Buying A Home • February 9, 2023

Pre-Approval in 2023: What You Need To Know

by Ellen Kirchdoerfer

One of the first steps in your home-buying journey is getting pre-approved. To understand why it’s such an important step, you need to understand what pre-approval is and what it does for you. Business Insider explains:

“In a preapproval [sic], the lender tells you which types of loans you may be eligible to take out, how much you may be approved to borrow, and what your rate could be.”

What Is Pre-Approval

Basically, pre-approval gives you critical information about the home-buying process that’ll help you understand your options and what you may be able to borrow.

As part of the pre-approval process, a lender will look at your finances to determine what they’d be willing to loan you. From there, your lender will give you a pre-approval letter to help you understand how much money you can borrow. That can make it easier when you set out to search for homes because you’ll know your overall numbers. And with higher mortgage rates impacting affordability for many buyers today, a solid understanding of your numbers is even more important.

Pre-Approval Helps Show You’re a Serious Buyer

Another added benefit is pre-approval can help a seller feel more confident in your offer because it shows you’re serious about buying their house. A recent article from Forbes notes:

“From the seller’s perspective, a preapproval [sic] letter from a reputable local lender often can make the difference between accepting and rejecting an offer.”

This goes to show, even though you may not face the intense bidding wars you saw if you tried to buy during the pandemic, pre-approval is still an important part of making a solid offer. In fact, Christy Bieber, Personal Finance Writer at The Motley Fool explains it may be the most important part of making an offer:

“Pre-approval maximizes the chances you’ll be able to actually close the deal – and sellers want to see that.

The fact that a pre-approval gives you a better chance of getting your offer accepted is undoubtedly the most important reason to complete this step . . .”

Bottom Line

Getting pre-approved is an important first step toward buying a home. It lets you know what you can borrow and shows sellers you’re serious about purchasing their home. Connect with a local real estate professional and a trusted lender so you have the tools you need to buy a home in today’s market.

Additional Home Buying Resources:

Lifestyle • February 6, 2023

Game Day Meatball Recipe

by Ellen Kirchdoerfer

Enjoy this delicious Game Day Meatball Recipe while cheering on the KC Chiefs in this year’s Super Bowl or any day of the year. It is sure to be a crowd-pleaser!

Game Day Meatball Recipe

Ingredients

1 lb. ground chuck
1 egg, beaten
1/2 cup dry breadcrumbs
1 small onion, minced
1 tsp. dried parsley flakes
1 tbsp. Worcestershire sauce
1/2 tsp. salt
1/4 tsp. pepper
1/2 tsp. garlic powder

Sauce

2 cups thick ketchup
1 cup firmly packed brown sugar
1 tbsp. Worcestershire sauce

Directions

Meatballs:

Combine all ingredients in a large ziplock bag. Mix until just well blended. Shape into 1″ balls. Place on parchment lined, rimmed cookie sheet. Back at 350 degrees for 12-15 minutes or until cooked through.

Sauce:

Combine all ingredients in a large saucepan. Use thick, slow-pouring ketchup to ensure your sauce clings to the meatballs when served. Cook until hot and blended. Add meatballs, and heat thoroughly. Serve hot with cocktail picks.

There you have it! Some great food to munch on while enjoying the big game! Here are some other favorite game day recipes to enjoy with your meatballs.

Would you rather have pizza instead? Check out these great options: Best Pizza in Cape County.

Buying A Home • February 1, 2023

How Much You Need To Save for a Down Payment

by Ellen Kirchdoerfer

If you’re getting ready to buy your first home, you’re likely focused on how much you need to save for a down payment. Don’t let a common misconception about how much you need to save make the process harder than it needs to be. It may surprise you.

How Much You Need To Save for a Down Payment

Understand 20% Isn’t Always the Typical Down Payment

Freddie Mac explains:

“. . . nearly a third of prospective homebuyers think they need a down payment of 20% or more to buy a home. This myth remains one of the largest perceived barriers to achieving homeownership.”

Unless specified by your loan type or lender, it’s typically not required to put 20% down. This means you could be closer to your homebuying dream than you realize. According to the National Association of Realtors (NAR), the median down payment hasn’t been over 20% since 2005. In fact, the median down payment today is only 14%. And it’s even lower for first-time homebuyers at just 6% (see graph below):

Wondering How Much You Need To Save for a Down Payment? | MyKCM

Options For How Much To Save For Your Down Payment

If saving for a down payment still feels like a challenge, know that there’s help available. A real estate professional and trusted lender can show you options that could help you get closer to your down payment goal. According to latest Homeownership Program Index from Down Payment Resource, there are over 2,000 homebuyer assistance programs in the U.S., and the majority are intended to help with down payments.

Plus there are even loan types, like FHA loans, with down payments as low as 3.5%, as well as options like VA loans and USDA loans with no down payment requirements for qualified applicants.

