for the ongoing expenses. Along with your mortgage payments, you'll also have several other regular costs to plan for. These include homeowners’ insurance, property taxes, utility bills and maintenance costs. You might also have mortgage insurance or homeowners’ association fees to factor in. Budgeting for the ongoing expenses will help you stay afloat financially without getting overwhelmed in the early stages of home ownership.

This is only basic advice and may work better for some potential homebuyers than others. Always consult a professional financial advisor or accountant for more specific guidance. This is the best way to make sure your first-time home purchase is a success.

About the Author

Robin Troy

No two homes are identical, which is why choosing a sales price or offer price for a home can be challenging. That’s where the comparable market analysis, or CMA, can be useful. What is a CMA? The CMA is a side-by-side comparison of homes for sale and homes that have recently sold in the same neighborhood and price range. This information is further sorted by data fields such as single-family or condo, number of bedrooms, number of baths, zip codes, and many other factors. Its purpose is to show fair market value, based on what other buyers and sellers have determined through past sales, pending sales and homes recently put on the market. How is the CMA created? CMAs are generated by a computer program supplied by your real estate agent’s multiple listing services (MLS). The MLS is available to licensed members only, including brokers, salespeople, and appraisers, who pay dues to gain access to the service’s public and proprietary data, including tax roll information, sold transactions, and listings input by all cooperating MLS members. Listing agents generate CMAs for their sellers, and buyer’s agents create them for their buyers so both sides know what current market conditions are for the homes they’re interested in comparing. How accurate are CMAs? The CMA is a here-and-now snapshot of the market, based on the most recent data available, but it can instantly be rendered obsolete by a new listing, or a change of status in a home with the same criteria. Why? The market is constantly changing – new listings, pending sales, closed sales, price reductions, and expired listings. CMAs can vary widely, depending on the knowledge and skill of the person inputting the search parameters to the software as well as the number and type of data fields that are chosen. That means some features may not be included. As informative as the CMA is, it should only be used as a tool and should not substitute for your real estate professional’s knowledge and advice.
In order to inform you about the current happenings in today's market, I have prepared this comparative market analysis (CMA) especially for you. There are many properties on the market today, and each has different amenities, sizes, and values. By reviewing this CMA, you will have the information needed to price your home in the appropriate range in today's market.

My company is dedicated to maintaining a professional, trustworthy relationship with our clients. One way this can be seen is through this Comparative Market Analysis (CMA) which you hold in your hand. This CMA compiles the most current and accurate information relevant to the sale of your home. Seeing that this is perhaps your most valuable asset, it is imperative that you be equipped with the most complete information possible related to the pricing and marketing of your home.
The real estate market is always changing and as a result, I regularly attend training sessions and events to further my knowledge and be sure that I am focusing on current conditions that affect today's buyers and sellers. This type of training is imperative if I  am to be successful in obtaining top dollar on home sales. My goal is to make sure that I satisfy the special needs of all of my clients and at the same time make the process and transactions go as smoothly as possible
A little info on me:

Licensed since June 1997.

Completed the SRES, & GRI courses as well as the ABR course.

Adept in contract drafting, negotiation, market research.

Small Business owner since 1982

Alumni of SBM (3-year course at LCC Small Business)