What Are Closing Costs?

by Rupa Nunamaker

The home purchasing process can be quite confusing, especially for first-time homebuyers. Therefore, it is vital that you do your homework before you start house hunting.

You should carefully consider your budget and calculate your approximate monthly mortgage payment. This ensures that your new home does not become a financial burden.

Additionally, you should calculate how much money you must bring to the closing table. Along with your down payment amount, you will need to provide funds to cover closing costs. These costs vary depending on several factors, and they can drastically impact your total out-of-pocket expenses.

What are closing costs? Here we break down the various fees that are included in closing costs and discuss how you may be able to reduce your out-of-pocket obligations.

What Are Closing Costs?

Closing costs are fees that are paid at closing in addition to the down payment amount. While closing costs are typically thought of as a buyer’s expense, sellers also incur them. However, the buyer’s closing costs are often covered out of pocket or financed, whereas the seller’s closing costs are deducted from the proceeds of the deal.

Several factors impact total closing costs, including the type of loan you are obtaining and what state you live in. For instance, FHA loans and conventional mortgages involve a few slightly different closing costs.

What Is Included in Closing Costs?

Closing costs are not a single expense; they are the cumulative total of multiple expenses.

Property Taxes

Many lenders will require you to make a deposit toward the property taxes for the home. Buyers may need to provide up to a year’s worth of taxes, but mortgage lenders have different requirements. When a buyer is purchasing their house is also a factor in how much property tax is due based on the property tax schedule.

Property tax deposits will be wired to an escrow account at the time of closing. The lender will maintain the escrow account. Part of your mortgage payment will include funds for this account. Each year, your lender will draw from the account to pay your annual property taxes.

Application Fees

Mortgage applications are complex sets of documents. Naturally, processing these documents, verifying income, and taking other steps to determine loan eligibility is a labor-intensive exercise. That is why lenders charge an application fee to process your request for a mortgage.

When speaking to prospective lenders, ask what their application fee is. While this can be a relatively minor expense, rates vary from lender to lender. Some lenders could even waive your application fee if you meet certain requirements.

Title Searches

Title companies will review public records for the property you are buying to ensure that there are no liens or ownership disputes. The title company charges for this service. This expense is referred to as a “title search fee” on your itemized list of closing costs.

Loan Origination Fees

Loan origination fees cover a financial institution’s costs of processing a mortgage. Traditionally, origination fees are 1% of the total loan amount. For example, if your loan amount is $450,000, then your origination fee will likely be $4,500.

Keep in mind that this fee can vary from lender to lender. Some lenders will waive this fee but charge you a higher interest rate.

Deposits for Escrow Accounts

Funds for your property taxes are not the only monies that are held in escrow. Your lender will also require you to deposit funds at the time of closing to cover private mortgage insurance and your homeowners insurance.

Private mortgage insurance is required if your loan amount exceeds 80% of the home’s appraised value. If you have a conventional loan, you will no longer need PMI after your mortgage balance drops below the 80% threshold. All mortgages require you to have a homeowners insurance policy.

A portion of your monthly mortgage payment will be deposited into the escrow account to cover homeowners insurance, PMI, and property taxes. All three of these fees are paid annually.

Appraisal Fees

Lenders want to ensure that they can recoup their losses in the event that you default on a loan. That is why they require an appraisal before finalizing a real estate deal. A third-party appraiser will determine an approximate value for the home based on local comparable properties and other data.

Typically, buyers can cover appraisal fees out of pocket. However, there are instances where buyers pay these fees as part of their closing costs.

Home Inspection

Like the appraisal, the home inspection is usually paid for by the buyer before closing. In most real estate deals, buyers request an inspection period as a contingency for purchasing the home. If the inspection uncovers concerns about the home, the buyer can back out of the deal without repercussions.

Although you will likely pay for the home inspection before closing, it is important that you are aware of this additional expense. Generally, you should budget $400–$800 for a home inspection.

Pest Inspection

Certain states and some types of mortgages require a pest inspection as part of real estate deals. The inspector will look for evidence of wood-destroying organisms (WDOs) like termites. They will check for signs of wood rot and other damage. Pest inspection fees can be covered upfront or as part of closing costs.

Real Estate Agent Fees

The real estate agent fee is one of the costs covered by sellers during a transaction. The seller will pay a commission for both the buyer’s agent and their own agent if they are using one.

Each real estate agent’s commission fee ranges approx 3% to 3.5% of the home’s total purchase price. Therefore, sellers can expect to pay 6% to 7% of their home’s purchase price toward real estate commission.

Who Pays Closing Costs?

Both parties in a real estate transaction pay closing costs. Sellers usually pay more total closing costs, but these expenses are deduced from their profits from the transaction.

A seller’s closing costs usually range from 8% to 10% of their home’s purchase price. These figures include 5% to 6% real estate agent commission fees as well as taxes and other miscellaneous fees. A seller’s closing costs may be higher if they agree to cover a portion of the buyer’s out-of-pocket expenses.

Buyers will pay 2% to 5% of the total purchase price toward closing costs. Most of these costs cover the lender and title company fees.