To understand your options, be sure to do your homework. We can help you learn more about down payment assistance programs that might work for you so you can partner with a trusted lender to learn what you qualify for on your homebuying journey.

Bottom Line

How much do you need to save for a down payment? Remember, a 20% down payment isn’t always required. If you want to purchase a home this year, let’s connect. You’ll also want to make sure you have a trusted lender so you can explore your down payment options.

Resources

More resources for your homeownership journey:

Finance • December 13, 2022

5 TIPS TO GET READY FOR RETIREMENT

by Ellen Kirchdoerfer

For most people, retirement feels like a long way off. But, if you don’t start preparing as early as possible, you may find yourself in a place of financial insecurity when the time does come. That leaves us wondering about the best way to get ready for retirement.

HOW TO GET READY FOR RETIREMENT

Start getting ready for retirement now by considering these tips:

Calculate your target savings. In general, it’s recommended that you save between 10 to 15 percent of your income for retirement. However, you can always use an online savings calculator to determine the amount you need to save for your specific needs and goals.
Contribute to your employer’s retirement savings plan. Does your job offer a 401(k), traditional IRA, or Roth IRA? Sign up and start saving as soon as they allow you to. It’s recommended to set up automatic paycheck deductions and, once the money is in your retirement fund, don’t touch it.
Take advantage of employee benefits. Many employers offer matching which generally requires you contribute a certain percentage of each paycheck and your company will then contribute a matching amount with funds of their own. They might also offer health savings or flexible savings account. By contributing to these accounts, you reduce your amount of taxable income, allowing you to save more money.
Pay off your debts. Start by paying off any high-interest credit card debt first. Then look at other debts, such as student loans and car payments, and make a plan for paying those off incrementally.
Reduce daily spending. Although this feels like a no-brainer, spending your money thoughtfully now can make a big impact later. Seek out areas of your life where you can.

Home Maintenance • December 1, 2022

December Home Maintenance Checklist

by Ellen Kirchdoerfer

The year is coming to an end…and what a year it has been! While traveling through this challenging year, many changes, new experiences, and even a few opportunities have entered. Let’s wrap up this year with a brief December Home Maintenance Checklist so there is time to make the most of these final weeks of the year.

Grab a cup of hot chocolate and let’s get started…

December Home Maintenance Checklist

Check Furnace Filters / Change if Needed
Check Sinks and Toilets for Leaks
Check Door and Window Locks
Clean Garbage Disposal
Treat Septic System if Needed

Leaky sinks and toilets can cause a lot of damage if left undetected. Depending on the size of the leak, that damage can happen real quick! Click here for some tips for finding those pesky leaks a little faster.

Just in case you missed November, you can find it here.

So there you have it, Cape County! A short and sweet December Home Maintenance Checklist. Start the list this weekend and leave much time to enjoy all the holiday festivities!

Home Maintenance • November 2, 2022

Home Maintenance Checklist – November

by Ellen Kirchdoerfer

Welcome to November! November also means the holiday season is here. It’s time to gather family and friends to reflect on all the blessings that surround us. First, let’s make sure our homes are in good repair with the November Home Maintenance Checklist.

November Home Maintenance Checklist

Let’s just jump right in…

Check Furnace Filters / Change if Needed
Test Carbon Monoxide & Smoke Detectors
Test Garage Door Auto-Reverse
Clean Carpets
Remove Lint From Dryer Exhaust
Check Fire Extinguishers
Clean Garbage Disposal
Treat Septic System if Needed
Oil Garage Door Tracks
Turn Off & Flush Outdoor Faucets

Excess lint in dryer vents can reduce the efficiency of the dryer. That excess lint also creates a fire hazard in your home. Here are some tips on How To Clean A Dryer Vent. Click Here.

Just in case you missed October, you can find it here.

So there you have it, Cape County! The weather is cooling off and the landscape is preparing for winter! November is a transition month for Cape Girardeau County. Whether you live in Cape Girardeau MO or Jackson MO, our outdoor scenery is changing all around us. Start the list this weekend and leave much time to enjoy November!

Outdoors • October 1, 2022

Pumpkin Patches In And Around Cape County

by Ellen Kirchdoerfer

Whether it’s for carving or baking, pumpkins shine this time of year. And who doesn’t like to pick out your very own? Where are the pumpkin patches?

Local Pumpkin Patches

Cape County

We are fortunate to have a pumpkin patch right here in Cape County at Knowlan Family Farm. Visit the pumpkin patch or find that perfect pumpkin in the convenience of the store…you choose. Knowlan Family Farm also has UPick apples to add to the family fun available. Does it get any better than this?

Around Cape County

In our surrounding area, we have two more great choices: Perryville Pumpkin Farm and Beggs Family Farm. Both have games, corn mazes, animals to feed and pet, and many ways to wear the kids out. Don’t miss that wagon ride to the pumpkin patch. Two great options for a day full of family fun and most of all family memories!

