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Agents and mortgage brokers alike understand that one of the biggest hurdles facing their clients is the financial burden of a down payment. Though navigating the house hunt and sourcing an affordable mortgage are key, affording a down payment looms large in the minds of first time homebuyers The fact is, there are decades of misinformation and confusion out there when it comes to how much is enough for a down payment. Plenty of would-be homeowners write themselves off, assuming they’re not qualified or don’t have the capital to afford a home. While some mortgage brokers and agents understand that there are alternatives available for all kinds of home buyers, here are a few facts and options to keep in mind to rewrite what you think you know about down payments.
The Myth of 20% Down 40% of American homebuyers believe that a down payment unequivo cally means forking over 20% of the home’s purchase price, up front. What’s more, even homebuyers with a healthy amount in savings may balk at trading in their nest egg for a home they then won’t be able to afford All that withstanding, it’s completely possible to afford a home with as little as 3.5% down. How about 0% down? The truth is, it can happen.
There are a variety of loan products and programs available to entice skeptical homebuyers For instance, conventional loans that adhere to the federal govern ment’s standards as outlined by Fannie Mae and Freddie Mac require just 5% down for loans up to $417,000. For loans larger than $417,000, down
The right down payment isn’t one size fits all, so homebuyers would be wise to explore the options that work best for their wallets and overall plans.
payments remain as low as 10%. This empowers first time homebuyers to make that leap and buy into the market at a down payment rate that won’t break the bank.
Other worthwhile programs that cut the costs of down payments include: Fannie Mae’s 3% program, FHA loans, and VA/USDA loans. FHA loans are sponsored by the federal government’s Housing and Urban De velopment (HUD) agency and call for just 3.5% down
for qualified buyers. Similarly, VA and USDA loans are cost effective choices for most military veterans and active duty military servicemembers VA and USDA loans require 0% down and focus on homes for sale in rural and outermost suburbs. Altogether, the tides have turned when it comes to the myth of 20% down. The loan offerings out there are diverse and speak to would be buyers from most all walks of life.
Here’s another question to consider: why do banks and mortgage institutions allow homeowners to utilize low down payment loans in the first place? While low down payments benefit buyers, what about the institutions that back mortgages? Here’s where mortgage insurance comes into play.
When securing a low down payment, lenders pair these loan options with mortgage insurance. For those who didn’t pay that notorious 20% up front, mortgage insurance is a vehicle that protects lenders, while al lowing buyers to build equity in their home over time. The basic idea is for buyers to steadily pay into their mortgage insurance policy until they’ve accumulated that 20% they might have put towards a sizable down payment This allows the initial investment of buying a home to cost less, while giving lenders some peace of mind, too.
What else do you need to know about mortgage in surance and how it relates to the right down payment? It does increase buyers’ monthly home payments. However, the monthly cost of mortgage insurance isn’t astronomical, though it certainly should factor into a buyers budget when determining a property’s afford ability The bright side is this: once a buyer has paid off a portion of their loan (typically that 20% equity rate) then they can cancel mortgage insurance and save themselves the monthly cost.
At the end of the day, finding the right down payment when purchasing a home is all about examining finan cial wherewithal and homeownership goals. The right down payment isn’t one size fits all, so homebuyers would be wise to explore the options that work best for their wallets and overall plans.
Real estate professionals are responsible for guiding clients through some of the most signif icant transactions of their lives. And because these transactions involve making huge life changes, coupled with major financial decisions, they’re going to be inherently stressful. But that doesn’t mean they have to be unpleasant. Learning how to manage clients’ stress (along with your own) can help make every aspect of the deal go more smoothly for everyone involved Try some of these client stress management tips:
Stay in the Moment Clients will cause themselves lots of stress and sleepless nights envisioning all the ‘what if?’ scenarios that could possibly derail the deal. Encourage your buyers and sellers to stay in the moment and make decisions based upon facts you know to be true, not things that may or may not happen.
Focus on the Positive Buyers and sellers can get caught up in the negative aspects of a deal and talk themselves out of it entirely. Try to keep clients focused on the positive aspects of the deal and work through challenges one at a time, as they come up, rather than waiting and then trying to tackle them all at once.