How to Reduce Closing Fees

As you can see, closing costs can be quite high. Fortunately, as a buyer, there are several ways that you can reduce your out-of-pocket expenses.

Obtain Mortgage Lender Comparisons

Once a lender runs your credit to determine mortgage eligibility, you have a 14-day window to compare other offers. All credit inquiries conducted during that time will not negatively impact your credit score.

You should use this grace period to compare mortgage lenders and find the company that offers the most affordable closing costs.

Request Seller Concessions

One of the best ways to reduce closing costs is to negotiate “seller concessions” as part of your real estate deal.

For example, suppose that you want to purchase a house listed at $400,000. Your real estate agent advises you that $390,000 is a fair purchase price for the home. Instead of bidding $10,000 below asking, you could submit a bid for $400,000, but ask the seller to contribute $10,000 toward closing costs.

Keep in mind that there are limits to how much sellers can contribute. The exact limits vary depending on the type of mortgage.

Explore Down Payment Assistance Programs

Down payment assistance programs provide prospective buyers with loans or grants. These funds can be potentially used to meet down payment obligations or to cover closing costs. Generally, only first-time homebuyers can access these programs, but there are a few rare exceptions.

If you are a first-time homebuyer, research down payment assistance programs in your state. Carefully review eligibility requirements. If you meet the criteria, these programs are a great way of funding the purchase of your first home.

Clarifying Closing Costs

As you begin your journey of buying a home, use this information to help you successfully navigate the process. Make sure to compare multiple lenders before committing to a single institution, but more importantly, find a great agent who can guide you and negotiate with the seller on your final closing costs.

The combination of an experienced agent and an established lender can make the process of purchasing a home enjoyable and seamless.

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Rupa Nunamaker

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What are the Benefits of a VA Loan?

by Rupa Nunamaker

Believe it or not, buying a home doesn’t always require a traditional 20% down payment. If you’re a current or former member of the U.S. Military, you may qualify for a VA loan, which allows you to purchase a home without a down payment.

That’s just one of the advantages you receive from a VA loan. Keep reading to explore the additional home loan benefits of VA loans.

What Is a VA Loan?

A VA loan is a mortgage loan issued under a program designed for Active and Veteran Service Members and their Surviving Spouses. VA home loans are offered through private mortgage lenders, but they’re ultimately backed by the U.S. Department of Veterans Affairs, which was previously known as the “Veterans Administration.”

Several types of VA loans exist. These include:

Purchase loans
Cash-out refinance loans
Interest rate reduction refinance loans
Native American direct loans

The program allows you to use a VA loan to purchase a home or tap into your home’s equity to make home improvements. When using a VA loan to purchase a home, the loan can fund up to 100% of the home’s value, which is how you eliminate the need for a down payment.

Who Qualifies for a VA Loan?

VA loans are designed for Veterans, Active-Duty Service Members, or their Surviving Spouses. To qualify for a VA loan, you’ll need to provide proof of your Military service and meet the other eligibility requirements set forth by both the VA and your VA-approved lender.

The following items detail the requirements to secure a VA loan:

Certificate of Eligibility (COE)

First, you’ll need to provide your lender with documentation proving your Military service. This document is known as a certificate of eligibility (COE) and can be obtained from the VA website.

The department may request that you provide additional service-related documentation which confirms your status as Active Duty or a Military Veteran.

Credit Score

On the one hand, the VA does not have a minimum requirement for your personal credit score. But VA lenders can have different eligibility requirements, so it’s important to check with each lender before applying for any type of loan.

Generally speaking, it’s easier to qualify for a VA loan than a conventional loan, though some mortgage lenders may charge a fee to applicants with less-than-stellar credit.

Debt-to-Income Ratio (DTI)

All lenders will look at your debt-to-income ratio (DTI) before approving you for a loan. Your DTI is calculated by dividing your monthly debts by your monthly income. Most VA lenders will approve loans if your DTI is 45% or lower, though, as with your credit score, this threshold can vary considerably between lenders.

The VA Funding Fee

Approved applicants will have to pay a modest VA funding fee. This fee helps support the VA program so that other Veterans and their families can receive the benefits of a VA loan. This fee is a percentage of your total loan amount, which can vary depending on how much you’re borrowing.

The funding fee doesn’t have to be paid upfront, nor does it have to be paid at closing. You can roll this funding fee into your regular monthly payments to make it easier to cover.

However, you may be eligible for a refund or a waiver of this funding fee if you have service-connected disabilities. Contact the Department of Veterans Affairs to see if you qualify.

Property Requirements

To qualify for a VA loan, the property you are buying must meet the minimum property requirements. The property itself must be:

A conventional family home
The borrower’s primary residence
Free of any structural defects (e.g. rot, termite infestations, etc.)
Free of any mechanical or electrical issues affecting safety
Able to supply adequate heating

These restrictions mean you can’t use a VA loan for commercial property or real estate investing. But homebuyers will find no restriction on the home’s geographic location, which allows you to use this loan program for any home in the U.S.

However, if you want to buy a condo with a VA loan, you’ll need to search the approved condo database on the Department of Veterans Affairs website.

