On August 29th, 2019, major iBuyer Opendoor launched a mortgage lending division known as “Opendoor Home Loans” to create a one-stop shop for home buyers and sellers.
As a result, those interested in purchasing a property from Opendoor can take advantage of their financing department, similar to how home builders partner with mortgage lenders to facilitate loan closings.
You can even sell an existing property to Opendoor and finance a new one, all with one company if you feel so inclined.
Let’s learn more about this new mortgage lender, which operates out of Plano, Texas.
Opendoor Home Loans Wants to Cut Closing Times in Half
Aim to close home purchase loans in 3 weeks
Offer $100 per day toward closing costs if loan closing is delayed
Can generate a pre-qual letter in minutes via phone or computer
Limited-time $1,000 closing cost credit also available to customers
Noting that financing is often “one of the most complicated and intimidating parts of a home purchase,” they claim they can cut the typical 45-day timeline in half.
So instead of closing in a month and a half, they aim to close your home loan in as little as about three weeks.
They’re backing up that promise by offering $100 per day for every day beyond the scheduled closing date that the loan closing is delayed.
To get started, they ask that you get pre-qualified, which can be accomplished over the phone or online in just minutes.
You’ll receive a pre-qualification letter as well, which can be used to show home sellers that you’re a serious buyer.
Once you find your dream home and your loan is submitted, you’ll receive one-on-one support along with regular updates from your dedicated Mortgage Consultant.
If you happen to be using Opendoor’s trade-in program, where you sell them your old home and buy a new home from them directly, you can schedule the closings to take place on the same day.
At the moment, the company is offering a limited-time $1,000 credit toward closing costs, which is automatically applied to your closing statement.
Speaking of closing costs, they say they don’t charge an application fee, and that you’ll only be on the hook for third-party fees, such as home appraisal and title/escrow fees.
What Types of Loans Does Opendoor Home Loans Offer
Currently offer conventional mortgages (Fannie Mae and Freddie Mac) and FHA/VA loans
Can obtain a fixed-rate mortgage or an ARM with varying loan terms
Offer both home purchase loans and mortgage refinances
A minimum 620-FICO score is required for loan approval
The company began by only offering conventional mortgages, those backed by the likes of Fannie Mae and Freddie Mac, but has since expanded into FHA and VA loans.
They do not offer USDA loans, though that may change in the future as they expand.
In terms of specific loan programs, fixed-rate mortgages are available in 30-, 25-, 15-, or 10-year terms.
You can also get an adjustable-rate mortgage with an initial fixed-rate period of five, seven, or 10 years.
Regarding their mortgage rates, they simply refer to them as “competitive,” so be sure to shop around to see what other lenders are offering for similar loan scenarios.
The lowest down payment available for Fannie- and Freddie-backed loans is 3%, so even those with little set aside in assets have the ability to qualify for a mortgage.
Like Fannie/Freddie, Opendoor Home Loans requires a minimum 620-credit score to get approved for a mortgage.
Once the loan is closed, it will be sold off and serviced by a different loan servicing company, which is common practice in the mortgage lending industry.
Where Opendoor Home Loans Operates
Only licensed to lend in eight states at the moment
Additional states are planned for the near future
Can finance any home purchase, not just Opendoor-owned properties
Company will likely serve mostly Opendoor home buyers to facilitate loan closings
Currently, the company only offers financing to home buyers in the states of Arizona, Colorado, Florida, Georgia, North Carolina, South Carolina, Tennessee, and Texas.
They plan to expand to more states in the near future if all goes well.
You can finance any home purchase in these states, even if it’s not an Opendoor-owned home.
You’ll just want to ensure it actually makes sense to do so versus using one of the many other lenders out there.
All in all, Opendoor Home Loans joins a very crowed space in the mortgage ecosystem, but it makes sense to have their own financing department to facilitate their iBuying activity.
Ultimately, it gives them more control of the process to ensure there aren’t any roadblocks put up by third parties, similar to why Zillow Home Loans exists.
Whether they become a major mortgage lender in the future remains to be seen, but my guess is they will mostly serve Opendoor customers.
In November 2021, Opendoor acquired RedDoor, a so-called digital-first mortgage brokerage that delivers 60-second verified pre-approvals.
The move should allow the company to compete with the likes of Rocket Mortgage and other tech-heavy lenders, while also bolstering their iBuying business.
Update: In early November 2022, Opendoor Home Loans was shuttered. The company also laid off 550 workers, or 18% of Opendoor staff.
In January 2023, Opendoor announced that Lower was its exclusive mortgage provider.
While perhaps not a major household name yet, there’s a good chance you’ll stumble upon AmeriSave if actively shopping your home loan.
They have quite a presence online and are a top-rated mortgage lender with LendingTree, despite a lack of physical branches and national advertising campaigns.
In August 2021, the company inked its first partnership with a professional sports organization, the Miami Dolphins.
They will receive prominent branding at Hard Rock Stadium, along with marketing spots on radio broadcasts and team content.
Let’s get some more background on AmeriSave to see if they could be a good choice for you.
Table of Contents
– Who Is AmeriSave? – What Does AmeriSave Mortgage Offer? – AmeriSave Rate Match Guarantee – $500 Application Fee – AmeriSave Mortgage Rates – AmeriSave Reviews – AmeriSave Pros and Cons – AmeriSave vs. loanDepot
Who Is AmeriSave Mortgage Corp.?
Direct-to-consumer mortgage lender that offers home purchase and refinance loans
Founded in 2002, based in Atlanta, Georgia
Has originated over $55 billion in home loans on over 230,000 properties
Claims to have pioneered digital loan origination process
Licensed in 49 states and D.C. (not available in NY)
AmeriSave Mortgage Corp. is a direct-to-consumer mortgage lender lender based in Atlanta, Georgia that has been around since early 2002.
They refer to themselves as a fintech company responsible for “pioneering the first truly digital mortgage experience,” a claim Rocket Mortgage might disagree with.
Regardless, they are a mortgage lender that lives online, which hopefully means they can pass the savings of brick and mortar expenses on to you.
Over the past decade, AmeriSave has “invested heavily in its proprietary technology” to create a “highly automated” loan process, similar to other fintech lenders like Better Mortgage and Figure.
The company says many of its customers choose to go the “self-serve” route for all or most of their transaction thanks to the intuitive loan origination platform in place.
AmeriSave is licensed in 49 states and the District of Columbia, with New York the only state they don’t lend in.
Since inception, they have funded over $55 billion in home loans on over 230,000 properties nationwide.
In January 2019, they acquired the origination business of The Money Source (TMS), which had been a growing force online as well.
AmeriSave took on some TMS employees and their Plano, Texas and Chandler, Arizona offices via the acquisition, with expected volume of $1.5 billion for 2019.
They also have a wholesale lending arm that works directly with mortgage brokers, so it’s possible your loan could come from AmeriSave if you use a broker.
What Does AmeriSave Mortgage Offer?
Home purchase or refinance loans
Conventional (Fannie/Freddie) and jumbo loans
Government loans including FHA, USDA, and VA
Fixed-rate loans: 30-year, 15-year, 25-year, 20-year, and 10-year fixed
ARMs: 5/1, 7/1, and 10/1 varieties
Home equity lines of credit (HELOC)
Personal loans
AmeriSave has all the typical loan options you’d expect from a national direct lender, including home purchase, rate and term, and cash out refinances.
They recently launched a suite of home buyer perks including a certified approval letter, certified closing promise, and a lock & shop option.
All three can make you a stronger candidate in a bidding war, or simply give you peace of mind that you qualify for a mortgage if and when you find your dream home.
In terms of loan type, they offer both conforming and jumbo loans, along with government loans such as FHA, USDA, and VA loans.
You can get a fixed-rate mortgage in 30- or 15-year terms, along with less common loan terms of 10, 20, and 25 years.
With regard to their adjustable-rate mortgages, they offer the 5/1, 7/1, and 10/1, which are the most popular available.
