In the Market: A little help for closing costs
This weekly feature is a real estate news and information roundup from a millennial’s point of view. When a young professional moves from Indianapolis (median home price $125K) to San Francisco (median price $1 million), you can expect an adventure. Nneka Madus, an analyst in Bank of the West’s Mortgage Division, did just that and has plenty to share in her quest to own a home in San Francisco.Let me remind you what San Francisco’s rental market is like. If you find an apartment that you like (or somewhat like) it definitely helps to be ready to jump, with your credit report, references, a completed rental application, and perhaps even money on hand to make a deposit. Under these stressful circumstances, it’s not uncommon to hear of would-be tenants being targeted by scams. Jeanette Pavini from MarketWatch lists some red flags for renters to look out for when apartment hunting, including handing over a security deposit before you sign a rental agreement. I couldn’t wait to furnish my apartment when I moved in! I was always on Pinterest looking for ideas for my new place, then I’d log onto overstock.com to price out that new coffee table. Furnishing an apartment is expensive, so I can only imagine what it’s like for a home. According to Trent Hamm from U.S. News & World Report, furnishing a home right away can be a real budget buster. That’s just one of six “sneaky expenses” new homeowners may want to be aware of before they break out their credit cards and purses. Need help with closing costs? After finishing business school, I thought I was done with classes. However, for the chance to get a 3% discount on closing costs on a home, I would take another course. Fannie Mae recently announced the launch of the new HomePath Ready Buyer Program to help first-time buyers afford foreclosed properties only in Fannie Mae’s inventory. Chrystal Caruthers explains in this realtor.com article how the program works. First-time homebuyers who qualify for a loan need to complete a $75 class prior to making an offer on a foreclosed property. After completing the course, they may become eligible for Fannie Mae’s offer to pay 3% toward closing costs. Coming up with cash for a down payment and closing costs can be a big obstacle for millennials and first-time buyers, so this program may be a big help for some potential buyers.