Benefits of a VA Loan

VA loans make particularly great options for first-time homebuyers. If you or your spouse are a current or former member of the U.S. Military, you have access to the following benefits of a VA loan:

No Down Payment

One of the primary benefits of a VA loan is eliminating the need for a down payment. Traditionally, homebuyers could expect to make a 20% down payment when purchasing a house. And while this requirement can vary by loan program and lender, a VA loan eliminates this requirement altogether.

Of course, while this removes one financial barrier for qualifying applicants, the flip side is that you’ll be making a higher monthly mortgage payment, so make sure to factor this into your overall budget to ensure you find a home in your price range.

No Private Mortgage Insurance

What is private mortgage insurance? Typically, when you purchase a home with a down payment of under 20%, the lender requires you to purchase private mortgage insurance (PMI).

The actual cost of your PMI can vary but usually ranges from 0.1% to 2% of every $100,000 you borrow. So for instance, if you purchase a $300,000 home, you could find yourself paying an additional $100 to $250 each month.

A VA loan requires no PMI payment because the VA guarantees at least a portion of the loan, reducing the risk lenders take in providing you with a mortgage. As a result, qualifying homebuyers can purchase a home with no money down and no additional monthly mortgage insurance fees.

Lower Interest Rates and Closing Costs

While the department backs VA loans, they are originated and funded by private mortgage lenders. This setup means that U.S. banks, credit unions, and mortgage lenders must compete to offer the best loan rates and fees.

Homebuyers can therefore compare lenders to find the best interest rates. The upshot of this is that VA loans typically have lower interest rates than conventional mortgages, which can reduce your monthly mortgage premiums.

Secondly, VA loans offer lower closing costs. A “closing cost” is a fee you pay to the lender in return for their assistance. VA loans have specific restrictions on what closing costs your lender is permitted to charge, limiting costs such as the origination fee and prohibiting prepayment penalties or attorney fees.

Easier to Qualify

If you’ve read this far, you probably already qualify based on your Military career or your spouse’s. But beyond this basic requirement, VA loans are easier to qualify for than other mortgage types.

For one thing, you can qualify for a VA loan even if you have a low credit score, with some lenders willing to work with borrowers with credit scores in the 550 range. Additionally, lenders are more willing to work with Veterans with a higher debt-to-income ratio — as high as 45% — which can reduce the barriers to home loan eligibility.

Government Guarantee

The U.S. Department of Veterans Affairs guarantees all VA loans. This setup means that the government is on the hook for at least a percentage of the total loan amount in the event of a default.

Such backing is mainly good news for lenders, who take on less risk when extending these types of home loans. But recipients of VA home loans also benefit from this guarantee since lenders can adopt less-stringent eligibility requirements.

Assumable Loans

Understandably, first-time homebuyers may be looking for a “starter home,” with plans to sell the property at a later date. The good news is that most VA loans are “assumable.” This designation means you can transfer your current VA loan to another buyer if that buyer is also eligible for a VA loan.

An assumable loan can increase the resale value of your home since future buyers can take on the low mortgage rates of your current loan if interest rates have risen.

Alternatives to VA Loans

Despite the benefits of a VA loan, there may be times when you wish to use a different type of loan entirely. For instance, if you have strong credit and enough savings for a 20% down payment, you may qualify for better rates and terms with a conventional mortgage.

You might consider other first-time home loan options if you’re not eligible for a VA loan. If you’re buying a home in a rural or suburban area, you may qualify for a USDA loan, which will also allow you to purchase a home with no down payment.

Otherwise, you might look into an FHA loan backed by the Federal Housing Administration, which offers rates as low as 3.5% for qualified buyers.

Thank You for Your Service

VA loans are just one way of thanking the dedicated personnel of the U.S. Military for their sacrificial service. This mortgage vehicle can put homeownership well within reach and provide you and your family with some much-needed comfort and stability.

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Rupa Nunamaker

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Info for Homeowners, sellers and/or home buyers • Mortgage, Credit, Financing, Buying a Home • October 17, 2022

Four Things That Help Determine Your Mortgage Rate

by Rupa Nunamaker

interest rate balloon Four Things That Help Determine Your Mortgage Rate

If you’re looking to buy a home, you probably want to secure the lowest interest rate possible for your home loan. Over the last couple of years, that was easier to do as the housing market saw record-low mortgage rates, but this year rates have risen dramatically.

If you’re looking for ways to combat today’s higher rates and lock in the lowest one you can, here are a few factors to focus on. Since approval opportunities can vary, connect with a trusted lender for customized advice.

Your Credit Score

Credit scores can play a big role in your mortgage rate. Freddie Mac explains:

“When you build and maintain strong credit, mortgage lenders have greater confidence when qualifying you for a mortgage because they see that you’ve paid back your loans as agreed and used your credit wisely. Strong credit also means your lender is more apt to approve you for a mortgage that has more favorable terms and a lower interest rate.”

That’s why it’s important to maintain a good credit score. If you want to focus on improving your score, your trusted advisor can give you expert advice to help.