They have caps of 2/2/5, meaning the most they can adjust initially is 2%, then 2% periodically, and up to 5% during the life of the loan.
The company also offers a home equity line of credit (HELOC) if you need cash, but don’t want to lose the low fixed interest rate on your first mortgage.
Lastly, they just launched personal loans up to $50,000 loan amounts that come with a fixed rate and a 3-, 5-, or 7-year term.
AmeriSave Lock & Drop Program
In February 2023, AmeriSave launched the “Lock & Drop Program,” which a temporary mortgage rate buydown.
The way it works is simple. You get a 1% rate reduction the first year of your mortgage term. So if you qualify for a rate of 6%, you’ll get a rate of 5% in year one.
This is known as a 1-0 buydown. And it is a lender-paid buydown, meaning AmeriSave covers the cost.
Of course, be sure to compare their mortgage rates to competitors, as the cost could be passed along to consumers.
In conjunction with this new offer, they are extending a $750 credit that can be applied towards a future refinance transaction.
If mortgage rates drop and you refinance with them, you can qualify for that credit as well.
AmeriSave Rate Match Guarantee
Like some other mortgage lenders, AmeriSave offers a Rate Match Guarantee if you find a better deal elsewhere.
Here’s how it works. Once your mortgage rate is locked with AmeriSave, you are given three calendar days to shop around with other lenders to find a better deal.
If you’re able to locate a better deal for the same loan terms in which you locked, they will either match it or give you $500 if you go with the other lender.
The guarantee applies to both purchase loans and refinances, but excludes jumbo loans and ARMs.
It’s a tricky situation though because you aren’t given much time to shop, and they seem to charge a $500 non-refundable application fee.
So if anything, you’d maybe get that fee back if you found a more competitive lender to work with.
$500 Application No Longer Charged
At last glance, AmeriSave had an A+ Rating with the Better Business Bureau, but it doesn’t take into account customer reviews.
In terms of customer reviews, they have 4.09/5 stars on the BBB website. A good share of their negative reviews seem to stem from their non-refundable deposit taken at loan application.
As of August 10th, 2022, they no longer charge this fee.
Prior to this change, they used to collect the $500 non-refundable application fee to cover loan processing and other “miscellaneous costs” incurred by the company.
Assuming you closed your loan with AmeriSave, they would refund the fee at closing and it would be reflected on the Closing Disclosure (CD).
For the record, it’s not uncommon for lenders to charge these fees, either for rate locks or appraisals, but not all lenders impose them.
Other complaints are related to the home appraisal fee they charge, which varies in cost by loan.
It appears that those who complained on the BBB about either the $500 deposit or the appraisal fee received a refund in many cases.
AmeriSave Mortgage Rates
Another plus is that AmeriSave openly advertises their mortgage rates on their website. Or at least a couple sample rates.
In order to view their daily rates, simply click on “rates” from the top navigational menu.
If you want a more personalized quote, you have to complete a short questionnaire that is akin to a mortgage lead form.
It should be noted that the sample rate comes with loan assumptions, but on the day of this review, it was a 30-year fixed loan set at 2.125%, which is pretty ridiculously low.
Digging into the fine print, it was based on a hypothetical loan with a $250,000 loan amount set at 80% LTV with a 740 FICO score.
Oh, and it was for a refinance on an owner-occupied, single family home with lots of discount points being paid.
Still, it sounds pretty competitive relative to what else is out there. But your rate will vary based on your own unique loan parameters.
By the way, you should actively shop your mortgage if you want to save money – there are legitimate studies that prove you can save real money by doing so.
AmeriSave Reviews
AmeriSave comes highly rated on the LendingTree platform, with a 4.7 out of 5 score from nearly 11,000 customer reviews.
Not only that, but they also claimed the #1 spot for customer satisfaction for home lending in the first quarter of 2021. And also the #1 spot in Q4 2020 and Q3 2020.
On Zillow, they have a 4.66-star rating out of 5 from about 2,000 customer reviews, which is pretty solid.
It’s possible to see who the customers worked with if you want to fine-tune the reviews and perhaps ask to work with the highest-ranking individual.
Over at Google, they have a less convincing 3.9-star rating from about 1,700 reviews, which I’d consider average-to-good. Somewhat of a mixed bag.
The company is also accredited with the Better Business Bureau (BBB) and has been since 2020. They currently hold an ‘A+’ rating based on customer complaint history.
AmeriSave has a 4.09/5 rating on the BBB website from roughly 3,100 reviews, which is pretty good for a more complaint-driven site.
AmeriSave Pros and Cons
The Good
Offer what appear to be competitive mortgage rates
Can apply online in minutes and close quickly
Digital process – can link financial accounts via AccountChek by FormFree
Plenty of loan options to choose from including HELOCs
May retain and service your loan (as opposed to selling it to a third party)
Could be a good choice for those with straightforward loan scenarios (good credit, lower LTVs, W-2 employment)
Mostly excellent reviews from past customers
Claimed top spot for customer satisfaction on LendingTree in Q1 2021, Q4 2020, and Q3 2020
A+ BBB rating
The Potential Bad
Numerous customer complaints on BBB website
AmeriSave vs. loanDepot
AmeriSave
loanDepot
Digital application
Yes
Yes
Branch locations
No
Yes
Loan types offered
Conventional, FHA, USDA, VA, jumbo
Conventional, FHA, VA, jumbo
Minimum FICO score
600
580
Application fee
n/a
n/a
Will service your loan?
Yes
Yes
Loyalty program
No
Yes
Licensed to do business in…
49 states and D.C.
All 50 states and D.C.
BBB rating
A+
A+
Zillow rating
4.7/5 from 2,000 reviews
4.88/5 from 4,700 reviews
If you’ve been shopping your home loan, you may have also come across loanDepot.
They are similar to AmeriSave in that they’re a direct lender, but they also have physical branches across the country.
Another differentiating factor is that AmeriSave offers USDA loans, while loanDepot does not.
However, AmeriSave isn’t licensed in the state of New York.
At loanDepot, you can get a mortgage with a slightly lower credit score, and they offer a loyalty program to customers who refinance in the future.
Other than that, both come highly-rated and are BBB accredited with A+ ratings.
In this comprehensive guide, by Redfin, we will delve into ten common questions about mortgages, offering valuable insights and expert answers. Whether you’re a first-time homebuyer in Los Angeles or you’re considering refinancing your home in Tampa, this guide is tailored to equip you with the knowledge and understanding necessary to navigate the mortgage process effectively.
1. What is a mortgage?
A mortgage is a loan specifically designed for purchasing a property, commonly a home. It acts as a financial agreement between the borrower and the lender, where the property serves as collateral. In the event that the borrower fails to repay the loan, the lender has the right to take possession of the property through a legal process known as foreclosure.
Essentially, a mortgage enables individuals to become homeowners by providing the necessary funds upfront, with the property serving as security for the loan.
2. How does a mortgage work?
When you take out a mortgage, the lender provides you with a specific amount of money to buy a home. You then make monthly payments, including principal and interest, over an agreed-upon term (usually 15 to 30 years) until the loan is fully repaid. The interest rate and term length determine the amount of your monthly payments.
3. What are the different types of mortgages?
When considering mortgage options, it’s important to understand the different types available. A fixed-rate mortgage provides stability and predictability, with a consistent interest rate throughout the loan term. On the other hand, an adjustable-rate mortgage (ARM) offers flexibility and potential initial payment advantages as the interest rate adjusts after an initial fixed period.
Government-backed loans, such as FHA or VA loans, provide more flexible qualification criteria and specific benefits. Additionally, prospective first-time homebuyers can benefit from exploring specific programs available to them, such as first-time homebuyer programs, which offer unique benefits and support. Consulting with a mortgage professional can help you choose the best mortgage type to suit your financial goals.
4. How is a mortgage rate determined?
Mortgage rates are influenced by various factors, such as the borrower’s credit score, loan-to-value ratio, loan term, and prevailing market conditions. Lenders consider the borrower’s creditworthiness and the level of risk associated with the loan. Additionally, the loan-to-value ratio and loan term can impact the interest rate offered.
