Buying your first home?

With the continuation of low interest rates and home prices, it's great time for first time buyers to start getting serious about purchasing a home.

Last week a client of mine purchased her first home and is paying approximately $1,100 a month for a 3 bedroom townhome (plus having a roommate which will be paying that mortgage too!). This week a first time buyer of mine is buying a cute single family home and paying approximately $1450 a month. How much is your rent right now? Maybe it would be just as affordable to pay your mortgage instead of your landlords. 

If it's your first home, chances are you will be financing the purchase. To get an idea of current interest rates, I like to check out Yahoo! Finance page on a regular basis http://finance.yahoo.com/

But I also recommend, if you are at the serious buying stage, you should already have a mortgage professional whom you're working with that is keeping you updated on rates. 

Home affordability is at historic levels. I suggest at least looking into seeing if it's a good time for YOU and your life at this time.

The combination of the first 2 graphs- interest rates and housing prices- has made the Housing Affordability Index sky rocket over the last year.

Looking for a long term Investment property?

Here are 3 great listings, in 3 different areas of Philadelphia, that would make a fabulous long term investment!
Whether you want to live there now then rent out as additional income in a few years or purchase strictly as a rental unit, they all offer great potential for renting.
What makes up a good investment? In my opinion:
Location- public transportation, shopping/dining, major roads, office and corporate buildings near by
Low Maintenance- for you as the landlord and for your tenant
Low price making your mortgage payment below local average rental price so you generate profit
Desireable School District

Northeast Philadelphia:

Totally Renovated twin from Top to Bottom! Beautiful Hardwood flooring throughout the first floor, recessed lighting, updated Kitchen with Maple Cabinets, SS appliances and Granite. Natural light shines through the New sliding glass doors which opens onto an oversized Deck. Upstairs features all New carpet, 3 nice sized bedrooms and Bathroom with stylish tile, new vanity, tub and toilet. New windows, New HVAC, New plumbing and electric





Media:

Great opportunity to own a home in Media! Just minutes to all the essentials- hospital, schools, entertaining and major roads. This move-in ready 3 bedroom 2.5 bath townhome is located in the desirable Granite Run community on a wooded lot providing extra privacy. Fresh paint, new carpets, new roof and more! The main bedroom features skylights, walk in closet and its own full bathroom. Just down the hall is the washer/dryer, hall bath and the second bedroom with it's own deck overlooking the woods. The third floor is an extra large bedroom.

Bridgeport:
Well maintained townhome conveniently located in Bridgeport with easy access to highways, public transportation, King of Prussia shopping, and entertainment. This 3 bedroom 1.5 bath home is move-in ready and has a lot to offer! New carpets, fresh paint inside and out, Newer remodeled bathrooms, updated spacious kitchen, Newer windows & HVAC and recently re-coated roof. Upstairs includes the 3 bedrooms, ceiling fans, 2 solar light tubes providing tons of natural light and a full bathroom with 2 sinks. The finished walk out basement features a wet bar and outside patio- ideal for entertaining. Two parking spaces in the rear of the home and plenty of parking out front.

Thinking about a Lease to Purchase option?

With the strict lending regulations, it can be difficult for buyers to obtain mortgage financing. This often leads them to think about a Rent to Own option. It sounds like a viable options, but in reality it can be complicated.
Here are just a few general things to think about:
First, the buyer/tenant needs to find a home that 1. you want to buy 2. with a seller that is capable of leasing instead of selling. The latter can be difficult because the seller often needs the proceeds of the sale to transition to their new home. The best type of seller to pursue are investors and builders. Still, it's never a guarantee.
Secondly, as a buyer, you still need down payment money for this type of transaction. Depending on the situation, you'll need a security deposit and additional deposit to be held in escrow until you purchase the home at the future date. Maybe you have the downpayment, but need to build up your credit score for mortgage approval. As a seller, they will want to know you are aggressively working towards your credit through a repair service of some sort.

When going this route, you are essentially signing a lease for an agreed upon term with the option to buy at the end of that term. As a buyer, there could be penalties if you do not buy at the end of the term. And as a seller, you may have lost out of potential buyers while home was under lease contract.

There are many pros and cons for each party in this type of agreement. To make it work, everyone involved needs to have the same goal in mind.

If you have any specific questions, please contact me directly at kskneeland@gmail.com or 484-343-2406