Your Loan Type

There are many types of loans, each offering different terms for qualified buyers. The Consumer Financial Protection Bureau (CFPB) says:

“There are several broad categories of mortgage loans, such as conventional, FHA, USDA, and VA loans. Lenders decide which products to offer, and loan types have different eligibility requirements. Rates can be significantly different depending on what loan type you choose.”

When working with your real estate advisor, make sure you find out what’s available in your area and which types of loans you may qualify for.

Your Loan Term

Another factor to consider is the term of your loan. Just like with location and loan types, you have options. Freddie Mac says:

“When choosing the right home loan for you, it’s important to consider the loan term, which is the length of time it will take you to repay your loan before you fully own your home. Your loan term will affect your interest rate, monthly payment, and the total amount of interest you will pay over the life of the loan.”

Depending on your situation, the length of your loan can also change your mortgage rate.

Your Down Payment

If you’re a current homeowner looking to sell and make a move, you can use the home equity you’ve built over time toward the down payment on your next home. The CFPB explains:

“In general, a larger down payment means a lower interest rate, because lenders see a lower level of risk when you have more stake in the property. So if you can comfortably put 20 percent or more down, do it—you’ll usually get a lower interest rate.”

To learn more, connect with a lender to find out the difference a higher down payment can make for your new mortgage.

Bottom Line

These are just few factors that can help determine your mortgage rate if you’re buying a home. The best thing you can do is have a team of professionals on your side. Connect with Rupa and she can provide you with a trusted lender so you have the expert advice you need in each step of the process.

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Rupa Nunamaker

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Info for Homeowners, sellers and/or home buyers • August 16, 2022

The U.S. Homeownership Rate Is Growing

by Rupa Nunamaker

The desire to own a home is still strong today. In fact, according to the Census, the U.S. homeownership rate is on the rise. To illustrate the increase, the graph below shows the homeownership rate over the last year:

The U.S. Homeownership Rate Is Growing | Keeping Current Matters

That data shows more than half of the U.S. population live in a home they own, and the percentage is growing with time.

If you’re thinking about buying a home this year, here are just a few reasons why so many people see the value of homeownership.

Why Are More People Becoming Homeowners?

There are several benefits to owning your home. A significant one, especially when inflation is high like it is today, is that homeownership can help protect you from rising costs. Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), explains:

“In the 1970s, when inflation was running around 10%, home prices were rising at approximately the same rate. Renters actually have a harder time in inflationary periods, because rents tend to rise along with inflation, whereas mortgage payments stay the same for homeowners with fixed-rate mortgages.”

When you buy a home with a fixed-rate mortgage, you can lock in what’s likely your biggest monthly expense – your housing payment – for the duration of that loan, often 15-30 years.

That gives you a predictable monthly housing expense that can benefit you in the short term, but you’ll also gain equity over time as your home appreciates in value and you make your monthly mortgage payment.

And with that growing equity, your net worth will increase as well. In fact, the latest data from NAR shows the median household net worth of a homeowner is roughly $300,000, while the median net worth of renters is only about $8,000. That means a homeowner’s net worth is nearly 40 times that of a renter.

Bottom Line

The U.S. homeownership rate is growing. If you’re ready to purchase the home of your dreams, contact Rupa Nunamaker to begin the homebuying process today.

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Rupa Nunamaker

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Info for Homeowners, sellers and/or home buyers • Mortgage, Credit, Financing, Buying a Home • August 16, 2022

What Would a Recession Mean for the Housing Market?

by Rupa Nunamaker

home for sale

According to a recent survey from the Wall Street Journal, the percentage of economists who believe we’ll see a recession in the next 12 months is growing. When surveyed in July 2021, only 12% of economists consulted thought there’d be a recession by now. But this July, when polled, 49% believe we will see a recession in the coming 12 months.

And as more recession talk fills the air, one concern many people have is: should I delay my homeownership plans if there’s a recession?

Here’s a look at historical data to show what happened in real estate during previous recessions to help prove why you shouldn’t be afraid of what a recession would mean for the housing market today.

A Recession Doesn’t Mean Falling Home Prices

To show that home prices don’t fall every time there’s a recession, it helps to turn to historical data. As the graph below illustrates, looking at the recessions going all the way back to 1980, home prices appreciated in four of the last six recessions. So, historically, when the economy slows down, it doesn’t mean home values will fall.

What Would a Recession Mean for the Housing Market? | Keeping Current Matters

Most people remember the housing crisis in 2008 (the larger of the two red bars in the graph above) and think another recession would repeat what happened then. But this housing market isn’t about to crash. The fundamentals are very different today than they were in 2008. So, don’t assume we’re heading down the same path.

A Recession Means Falling Mortgage Rates

Research also helps paint the picture of how a recession could impact the cost of financing a home. As the chart below shows, historically, each time the economy slowed down, mortgage rates decreased.

What Would a Recession Mean for the Housing Market? | Keeping Current Matters

Fortune explains that mortgage rates typically fall during an economic slowdown:

“Over the past five recessions, mortgage rates have fallen an average of 1.8 percentage points from the peak seen during the recession to the trough. And in many cases, they continued to fall after the fact as it takes some time to turn things around even when the recession is technically over.”

