3 Reasons Why it is Even Harder to Buy a House!

Looking to become a homeowner? It has become even harder to purchase a house in the last 90 days. The information that is discussed in this article is outside typical challenges buyers face when buying a house such as credit, down payment, monthly payment hurdles, conventional loan versus FHA loan, and mortgage rates. But the focus of this post is to discuss the external influences of the housing market that we cannot control whatsoever.
Housing Starts (New Homes)- Decreased 6% in January to 1.580 million units. Existing home inventories fell 16.4% or 1.1M homes (1.9 months worth of homes). Record-setting low since 1999.
Soaring Lumber Prices- Prices have tripled in the last 90 days to where the price of 1,000 board feet peaked at $1,004.90. For a 1,000 square foot home, you would need 6,300 board feet to complete. That would be just $60,000 to frame your home.
Compared to just 4 short months ago it would have cost you $30,000 or $491 per 1,000 board feet. 100% increase in 4 short months. And it would add an additional 30% to the sales price of a $100,000 home.
Remember: Homebuilders typically have margins between 20% and 40%. For example: If the builder has a target margin of 30% on each home then the pass-through costs to you the buyer would be 60%. And the math behind that is their margin of 30% plus the increase in lumber costs in relation to the sales price of the home. To make things simple that would total $60,000 additional you would have to pay on a home that used to sell for $100,000
Housing Prices are En Fuego- For a single-family home in the USA, it will cost you $266,222 to purchase a home. That same home in January 2020, would have cost you $244,000, an increase of $22,000 or 10%.
Now, I can hear some of you saying that is only 10%, but let’s look at it this way. What does that additional $22,000 cost you over the life of your loan? Have a guess? You will pay an extra $11,358 over the life of your 30-year loan at a 2.99% interest rate. What could you do with the extra $$$$?
To sum it all up: The housing market is overpriced, supply is WAY DOWN, and demand is through the roof. So, what do you do if you are in the market for a home? Start looking outside the traditional channels that most buyers search in. A few channels that I could suggest are:
Look for homes in up and coming neighborhoods that are run down (The ugliest house on the block)
REO’s- Work with a local Realtor to locate any REO’s (Real Estate Owned) properties that are being sold by lenders.
Foreclosures- Even though this channel is not hot right now it would not hurt to take a look at them to see what prices are going for in the neighborhoods you want to live in.
Note Purchase- This is a channel that is not covered very much, but it is a viable one if you know how to buy notes (A.K.A. Mortgages) from lenders directly.
I hope this post helps shed a bit of light on the housing market and the external influences that we all face becoming homeowners. I know purchasing a house is the largest investment you will make in yourself, but remember one thing: Do not fall in love with buying a home until the math works in your favor, and your monthly mortgage payment fits into your budget. There are other houses out there it will just take some time to find the right one for you. Good luck and happy house hunting!

www.truvest.co

4 Reasons Why Being Debt-Free is Not Socially Acceptable

Did you know living debt-free is considered being weird? Or even not socially acceptable! When I heard that the first time I did not how to respond. And the reason for that was I too had been taught that debt is a tool that would allow me to win in life. Well….I now know today that was a line of BS, and me spending 50% of my hard-earned paycheck on a monthly basis was C-R-A-Z-Y! 

When you hear about people being debt-free and not living paycheck to paycheck, you are probably thinking….that is totally weird. The debt-free lifestyle is meant for you...If you want to put the hard work in!

Check out these 4 reasons….

     1. Budgets Aren’t for Everyone

The reason why most people do not use a budget….Drumroll….It is too time-consuming. And that is where debt wins every single time. So, people that want to live a debt-free life will take the time and create a budget each month, and they will make sure they cut out all unnecessary spending. And by doing this they can map out what they need each month to support their 4-walls (Mortgage/Rent, Groceries, health insurance, Automobile expenses). 

     2. Self-Control

How is your willpower when it comes to walking past a huge TV or shoe sale? Is that impulse buy calling your name? Well….If you are just buying things to keep up with the Joneses….Guess what...They are broke! Cause those impulse purchases are being charged on...credit cards. If you want to be debt-free you know these purchases are not going to erase your problems nor make you feel better.  Instead, be weird and save up the money…..PAY CASH!

