What Questions To Ask Before Purchasing a Home

No matter if you are a first-time homebuyer or you this is one of many home purchases, it can be an exciting time.  According to the National Association of Realtors, homeowners stay in their homes an average of 8 years before moving. Purchasing a home is a long term investment, and you should take a moment to ask yourself these questions before making the purchase.

1. What can I comfortably afford?

When you are considering what is comfortable for you to spend each month, this doesn’t just include your mortgage payment, but other home’s expenses as well. These additional expenses include taxes, homeowner’s insurance, homeowner’s association dues, utility cost and maintenance. A good rule to follow is to make sure that all your expenses which include your total house payment, taxes and insurance should be below28% of your gross monthly income.

2. Which loans do I qualify for?

In order to figure this out, you will need to already have a lender. Your lender can go through all of the options and help you weigh the pros and cons of each. For example, if you want to have a monthly payment that stays the same, you would want to go with a conventional fixed-rate mortgage.

3. How much will you need for your down payment?

A lender can help factor what kind of loans you will qualify for which in turn will determine your down payment. A VA loan requires a low down payment and in some circumstances no down payment at all. Other loans such as a conventional loan like to have a 20% of the home’s purchase price as a downpayment. On some loans, a higher down payment can lower your monthly payments and your interest rate.

4. What’s PMI? Do I have to pay it?

PMI is also known as private mortgage insurance and is required on many loans if the down payment is less than 20% of the home’s sale price. For example, if you do obtain a conventional loan and put less than 20% down, you will also have to pay PMI. Once you pay your loan down, your PMI can come off.

5. What interest rate do I qualify for? How can I lower it?

Your mortgage interest rate is very important in the life of your loan as it has a direct impact on your monthly payment. When you are shopping around for a lender, compare their APR (annual percentage rate) and their lender fees. Once you have chosen a lender, they can help you with ways to lower your interest rate.

6. What will my monthly payment be?

A lender can estimate your monthly payment based on the purchase price of a home, your down payment and your interest rate. There are also tons of monthly mortgage payment calculators online that can help you with a ballpark figure of how much you will pay a month.

7. What are the closing costs?

Closing costs include origination fees, discount points, appraisal, document preparation, title insurance, and home inspection. Closing costs run anywhere from 2% to 5% of your loan amount. Before you close on your home, your lender will provide you with an itemized list of estimated closing costs.

8. How long will the closing process take?

You want to make sure to give yourself enough time to get your financing in order, so put a reasonable closing date on your offer. Obtaining financing and getting everything in order for your home to close can take between 30 to 60 days.

If you are in the market for a new home, now is a great time to ask a real estate agent for their expertise. They can not only help you with the home buying process, but will also be able to direct to a good lender.

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The Beginning of 2023 Saw a Drop In Home Prices

A view into the family room from the kitchen.

Mortgage rates and home prices let up a bit at the beginning of 2023 causing the new home sales to rise from December 2022 to January 2023. New construction home sales rose 7.2% in January 2023 from December 2022. According to the US Department of Housing and Urban Development and the US Census Bureau this is still down 19.4% from the same time last year. Industry leaders are beginning to see that the housing market is stabilizing.

New single-family houses were at a seasonally adjusted annual rate of 625,000 at the end of 2022, and shot up to 670,000 in January 2023. This still does not come close to the record sales pace in March 2022 which was a rate of 831,000.

Prices of new homes are starting to slow down. The median price for a new home was $465,500 in December 2022 and fell in January 2023 to $427,500. This is .7% lower than it was the same time a year ago which came in at $430,500.

“New home sales prices dropped precipitously in January to the lowest median price since February of last year. While sales are still depressed from a year ago, this shows another crack in the housing market that should benefit potential homebuyers, especially when mortgage rates drop,” says Robert Frick, corporate economist at Navy Federal Credit Union.

The existing home inventory is still low, so the new construction home listings are filling the gap according to Kelly Mangold of RCLCO. Builders are being flexible with the prices which make it a bit harder for buyers to find homes on the market to purchase. This coupled with the up and down mortgage rates has not made the market easier for buyers.

“Price adjustments and builder incentives helped to push the sales pace in a positive direction. January had the lowest level of existing home sales in over a decade-and motivated buyers are increasingly seeking new homes because there is limited resale inventory available,” says Mangold.

“Mortgage rates are spooking sellers looking to upgrade when they calculate the potential increase in their monthly payments, and the hesitation to put existing homes on the market is allowing new construction homes to have less competition,” explains Mangold.

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’23 Mid City Bayou Boogaloo Festival, March 21, 2023

Come celebrate Louisiana’s culture in Bayou St. John.

Mid-City Bayou Boogaloo

When: May 21, 2023

Where: Bayou St. John
New Orleans, LA

What: Click Here For Music Line Up

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’23 Annual Mid City Bayou Boogaloo, March 20, 2023

There is a VIP pass called the Canopy Club at the festival in Bayou St. John.

Mid-City Bayou Boogaloo

When: May 20, 2023

Where: Bayou St. John
New Orleans, LA

What: Click Here For Music Line Up

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2023 Mid City Bayou Boogaloo Festival, May 19, 2023

A fun safe festival for everyone in Bayou St. John.

Mid-City Bayou Boogaloo

When: May 19, 2023

Where: Bayou St. John
New Orleans, LA

What: Click Here For Music Line Up

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FHFA New Credit Score Rules

The Federal Housing Finance Agency will have new guidelines for credit score models for lenders. These new guidelines will have a positive impact on many that were not approved for a loan in the past. Freddie Mac and Fannie Mae will be given the new guidelines to follow when determining if they can accept a mortgage from a lender.