And while history doesn’t always repeat itself, we can learn from and find comfort in the historical data.

Bottom Line

There’s no doubt everyone remembers what happened in the housing market in 2008. But you don’t need to fear the word recession if you’re planning to buy or sell a home. According to historical data, in most recessions, home price gains have stayed strong, and mortgage rates have declined.

If you’re thinking about buying or selling a home, you can make the best decision by working with a trusted Realtor, like Rupa Nunamaker. That way you have expert advice on what’s happening in the housing market and what that means for your homeownership goals.

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Rupa Nunamaker

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Info for Homeowners, sellers and/or home buyers • August 16, 2022

What Does the Rest of the Year Hold for Home Prices?

by Rupa Nunamaker

home buying, home with keys Whether you’re a potential homebuyer, seller, or both, you probably want to know: will home prices fall this year? Let’s break down what’s happening with home prices, where experts say they’re headed, and why this matters for your homeownership goals.

Buying a home.

Last Year’s Rapid Home Price Growth Wasn’t the Norm

In 2021, home prices appreciated quickly. One reason why is that record-low mortgage rates motivated more buyers to enter the market. As a result, there were more people looking to make a purchase than there were homes available for sale. That led to competitive bidding wars which drove prices up. CoreLogic helps explain how unusual last year’s appreciation was:

“Price appreciation averaged 15% for the full year of 2021, up from the 2020 full year average of 6%.”

In other words, the pace of appreciation in 2021 far surpassed the 6% the market saw in 2020. And even that appreciation was greater than the pre-pandemic norm which was typically around 3.8%. This goes to show, 2021 was an anomaly in the housing market spurred by more buyers than homes for sale.

Home Price Appreciation Moderates Today

This year, home price appreciation is slowing (or decelerating) from the feverish pace the market saw over the past two years. According to the latest forecasts, experts say on average, nationwide, prices will still appreciate by roughly 10% in 2022

What Does the Rest of the Year Hold for Home Prices? | Keeping Current Matters

Why do all of these experts agree prices will continue to rise? It’s simple. Even though housing supply is growing today, it’s still low overall thanks to several factors, including a long period of underbuilding homes. And experts say that’s going to help keep upward pressure on home prices this year. Additionally, since mortgage rates are higher this year than they were last year, buyer demand has slowed.

As the market undergoes this change, it’s true price appreciation this year won’t match the feverish pace in 2021. But the rapid appreciation the market saw last year wasn’t sustainable anyway.

What Does That Mean for You?

house for sale, home for sale

Today, the market is beginning to move back toward pre-pandemic levels. But even the forecast for 10% home price growth in 2022 is well beyond the 3.8% that’s more typical for a normal market.

So, despite what you may have heard, experts say home prices won’t fall in most markets. They’ll just appreciate more moderately.

If you’re worried the house you’re trying to sell or the home you want to buy will decrease in value, you should know experts aren’t calling for depreciation in most markets, just deceleration. That means your home should still grow in value, just not as fast as it did last year.

Bottom Line

If you’re thinking of making a move, you shouldn’t wait for prices to fall. Experts say nationally, prices will continue to appreciate this year, just at a more moderate pace. When you’re ready to begin the process of buying or selling, connect with me.

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Rupa Nunamaker

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Info for Homeowners, sellers and/or home buyers • Mortgage, Credit, Financing, Buying a Home • August 9, 2022

Home Partners of America – how the lease purchase works

by Rupa Nunamaker

Home Partners of America

What is the Lease Purchase Program?

Find a home listed for sale that’s right for you. We buy it and lease it to you with the peace of mind of locked-in rent amounts and purchase prices. Live in the home as a renter with the option to buy it at any point. At the end of your 1-year lease term, you can renew for another year or walk away with no penalties. No matter what you decide, we are your partner.

Apply for approval

Answer 6 questions on our FREE Pre-Qualification Questionnaire to see if you meet the basic applicant criteria. If you pre-qualify, you are invited to complete the paid full application. This step includes uploading income verification documents, and a soft credit pull and background check on household members over 18 years of age.

We will notify you of a decision within 1-3 business days.

See if You Pre-Qualify

Find an eligible home

After approval, we give you a maximum monthly rent amount. Work with your real estate agent to tour eligible homes listed for sale. Once you find a home you love, you complete a request form.

After completing the request form, your agent submits the home to us for review.

Basic Home Property Criteria

We buy and lease it to you.

We show you our Anticipated Terms with 5 years (3 years in Texas) of locked-in monthly rent amounts and Right to Purchase prices and estimated repair costs. After you approve our terms, we submit a competitive cash offer to buy the home. If the seller accepts, you sign a 1-year lease and Right to Purchase agreement.

On average, move-in will be 2 weeks after closing to accommodate any necessary repairs found during our home inspection.

Price Breakdown

Right to Purchase

You rent the home with the flexibility of a 1-year lease and the option to buy at any time. At the end of each lease term, you can choose to walk away without penalties, or you can renew your lease for another year. In total, you can rent the home for up to 5 years (3 years in Texas).