     3. Sacrifice Sacrifice Sacrifice

Going out to dinner three times a week, going to the movies, having the top tier cable package. These are things people cut out of their budget when they are wanting to become debt-free. Just remember: Budget reductions are temporary, and once you are debt-free you will more room for these extras in life.

    4. No is Your Best Friend

Are you always saying YES to every social opportunity? Vacations, shopping trips, eating out with co-workers, or just spending money. By you saying NO you will be that much closer to that debt-free life you have been wanting. Make No your best friend! 

   You Too Can Live Debt-Free!   

The only way to live a debt-free life is to BE DEBT FREE! You have to make the decision that you want to be debt-free. And all you have to do is start! There is a better way to live and it starts today with you changing on how to look at money. There is nothing holding you back. Take small intentional steps and before you know it you will be debt-free.

 

You do not have to do this alone! We have a game plan that will assist you from where you are today to where you want to be, living debt-free! We have been in the same place you are today, and we know what it takes to become debt-free. You have a friend for your journey. All you have to do is reach out to us!

 

Are You Ready for Change? Start Now!


Become a homeowner today!

7 Reasons Why You Need to Fix Your Credit!

Have you been thinking about fixing your credit? Did you know having bad credit can leave you homeless, without a job, and carless? Daily, more businesses use credit to make decisions about you and me, and if we do not start taking our credit seriously, we will be stuck using payday loans, renting, weekly car payments, and living paycheck to paycheck.

 

Here are 7 reasons why you need to fix your credit!

 

  1. Stop paying astronomical interest rates

 

When you have a lower credit score you typically pay higher interest rates and finance charges. When you have a good credit score you will be able to apply for competitive interest rate products, and you will save on the amount of interest you pay on accounts monthly.

 

  1. High-Security Deposits No More

 

Cell phone and utility companies all require a deposit when you have bad credit to establish service. These creditors do this to mitigate their risk of you defaulting. If you make your payments on time then the creditor will give back your deposit. What if you did not have to put a deposit down when you open an account? Could those monies be used towards your housing needs? 

 

  1. No More Collection Calls

 

When you improve your credit score it includes paying off collection agency debts. The longer you put off improving your credit score means you will have to deal with the daily calls and letters from debt collectors. You can take action to place a cease and desist on phone calls, but that is just kicking the problem down the road! 

 

  1. Good Credit Score = Happiness

 

You have improved your credit score congratulations! Now you are not afraid to check it, but better yet you have the confidence to have someone else check it! That must make you feel great!

 

  1. Buy a Home

 

Are you wanting to achieve the American Dream? If so, having bad credit makes that dream a nightmare! Banks and mortgage lenders will not approve you for a mortgage until you fix your credit. A lender that does approve you with bad credit will charge you a high-interest rate, which will make owning a home very costly.

 

  1. Buy a car (Newer for sure!)

 

Dealerships, auto lenders all use credit to determine if they will lend to you. Without good credit, you will not be able to purchase a better car, and you will be stuck driving your current car that breaks down monthly.

 

  1. Land Your Dream Job

 

When you apply for jobs did you know that employers do check your credit as part of the hiring process? If you are applying for a government, financial, or executive job these positions will potentially require more information about your financial history.  Having bad credit could cost you this job and any future promotions you have been working hard towards.      

 

Improving your credit can be an overwhelming process, and you may not know where to start. There are resources available to help you. If you have bad credit and want to buy a home, we are here to help you! Before you can start this journey you need to answer one question: Are you ready to make these changes in your life today?

 

If you are ready please schedule time with us to discuss the next steps with the link below:

 

Your Journey Starts Now!


TruVest Breathes New Life Into Bayard Park Affordable Homes Redevelopment

Imagine Bayard Park as a new neighborhood with affordable renovated and new homes.

Press Conference: December 17, 2020, 9 AM @ 520 Bayard Park Drive Evansville, IN 47713

See the redevelopment here >>> Bayard Park

Bayard Park in Evansville is among many communities in Southern Indiana that have been plagued with poor housing projects and unreliable contractors that make it difficult for residents to build and maintain a higher quality of life.