Lenders also take into account economic indicators, including inflation, employment rates, and the overall state of the economy, when setting mortgage rates.
5. What is a down payment, and how does it affect a mortgage?
A down payment is an upfront payment made by the borrower when purchasing a home. It is typically a percentage of the home’s purchase price. The down payment reduces the loan amount and can impact the interest rate, monthly payments, and whether you need to pay for private mortgage insurance (PMI).
6. What is PMI, and when is it required?
PMI, or private mortgage insurance, is a type of insurance that protects the lender if the borrower defaults on the loan. It is generally required when the down payment is less than 20% of the home’s value. Once the borrower’s equity reaches 20%, PMI can be canceled.
7. What documents are typically required for a mortgage application?
Mortgage lenders typically require various documents to evaluate your financial situation and determine your eligibility. These may include proof of income, bank statements, employment verification, credit history, and debt information. These documents provide lenders with a comprehensive understanding of your financial profile for the mortgage application process.
“Technological advancements have greatly simplified the document submission process for borrowers in the mortgage industry,” shares Ron Haddad Lending Team. “With improved digital systems and online platforms, it is now easier than ever for prospective buyers to organize and submit their necessary paperwork. This streamlining of document submission contributes to a smoother and more efficient mortgage application process, providing borrowers with convenience and reducing the paperwork burden.”
8. How does the mortgage pre-approval process work?
Mortgage pre-approval is a crucial step in the homebuying process. By submitting a mortgage application, the lender assesses your financial information to determine the loan amount you qualify for. Pre-approval provides a clear understanding of your budget and helps you focus your search on affordable homes. It also strengthens your position as a serious buyer and expedites the loan process once you find your dream home.
9. What are closing costs?
Closing costs are fees and expenses associated with finalizing a mortgage loan. They can include appraisal fees, title insurance, attorney fees, loan origination fees, and prepaid expenses such as property taxes and homeowners insurance. It’s essential to budget for these costs when planning to purchase a home.
10. How can borrowers improve their chances of getting a mortgage?
To improve your chances of getting approved for a mortgage, there are a few key considerations. Maintaining a good credit score, saving for a down payment, keeping your debt-to-income ratio in check, and avoiding major financial changes during the loan process are crucial steps to take. These factors demonstrate financial responsibility and stability to lenders, increasing the likelihood of mortgage approval. Remember to consult with a mortgage professional for personalized guidance based on your specific situation.
“Once you determine you want to buy a home, start learning the basics of your credit profile.” Mortgage loan consultant Luis Machain says, “have the ability to show the lender that you can pay the mortgage back by demonstrating steady employment. It’s important to meet with a mortgage professional who can advise you on the available loan programs and down payment options.”
If you’ve heard of Dave Ramsey, you might have come across Churchill Mortgage, which happens to be his mortgage lender of choice.
Why? Because like Dave, they believe that the real American Dream is debt-free homeownership, not a massive mortgage hanging over your head through retirement.
To that end, they do things a little differently than the rest of the industry. Let’s learn more about what makes them unique.
The History of Churchill Mortgage
Direct-to-consumer mortgage lender founded in 1992 by Mike Hardwick
Headquarters are located in Brentwood, Tennessee
Employs more than 400 people with branches in dozens of states
Does business in 46 states nationwide
Funded more than $2 billion in home loans last year
Did the most business in Tennessee, Texas, and California
Their main product pitch is the money-saving 15-year fixed mortgage
Churchill Mortgage is a privately-owned company that was founded in 1992, meaning it has been around for nearly 30 years.
In the mortgage industry, that makes it one of the older companies still standing and/or independent, given many were lost during the Great Recession.
It was founded by Lawson H. (Mike) Hardwick, III in Brentwood, Tennessee. He was previously one of the principal founders of Franklin National Bank until it was acquired by Fifth Third Bank.
Today, his company has more than 400 employees across a nationwide branch network in 46 states.
They don’t appear to do business in Delaware, Hawaii, Nevada, or New York.
In 2019, the company originated more than $2.2 billion in home loans, a record year for Churchill Mortgage.
Dave Ramsey’s Spin on Mortgages
There’s clearly a big link between Churchill Mortgage and Dave Ramsey, with the latter’s recommendations found on the former’s website.
As you can see from the illustration above, Dave believes in a few core principles.
First off, he wants you to be debt-free when it comes to consumer debt, such as credit cards, student loans, personal loans, etc.
Second, he wants you to have at least 3-6 months of cash in an emergency fund, which is also handy for meeting minimum reserve requirements with lenders.
Speaking of mortgages, he’s all about the 15-year fixed, as you might already know, given its much cheaper interest expense versus the more popular 30-year fixed.
And he expects you to come with a down payment of at least 10%, while only committing 25% of your take-home income toward a monthly mortgage payment.
What Churchill Mortgage Offers
They originate conventional, FHA, VA and USDA mortgages
You can also get a no credit score home loan
Unclear what individual loan programs are offered
They don’t advertise their mortgage rates or disclose lender fees on their website
One negative to Churchill is the lack of information regarding loan products.
While their website is filled with lots of helpful mortgage tips and how-to articles, they’re a little light on company details.
After some digging, I was able to see that they offer conventional, FHA, VA and USDA mortgages.
That’s good news because it means all the major bases are covered with regard to loan type.
But in terms of individual loan programs, such as 30-year fixed, 15-year fixed, 5/1 ARM, etc., there’s no information.
I assume they offer all the most popular loan programs, but can’t say so definitively. It’s a bit bizarre that this information isn’t readily available.
Additionally, they make no mention of mortgage rates or lender fees, so we’re also in the dark on these key factors as well.
Without knowing any of this stuff, it’s very difficult to determine how competitive Churchill is versus other mortgage lenders.
Churchill Mortgage’s No Score Loan
They offer mortgages without a credit score
Because Dave Ramsey doesn’t have a credit score and his listeners may not either
Alternative credit such as a cell phone bill or utility bill is used instead
This establishes a history of payment behavior to determine creditworthiness
However, one of their more unique mortgage offerings is their “no score loan,” which allows you to get a mortgage without a credit score.
Why would they offer this you ask? Well, once again Dave Ramsey comes into the picture. Apparently, he doesn’t have a credit score, since he eschews all credit.
And there’s a good chance many of his loyal listeners are in the same boat, yet don’t have the money to pay all-cash for a home.
That’s where their no credit score home loans come in – they rely on alternative credit, such as a cell phone bill, utility bill, insurance premium, school tuition, child care, or rent payments.
This allows an underwriter to establish a history of on-time payments using that alternative credit.
In terms of approval, they say a 15-year fixed with at least 20% down provides the best chance of getting to the finish line.
They May Recommend a 15-Year Fixed
Speaking of 15-year fixed mortgages, there’s a good chance it might be recommended to you if you apply with Churchill.
As noted, they are big proponents of Dave Ramsey and being debt-free, and paying off a mortgage in half the time is a big step in achieving that goal.
Of course, a 15-year fixed will cost you about 1.5X your typical monthly mortgage payment, so it’s not for everyone.
In fact, many won’t qualify for a 15-year fixed due to affordability constraints and DTI maximums.
If Dave were calling the shots, he’d probably say don’t buy the house unless you can afford the 15-year fixed.
It’s unclear what Churchill’s loan officers would say, but I’m sure they offer other loan products, such as the 30-year fixed.
Applying for a Loan with Churchill Mortgage
At the moment you fill out a short form on their website
Then you are connected with a loan officer from one of their branches
The rollout of Churchill Next may change that process to a fully digital one
There is also a smartphone app that allows you to upload documents and check loan status
Like many other lenders, you start by filling out a short form on their website. This include providing basic contact info, at which point you’ll be matched up with a Home Loan Specialist.
They refer to this as the “Churchill Checkup,” a 10-minute call to help align your mortgage with your personal goals.