Keep Your Ducks in a Row Clients will follow your lead, so be sure you’re setting the tone for a relaxed and productive partnership from the start Stay organized and informed so you can address concerns quickly and never leave a question unanswered. Not keeping clients informed is one of the quickest ways to undermine trust and create unnecessary stress.
Customize Communication Each client comes with a different set of needs and expectations re garding communication Some will get stressed out if they don’t hear from you every day even if there’s nothing significant going on Others will prefer to hear from you only when there’s noteworthy news to report Learn each client’s preferred style and communicate accordingly, whether that’s through text messages, email, or good old-fashioned phone calls.
Take Five When you sense a client’s stress level rising, take a quick break to breathe and regroup; talk about something else for a few minutes You can also suggest going on a short walk, or stopping to have a quick bite. In fact, steady blood sugar and proper hydration will go a long way toward reducing everyone’s stress level. If you’re heading out for a full day seeing properties, put a small cooler with bottles of water and healthy snacks in your car so everyone (including you) can refresh when needed.
The world of real estate was a big part of Kelly Bastman’s life right from the start She grew up watching her father, a commercial developer, working in his home office. “ A l t h o u g h m y d a d p a s s e d a w a y b e f o r e w e h a d t h e opportunity to work together on a project, I feel a strong connection to him and feel that my legacy is that of real estate.” While Kelly’s father preferred the impersonal sim plicity of commercial deals, Kelly has a particular passion for residential practice, with all the nuance it brings
For Kelly in particular, residential practice involves plenty of emotion “As a member of the LGBT community, I find that many members of our community seek to work with service providers with whom they feel accepted and safe, so I’ve been lucky enough to get to work with many LGBT home buyers and sellers,” she shares. “I am also married to the fire department, so it’s with great honor that I get to help a lot of fire department members with their real estate dreams. Finally, as a Navy veteran and with a daughter currently serving active duty in the Air Force, I am honored to work with members of our
armed services as well.” Kelly is uniquely able and w i l l i n g t o a s s i s t t h e s e p o p u l a t i o n s i n m a k i n g t h e i r e x perience a positive one.
Helping others to find a home is a big responsibility, one Kelly does not take lightly “I have the attitude that property tends to be the largest asset you can have, therefore it must be treated with the most amount of professionalism, expertise, knowledge, and capability that an agent possesses.” Kelly has plenty of each. She makes it a priority to keep her real estate certifications current, to continue her education, and to never stop learning and growing as an agent.
She has a particular gift for connecting with her clients “I give my best to every client, whether they’re my family member, best friend, or stranger I met at the dog park.” Kelly’s focus on showing every client kindness and respect goes a long way in helping her to build trust and make every client feel valued. “I really endeavor to be present with each client to ensure I’m hearing their needs first
and foremost, and then executing based on their goals,” she says. “I believe that anything is possible with good communication and every interaction must lead with honesty and integrity ”
Kelly’s business has been growing steadily. In particular, she has been seeing an increase in repeat clients “The more years I successfully practice, the more business is generated by clients circling back through the brokerage. I have helped some clients with three or four subsequent transactions by this point.” That’s because she offers a home buying experience where clients are empowered. “They feel seen, valued, and advocated for They know how hard I’ll work for them. I am constantly solution minded and believe in a cooperative experience.”
This focus on solutions played a big role when Kelly first delved into the world of real estate. After leaving the Navy, Kelly sold plasma to pay for her real estate certification while caring for her two young children Next, she looked to join a brokerage, but each one she interviewed with in sisted that she’d need to follow their plan, including finding care for her children Kelly wasn’t interested in conforming to their plans and was determined to succeed in real estate on her own terms. Eventually she was hired by Gary Zayakosky of EZ Vest Realty in Newport News, Virginia, a man who reminded her of her father. “Nine months later I was rookie of the year,” she shares. “The original brokers all came calling but there was no way I’d leave my mentor I am so appreciative that Gary took a chance on me.” Kelly, like her father, practiced real estate with her kids looking
“I have the attitude that property tends to be the largest asset you can have, therefore it must be treated with the most professionalism, expertise, knowledge, and capability that an agent possesses.”Photos by Nathan Gurvitch Photography
on and just like him, she now has a daughter who is thinking of becoming an agent herself when she finishes serving in the military.