Right to Purchase Process

Ready to start your journey?

Connect with Rupa at 727-430-2350 or email rupa.nunamaker@cbrealty.com to start the first steps in picking out your new home.

Home Partners empowers you to plan for your future with the security of 5 years of locked-in rents and purchase prices.

With our Program, there are no hidden fees, non-refundable deposits, or unexpected price increases. If you choose not to exercise the Right to Purchase, there are no penalties. Buy, rent, or walk away, you decide.

Choose any eligible home listed for sale
Commit to a one-year lease upfront
Pay a standard rental deposit
Rental rate certainty for five years
Right to Purchase at a locked-in rate for five years
Option to buy any time during the lease
No penalties for deciding not to purchase

Is the Program Right for Me?

I’m not ready for a mortgage.

Get into your dream home now without a mortgage or down payment. Plan ahead with 5 years (3 years in Texas) of locked-in rent amounts and purchase prices.

I’m relocating to a new area.

Finding a new neighborhood to move to isn’t easy. Test drive a community and home you want without the long-term commitment.

I’m a first-time home buyer.

We understand that buying your first home is a big decision. Try before you buy! Live in the home you want while deciding if it’s right for you.

I’m looking to rent a great home.

More options! Unlock access to dozens of homes listed for sale. Expand your options to find a high-quality single-family home that may not be available on the rental market.

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Rupa Nunamaker

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Info for Homeowners, sellers and/or home buyers • Mortgage, Credit, Financing, Buying a Home • August 2, 2022

So are we in a recession?

by Rupa Nunamaker

Fri July 29, 2022

If you’re confused about whether the US economy is in a recession, you’re not alone.

On one hand, gross domestic product, a key measure of economic output, shrank for the second straight quarter this week, raising fears that the country has entered — or will soon enter — recession territory. On the other hand, the job market remains very strong, telling us the economy is still robust.

Some economists call two consecutive quarters of contraction a technical recession. And with good reason: 10 out of the last 10 times the US economy shrank for two consecutive quarters, the US economy was declared to be in a recession. But massive job losses occurred during seven out of the past seven recessions, and that’s not happening now.

There’s no steadfast rule governing what defines a recession in the United States. Instead the official designation is determined by eight economists who serve together on the Business Cycle Dating Committee. The group works under the umbrella of the National Bureau of Economic Research (NBER), a private nonprofit organization. It has yet to use the “recession” label.

They abide by a relatively vague definition that allows for wiggle room: A recession, they write, “involves a significant decline in economic activity that is spread across the economy and lasts more than a few months.”

So are we in a recession, really? It’s hard to say. But here’s why we may be. And why we may not be.

Inventories

Business inventory problems play a key role in the swings of the economy, and a large chunk of the economic contraction we saw last quarter came from companies slowing the expansion of those inventories. Last year, businesses stocked up on goods to get ahead of supply chain woes and in anticipation of post-Covid consumer demand, but now they may be overstocked.

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GDP contracted at an annual rate of 0.9% in the second quarter, but a slowdown in inventory accumulation removed a whopping 2 percentage points from output. That means the economy would have grown if companies weren’t culling their stockpiles. It also signals that consumer demand could be weakening, another sign of a recession.

Jobs

The labor market has remained a source of strength for the economy and the shining beacon of hope among those who believe the United States can avoid a recession.

As of June, 98% of jobs lost during the pandemic had been recovered. Unemployment has remained at its historic lows in 2022, and the US economy has added 2.2 million jobs since January — nearly the fastest growth on record.

In May, there were about two open positions for every job seeker, along with historically low levels of layoffs. The economy is creating almost 400,000 jobs a month, and paychecks in June were also growing. That doesn’t look like a normal recession.

Inflation & rate hikes

Inflation is at historic highs in the United States, and it’s eating into consumer spending power.

US consumer prices surged to a new pandemic-era peak in June, jumping by 9.1% year-over-year, according to the most recent data from the Bureau of Labor Statistics. That’s higher than the previous reading, when prices rose by 8.6% for the year ending in May.

Accordingly, money is tight in many US households: New data from the Bureau of Economic Analysis shows Americans are saving much less than they did a year ago. In May, Americans saved just 5.4% of disposable personal income, down from 12.4% year-over-year.

To counter white-hot inflation, the Federal Reserve has approved a series of supersized interest rate hikes this year. Higher rates keep prices in check by slowing the economy down. But the Fed is walking a narrow line. In the 11 times the Fed raised rates, the Fed has successfully avoided recession only three times. During each of those cycles, inflation was lower than it is today. That has made some analysts and market participants nervous about a potential recession.

Consumer sentiment & spending

Consumer spending, the largest part of the US economy, is rising. That’s a good sign for the economy. Household spending grew in June by 1.1%, up from a revised 0.3% increase in May, the Commerce Department reported on Friday.

That growth, however, could be the result of rising inflation. Overall, Americans are growing pessimistic about the economy.

The Conference Board Consumer Confidence Index decreased in July for the third straight month. About 43% of 3,000 respondents said they think there’s a greater than 50% chance that the US will fall into a recession in the next 12 months, while just 13% said that in April.