While the company has branches nationwide, there are out-of-state branches that serve different states. So it’s possible your loan representative could be located halfway across the country.
In any case, once paired up, they will ask you what your housing goals are and then present the best loan options available to you.
This process will likely change thanks to its new initiative known as “Churchill Next,” which is their digital transformation powered by tech company Infosys.
The partnership will enable borrowers to interact with the company in any way they wish, without compromising the values and trust Churchill is built on.
In other words, in the future you might be able to apply for a home loan via the app or website without speaking to a human, if that’s your desire.
Additionally, the use of technology should lower company costs, which could translate to cheaper mortgages for its customers.
The Churchill Smartphone App
The company already offers a smartphone app via both the App Store and Google Play.
It lets users play around with mortgage calculators to determine what they can afford, or learn more about mortgages via helpful guides.
Additionally, you can get in touch with a loan officer or check loan status if you’ve already submitted an application.
It also gives you the ability to send documents securely, either by taking a picture or sending a file on your phone. So you can satisfy loan conditions on the go.
As Churchill Next gets integrated, you might be able to do just about everything via the app in the near future.
Rate Secured by Churchill Mortgage
If you’re in the market to purchase a home, Churchill lets you lock your rate for up to 90 days while you search for a property.
This is known as a pre-lock in the mortgage industry because you’re securing a mortgage rate before actually applying for a home loan.
Now if rates go up during that time, your interest rate remains unchanged.
But if rates go down, you get to take advantage of the lower rates available.
They also let you lock in the rate for an additional 90 days if you’re unable to find a home in the initial 90-day period.
This is similar to the RateShield Approval from Quicken Loans.
Churchill Certified Home Buyer Approval
Prospective home buyers can also take advantage of the so-called Churchill Certified Home Buyer pre-approval, which is stronger than your everyday pre-approval.
Instead of just submitting financial documents to a loan officer, your information is actually reviewed by a loan underwriter, who can conditionally approve you for financing on a new home.
As such, you and the home seller will have peace of mind that your mortgage will be approved if and when you find your dream home.
This can give you an edge over other buyers, and even help you compete with all-cash buyers too in hot housing markets.
And because you’ve done the bulk of the legwork up front, it should make for a smoother home buying process once you’ve found the right home.
Churchill Mortgage Reviews
I dug around some review sites to see what people thought of Churchill Mortgage. Over at the Better Business Bureau, they have an A+ rating and have been accredited since 1995.
While customer reviews aren’t factored into the BBB calculation, there were only three reviews on the BBB website. They were all one or two stars out of five. But three reviews isn’t much of a representation.
They had over 16,000 customer reviews as of this writing at SocialSurvey, with a 4.85 rating out of 5. Most customers seem extremely satisfied.
Similarly, they come highly rated at Zillow, with a 4.97 star rating out of 5, based on nearly 400 customer reviews.
So all in all, they appear to come highly recommended by past customers. And that makes sense since the company’s goal is to help you achieve the American Dream of homeownership.
Pros and Cons of Churchill Mortgage
The Good
Seem to genuinely interested in educating customers on mortgages
May recommend loan products that get you out of debt faster
Offer mortgages with no credit score
Wide array of loan programs available
Have a digital loan process via Churchill Next
Offer a free smartphone app
Can pre-lock your rate and get a pre-approval reviewed by an actual underwriter
A+ rating with Better Business Bureau
Good reviews from past customers
The Potential Bad
Not licensed in Delaware, Hawaii, Nevada, or New York
Unclear what lender fees they charge
Do not advertise their mortgage rates
Their debt-free strategies may not be a good fit for all applicants
Are you dreaming of owning a piece of the American Southwest? Arizona, with its vibrant desert landscapes, sunny weather, and diverse cultural attractions, offers an irresistible allure for those seeking a new place to call home. However, before embarking on this exciting journey, it’s essential to understand the homebuying process specific to the Grand Canyon State. From navigating local regulations and financial considerations to finding your perfect abode in a downtown Phoenix condo or a serene house in Gilbert, this Redfin article will serve as your comprehensive guide to buying a house in Arizona.
So, fasten your seatbelts as we explore the steps, intricacies, and tips to make your Arizona homebuying experience smooth and successful.
What’s it like to live in Arizona?
With its year-round sunshine and warm climate, Arizonans enjoy an outdoor-centric lifestyle by hiking, golfing, and exploring the vast desert landscapes. The state is also home to several renowned national parks and monuments, including the breathtaking Grand Canyon and the stunning red rocks of Sedona, providing endless opportunities for adventure and exploration. Arizona is also known for its intense summer heat, and protecting yourself and your property when living there is essential. Check out this article to learn more about the pros and cons of living in Arizona.
Arizona housing market insights
The Arizona housing market is experiencing some notable trends and shifts. The median sale price currently stands at $436,100, showing a 6.2% decrease compared to the previous year. Several cities in Arizona have emerged as competitive real estate markets, including Pinetop, Flagstaff, and Cottonwood. Popular cities in the Phoenix area, such as Scottsdale, Chandler, and Gilbert, are also witnessing significant growth and attracting prospective homebuyers. However, the housing supply in Arizona has decreased by 4.7% year-over-year, indicating a tightening market. These data points suggest a dynamic and evolving housing market in Arizona, with fluctuating prices, competitive cities, and limited supply, all of which have implications for buyers.
Finding your perfect location in Arizona
For several reasons, selecting the perfect location for buying a house in Arizona is vital. First and foremost, Arizona offers diverse landscapes and communities, each with its unique charm and amenities. By carefully considering your desired location, you can align your lifestyle preferences with the area’s offerings. Additionally, the location of your home greatly impacts factors such as commuting time, access to essential services, quality of schools, proximity to recreational opportunities, and potential appreciation of property value over time.
If you’re unsure where to start, using tools like a cost of living calculator can help you determine what cities are within your budget. We’ve put together a glimpse of the five popular cities, so you can get an idea.
#1: Tucson, AZ
Median home price: $330,000 Tucson, AZ homes for sale
Moving to Tucson offers a unique and vibrant experience that blends desert beauty, cultural richness, and a relaxed atmosphere. Outdoor enthusiasts can delve into the picturesque trails of Saguaro National Park, embark on invigorating hikes or bike rides in the nearby Catalina Mountains, or indulge in a round of golf on world-class courses. Embracing its rich cultural heritage, Tucson boasts a thriving arts scene featuring captivating museums, art galleries, and the renowned Tucson Gem and Mineral Show. While the cost of living in Tucson exceeds the national average by 4%, there are affordable Tucson suburbs, ensuring a balance between cost-effectiveness and access to the city’s attractions.
#2: Mesa, AZ
Median home price: $440,000 Mesa, AZ homes for sale
As the third-largest city in Arizona, Mesa is known for its suburban neighborhoods, well-maintained parks, and outdoor activities. Moving to Mesa, you’ll enjoy over 300 days of sunshine each year, making it ideal for outdoor enthusiasts. Explore the nearby Superstition Mountains, go hiking or biking in Usery Mountain Regional Park, or enjoy water sports at the nearby Saguaro Lake. Mesa also offers a rich cultural scene, with attractions such as the Mesa Arts Center, which hosts a variety of performances, exhibits, and festivals throughout the year.
#3: Phoenix, AZ
Median home price: $439,950 Phoenix, AZ homes for sale
Known as the Valley of the Sun, Phoenix is a bustling metropolis with a thriving economy, vibrant culture, and many amenities. With a move to Phoenix, residents can enjoy an abundance of sunshine throughout the year, allowing for a wide range of outdoor activities such as hiking, golfing, and exploring the scenic desert landscapes. Phoenix is home to major sports teams, including the Phoenix Suns and the Arizona Diamondbacks, offering exciting opportunities for sports enthusiasts. Additionally, if you’re looking for affordable Phoenix suburbs, several options provide a more budget-friendly housing market while offering access to the city’s amenities.
