Financial Tips for the First-Time Homebuyer

buying a new homeBuying a new home is a complicated and difficult process, and it’s normal to feel overwhelmed at some point during the process. For many first-time homeowners, however, the search for a starter home can be especially stressful. Unfortunately, smart financial decisions are rarely made during periods of extreme stress, which is why it’s so important to take your time. Otherwise, you may find yourself in some serious financial trouble either before or after buying a home. That’s also why the act of saving money is so integral to the home buying process.

In 2016, of all those who purchased new homes for sale, roughly 33% were first-time buyers. If you fall into this category and it’s your first time buying a new home, then you’re going to need all the financial help you can get. Here are some amazing tips that will help you save enough money to afford that perfect starter home:

Create a strict monthly and weekly budget

Without a strict budget, you’ll never achieve your financial goals. With every dollar you save, you’re one dollar closer to making an offer or down payment on your first home. However, if you want to purchase a home in the next year, as opposed to the next decade, you have to do more than simply tuck away a few dollars each week.

You need to have a strict budget set for every week, every month, and every year (if that’s what it takes). Additionally, you need to make sure your budget is realistic. It may sound counterintuitive, but your savings goal should not be too ambitious. Rather, set easily attainable goals that won’t cause too much short-term financial stress. The more realistic your goal, the more likely you are to stick to it and achieve it.

Setup an automatic savings plan

You can talk to your payroll department at work and have them set up an automatic savings plan specifically for your future down payment. A portion of your paycheck, whatever amount you want it to be, can be sent directly into your savings account via direct deposit. You won’t even have to think about it. There are also apps that automatically analyze your spending habits and save money for you. In either case, it’s possible to save money while you sleep.

Ask for professional help

If you are having trouble setting up a budget and sticking to it, consult with an experienced financial planner. These professionals know exactly what it takes to handle all the financial aspects of saving up and buying a home, so look to them for guidance. It’s completely normal to have questions about the home buying process, and a financial planner can ensure you are on the right track to buying a home.

Whether you’re checking out luxury houses for sale or a nice, small starter home, be sure to focus all your efforts into saving money. Buying a new home might be stressful at times, but it’s also exciting if you know you are in good financial standing. If you’re ready to make this next giant leap in your life and want to check out new Drexel Hill homes for sale, contact Creekside at Llanerch today, and good luck!

New Year, New Home – What you can do to prepare!

It’s time to say goodbye to 2016 and with that comes the obligatory New Year’s resolution making. Is your resolution to finally become a homeowner? Make 2017, THE YEAR by preparing with these 8 must-do steps.

Check your Credit

Visit annualcreditreport.com to request free credit reports from all three credit reporting agencies – Equifax, Experian, and TransUnion. You can even get your credit score for a minimal fee. Once you receive your reports, be sure to review them closely for accuracy or negative information.

Save! Save! Save!

One of the most useful things you can do is to start saving the difference between your rent and what you anticipate your future mortgage payment to be. It’s important to remember that you’ll need cash reserves to purchase a home. It will also be necessary to show your lender that you can afford housing payments that may be higher than your current rent.

Earn Extra Cash

Make sure you have the necessary funds to move forward with a new home purchase by taking steps to cut spending now. Skip that daily latte, start packing your lunch, or think twice before you buy that new pair of expensive jeans. You can also come up with ways to increase your income – sell your stuff on eBay or start working a part-time job.

Consult a Lender

The sooner you consult a lender, the sooner you’ll know what you can afford and take the necessary steps to improve your credit score or come up with more cash. Creekside at Llanerch makes this process convenient and easy through our partnership with Pike Creek Mortgage. When you visit our model home, take advantage of the kiosk we offer to complete a loan application or schedule an appointment to sit one-on-one with Danielle Vavalla, our dedicated Mortgage Specialist.

Attend a Seminar on Purchasing a Home

Many lenders or community colleges offer seminars that help first-time homebuyers better understand the home-buying process. Creekside periodically offers our own with Pike Creek Mortgage’s dedicated Mortgage Specialist and posts info, dates and times to our Blog or Facebook page.

Determine What You Want to Spend

While a lender can give you an idea on the amount you can borrow, you must ultimately create a personal budget to determine how much you can comfortably spend on your monthly payment.

Visit Open Houses

It’s never too early to figure out what you want in a new home. The best way to do this is to visit open houses to see what’s out there. Open houses for used homes are typically held on Sundays.  Our beautifully appointed model home is open 7 days a week –  Monday – Friday from 10:00 AM to 6:00 PM and Saturdays and Sundays from 11:00 AM to 6:00 PM. Visit today and discover for yourself why Creekside at Llanerch is Delaware County’s most conveniently located, 2-car garage luxury new home community!

Interview Potential Realtors

It’s very important that if you are going to use a realtor to find one you can trust and who will have your best interests in mind. Therefore, it’s always a good idea to talk with and interview multiple realtors.

Want to learn more about how Creekside at Llanerch can help you prepare for home ownership in 2017? Contact Kim Spada at kim@easthillrealestateco.com or 484-320-3055.