TruVest has been collaborating with the Evansville community over the past 3 years. Making an impact by building sustainable homes and setting a benchmark for removing obstacles that prohibit homeownership.
Our next big project - revitalizing Bayard Park Drive with TruHome, The City of Evansville, through The Department of Metropolitan Development, The Affordable Housing Trust Fund, and the Evansville Promise Zone that will improve the neighborhood along with the quality of life for each family living on the block.

After a decade of negative overall demographic trends, Evansville's population and the household base has grown since 2010 and are projected to remain positive through 2025.
Evansville, a strong community built on culture and history, will see a population and household increase of nearly 1% over the next 5 years.

The Plan - In Phases

In order to deliver the greatest impact possible, they're grouping their development into four phases.

TruVest already broke ground in Evansville, enacting their four-phase plan to rehabilitate homes and breath new life into the Bayard Park Drive neighborhood.

Phase 1:

Currently active, phase one involves the rehabilitation of four existing homes in the Bayard Park neighborhood. It's TruVest mission to keep the existing charm of original homes and spaces while updating for structural security and beautiful design.

Phase 2:

Phase 2 will consist of four new homes built from the ground up on existing land. Homebuyers will have the options of 3 bedroom/2 bath and 2 bedroom/1 bath homes.

Phases 3 and 4 will consist of all new built homes.

TruVest is thrilled to be able to support Evansville's growing community from the ground level, building beautiful homes and spaces to last for many generations to come.

"We were living in a rundown house that we were renting and paying $750 per month. Now I own my own TruHome for less than $500 a month, and my kids have their own rooms for the first time."
- Mackenzie P., Homebuyer

This is just the beginning. Bayard Park will serve as a groundwork for what's possible in similar areas locally and across the country that has been plagued by external factors for decades.

Ryan DeMent
TruVest
+1 812-777-5850
ryan@truvest.co
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Buying a Home can be Overwhelming.. But You Have a Friend in the Business

YES… it is possible to buy a home for your family, even if you do not know where to start! We are here to guide you.

 

Buying a home can be overwhelming and there are so many things you have to do before you can get your keys to your home. 

 

The very first thing you should do is find out what your credit score is. If you do not know what your score is you can get a copy of your report for free from annualcreditreport.com

 

Once you have your report look at the following items:

  • Locate and know your score
  • Are there any errors? For example Payment history, balance, date opened/closed
  • Do you have any collection, charge off or judgment accounts?

 

If there are any errors in your credit report you should dispute them to the credit bureaus. We found a free app that allows you to dispute your errors all in one place. The app is called UpTurn. We are still testing this app, but thus far we are quite pleased with the app. And you cannot go wrong with FREE!

 

If you’d like to talk to us about purchasing your first home, just leave a comment or send us a message! 


Why Credit is Your Secret Weapon in Getting a Mortgage

Do you know how important your credit is in obtaining a mortgage? It is the secret weapon that will put you at the top of the lender’s list to approve your mortgage. But you have to do some work to ensure that your credit is ready to take on a mortgage. Before you start the house-hunting process you need to have your “Credit House” in order.    

 

There are three critical aspects of obtaining a mortgage; your credit report, the money you have allotted for the down payment as well as closing costs, and your income. Lenders want to paint a picture that encompasses all these aspects to make sure they minimize their risk and ensuring they are setting you up for success.

 

According to the American Bankers Association, less than half of all U.S. consumers know their credit score is or have reviewed their report in the last 30 days. Your credit score is the first thing a lender reviews and it determines if you get to go to the next step of the application process. TIP: Your credit score will determine your interest rate on your mortgage and what type of loan you will be offered.  

 

The next item is your down payment and monies you have saved for closing costs on your mortgage.  The more money you have saved towards both these will make the lenders’ decision much easier to approve you. Yes, there are loans, such as FHA loans that only require 3.5% as a down payment. Closing costs typically run between 2% and 4% of the loan amount. For example, on a loan of $100,000, there could be between $2,000 and $4,000 in closing costs. On that $100,000 loan, you would have to have $3,500 saved for your down payment. TIP: There are down payment assistance programs available for first-time homebuyers.