#4: Flagstaff, AZ
Median home price: $645,000 Flagstaff, AZ homes for sale
Flagstaff enjoys all four seasons, attracting residents who revel in the mesmerizing hues of autumn, the snowy winters that offer thrilling skiing and snowboarding opportunities at Arizona Snowbowl, and the mild summers perfect for hiking and camping. If you’re a lover of stars, moving to Flagstaff will grant you the chance to experience the Lowell Observatory, where residents can delve into the wonders of the night sky. It’s worth noting that the cost of living in Flagstaff is 14% higher than the National Average. Still, the city’s unique offerings and natural beauty make it a worthwhile investment for those seeking an exceptional living experience.
#5: Scottsdale, AZ
Median home price: $830,000 Scottsdale, AZ homes for sale
Scottsdale is renowned for its world-class resorts, spas, and golf courses, attracting visitors and residents seeking relaxation and indulgence. Scottsdale’s Old Town showcases a charming blend of historic charm and modern sophistication with its trendy boutiques, art galleries, and renowned dining establishments. Moving to Scottsdale can be expensive, with the cost of living exceeding the national average by 13%. If you want to stay on a budget, there are affordable suburbs outside downtown.
The homebuying process in Arizona
If the allure of Arizona has swept you away, and you have your heart set on a specific city or neighborhood, it’s time to dive into the homebuying process.
1. Prioritize your finances
Getting your finances in order is crucial when buying a house in Arizona. You can position yourself for a smooth and successful homebuying journey with careful financial planning and preparation. Start by assessing your credit score and addressing any issues to ensure you qualify for favorable loan terms. Next, determine your budget and calculate how much you can comfortably afford, considering factors like down payment, closing costs, and monthly mortgage payments. Using tools like an affordability calculator can help you determine your budget.
Various programs are available for first-time homebuyers in Arizona, including the Pathway to Purchase, which can assist with up to $20,000 in down payment and closing cost assistance.
2. Get pre-approved from a lender
Securing a pre-approval when buying a home in Arizona can provide numerous advantages. By obtaining pre-approval from a reputable lender, you clearly understand your financial standing and borrowing capacity. This knowledge empowers you to set a realistic budget, ensuring you focus on homes within your price range. Pre-approval also enhances your credibility as a buyer, demonstrating to sellers that you are serious and financially qualified.
3. Connect with a local agent in Arizona
Working with a local agent during the homebuying process in Arizona is of utmost importance. Local agents possess invaluable knowledge and expertise specific to the Arizona real estate market, which can significantly benefit buyers. They are well-versed in the intricacies of different neighborhoods, market trends, and pricing dynamics across the state. So whether you need a real estate agent in Tucson or an agent in Phoenix, they’re here to help.
4. Start touring homes
When touring homes in Arizona, keep a discerning eye and consider key factors that can influence your decision. First, pay attention to the home’s location and neighborhood. Consider proximity to schools, amenities, and commute times to ensure it aligns with your lifestyle. Assess the property’s condition, checking for any signs of wear, structural issues, or potential maintenance needs. Look for natural lighting, functional layouts, and ample storage space that meet your requirements.
5. Make the offer
The offer is a critical aspect of the homebuying process in Arizona, carrying significant weight in determining whether your dream home becomes a reality. Crafting a strong offer is essential to stand out in a competitive market. Consider the listing price, property condition, and local market trends to determine a fair and competitive offer. Your offer should include the purchase price, contingencies, and desired timelines for inspections, financing, and closing.
6. Close on the house
The closing process is a pivotal moment in the homebuying process in Arizona, where all the necessary paperwork is finalized, and ownership of the property is transferred. It’s a critical step that requires careful attention to detail and a thorough review of the closing documents. During the closing, you will sign various legal documents, including the mortgage, deed, and other necessary paperwork. It’s essential to carefully review and understand these documents before signing to ensure you know the terms and obligations.
If you’re new to the process and still have questions, Redfin is here to help. The First-Time Homebuyer Guide goes into more detail about each step in the homebuying process.
Factors to consider when buying a house in Arizona
Due to Arizona’s geographical location, there are distinct factors to consider when buying a home.
Climate and weather
When buying a house in Arizona, it is crucial to consider the climate and weather, as well as the impact climate change is having in the state. Arizona offers a diverse range of climates, with hot summers exceeding 100 degrees Fahrenheit (38 degrees Celsius) in desert areas like Phoenix and Tucson. These cities are also known for their mild and pleasant winters, attracting snowbirds and retired individuals seeking warmer temperatures. On the other hand, the northern parts of the state, including Flagstaff and Sedona, provide a cooler and more moderate climate, with snowy winters and comfortable summers. Homebuyers must take into account their preferences and tolerance for extreme heat or cold when selecting a location within Arizona.
Additionally, the state’s unique desert climate presents both advantages and challenges. Efficient cooling systems and proper insulation are necessary to combat the intense summer heat, while the dry weather increases the risk of drought and wildfires, prompting homeowners to consider shade availability, outdoor living spaces, and landscaping options to mitigate the sun’s impact.
Dual agency
Arizona allows for dual agency in real estate transactions, which refers to a real estate agent representing both the buyer and the seller in the same transaction. In dual agency, the agent acts as a neutral intermediary, facilitating the transaction and ensuring a fair process for both parties. However, it’s important to note that dual agency requires all parties’ informed consent.
Buying a house in Arizona: Bottom line
Navigating the homebuying process in Arizona requires careful consideration and strategic decision-making. From understanding the importance of location to getting finances in order, securing pre-approval, and working with local agents, each step plays a vital role in achieving a successful and satisfying home purchase. By being well-informed, proactive, and adaptable, homebuyers can confidently navigate the Arizona real estate landscape and find their perfect place to call home in this beautiful southwestern state.
Buying a house in Arizona FAQ
What are the requirements for buying a home in Arizona?
To start it off, a down payment is necessary, although the specific amount can vary depending on factors such as the loan type and lender requirements. A good credit score is also crucial, with a minimum score of around 620 often preferred for conventional loans. Income and employment verification is required to demonstrate the ability to repay the mortgage. Lenders assess the debt-to-income ratio to ensure borrowers can manage their monthly payments. It is advisable to conduct a property appraisal and home inspection to determine the value and condition of the property.
What is a typical down payment on a house in Arizona?
A typical down payment on a house in Arizona can vary depending on various factors. Generally, it ranges from 3% to 20% of the purchase price. The percentage often depends on the loan type, lender requirements, and the borrower’s financial situation. For conventional loans, a down payment of around 20% is ideal for avoiding private mortgage insurance (PMI). However, options are available for lower down payment percentages, such as 3% or 5%, particularly for first-time homebuyers or through government-backed loan programs like FHA loans.
What credit score do I need to buy a house in Arizona?
When buying a house in Arizona, the credit score requirement can vary depending on the type of loan and the lender’s criteria. Generally, a good credit score is preferred to qualify for favorable mortgage terms. A minimum credit score of around 620 or higher is typically required for conventional loans. However, loan programs, such as FHA loans, offer more flexibility and can accommodate borrowers with lower credit scores, sometimes as low as 580. It’s important to note that a higher credit score generally improves your chances of securing a mortgage with competitive interest rates and favorable terms.
Buying a house in Michigan can be an exciting and fulfilling experience. Known for its diverse landscapes, vibrant cities, and affordable housing options, Michigan offers prospective homebuyers a range of opportunities. Whether you’re looking for charming suburban homes in Grand Rapids, a bustling urban condo in Ann Arbor, or a serene rural retreat, Michigan has something to offer. However, navigating the homebuying process in Michigan requires careful consideration of factors such as location, market conditions, financing options, and legal requirements. Understanding the local real estate market, working with knowledgeable professionals, and conducting thorough research is vital to making informed decisions and finding the perfect home in Michigan.
If you’re a first-time homebuyer and want to know more about the market, Redfin has your back. From market insights to the homebuying process, read on to get started.
What’s it like to live in Michigan?