Money is freed up by Freddie Mac and Fannie Mae when the agencies purchase mortgages from lenders. The lenders will then have more money freed to make home loans. Currently, Freddie Mac and Fannie Mae can only purchase conventional loans that meet certain criteria. These scores and criteria are determined by FHFA and mortgage lenders have been using FICO scores 2, 4, and 5 (these are considered outdated models).

“The mortgage industry didn’t have a choice in the matter. They were essentially forced to use older FICO scores by the FHFA. All other types of lenders have long since moved on from those legacy scoring models,” explains credit expert John Ulzheimer.

Under the new guidelines, lenders can use more up-to-date FICO scores, FICO 10T, and VantageScore. VantageScore is FICO’s direct competitor. Lenders will now only have to proved credit reports for two of the three major credit bureaus. FICO 10T and VantageScore being picked up by the new guidelines is the biggest change in a positive way.

These two sources will gather data from more sources included payments for rent, utilities or cell phone service. VantageScore also requires a shorter credit history, FICO has a six month-minimum for credit history. The source also has scores that show up for 37 million Americans that do not show up under FICO. Surprisingly these that show up only on VantageScore, more than 13 million have a credit score above 620.

Using the updated credit score modeling will also help with the racial homeownership gap. According to the Urban Institute around 53 million Americans do not have FICO scores (when using the older scoring models). Out of these 53 million, 29.5% of Black households and 27.3% of Hispanic households compared to only 16.7% of white households.

If you are in the market for a new home, check with lenders to see when you can take advantage of this updated policy. Meanwhile, choose a Realtor who can help you with the homebuying process.

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2023 51st Annual Ponchatoula Strawberry Festival, April 16, 2023

This is the state’s largest free harvest festival held in Ponchatoula.

Ponchatoula Strawberry Festival

When: Sunday, April 16, 2023
10:00AM – 6:00PM

Where: Memorial Park
301 North 6th Street
Ponchatoula, LA 70454

What: Click Here For Music Line Up

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2023 Annual Ponchatoula Strawberry Festival April 15, 2023

The festival is held annually in April.

Ponchatoula Strawberry Festival

When: Saturday, April 15, 2023
9:00AM – 11:00PM

Where: Memorial Park
301 North 6th Street
Ponchatoula, LA 70454

What: Click Here For Music Line Up

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2023 Ponchatoula Strawberry Festival, April 14, 2023

Enjoy rides, live music, food and drinks for the whole family in Ponchatoula.

Ponchatoula Strawberry Festival

When: Friday, April 14, 2023
12:00PM – 11:00PM

Where: Memorial Park
301 North 6th Street
Ponchatoula, LA 70454

What: Click Here For Music Line Up

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Additions to the Kitchen That Are Eco-Friendly

If you are in the market to update your kitchen, why not update and go green? When updating your kitchen try to choose materials and appliances that help make your life healthier and more efficient. Choosing Energy Star-certified appliances will conserve water and energy. Here are several ways you can turn your dream kitchen into a green kitchen. The kitchen island does have everything and the kitchen sink. The kitchen sink is an apron sink.

1. Clean up with an energy-efficient dishwasher

Beko, a home appliance manufacturer, is known for its energy-efficient, sleek styles. They have several dishwashers that use 50% less water and 25% less energy but still clean as thoroughly as the U.S. standards for dishwashers. They do this by using their own CornerIntense sprayer which is a three-arm design that sprays water in a rectangular motion instead of the traditional circular spray. Beko also offers a feature that rinses the Beko EverClean filter which prolongs the life up to four times longer than manual cleaning. Not only do Beko’s energy-efficient models help with the environment, but they also look good and have a whisper-soft operating sound.

2. Grow Your Garden…..

Going green means you are shrinking your carbon footprint. A good way to start is by adding a countertop composter which will help reduce your food waste by around 80%! You will not only help the environment but will also deal with less trash that will end up in a landfill. If you are a gardener, this is a perfect way to get your nutrient-rich soil.

3. Find A Fresher Fridge

A fridge can become a smelly place pretty quickly. Beko’s French three-door Stainless Steel Refrigerator will help get rid of any old veggies or fruits that are smelly. This fridge comes with EverFresh + technology that copies natural lighting conditions which will extend the photosynthesis process inside your refrigerator. Your fruits and veggies can stay fresh and retain their nutrients for up to 30 days. The dual-cooling system also helps maintain the humidity levels which helps keep a freezer frost-free.

4. Stop With The Single-Use Soda Bottles

Add a SodaStream PET carbonating bottle to your list. This is a great way to create bubbles at home. This bottle can be reused for up to three years and it will save you from using thousands of single-plastic bottles which pollute and end up in our oceans.

5. Reclaim The Recycling Process

Unfortunately, even if you separate your recyclables, they are not guaranteed to end up being recycled. In fact, it has been said that up to one-third of what we put in recycling bins end up in landfills. Beko’s Lass at-home recycler is a great way to make sure this does not happen by finding a way for every scrap to be repurposed. When you toss a bottle, can, or other items into the Lass at-home recycler, it does the guesswork for you by using sensors to determine if the waste can be recycled. It also goes as far as to wash items that can be recycled, grind it down, and store the remaining materials. Although this product will not be for sale to the public until 2024, it can be reserved as part of Beko’s pre-sale phase.

6. Flex Your Green Thumb

A garden can be grown inside your home, using the AeroGarden by Beko. The machine uses little local flora for an indoor hydroponic herb garden. There is no experience necessary when it comes to gardening. You simply drop in seed pods and then just add plant food and water. The LED light and quiet water pump will do the rest until you have greens to eat such as basil, oregano, romaine lettuce and more.

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