 

The last but not least important item in obtaining a mortgage is your J-O-B. The lender is looking for the following: how long have you worked at your current employer, do you earn enough to pay the mortgage and your bills on a monthly basis, lastly are you able to save money after all your bills are paid. These are basic items lenders look at, but the lender could ask for additional financial documents. TIP: The more you can save the better your application looks to the lender and the better your loan terms could be. 

 

Once you have all these items to your lender they will then produce a pre-approval letter that you can use to find a home. The pre-approval letter will explain all the terms of your loan and the all-important dollar amount you are approved for your home purchase.  At this point, you are ready to go out and start looking for a home. TIP: Your pre-approval has a 90 to 120-day expiration, meaning if you do not purchase a home during that time the lender will have to pull your credit again.  

 

If you are ready to be a homeowner the first thing you need to arm yourself with is your credit score. Get your free annual credit report and know where you stand with your credit. If you need assistance or have questions feel free to reach out to us by email or call us at (812) 777-5850.  

 


homebuyer

How To Purchase a Home When You Have Less-Than-Perfect Credit

How To Purchase a Home When You Have Less-Than-Perfect Credit

While not having such a great FICO Score does make it a little trickier to purchase a home, but there are alternatives out there to help you become a homeowner. Keep reading to discover what you can do to become a homeowner even if your FICO Score is less-than-perfect.

 

Research government-backed funding programs

 

While standard financing programs normally have a minimum FICO Score of 620, government-backed mortgage programs - such as FHA, VA, and also USDA - tend to have looser credit qualifications. In each case, the Federal Government is the entity that backs your loan if you default, which assists lenders with their losses.

 

The minimum FICO Score for each loan type are below:

 

FHA: 500 - 579 FICO Score with a 10% down payment or 580+ FICO Score with a 3.5% down payment.

 

VA: VA loans have no official FICO Score requirements. Instead, each application is evaluated on a case-by-case basis. All though, the mortgage provider you select could have a minimum FICO Score requirement.

 

USDA: Like VA loans, USDA loans have no defined FICO Score requirements. While a FICO Score of 640 is required for a streamlined approval process, homebuyers with lower FICO Scores could be approved based upon extenuating circumstances.

 

Keep in mind that if you're looking at one of these options to purchase your home you should determine if the lender you are wanting to work with has extensive experience. Take your time and research the lender, and do not be afraid to ask questions.

 

Saving More Can Help You Get Approved

 

Keep in mind, your FICO Score is only one of the elements that are taken into consideration when obtaining a mortgage. Your yearly earnings, work history, as well as the amount of money you have saved - or the funds you have for your down payment and closing expenses - will certainly also play a role. If you have a lower FICO Score one of the best ways to get a mortgage is by showing your lender your savings. Tip: The larger percentage of your down payment to your purchase price equals LESS risk to your lender.

 

Take a Look at Portfolio Lending (Owner Financing)

 

If you don't qualify for traditional lending, your lender could offer you another option that is called Portfolio Lending. With portfolio lending(Owner Financing), your lender does not sell your loan to a third-party company like Fannie Mae or Freddie Mac, the lender will maintain your loan as part of their in-house portfolio.

Because your lender is not selling your loan to a third party, they can establish their own underwriting criteria. Additionally, be cautious about the terms the lender offers you. Lenders that provide portfolio lending typically offer higher interest rates, and could also charge more origination fees (Which have to be disclosed). 

 

Work with a Non-Profit that Provides Credit Services

 

If all else fails, you can always find a local non-profit to work with to improve your FICO Score. Do not be afraid to ask for assistance! With all the different pieces of information that go into your FICO score, it is hard to know what piece(s) will improve your score. Design a plan with your counselor that works for you, and provides clear milestones.

 

BONUS TIPS:

 

  1. Know your credit! Get a free copy of your credit report
  2. If you need help understanding your Credit Report….Get Help
  3. If your FICO Score is at or above 620...Great
  4. Find a Lender that you want to work with. There are some great 1st-time home buyer programs out there. Here is a list of them by State
  5. Understand how much you can afford and what costs are part of your mortgage payment 
  6. Save for a Down Payment. As little as 3.5% of the purchase price (Grant options are available)
  7. Know what Closing Costs will be on your loan and have those monies set aside
  8. Start researching homes in your budget 
  9. Attend open houses and THINK…..Long Term
  10. Prepare to close on your new home and move

 

 BONUS BONUS TIPS

 FICO Scores below 620...Here is what you can do to supercharge your Score!

