Apr 14, 2020
Meet Katie and Matt from Atlanta, GA. They just purchased their very first home together in the West End neighborhood of Atlanta while making money at the end of the transaction. So, how did they do it?
In this article, we will explain the steps this millennial couple took to get paid when they bought their first home together.
Before we discuss the ways this millennial couple got paid to buy a home, let's discuss the most common expenses you will incur when doing so.
Most people that buy homes have to take out a mortgage loan to complete the purchase. This typically involves researching mortgage lenders, submitting some paperwork, finding out the rates the lender offers and then getting prequalified for a loan before you put in an offer on a home.
There are several loan options out there with different down payment options.
Conventional loans typically require larger down payments while other loans like the FHA home loan only require around 3.5%. There are also loan option such as VA Loan that require a 0% down payment, but these are only available to military veterans which wasn't the case for Katie and Matt.
However, this couple did their research into First Time Home Buyer Loan Programs and were able to find a 0% loan option through our preferred lender at Center State Bank. This meant that the down payment that most homebuyers have to pay when they purchase their first home was avoided!
To put this into perspective, they avoided paying $11,550 up front that they would have had to pay if they chose to go with a mortgage loan that required a low down payment of 3.5%.
One common request most home buyers ask for when purchasing a home is closing cost credits.
Now you may be unfamiliar with why this would benefit you, but we can explain.
As we mentioned above, there can be several closing costs that you have to pay up front when buying a home. These typically are around 2% of the purchase price and are due at the closing table.
Since one of the biggest deterrents to buying a home for many first-time home buyers is how much money they have to have upfront, it is very beneficial to try to lower this amount.
Not only can you lower the total amount you will need at closing by getting a loan with a low down payment, but you can also request that the seller pay some or all of your closing costs. If you are working with an experienced real estate agent, then they should be able to help you negotiate these in your offer.
In most scenarios, the buyers will ask for a certain purchase price on a home and then also ask for a certain amount in closing cost credits.
In doing so, you yet again remove another expense from the transaction.
The main factor that allowed Matt and Katie to actually make money when they bought their home was the check they received for their SimpleShowing Buyer Refund.
This refund gives buyers up to 1.5% back when they purchase any home with a SimpleShowing Agent.
Therefore, in addition to getting all of their closing costs paid for and paying a 0% down payment, they also were able to get a check for 1.5% at closing with SimpleShowing.
For this millennial couple, this means that they walked away with a check for $4,950 at closing.
As you can see, Matt and Katie were able to accomplish the American Dream by doing their research and buying smart with SimpleShowing.
They got all of the support they needed to buy their first home from a full service SimpleShowing Agent who guided them every step of the way from touring homes, connecting them with a lender, writing up an offer, helping them with negotiating and landing them their dream home. Not to mention, they got an extra check for $4,950 that they can use for new furniture or whatever their hearts desire in their new home!