Yield curve

The shape of the yield curve, which plots the return of Treasury securities, is one of the most reliable indicators of the health of the economy, and it has been flashing signs of a looming recession for most of July.

An inverted yield curve is often seen as a signal that investors are more nervous about the immediate future than the longer term, leading interest rates on short-term bonds to move higher than those paid on long-term bonds.

Fed Chair Jerome Powell on Wednesday said that he does not think the economy is currently in recession, but yield curves say something else. They’ve moved into an “inversion” in the past few weeks.

A yield curve inversion has preceded every single recession since 1955, according to research from the Federal Reserve Bank of San Francisco.

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Rupa Nunamaker

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DIY, Home Improvement, Homeowners • Info for Homeowners, sellers and/or home buyers • July 31, 2022

Upgrade Your Outdoor Space for $100 or Less

by Rupa Nunamaker

relax outside

The sizzle of summer is in full effect, and the priority for most homeowners seems to be replicating the spirit and convenience of the indoors, outside. That means making backyards, patios, and decks as comfortable and fun as possible.

The appetite for upgrading outdoor spaces is at an all-time high, but with the pressures of inflation, 43% of homeowners are less willing to part with their hard-earned cash on home improvement projects.

Homeowners who want a prettier and more functional space outdoors don’t need to wait for an economic miracle to make their yard more livable, though. We reached out to design and landscaping experts for insight into how to upgrade their yards on a dime—no special equipment or skills required. Read on and get ready for instant outdoor inspiration.

1. Paint your front door

Photo by Ana Williamson Architect

One of the fastest and most impactful ways to improve the look of your home, enhance curb appeal, and make the front porch feel more welcoming is by painting the front door.

“There are so many things that homeowners can do to improve the look and feel outside their homes at a very low cost,” says Tomas Satas, founder and CEO of Chicago’s Windy City HomeBuyer. “When we buy and flip a home, one of the first things we do is repaint the front door.

A fresh coat of paint and a bright color—red, purple, royal blue—won’t just draw people to your yard, they can also give you an opportunity to show off your unique style.

Estimated cost: Supplies, including high-quality paint and a paintbrush, will run you $75 or less.

2. Install a hammock or swing chair

Photo by studiovert environmental + interior design

Swinging in the breeze under a tree is practically the definition of a laid-back summer.

“There’s no more enjoyable way to pass a sunny summer afternoon or evening than from the coziness of a hammock,” says Robert J Fischer, owner and broker at the Robert J Fischer Team at Keller Williams Realty in Round Rock, TX.

Zaeem Chaudhary, an architectural draftsman at AC Design Solutions, suggests adding a swinging rope chair to your seating setup.

“Outdoor chairs can be really uncomfortable,” Chaudhary notes. “Switch to rope chair swings instead, especially if you want to spend a lot of time outside.”

Estimated cost: This dreamy, bohemian hammock will cost you $70, or you can pick up a whimsical swing chair for $65 at Walmart.

3: Bring the Wi-Fi outside

If you work from home or your family loves being able to stream videos outside, upgrade your Wi-Fi.

“If you work from home as so many of us still do, summer is the time to turn the back deck or patio into your office,” says Martin Orefice, CEO of Rent To Own Labs in Orlando, FL. “Unfortunately, your home’s Wi-Fi signal doesn’t always travel to every area of your yard. Investing in a simple Wi-Fi repeater will solve the problem, enabling you to get online and take a Zoom call. It’s also obviously convenient for families who like to spend a lot of time outside.”

Estimated cost: Wi-Fi repeaters are $60-plus at Amazon.

4. Block out the noise with wind chimes

If noise pollution from yakking neighbors, lawn mowers, or traffic is turning your tranquil space into a cacophonous nightmare, there’s a refreshingly simple and lo-fi solution to that.

“Wind chimes provide outdoor areas with a little musical personality, while also reducing other noises,” says Laurice Constantine, founder of real estate development platform Casadar. “They also add a multisensorial layer to your outside space.”

Estimated cost: Wind chimes can be found for as little as $15 on Wayfair.

5. Upgrade the accessories

“Adding a few colorful outdoor throws to your patio furniture adds a pop of color and can come in handy on chilly nights,” says Kate Diaz, an interior designer and co-founder of Swanky Den. “Hanging a decorative banner or flag above your porch or deck or buying a new doormat or welcome sign for your front door are also fast and inexpensive ways to make a big impact.”

Or, grab a colorful outdoor rug to zhuzh up your space.

“Outdoor rugs are perfect for adding personality and making your space more cozy and inviting,” says Kevin Lenhart, design director at online landscape design platform Yardzen. “If you don’t have the budget to upgrade all of your outdoor furniture, a rug is a great way to liven up the space. Look for rugs made from recycled plastics for fun but inexpensive options.”

Estimated cost: Throws start at $25 at Amazon, or pick up an outdoor rug at Home Depot for as little as $22.

6. Set up a movie theater

If you really want to transform your space, bring Hollywood to the backyard,

“Creating a backyard movie theater is one of the best and easiest ways to make over your space on a budget,” says Emma Loker, a landscaping and design expert at DIY Garden. “All you need is a projector, foldable screen, and speaker. The impact is instantaneous.”

