Builder Offering to Pay Off Student Loans for Buyers

Builder Offering to Pay Off Student Loans for Buyers | Keeping Current Matters

Millennials are on track to become the most educated generation in history. This means they are also the generation with the most student debt. Depending on the type of degree earned, as well as the prestige of the institution attended, there are some millennials who graduate college with what equates to a mortgage payment.

For those first-time buyers, and even some move-up buyers, who took advantage of the First-Time Homebuyer Tax Credit in 2008, there is an interesting program being introduced by Lennar Home Builders and Eagle Home Mortgage.

“Borrowers with Eagle Home Mortgage’s Student Loan Debt Mortgage Program can direct up to 3% of the purchase price (up to $13,000) to pay their student loans when they buy a new home from Lennar, one of the nation’s largest homebuilders. The contribution doesn’t directly increase the purchase price of the home or add to the balance of the loan.”

The program allows borrowers, whose credit and income requirements qualify, to put down as low as 3% and have a maximum loan amount of $424,100. At the time of closing, Lennar contributes up to 3% to pay down student loans incurred while attending universities, colleges, community colleges, trade schools and other certificate-granting programs.

Jimmy Timmons, President of Eagle Home Mortgage, gave more context about the reasons behind the creation of the program,

“Americans are more burdened than ever by student loans, with $1.3 trillion in outstanding student loans spread out among 42 million borrowers.

Particularly with millennial buyers, people who want to buy a home of their own are not feeling as though they can move forward. Our program is designed to relieve some of that burden and remove that barrier to owning a home.”

According to the Wall Street Journal, “housing observers said other builders are likely to look to mimic the program, which could help lure more of the critical first-time-buyer segment into home purchases.”

Bottom Line

If you are one of the many millennials who may have delayed purchasing your first home, or feel stuck in a house that no longer fits your needs, there are programs and options available to help you achieve your dream!

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Things Home Inspectors Often Don’t Check

Most home inspectors carefully scrutinize a house from top to bottom, many with checklists that contain more than 1,600 features to evaluate. But some items require a specialist for a more thorough evaluation.

The fireplace and chimney

Inspectors often open and shut dampers to make sure they’re working properly. They may shine a flashlight up the chimney to look for any obstructions. But for anything further, buyers likely will need to hire a fireplace inspector to look for things like soot and creosote buildup, which are possible fire-starters. Those extra inspections could cost anywhere from $80 to $200.

Foundation issues

A geotechnical or structural engineer may need to be brought in if a buyer has concerns about the ground underneath the home, such as whether any shifting, tilting, or sinkholes have caused damage. Professionals will test the soil for several potential problems. Basic testing likely will cost between $300 and $1,000, while more invasive testing can cost upwards of $5,000. Buyers on a budget might consult a free site called PlotScan, which reveals any history of sinkholes and other natural catastrophes in the vicinity of the home, to better understand whether they need further inspection help.

Well and septic systems

Some home inspectors trained to evaluate septic systems may be willing to do an extra inspection for an added fee to test a home’s well water and septic system. Otherwise, buyers will have to hire a well inspector. These professionals will collect water samples to test in a lab for coliform, arsenic, and other harmful bacteria and chemicals. They’ll also make sure that seals, vents, and screens have been properly maintained and that the well and pump are producing enough water. That typically will cost about $250 for an inspection.

Roof

“We’ll go up on roofs if it’s safe,” says Frank Lesh, executive director of the American Society of Home Inspectors. “But if it’s raining or it’s too high, we’re not able to get to it.” A specialized roof inspection, which costs about $500 to $750, offers a closer look. Some roof inspectors will even do an initial consultation for free. Those who don’t go on the roof can sometimes conduct an infrared inspection to look for any temperature differences along the roof to see where heat or air conditioning might be escaping.

Source: “6 Shocking Things Your Home Inspector Won’t Check,” realtor.com® (June 28, 2017)

Why Is It Important to Use a Professional to Sell Your Home?

Why Is It Important to Use a Professional to Sell Your Home? | Keeping Current Matters

When a homeowner decides to sell their house, they obviously want the best possible price for it with the least amount of hassles along the way. However, for the vast majority of sellers, the most important result is actually getting their homes sold.

In order to accomplish all three goals, a seller should realize the importance of using a real estate professional. We realize that technology has changed the purchaser’s behavior during the home buying process. According to the National Association of Realtors’ 2016 Profile of Home Buyers & Sellers, the first step that “… 44% of recent buyers took in the home buying process was to look online at properties for sale.

However, the report also revealed that 96% of buyers who used the internet when searching for homes purchased their homes through either a real estate agent/broker or from a builder or builder’s agent. Only 2% purchased their homes directly from a seller whom the buyer didn’t know.

Buyers search for a home online but then depend on an agent to find the home they will buy (50%), to negotiate the terms of the sale (47%) & price (36%), or to help understand the process (61%).

The plethora of information now available has resulted in an increase in the percentage of buyers who reach out to real estate professionals to “connect the dots.” This is obvious, as the percentage of overall buyers who have used agents to buy their homes has steadily increased from 69% in 2001.

Bottom Line

If you are thinking of selling your home, don’t underestimate the role a real estate professional can play in the process.