While Kelly’s career has been quite successful, she makes it a pri ority to never outgrow what makes her practice special. “I’m not interested in having a huge brokerage the last thing I want is for my clients to feel like a number I want them to feel like family ” Kelly is all about comprehensive service with a personal touch, and she won’t compromise that. “I am not in the business to get accolades for sales numbers I feel that takes away from the focus on the client The greatest reward is knowing I solved a huge problem and the client never had to stress about it.”
Kelly is a competitive cyclist, and in her free time, also enjoys
watersports, skiing, scuba diving, playing ice hockey, sailing, camping and climbing.
She and her wife are proud military moms Their daughter is currently serving in the Air Force, and they donate regularly to the Juve nile Diabetes Research Fund in honor of their son, who is a Type 1 Diabetic. They love the Canyon Lake lifestyle that they enjoy with their youngest daughter and three dogs, and also enjoy participating in community events such as Fiesta Days, Christmas golf cart and boat parades and trick or treating on golf carts
Every day is different Whether you’ve been in real estate five days or 15 years, you’ve never had two days that were exactly the same. And you love it that way!
You are your own boss While you may have a managing broker or team leader, for the most part, you get to plan your days and work at your own pace.
You have a flexible schedule Sure, you’re going to work nights and weekends sometimes, but you have the chance to mold your schedule around important events in your life.
There are always learning opportunities Becoming licensed is just the beginning Growing as an agent means there’s always something new and exciting to learn about.
You are in charge of your own destiny When it comes to how much you can earn, the sky’s the limit. Very few careers offer so much potential to create the life you want.
You can work from anywhere With so many ways to work remotely, you can take your work with you and be productive from almost any location.
You get to see beautiful homes There’s nothing quite like walking into a beautiful home and seeing it for the first time. REALTORS® get to have that experience a few times a week.
You’re an in-demand guest for career day Many people are curious about how REALTORS® spend their days. You have the chance to spread the word about this amazing career.
You get to meet incredible people As a REALTOR® you have the chance to meet and become friends with tons of interesting new people.
And you get to help make their dreams come true Of course, the best reason to be thankful for being in real estate is getting the chance to help wonderful people buy or sell a home and change their lives.
With winter on the horizon, now is the time to prepare your home for this unpredictable season. Properly preparing your home for winter will help keep you and your family comfortable, reduce heating costs and prevent structural issues that could result in costly repairs later. Most winter home prep can be completed as DIY projects. And even the ones that require professional assistance are a small investment now that can help you potentially save thousands later Let’s get started:
Start at the top Your home’s roof is the first line of defense against leaks and water damage. Inspect it for any loose, worn or missing shingles and have them replaced. Also look for any breaks in the flash ing seals around vent stacks and chimneys If your home has a flat roof (often found in warmer climates), use a leaf blower throughout the season to clear off leaves and other debris; this will help you detect any damaged areas.
Clear out gutters Gutters are another way to protect your home from water damage, but they only work properly when they’re clean. To prevent water from backing up and causing leaks, clean out all the fall leaves and other debris that has accumulated over the past few months. This not only protects against water damage, it will also keep pests and rodents from making themselves at home in the mess. If you find any missing or damaged gutters or fascia boards, have them replaced
Send water away Gutters are only one part of the equation when trying to minimize the chance of water getting where it doesn’t belong. You’ll also want to make sure the water they collect gets diverted far enough away from the home’s foundation To do that, add extensions to your downspouts. Ideally, you want the water to flow at least three feet away from the foundation to prevent the possibility of leaks and damage.
Inspect the system Have your furnace or heat pump inspected and repaired, if needed, by a professional, who will catch any current or potential issues before they leave you out in the cold. In addition to keeping you warm, a properly running heating system minimizes the risk of carbon monoxide issues and helps reduce heating costs. As the season progresses, remember to change the furnace filter monthly to ensure maximum efficiency.
