2 Myths About Mortgages

Fannie Mae's "What do consumers know about the Mortgage Qualification Criteria?" Study revealed that Americans are misinformed about what is required to qualify for a mortgage when purchasing a home.

Myth #1: "I Need a 20% Down Payment"

Fannie Mae's survey revealed that consumers overestimate the down payment funds needed to qualify for a home loan. According to the report, 76% of Americans either don't know (40%) or are misinformed (36%) about the minimum down payment required.

Many believe that they need at least 20% down to buy their dream home. New programs actually let buyers put down as little as 3%.

Below are the results of a Digital Risk survey of Millennials who recently purchased a home.

As you can see, 64.2% were able to purchase their home by putting down less than 20%, with 43.8% putting down less than 10%!

Myth #2: "I need a 780 FICO Score or Higher to Buy"

The survey revealed that 59% of Americans either don't know (54%) or are misinformed (5%) about what FICO score is necessary to qualify.

Many Americans believe a 'good' credit score is 780 or higher.

To help debunk this myth, let's take a look at the latest Ellie Mae Origination Insight Report, which focuses on recently closed (approved) loans. As you can see below, 54.1% of approved mortgages had a credit score of 600-749.

Bottom Line

Whether buying your first home or moving up to your dream home, knowing your options will definitely make the mortgage process easier. Your dream home may already be within your reach.

Terry L Barnette
REALTOR®, Broker, ABR, e-Pro, SFR, BPOR, GRI
Crye-Leike REALTORS®
Direct/Text: 423-463-0024
Fax: 423-473-8275
Office: 423-473-9545 x217

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Buying A Home Can be Scary... Until You Know The Facts!

Terry L Barnette
REALTOR®, Broker, ABR, e-Pro, SFR, BPOR, GRI
Crye-Leike REALTORS®
Direct/Text: 423-463-0024
Fax: 423-473-8275
Office: 423-473-9545 x217

Download My Mobile APP Here! 

KM4HDV
TN Lic# 00291120 Firm Lic# 005463 

Starting to Look for a Home? Know What You WANT vs. What You NEED

 Wednesday October 19th, 2016  First Time Home Buyers, For Buyers, Move-Up Buyers

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In this day and age of being able to shop for anything anywhere, it is really important to know what you're looking for when you start your home search.

If you've been thinking about buying a home of your own for some time now, you've probably come up with a list of things that you'd LOVE to have in your new home. Many new homebuyers fantasize about the amenities that they see on television or Pinterest, and start looking at the countless homes listed for sale with rose-colored glasses.

Do you really need that farmhouse sink in the kitchen in order to be happy with your home choice? Would a two-car garage be a convenience or a necessity? Could the man cave of your dreams be a future renovation project instead of a make or break now?

The first step in your home buying process should be to get pre-approved for your mortgage. This allows you to know your budget before you fall in love with a home that is way outside of it.

The next step is to list all the features of a home that you would like, and to qualify them as follows:

• 'Must Haves' – if this property does not have these items, then it shouldn't even be considered. (ex: distance from work or family, number of bedrooms/bathrooms)
• 'Should Haves' – if the property hits all of the must haves and some of the should haves, it stays in contention, but does not need to have all of these features.
• 'Absolute Wish List' – if we find a property in our budget that has all of the 'must haves,' most of the 'should haves,' and ANY of these, it's the winner!

Bottom Line

Having this list flushed out before starting your search will save you time and frustration, while also letting your agent know what features are most important to you before starting to show you houses in your desired area.

Terry L Barnette
REALTOR®, Broker, ABR, e-Pro, SFR, BPOR, GRI
Crye-Leike REALTORS®
Direct/Text: 423-463-0024
Fax: 423-473-8275
Office: 423-473-9545 x217

Download My Mobile APP Here! 

KM4HDV
TN Lic# 00291120 Firm Lic# 005463 

Do You Rent?-Own A Home And Build Wealth!

Terry L Barnette
REALTOR®, Broker, ABR, e-Pro, SFR, BPOR, GRI
Crye-Leike REALTORS®
Direct/Text: 423-463-0024
Fax: 423-473-8275
Office: 423-473-9545 x217

Download My Mobile APP Here! 