Bring the whole family! They will love each of these unique places!

The trip to the pumpkin patch may leave the family starving. Here are some great places to grab a pizza on the way back home. Click here.

Buying A Home • September 6, 2022

9 Home Buyer Tips

by Ellen Kirchdoerfer

Buying a new home can be confusing. After all, a home is the largest investment most families will make. Relax! Here are 9 Home Buyer Tips to make your journey to homeownership a little easier.

Home Buyer Tips

Tip #1

The No. 1 tip for first-time homebuyers is to be sure you’re ready. The average mortgage loan term is 15 – 30 years. Although you don’t need to stay in your home for that amount of time, buying a home is still a major commitment.

Tip #2

Before you find that perfect home, get a mortgage pre-approval. It tells you exactly how much loan money you can get. Plus it gives you leverage when you negotiate.

Tip #3

Now is not the time to open a new line of credit. When you apply for mortgage pre-approval, lenders will pull your credit report. If they find that you’ve taken out another loan or line of credit, your credit balance has increased or you’ve started to make late payments, it could risk your final approval.

Tip #4

The type of loan you choose will determine your down payment amount, what type of home you can buy, and more. Conventional loans are the most common type of home loans that require as little as 3% down.

Tip #5

Don’t assume that your down payment is the only thing you need to close on your mortgage loan. You’ll also need to cover closing costs before you take control of your property. Closing costs are expenses that go to your lender in exchange for arranging certain loan services.

Tip #6

Once you’ve decided on the type of home that’s right for you, you can begin to prioritize which features you want in your home based on your needs.

Tip #7

Work with a real estate agent to find the perfect property. REALTORS® are local professionals who are experts in the home buying process and your local market.

Tip #8

Giving earnest money signals to the owner that you’re serious about the offer. The deposit is typically equal to 1% – 3% of your total home loan value and goes toward your down payment. If you back out of the sale for a reason not listed in your offer letter, you’ll lose your earnest money deposit.

Tip #9

It’s likely that your reason for purchasing a home is driven by emotion. Many home buyers get too invested in a home only to find out they can’t get the loan for it, or there are some significant issues.

So there you have it! Nine Home Buyer Tips to help you on your Home buying journey.

Ready to get started? Click here to see what’s on the market right now. Let’s find the perfect home for your family.

Home Improvements • July 31, 2022

What To Do With An Unfinished Basement

by Ellen Kirchdoerfer

Do you have an unfinished basement you want to better utilize? Are you lacking funds to complete a high-end finish in the area? Here are some ideas of what to do with an unfinished basement without spending a lot of money.

Add some color. Add some color to the area by painting the walls. Whether you have a concrete wall or some partial finish with drywall, painting the walls will add warmth to the area. For a splash of color, add an accent wall to the other neutral-colored walls.
Create some division. Create some division to a large open area in an unfinished basement with inexpensive curtains. Hanging curtains from the floor joists can help create “rooms” to better utilize the space.
Add area rugs. Throwing an area rug on the concrete floor can create division in an open area while adding warmth to the room. Next, simply add a couch or the furniture you choose to complete the area.
Add foam mats. Would you like to add a workout area for a home gym or even a play area for the kids? Foam mats can add color and warmth to an area very quickly.
Add lighting. Unfinished basements often lack good lighting. Add lights to the area by hanging them from the floor joists or well-placed lamps. Good lighting adds to the warmth of an area while helping it to feel more open and inviting.

A few ideas on what to do with an unfinished basement without spending a lot of money. Do you have some other ideas? Leave a comment below.

Looking for more ideas for low-cost updates? Here are some weekend projects to consider. Click here.

Shopping • July 1, 2022

Protect Your Identity

by Ellen Kirchdoerfer

A stolen identity can take months, even years to repair. As a result, a stolen identity can affect your credit, mental health, and emotional well-being. Here are some tips to protect your identity.

Protect Your Identity

Thieves have many ways to trick you into trusting their offers and suggestions. Follow these tips to protect your information and identity:

Use strong passwords that are unique for each website. Use a combination of caps and lower case letters with numbers and symbols for the best protection.
When shopping online, look for the 🔓. This lock-in front of the website URL is one way of knowing security measures have been taken to protect the website.
Permanently destroy documents containing personal information that you no longer need. Shredding or burning these documents, for instance, will keep them from getting into the wrong hands.
Install protection on your computer or device to protect against viruses, spyware, and malware.
Monitor your accounts for unauthorized activity. Report any questionable activity immediately to your financial institution.
Finally, do not click on links from unrecognized email accounts or text messages. Emails and texts can be copied to look very similar to the real thing.

So, thieves have become very crafty at stealing your identity. Using caution can end up saving you a lot of trouble. For more information on protecting your identity, go to https://www.usa.gov/identity-theft.

Are you thinking about a move? For home buying tips, visit Buying A Home.