Insulate hot water heater and pipes What’s not to love about a simple project that can save money and keep you more comfortable? Wrapping your hot water heater and pipes can help reduce utility costs while maintaining a comfortable water temper ature for bathing You can hire a plumber to do the job, or take it on yourself with specially cut insulation or foam available from home improvement centers.
Catch the cracks Winter is all about keeping
• Find and fill any cracks around windows and doors
cold air and moisture and in warmer climates, pests out of your home, which is why you need to find and fix any cracks around doors and windows Inspect around window and door frames outside and if you find any gaps larger than the width of a nickel, fill them in with weather-resistant silicone caulk. Inspect all door sweeps and weather stripping and replace any that appear worn or cracked.
Sweep that chimney A crackling fire is a cozy way to help heat your home, but before you burn the first logs of the season, you need to make sure you can do it safely. Call a chimney sweep to inspect the chimney and clean it if needed The inspection and cleaning together should ring in at less than $500, but any amount is a small price to pay if it prevents a chimney fire and the possibility of carbon monoxide leaking into your home.
No matter the climate you live in, the winter season can be hard on your home. Taking these precautions at the start of the season will help ensure your home makes it through winter without any serious issues and you stay comfortable and cozy until spring arrives.
who is in real estate, there s a good reason for that. There are approximately 2.5 million licensed real estate agents in the United States. But, only about 20 percent of those agents are responsible for more than 80 percent of closings Still, with such a crowded field, it can be challenging to stand out and rise above the masses.
Here are several things you can do to connect with clients and potential clients and become one of the go to real estate professionals in your community.
Become a Local Expert A lot of agents will say they know their communities, but how many actually do? Take a deep dive and learn about everything your clients will want to know: schools, employers,
where to shop and what to eat. Go outside your comfort zone and daily routine and think about what others with a different lifestyle will want to know. Find the best vegan restaurant, discover where someone can get the perfect cup of coffee on their morning commute, and learn which park has the best playground. If you’re a Millennial, investigate recreational opportunities for retirees. If you’re a baby boomer with an empty nest, get back in touch with the school system so you can share that information with clients who have young children. Creating deep connections in the community not only means you have more knowledge to offer your clients, it helps you develop your pipeline of referral partners.
Make Social Media Matter At this point, it’s no longer a question of if real estate professionals should use social medial. If you’re not, you are missing out on opportunities to connect with clients and pros pects in a meaningful way The most important thing with social media is to think before you post, and ask yourself if it’s something your clients need or want to see. Make an effort to offer social media content that is simultaneously useful, relevant, and enjoyable. Post updates on market conditions, your latest listings, links to your blog and content you find informative, and in spiring, motivational quotes. Remember, consistency is key. Only posting a few times a month if you happen to remember makes it seem like an afterthought. For extra impact try “boosting” Facebook posts or
purchasing Twitter ads to increase your reach; it’s a small investment that can pay off big
Stay True to Your Brand Now more than ever, consumers are bombarded with a steady stream of marketing messages at every turn. That’s why it’s so important to maintain a consistent look and feel for your messaging across all channels You want to reach the point where prospective clients recognize that something is coming from you, even before they look for your name. Using a consistent color scheme, font, message tone, and style of photography across all dig ital and print media helps to establish and reinforce your brand identity
There’s Always More to Learn You know those REALTORS® who have the alphabet soup of designations after their name? They’re on to some thing Achieving specialty designations shows clients you are serious about real estate and in it for the long haul. Plus, knowledge is power. Staying educated on what’s happening in the constantly evolving world of real estate will give you an advantage over agents who haven’t cracked a book since they first studied for their license
Consider Coaching While it’s not the right fit for everyone, enlisting the services of a real estate coach can be the push many agents need to rise above and reach the next level Having an objective outsider look at your business can help move you past your comfort zone and see opportunities for growth you might be missing. Plus, having someone who is on your side and invested in your success feels inspiring.
Real estate is such a crowded field. It can be challenging to stand out and rise above the masses.