KM4HDV
TN Lic# 00291120 Firm Lic# 005463 

Cold Weather Is Coming-Make Sure Your Pipes Are Prepared!

How to Prevent Freezing Pipes

By: Douglas Trattner

By taking preventive measures before cold weather arrives, you can prevent freezing pipes and the costly damage that goes with them.

Wicked winter weather can cause plumbing pipes to freeze and possibly burst, causing flooding and costly water damage to your home. Taking preventive measures before winter sets in can reduce and eliminate the risk of frozen pipes and other cold-weather threats.

Related: How to Protect Your Home From Severe Cold

Where the Trouble Lies

"Some pipes are more prone to freezing than others because of their location in the home," explains Paul Abrams, spokesman for Roto-Rooter.

Pipes most at risk for freezing include:

• Exposed pipes in unheated areas of the home.
• Pipes located in exterior walls.
• Any plumbing on the exterior of the home.

Preventative Measures for Outside

A frozen garden hose can cause more damage than a busted hose; it can actually burst an interior pipe. When the water in the hose freezes, it expands, increasing pressure throughout the whole plumbing system. As part of your regular seasonal maintenance, garden hoses should be disconnected, drained, and stored before the first hard freeze.

If you don't have frost-proof spigots, close the interior shut-off valve leading to that faucet, open and drain the spigot, and install a faucet insulator. They cost only a couple bucks and are worth every penny. Don't forget, outdoor kitchens need winterizing, too, to prevent damage.

Exposed Interior Plumbing

Exposed pipes in the basement are rarely in danger of freezing because they are in a heated portion of the home. But plumbing pipes in an unheated area, such as an attic, crawl space, and garage, are at risk of freezing.

Often, inexpensive foam pipe insulation is enough for moderately cold climates. For severe climes, opt for wrapping problem pipes with thermostatically controlled heat tape (from $50 to $200, depending on length), which will turn on at certain minimum temps.

Under-Insulated Walls

If pipes traveling in exterior walls have frozen in the past (tell-tale signs include water damage, mold, and moisture build-up), it's probably because of inadequate or improperly installed insulation. It might well be worth the couple hundred dollars it costs to open up the wall and beef up the insulation.

"When nothing else works, say for a northern wall in a really cold climate, the last resort is to reroute a pipe," notes Abrams. Depending on how far the pipe needs to be moved — and how much damage is caused in the process — this preventative measure costs anywhere from $700 on up. Of course, putting the room back together is extra.

Heading South for the Winter?

For folks leaving their houses for an extended period of time in winter, additional preventative measures must be taken to adequately protect the home from frozen pipes.

• Make sure the furnace is set no lower than 55 degrees.
• Shut off the main water supply and drain the system by opening all faucets and flushing the toilets.

In extreme situations (vacation home in a bitterly cold climate), Abrams recommends having a plumber come to inspect the system, drain the hot water heater, and perhaps replace the water in traps and drains with nontoxic antifreeze.

Terry L Barnette
REALTOR®, Broker, ABR, e-Pro, SFR, BPOR, GRI
Crye-Leike REALTORS®
Direct/Text: 423-463-0024
Fax: 423-473-8275
Office: 423-473-9545 x217

Download My Mobile APP Here! 

KM4HDV
TN Lic# 00291120 Firm Lic# 005463 

Why Hire A Real Estate Professional?

Terry L Barnette
REALTOR®, Broker, ABR, e-Pro, SFR, BPOR, GRI
Crye-Leike REALTORS®
Direct/Text: 423-463-0024
Fax: 423-473-8275
Office: 423-473-9545 x217

Download My Mobile APP Here! 

KM4HDV
TN Lic# 00291120 Firm Lic# 005463 

For Sale By Owner or Agent?

Terry L Barnette
REALTOR®, Broker, ABR, e-Pro, SFR, BPOR, GRI
Crye-Leike REALTORS®
Direct/Text: 423-463-0024
Fax: 423-473-8275
Office: 423-473-9545 x217

Download My Mobile APP Here! 

KM4HDV
TN Lic# 00291120 Firm Lic# 005463