 

  1. Pay off any collection accounts. If you cannot pay off all at once start with the smallest balances. The others work with the creditor on a payment plan that works for your budget. 
  2. Judgments/Liens- Contact the Creditor to work out payment terms. The longer they are unpaid the more accrued interest you will have to pay. 

 


The Good, The Bad, and The Ugly About Contract Sales!

This is your opportunity to learn how a typical real estate investing in underserved communities does social good, by generating multiple revenue streams for investors. TruPodcast series host and investor Ryan DeMent candidly shares his personal experiences and current industry insight that you won't find elsewhere. Let's get right to it. Ryan DeMent here from TruVest.

Hope you're having a great day. Today's topic owner financing contracts. I have to say I'm fired up because I get anywhere between five to 10 calls a week on contracts and guess what? They're worthless. And the reason why is because they're not recorded. They don't give you any type of home ownership. If that contract that's put in writing and it's not recorded with your county assessors office and you become the actual owner of the property, you're getting no benefits. And the other piece of it is probably 90% of the contracts that are recorded or put together don't even get reported to your credit.

So that balloon came that you have 12 to 24 months down the road. Guess what? You have to go get a real mortgage from a bank that potentially is not going to actually finance you because your credit is not good. So why do you want to do a contract? Good question. I don't have an answer, but I can tell you this. If a contract is done right, it should benefit you. It should one list you as the owner. Two, it should be serviced by a mortgage entity to where you send your payments to three, it's reported to the credit bureaus. So you get positive and negative tradelines for your payment history and the fourth, you should be able to write off the mortgage interest on that property when you're making those payments annually.


There is How Much in Closing Costs?

Hey guys, Ryan DeMent here from TruVest hope you guys are having a great day on this podcast we are going to talk about closing costs for a mortgage and this example is going to be on an FHA loan for $80,000 the reason why I'm doing this is we get a lot of people telling us that they think buying a home with a mortgage, you're going to come zero out of pocket.

Well, there are some loans that are that way. There's a VA and there's a USDA that I know of and guess what? You have to be a veteran to get that or USDA is you basically live in a rural area. Well everywhere we're working at right now is not rural and the individuals that are coming to us right now are not veterans.

The veterans that we are working with totally understand this process and willing to work through it, but most people that we're talking to and we educate them upfront that they literally need to have 4.5 percent of the purchase price in their bank today to make this purchase work. If you have any questions, comments, please feel free to reach out to me. Look forward to talking to you guys. Have a great day.


Travel Updates, Connections, and Market Insights!

Hey guys, Ryan DeMent from TruVest hope you're having a great day. Third installment of the Vlog. Got Three things to talk about my trip to Indiana last week and the good people that I met, some things that are going on with us and last is a little bit more of a general market overview of what I'm seeing with the tools I'm using.

Some of the things that, that I'm coming across and how we're going to look at them. Because as much as we don't want to say it, there is a market correction coming. It's out there, it's brewing, we're looking at it, but we've got to do something with it. So I'm going to talk a little bit about it, put it out there up front, talk about what we're doing. So let's get started. So last week I was in Indiana, had a great time. I met some great people. I got to meet Stephen Ralph, the director of antipoverty initiatives at the Evansville Christian Life Center. They've got a great educational program that we're going to jump on board with and refer potential home buyers to that need some extra help with financial literacy and then also their credit. So I'm really excited about that.

So I'll share a little bit more about that. Met Two individuals that are fed up and ready to be homeowners, and the beautiful thing about it is they're ready to make that leap in themselves, in that change to where they can be able to make a difference in their own life and become a homeowner. They're not looking to rent, they're not looking to hang around, they're looking to be able to push forward. And they finally have hit a point in their life where they said, hey, guess what? I want to make a change and I'm here and it's refreshing