Holiday Open House

Mark your calendars for this Sunday, December 11th for our Holiday Open House here at Creekside at Llanerch!  Join us at 2500 Marvine Ave from 12-3 PM and tour our beautifully appointed model home while enjoying food, refreshments, and holiday cheer! We’ll even have a hot chocolate bar and will be raffling off a $100 Target Gift Card – perfect for Holiday Shopping!

Come discover why Creekside at Llanerch is the most conveniently located, 2 car garage luxury new home community in Delaware County. But be sure to arrive early on Sunday to take advantage of our A Home for the Holidays Savings Event! The first 3 buyers will receive an included Dream Kitchen Package* with purchase! Give your family the gift of a new home this Holiday Season!

*Offer Valid through the use of Pike Creek Mortgage or cash purchase

5 Reasons Buying is Better Than Renting

As we build careers, save money, and start families, many of us choose to buy a home vs. rent. Consider the following 5 advantages of buying a home:

Build Equity Over Time

Unlike renters, homeowners build equity over time, providing a nest egg for the future. On most mortgages, a portion of your monthly payment goes toward the interest of the loan. The remainder pays down the principal. Every dollar you put towards your loan’s principal represents a dollar of equity, meaning actual ownership of the property. Once you reach 20% equity, or 80% LTV (loan-to-value), you can tap into that equity through a home equity loan or you can refinance your mortgage to secure a lower interest rate or longer repayment window.

Benefit from Tax Savings

Homeowners benefit from tax savings not available to renters. If you itemize your federal income taxes, you can deduct your property taxes and the interest paid on your mortgage, reducing your overall income tax burden (often significantly). Be sure to consult your tax advisor for details.

Expect a Fixed Monthly Payment

Renters continue to experience increases in rental rates. Rates rose sharply throughout 2016 and will continue to rise in 2017 due to the ongoing low supply and high demand of rental units. This means that renters can expect fluctuations and larger rent payments. Purchasing a home at Creekside means a predictable and fixed monthly payment!

Gain More Creative Freedom

As a homeowner, you can decorate, indulge in DIY projects, and make home improvements to your heart’s content, so long as you’re not breaking local building codes or violating HOA guidelines. You’re free to paint walls, hang that chandelier over your bed, or build a patio or deck. The ability to do these things are generally not available to renters. Even better, get a little taste of the custom home building experience when you purchase at Creekside. We’re building to your specifications, so you get to pick things like cabinets, counter tops, flooring, and light fixtures.

Feel a Sense of Belonging & Community

As a homeowner, you’re more likely to stay in your home longer than you would if you were renting. There’s pride in home ownership, which also closely ties you to your community, meaning you’re more likely to put down roots in your community. Many homeowners will join a local neighborhood association, participate in block parties, or in the case of Creekside, choose to sit on the board of the community’s Homeowner Association.

There’s never been a better time to purchase a home at Creekside at Llanerch! Stop in for a tour today or contact Kim at 484-320-3055 or kim@creeksideatllanerch to schedule an appointment.

November Savings Event – Luxury Kitchen Package

Happy November! Just in time to celebrate Thanksgiving, Creekside at Llanerch is excited to offer an included Luxury Kitchen Package* to the next three buyers. Imagine cooking next year’s feast and entertaining family & friends in the kitchen of your dreams in a brand-new home!

Our Luxury Kitchen Package Includes:

  • 42” Cabinets with a variety of colors and hardware to choose from
  • GE® Stainless Steel Appliances
  • Granite Countertops
  • Large Island with Granite Countertop
  • Undercabinet lighting & recessed lights

Contact Kim Spada at 484-320-3055 or kim@creeksideatllanerch.com to schedule your appointment. But hurry, this offer will not last long!

*Offer Valid through the use of Pike Creek Mortgage or cash purchase

luxury-kitchen-package-1

4 Reasons 2016 is the Year to Buy at Creekside at Llanerch

It may almost be November, but there’s still time to become a homeowner in 2016. Here are 4 reasons why there has never been a better time to purchase a home at Creekside at Llanerch!

Rental rates continue to rise

Rental rates have continued to rise sharply throughout 2016, due to the ongoing low supply and high demand of rental units. This means that individuals can expect fluctuations and larger rent payments. Purchasing a home at Creekside would mean a predictable and fixed monthly payment.

Interest rates are historically low

It’s the ideal time for homebuyers and homeowners to catch mortgage rates that previous generations of homeowners only wished for.

Clear mortgage terms

The TRID mortgage rule (also known as “Know before you owe”) passed at the end of 2015 has mandated clearer terms at the closing table, meaning no surprises for homebuyers. They’ll have a clear understanding of their financial commitment and what is expected of them.

Mortgage interest tax deduction

Certain tax codes allow homeowners to deduct the mortgage interest from their tax obligations. For many people, this is a huge deduction since interest payments can be the largest component of your mortgage payment in the early years of owning a home. Be sure to consult your tax advisor for more details.

Not sure where to begin with your new home purchase? We can help with that. Join Creekside at Llanerch and Pike Creek Mortgage on Saturday, December 3rd for a Mortgage Pre-Qualification event. Mortgage Consultant, Danielle Vavalla, will sit with you one-on-one to discuss the necessary steps you should take in preparation of your home purchase. Space is limited so contact Kim Spada at 484-320-3055 or kim@creeksideatllanerch.com to schedule the time slot of your choice.