Michigan is known for its breathtaking natural beauty, including the Great Lakes, stunning forests, and picturesque landscapes. Residents can enjoy various outdoor activities like hiking, camping, boating, and skiing. Furthermore, Michigan boasts excellent educational institutions, including renowned universities like the University of Michigan and Michigan State University. The cost of living in many areas of Michigan is relatively affordable compared to other states, allowing residents to enjoy a comfortable lifestyle. Check out this article to learn more about the pros and cons of living in Michigan.
Michigan housing market insights
The housing market in Michigan continues to show increased median sale prices. As of recent data, the median sale price stands at $252,200, reflecting a 1.6% year-over-year increase. However, Due to the growth in prices, certain metros within the state are experiencing high levels of competition. Areas such as Fraser, Walker, and Clawson have become particularly competitive for homebuyers. Additionally, the number of homes available for sale has declined, down 8.3% year-over-year. This reduced inventory can contribute to a more competitive market and potentially drive up prices further. These insights indicate a dynamic housing market in Michigan, with rising costs, pockets of intense competition, and limited inventory, making it essential for prospective buyers to stay informed and be prepared for the market’s challenges and opportunities.
Finding your perfect location in Michigan
Finding the perfect location in Michigan is crucial when buying a house in the state. Michigan offers a diverse range of communities, each with its unique characteristics and amenities. Factors such as proximity to schools, job opportunities, recreational activities, and community services play a significant role in determining the suitability of a location.
If you’re between two cities you love, don’t fret; using tools like a cost of living calculator will provide insight into which city aligns with your budget. And to help you get started, we’ve compiled a list of five sought-after Michigan cities, highlighting market insights and their unique offerings.
#1: Detroit, MI
Median home price: $75,000 Detroit, MI homes for sale
As the largest city in Michigan, moving to Detroit offers a unique experience that is shaped by its rich history, cultural diversity, and ongoing revitalization efforts. Detroit’s sports culture runs deep, with passionate fan bases for teams like the Detroit Tigers, Pistons, and Red Wings. Additionally, Detroit’s revitalization efforts have led to the revitalization of neighborhoods such as Midtown and Corktown, where new businesses, art galleries, and entertainment venues have emerged.
#2: Kalamazoo, MI
Median home price: $190,500 Kalamazoo, MI homes for sale
The cost of living in Kalamazoo, MI is 21% lower than the national average, perfect for those on a budget. The city is known for its lively arts scene, with the Kalamazoo Institute of Arts, the Kalamazoo Symphony Orchestra, and numerous theater companies providing a rich cultural experience. Residents can explore the vibrant downtown area, filled with local shops, restaurants, and breweries, including the popular Bell’s Brewery. Kalamazoo offers a range of outdoor recreational activities, with parks, hiking trails, and proximity to scenic areas such as the Kalamazoo River Valley Trail and the Kal-Haven Trail. So if you’re looking for a small town with a low cost of living, moving to Kalamazoo could be for you.
#3: Grand Rapids, MI
Median home price: $290,000 Grand Rapids, MI homes for sale
Moving to Grand Rapids offers a rich and fulfilling experience with a unique blend of urban amenities and natural beauty. Grand Rapids is known for its thriving craft beer scene with numerous breweries and festivals. It was even named Beer City, USA. The city boasts a rich cultural landscape, including the renowned Frederik Meijer Gardens and Sculpture Park, the Grand Rapids Art Museum, and the Gerald R. Ford Presidential Museum. With a strong emphasis on the arts, Grand Rapids hosts ArtPrize, one of the world’s largest art competitions.
#4: Novi, MI
Median home price: $390,000 Novi, MI homes for sale
Moving to Novi offers a delightful experience with its upscale shopping destinations. You’ll find the Twelve Oaks Mall and the luxurious Novi Town Center, providing residents with a wide range of shopping and dining options. The city also boasts several parks and recreational areas, including the picturesque Lakeshore Park, which offers trails, picnic spots, and beautiful views of Walled Lake. Moreover, Novi is renowned for hosting the annual Michigan State Fair, a lively event showcasing agricultural exhibits, captivating entertainment, and exhilarating rides.
#5: Ann Arbor, MI
Median home price: $496,250 Ann Arbor, MI homes for sale
As the home of the University of Michigan, Ann Arbor has a lively and intellectual atmosphere. The city is renowned for its top-tier education, world-class research facilities, and a strong emphasis on innovation and entrepreneurship. Residents can take advantage of various cultural events, including the Ann Arbor Film Festival, the Ann Arbor Art Fair, and the renowned University Musical Society, which brings diverse performing arts to the community. The vibrant downtown area is filled with local shops, restaurants, and cafes, creating a lively and welcoming environment for anyone moving to Ann Arbor.
The homebuying process in Michigan
Let’s explore the homebuying process if you’re ready to put down roots in Michigan.
1. Prioritize your finances
Prioritizing your finances when buying a home in Michigan is crucial for several reasons. First and foremost, it ensures that you can comfortably afford the financial obligations associated with homeownership. By assessing your income, expenses, and budget, you can determine a realistic price range and avoid overextending yourself financially. Along with prioritizing your finances to help secure a favorable mortgage loan with competitive interest rates and terms. If you’re not sure where to start, using tools like an affordability calculator will point you in the right direction.
Various programs are available for first-time homebuyers in Michigan, including the MI Home Loan, which can assist with up to $7,500 in down payment assistance.
2. Get pre-approved from a lender
Getting pre-approved from a lender is an essential first step when starting the homebuying journey. By seeking pre-approval, you gain a clear understanding of your budget and financial limitations, which allows you to search for homes within your price range. Pre-approval involves a lender evaluating your financial situation, credit history, and income to determine the loan amount you qualify for.
3. Connect with a local agent in Michigan
When buying a house, connecting with a local real estate agent in Michigan is essential, as they bring valuable expertise, guidance, and local market knowledge. A local agent understands the nuances of the Michigan real estate market, including neighborhood trends, property values, and inventory availability. They can help you identify suitable neighborhoods that align with your preferences and budget. So whether you’re looking for real estate agents in Grand Rapids or agents in Detroit, they’re here to help.
4. Start touring homes
Touring homes is a crucial step in the homebuying process, as it allows you to experience and evaluate properties first hand physically. It provides an opportunity to assess a home’s condition, layout, and overall appeal before making a purchasing decision. During home tours, paying attention to several key factors is essential. First, consider the home’s structural integrity and potential maintenance issues. Look for signs of water damage, cracks in the foundation, or any other red flags that could indicate significant repairs or maintenance expenses down the line.
5. Make the offer
Making an offer signifies the buyer’s serious intent to acquire the home and initiates the negotiation phase. When crafting an offer, prospective buyers must consider the property’s market value, comparable sales in the area, the seller’s asking price, and their budget and preferences. The offer should be presented in writing and include essential details such as the proposed purchase price, desired contingencies, and the seller’s response deadline.
6. Close on the house
The closing process is the final stage, where all the necessary legal and financial transactions are completed, and property ownership is officially transferred from the seller to the buyer. During the close, various important tasks take place, including reviewing and signing the final purchase agreement, verifying the title and property records, completing the mortgage paperwork, and paying closing costs and fees. Additionally, the close allows the buyer to conduct a final walkthrough of the property to ensure its condition is as expected.
If you’re new to the process, Redfin has insights for you. The First-Time Homebuyer Guide has everything you need to know about each step of the process.
Factors to consider when buying a house in Michigan
When going through the homebuying process, you’ll want to understand the unique considerations of buying a home in Michigan.
Water rights
Michigan has strict regulations regarding water rights, particularly in properties with access to lakes, rivers, or streams. When purchasing a house, understand the extent of your water rights, restrictions, and availability for everyday use or irrigation.
Flood risks
Michigan faces significant flood risks due to its unique geographical features and weather patterns. The presence of the Great Lakes exposes many areas to potential flooding. Additionally, Michigan has numerous rivers, streams, and inland lakes, which can contribute to the likelihood of flooding during heavy rainfall or snowmelt events. The state’s climate, characterized by cold winters and frequent precipitation, can lead to rapid snow accumulation and subsequent spring thaws, increasing the risk of flooding. Knowing if your house is in a flood zone is essential, so you can be prepared.
