This week’s Q&A column is sponsored and written by Hope Peele of The Peele Group and McEnearney Associates Realtors®, the leading real estate firm in Alexandria. To learn more about this article and relevant Alexandria market news, contact Hope at 703-244-6115 or email [email protected]. You may also submit your questions to McEnearney Associates via email for response in future columns.
Question: How can I accomplish my goal of becoming a homeowner in 2020?
Answer: The New Year’s Resolution. Such hope. Such optimism. Such unrealistic goals.
“This year I will lose 100 pounds by Valentine’s Day and work out 8 days a week!”
“This year I will read one book every day!”
“This year I will save $200,000 for a down payment and never pay a landlord again!”
While I can’t add another day to the week, or force you to read “The Iliad”, I can tell you that purchasing your first home may be a more realistic goal than you would think.
The truth is that there are many options for loans. Some loans require that the buyer come up with just 3%, while other loans require 5% or 10% down. In 2019, the median down payment for first-time home buyers who financed a purchase was just 6%, according to the National Association of Realtors. The same report showed that the median down payment for repeat buyers was just 16%.
Often times, while new buyers are working hard to save a hefty 20% down payment, the type of home they wanted ends up costing significantly more a year or two later; all the while, they are spending thousands on rent, and not earning the benefits of appreciation that come with a home investment.
It’s true that in a competitive market, faced with multiple offers, a seller may choose one with a higher down payment. However, there are many ways to structure a great offer in a way that remains highly competitive. Having an experienced realtor and a great lender on your team is key in getting your offer accepted.
Another concern for buyers is “how fast will I need to transfer the cash for my down payment?” Many buyers have their funds in interest bearing accounts and it takes a few days to access, so this is a great question. When we write up your offer, we can specify how many days it will take to deliver the earnest money deposit (EMD). The EMD is just a portion of your down payment, usually just 2-3% of the sale price. It will be used towards your down payment at settlement and the remaining balance of your down payment is not due until settlement day, allowing plenty of time for you to transfer the funds.
While the offer process can be fast paced, your Realtor and lender will guide you through the process, each step of the way. They work on many home purchases each year. Trust their advice and your path to home ownership will be much less stressful, and a lot easier, than doing crunches and eating kale!
If you would like a question answered in our weekly column or to set up an appointment with one of our Associates, please email: [email protected] or call 703-549-9292.
McEnearney Associates Realtors®, 109 S. Pitt Street, Alexandria, VA 22314. www.McEnearney.com Equal Housing Opportunity. #WeAreAlexandria
Recent Stories
A 33-year-old man with a history of making bomb threats in Alexandria faces three more counts of making bomb threats to the city’s 911 call center. Mikhail Stefon Douglas, of…
Local nonprofit Housing Alexandria said it will break ground on a new 474-unit affordable housing project in Arlandria this summer at the intersection of Mount Vernon Avenue and Glebe Road….
The proposed redevelopment of a pair of blue and white buildings, a former Burke & Herbert Bank and a former Walgreens, is heading back to city review next month….
Good Tuesday morning, Alexandria! ⛅ Today’s weather: Mostly cloudy throughout the day. High of 55 and low of 41. ⛅ Tomorrow: Partly cloudy throughout the day. High of 57 and…
Monarch Montessori School located in the heart of Del Ray is enrolling children 6 weeks to 6 years of age for our half day and full day program.
Our hours of operation are 8:00 AM to 5:30 PM, Monday-Friday. Monarch Montessori School is open year round, with intermittent breaks.
Children engage in self-directed, self-initiated activities under the guidance of a trained Montessori teacher. Classroom sizes range from 8-12 students. Our robust curriculum includes botany, sensorial activities, the social graces, culture, math, science, practical life, geography, music appreciation and language arts.
You’ll get half off of the registration fee when you register and begin care with us before April 30, 2023.
Press Release:
EDBS Dental Billing Solutions is pleased to announce that it has achieved compliance with the federally mandated standards of the Health Insurance Portability and Accountability Act (HIPAA) through the use of Compliancy Group’s proprietary HIPAA methodology, The Guard® compliance tracking software, and HIPAA Seal of Compliance®.
The HIPAA Seal of Compliance is issued to organizations that have implemented an effective HIPAA compliance program through the use of The Guard, Compliancy Group’s proprietary compliance tracking solution.
Clients and patients are becoming more aware of the requirements of HIPAA compliance and how the regulation protects their personal information. Forward-thinking providers like EDBS Dental Billing Solutions choose the HIPAA Seal of Compliance to differentiate their services.
Del Ray Dog Fest & Yappy Hour
The 1st Annual Del Ray Dog Fest is a fun outdoor event that will include dog-centered activities, dog menu items, live music, vendors and food on Sunday, April 2 from 11am- 3pm at the George Washington Middle School parking lot.