Estimated cost: Outdoor theater kits start at $70 on Amazon.

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Rupa Nunamaker

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DIY, Home Improvement, Homeowners • Info for Homeowners, sellers and/or home buyers • July 31, 2022

Clutter Shame

by Rupa Nunamaker

cluttered room

What Is Clutter Shame? Here’s How To Overcome It

We all stream renovation and makeover shows and scroll through organizational influencers’ posts on social media.

If you’re like us, you hope to feel empowered and connected to the streamlined home life these pros create. But studies and anecdotal evidence increasingly show these visions of (supposedly) achievable perfection can often lead to increased rates of poor self-esteem and lower life satisfaction.

And it’s little wonder that the idealized vision of home organization online and on TV might seem impossible to attain in your own home. Especially when lifestyle gurus such as Marie Kondo and her imitators are constantly urging you to cleanse, declutter, make over, or reorganize every single nook and cranny in your home.

The result of all that pressure to purge is an under-reported but prevalent side effect: the overwhelming feeling of clutter shame.

“Celebrities and influencers often post videos and photos of their impeccably clean and minimalistic home,” says life coach and mental health advocate Ashley Chubin, chief operating officer of FlyHi in Aurora, CO. “The implication is that, if you don’t live like that, you lack self-respect and hygiene.”

But you don’t have to fall victim to clutter shame. Read on for pointers about how to combat it.

Give yourself a break

The first step in a journey toward shedding any shame is by being kind to yourself.

“Ever since Marie Kondo asked, ‘Does this spark joy?’ clutter shame has been on my radar,” says Stacy Cason, CEO of Colorado’s Planetarie. “In my work as a Realtor, I’ve encountered many clients who felt shame about their homes, their organizational skills, and the sheer number of possessions they had.”

So you should ask if your possessions are clutter—or a collection of things you value. If it’s the latter, Cason suggests practicing self-compassion as an antidote to shame, especially when it’s externally imposed by current cultural priorities.

Self-love improves confidence, resilience, and strength—and it will also help you differentiate between real and imagined clutter.

Overcome clutter shame by curating decor

Even the most restrained hobbyists and collectors can occasionally let their passions get the best of them. So if your fly-fishing trophies or adorable ceramic pigs have suddenly taken over every surface in your home, ask yourself if it’s time to organize them—without purging anything. (It’s OK if the answer is no.)

“If the clutter starts to feel overwhelming, there are many ways to manage it without getting rid of things,” explains Sarah Barnard, a leading designer of personalized and sustainable spaces at Santa Monica’s Sarah Barnard Design.

“Group like with like, because visual order can prevent things from feeling overwhelming,” Barnard advises.

If you want to go a step further, focus your collections in one area of a room.

Overcoming clutter shame with small projects

Try setting a timer for 15 minutes with a specific goal in mind.

(Getty Images)

Every home occasionally needs a small reevaluation and cleanup.

But when clutter shame strikes, anxiety often follows. So instead of panicking, think about what you can eliminate to help your life run smoothly, then start there.

“Clutter shame can lead to feelings of being trapped or stuck,” says Ben Soreff, a professional organizer at H2H Organizing in Connecticut’s Fairfield County. “I create a specific time to finish a project, and I find that this works for people who feel overwhelmed.”

Soreff suggests setting a timer for 15 minutes with a specific goal in mind. Or plan on tackling another small project on a set date.

Banish clutter shame by embracing it

One of the most counter-intuitive ways to combat clutter shame is by owning it.

“Clutter shame is definitely behind the rise of the minimalist style,” says Stefan Bucur, interior designer and co-owner of Rhythm of the Home in Lewisville, TX. “But what goes up must come down, and I think we’re seeing that.”

And so, after years of surging popularity, the unrealistic quest of minimalism is on the wane.

“I’m seeing a new style called ‘cluttercore’ emerge,” says Bucur. “It went viral on TikTok and is now popular as a way to embrace organized chaos. People no longer need to feel shame. Instead, they can use clutter to beautify what’s already there.”

The difference between clutter and hoarding

Severe clutter can be a sign of deeper-rooted mental or emotional issues.

(Getty Images)

There’s a world of difference between loving knickknacks and hoarding. But in rare cases, clutter shame might be a sign of real issues.

“Severe clutter can be a sign of deeper-rooted mental or emotional issues,” says Claire Grayson, a psychologist and co-founder of Personality Max. “For example, someone with ADHD may have an overwhelming need to have many of their things around them while they sleep. They find safety in having bags, clothes, food, and drinks within arm’s length.”

A sudden rash of new clutter—or enough clutter to impede a safe exit from the house during an emergency—might be a sign of depression, anxiety, or another mental health issue.

If that’s the case for you, or someone close to you, she suggests seeking professional help.nd if you ever scroll through Instagram and find yourself staring wistfully at the barren, gleaming kitchen of a celebrity home, remind yourself of the team of cleaners, cooks, stylists, and assistants who likely made it that way.

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Rupa Nunamaker

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