Dual agency
A dual agency is permitted when buying a house in Michigan. A dual agency is when a real estate agent or broker represents the buyer and seller in the same transaction. In Michigan, this practice is allowed as long as it is disclosed and agreed upon by all parties involved. However, it is advisable for buyers to carefully consider the implications of dual agency, as the agent’s loyalty and fiduciary duty may become divided between the buyer and the seller.
High closing costs
Michigan is known for having relatively high closing costs when buying a home. On average, homeowners will spend around $5,714. Closing costs encompass various fees and expenses that buyers incur during the final stages of a real estate transaction. In Michigan, these costs typically include property taxes, title insurance, attorney fees, appraisal fees, loan origination fees, and recording fees.
Buying a house in Michigan: Bottom line
Michigan’s real estate market provides a diverse selection of housing options, encompassing both affordable areas and higher-priced cities. The affordability and availability of homes depend on factors such as location, market conditions, and individual budgets. To navigate this market successfully, it is crucial to conduct thorough research on the desired area, track market trends, and assess personal financial readiness, including credit score and down payment savings. By gaining a comprehensive understanding of the homebuying process, you can embark on your journey towards homeownership in Michigan with confidence.
Buying a house in Michigan FAQ
What credit score is needed to buy a home in Michigan?
The credit score needed to buy a home in Michigan, as in any other state, can vary depending on the lender and the type of mortgage loan. However, generally speaking, a higher credit score is advantageous when applying for a mortgage. Most conventional lenders prefer borrowers to have a credit score of 620 or higher. This shows a strong credit history and a lower loan default risk. Additionally, loan programs are available that cater to borrowers with lower credit scores, such as FHA loans, which typically require a credit score of 500 or higher.
What is the required down payment for buying a house in Michigan?
The down payment required to buy a house in Michigan, as in other parts of the United States, can vary depending on several factors, including the type of mortgage loan you’re using and the lender’s requirements. Typically, conventional mortgage lenders may require a down payment of 3% to 20% of the home’s purchase price. For example, if you’re buying a $200,000 home, a 3% down payment would amount to $6,000, while a 20% down payment would be $40,000. However, it’s important to note that there are loan programs available that may require lower down payments. For instance, FHA loans often require a down payment of 3.5% of the purchase price, while VA loans and USDA loans offer the option of zero down payment for eligible borrowers.
Are home prices affordable in Michigan?
Whether buying a house in Michigan is considered cheap depends on various factors, including the specific location within the state, the local real estate market conditions, and individual budget constraints. For example, in Kalamazoo, housing costs 47% less than the national average, whereas housing in Ann Arbor is 16% more than the national average. As a whole, Michigan has been known to offer more affordable housing options compared to some other states in the United States. However, prices can still vary significantly depending on the city or region. Consulting with a local real estate agent or professional can provide valuable insights into the desired area’s current market conditions and pricing trends.
Are you considering buying a fixer-upper? While it can be a great way to save money and get a home that suits your unique tastes and needs, it’s important to know what you’re getting into before you sign on the dotted line. Here are some things to keep in mind:
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1. Understand the Cost
Buying a fixer-upper can be an affordable alternative, however, it’s important to understand the potential true cost of the project before you start. To ensure that you’re aware of the necessary repairs and their associated costs, get a thorough inspection of the property. Make sure to check the quality of the foundation, roof, electrical and plumbing systems. Additionally, it’s crucial to consider the expenses for permits, materials, and labour in your final budget.
2. Know Your Limits
While DIY projects are fun and rewarding, fixer-uppers often require extensive work and time. If you’re not handy with a hammer or don’t have experience with major renovations, you may want to think twice before taking on the challenge of a fixer-upper. Hiring professionals to do the work can be expensive, but it may be necessary if you want the job done right.
3. Consider the Time Frame
Transforming a fixer-upper into your dream home can be time-consuming. If you’re on a tight schedule or have other commitments demanding your attention, a fixer-upper may not be your best choice. Make sure you have a realistic idea of how long the project will take and whether or not you have the time and energy to see it through.
4. Factor in Resale Value
If you plan to invest in a fixer-upper, ensure that it doesn’t become a financial burden by costing more than its actual value. It is possible to strike a good deal on the property, however, make sure that any renovations made will increase the property’s value in the long run. Research the market and talk to real estate professionals to get a sense of what buyers are looking for in your area and what features can help make the property stand out.
5. Have a Plan
Finally, it’s important to have a plan before you start a fixer-upper project. Without a clear plan and budget, your fixer-upper is at risk of becoming a money pit. Know what you want to achieve and how you’re going to get there. Create a budget, timeline, and list of priorities to keep you on track. With a solid plan in place, you’ll be better equipped to handle any unexpected hurdles or delays.
If you’re ready to find your next home, we can help! From fixer-uppers to chic condos, our qualified real estate agents can help you find your dream home.
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A new tech company called LemonBrew has launched its so-called “custom matching platform” to link up home buyers (and sellers) with local, expert real estate agents.
The team behind the operation consists of “experienced entrepreneurs and operators” who work in the real estate and mortgage industry.
Their goal is to create a frictionless home buying process and improve efficiencies in what is often a daunting and stressful endeavor.
Initially rolled out via pilot in local markets across North Carolina and Florida last fall, LemonBrew plans to launch nationwide throughout 2020. It appears they are currently live in 15 states.
The platform has a “couple thousand” Partner Agents in its database, but expects that number to climb above 50,000 by the end of the year.
How LemonBrew’s Matchmaker Service Works
Answer basic questions to get matched up with local real estate agents
Questions include property type, budget, number of bedrooms and bathrooms
If you already have a home picked out or are still looking, when you want to buy, etc.
Then get top 3 matches in your area to choose from
It can be difficult to choose a real estate agent. Do you go with someone a friend or family used, someone you saw in an ad, or do you respond to a flyer or freebie you received in the mail?
All of those methods are pretty old school, yet still effective for agents for the time being. But are they the best approach for home buyers and home sellers? Possibly not.
LemonBrew feels it’s super important to go with a high-quality agent, and that’s exactly what they set out to do.
After you answer a series of questions, you’ll be matched up with a local expert based on factors beyond just location.
Your match also considers things like personal budget, down payment, property type, and various sales history metrics such as how fast an agent can help you find your dream home.
The company’s proprietary algorithm then presents prospective home buyers with the profiles of the top 3 matches and lets them choose who to work with.
Ostensibly, this will lead to greater success if/when you purchase or sell a property, as opposed to just going with someone random or referred to you.
Your LemonBrew BrewScore
Prospective home buyers are assigned a BrewScore
Which is based on thousands of analyzed data points
The more complete your profile, the higher your score
Those with higher BrewScores qualify for larger rebates at closing
The company comes up with a custom score known as a your “BrewScore,” which is based on thousands of data points analyzed by their proprietary algorithm.
The more information you provide and securely verify, the higher your BrewScore.
This includes verifying your credit, income, assets, and employment to ensure you’re a qualified buyer, similar to getting a mortgage pre-approval.
And the higher the BrewScore, the more money you can receive at closing to offset closing costs.
BrewScores range from 0 to 100, with a score north of 70 considered “good,” and high enough to qualify for a rebate back at closing.
It’s not totally clear what you can do to ensure your BrewScore is as high as possible other than providing all information that is asked of you.
But the general idea is someone with a higher BrewScore is more motivated (and likely) to buy/sell soon, and thus can qualify for a higher rebate because it’s closer to a sure thing for the real estate agent.
LemonBrew Provides a Rebate to Home Buyers and Sellers
To sweeten the deal, LemonBrew provides rebates to both home buyers and sellers who use a LemonBrew Partner Agent.
These real estate commission rebates back to the buyer are allowed in 42 of 50 states, along with DC.
If you’re selling, you can save up to 2% off the listing fee, which instead of 3% might be just 1%. On a $500,000 home sale, we’re talking $5,000 versus $15,000. Those are big savings.
And this is for a full-service agent, which might differ from other discount real estate brokerages.
If buying a home, you get a rebate that can be used to offset your closing costs.
It’s unclear what percentage or amount this is as LemonBrew does not disclose it. But as noted, it’s based on your BrewScore.
Rebates aside, LemonBrew is 100% free to both home buyers and home sellers.
If and when you buy/sell with a LemonBrew Partner Agent, that individual pays LemonBrew a referral fee, which is 25% of the gross commission.
While agents may receive less than they would if prospecting clients on their own, greater volume may lead to higher overall income.
LemonBrew Lending
A mortgage brokerage formerly operating as SD Capital Funding
Headquartered in New Jersey with loan origination contact center in Charlotte, NC
Currently operational in 19 states nationwide and DC
Expect to roll out to all 50 states by the end of 2019
The company also operates an affiliated mortgage brokerage called “LemonBrew Lending,” which used to go by the name SD Capital Funding (and still does in New Jersey).
They were apparently ranked #1 with Quicken Loans Mortgage Services (QLMS), receiving the wholesale lender’s Top Partner Award for 2019.
LemonBrew Lending complements the real estate side of their business, allowing homeowners and home buyers to enjoy one seamless transaction from start to finish.
They currently operate in 19 states nationwide, along with the District of Columbia. The company expects to expand to all 50 states by the end of 2019.
For some, it’s the smell of freshly cut grass and the brush of leaves in the breeze, creating an escape from daily stressors. For others, it’s a competitive arena where precision skills are honed. It’s where business is sealed with a handshake, lifelong friendships are forged, wagers are won—and drinking is not only permitted, but encouraged.
It’s been called “a good walk spoiled” (Mark Twain), “the most fun you can have without taking your clothes off” (Chi Chi Rodriguez), and “an endless series of tragedies obscured by the occasional miracle” (many, many folks).
If the allure of golf has you in its grip, as it does for so many, perhaps you’ve entertained the fantasy of living near a golf course. Affordable real estate with great proximity to a course might sound too good to be true, like hitting a hole-in-one with your first swing of the day (or ever). But we’re here to correct that notion.
The data team at Realtor.com® found the places in the U.S. that have the best balance of great access to golf courses, relatively affordable real estate, and weather best suited for days on the greens. Some of these towns you’ve surely heard of and might assume come with a high price. Others are hidden gems you might not have thought of as great golf markets.
Whether you’re a near pro, a weekend duffer, or someone who just likes the idea of living near a course, you might just find your dream home on the green. Even if you’re not a golfer, these cities offer a lot to appreciate, from excellent weather to a high quality of life.
“In most residential golf communities, it’s only about a quarter of residents who are active golfers,” says Brad Klein, a golf course design consultant and golf journalist. “So what that tells you is that a lot of people are drawn to the golf community, even if they don’t play golf.”
Most golf communities draw a highly diverse group of homebuyers who nonetheless share certain bonds: They’re physically active and crave regular social interaction, says Klein.
“If you have golf, you probably also have pickle ball, swimming, platform tennis, a gym, and a social center at the local clubhouse,” he says. “Even if you don’t play, you have all kinds of options living near this sort of community.”
The cities on our list aren’t just golf havens. Many are also places with a high quality of life, where a cost of living below the national average makes them affordable not just in terms of real estate, but also in terms of everyday expenses.
We found these places by first rounding up all the real estate listings on Realtor.com from the past year within a 10-minute drive (in normal conditions) from one or more of the 6,445 public and private golf courses in the nation that we were able to map out. Then we aggregated home price data for those listings by city.
Then we factored in the number of golf courses clustered in those areas and weighed the climate and weather patterns—favoring places with more warm days to hit the links. Finally, we selected just one place per state, to ensure geographic diversity. (Otherwise, the list would be mostly Florida towns, along with some Mississippi locations and a couple of spots in Arizona.)
Let’s tee off into our top 10 locations for finding affordable homes near a golf course.
Nearby golf courses: 28 Median list price* for homes near golf courses: $299,900
Sun City, known for decades as a golf lover’s dream community, has year-round golf weather, a staggering number of nearby courses, and real estate that’s priced about 9% below the national average, vaulting it to the top of our list.
Now, this does come with a caveat: Generally, residents must be aged 55 and up, because this planned community on the northwest corner of the Phoenix metro area is aimed at retirees. The rules for who can live there are a bit complicated, so be sure to read up on the details.
This desert oasis has been drawing golf-minded retirees since it was established in 1960. Sun City was the first active retirement community in the United States, and it earned its pioneering developer, Del Webb, a place on the cover of Time magazine in 1962.
“What’s most impressive about it is how difficult it was to get golf courses out there with so little water,” says golf expert Klein. “The course superintendents getting grass to grow out there, on decomposing granite in the middle of the desert, is just amazing. People must have thought they were crazy.”
The Sun City South Golf Course is one of the most well known of the 28 golf courses in the area.
This 1,700-square-foot, two-bedroom home that backs up to the course is listed for $325,000.
Nearby golf courses: 12 Median list price for homes near golf courses: $245,000
Situated on the edge of the Atlantic Ocean, a little north of Fort Lauderdale, and just south of Boca Raton, Deerfield Beach has great access to golf courses and the shore. (See our annual affordable beach towns list, in case that also strikes your interest.)
The median home price for Deerfield Beach listings within 10 minutes of a golf course is $245,000, far below the national median of around $430,000. That’s because the vast majority of listings are cheaper condos and townhomes under 1,000 square feet.
The climate in Deerfield Beach is classified as a tropical rainforest, with warm, wet summers and mild, dry winters, making it an ideal location for all kinds of outdoor activities year-round.
“I was just in Deerfield Beach,” says Beth Daly, a real estate agent at Re/Max Experience in Fort Lauderdale. “We had the bluest sky, and the ocean was like a glass of water you could see all the way to the bottom.”
Daly says she frequently hears about the golf culture that buyers—especially out-of-towners—are looking for.
“I just had some golfers from Buffalo Grove, outside of Chicago,” Daly says, “They wanted a full-service club to live near, and they had plenty of options to choose from.”
Nearby golf courses: 11 Median list price for homes near golf courses: $215,000
Biloxi is a city that we see often when we look for affordable housing markets with standout quality-of-life features. Homes here are very inexpensive, at just about half of the national median list price.
And the Gulf coast climate means you golfers can hit the links just about anytime of the year. And when taking a day off from playing golf, residents here can enjoy the Biloxi beaches, with the neighboring Gulfport leading our most affordable beach towns list.
This three-bedroom, 2.5-bathroom house on a third of an acre, for $324,900, is near the Sunkist Country Club’s championship 18-hole course.
Nearby golf courses: 11 Median list price for homes near golf courses: $319,000
One of the most iconic Southern cities takes a top spot on our list, with year-round golf weather, homes priced about 25% below the national median, and plenty of opportunities to hit the fairways. The coastal, Gothic city is also known for its antebellum architecture and arts and culture scene.
The whole southeastern Atlantic seaboard is thick with golf culture and an abundance of world-class courses.
“Savannah, and the areas north into the Charleston area—where we hear it called ‘Lowcountry’ golf—is really popular right now,” says Tom Coyne, a New York Times bestselling golf author. “There’s so much more to this area than just the buddy trip for one or two rounds.”
But it’s not just exclusive or high-priced courses that people should think of in the area.
“There’s a sneaky-good public golf course in Savannah, called Bacon Park, which is just really charming and very affordable, and I believe it was designed by Donald Ross [we checked, and it was], a famous golf course tech,” Coyne says. “To be able to play a Donald Ross course for whatever the greens fee is there, it’s just awesome.”
Home shoppers can find a three-bedroom home about a half-mile from the Bacon Park Golf Course for $328,000.
Nearby golf courses: 7 Median list price for homes near golf courses: $194,900
Mobile, located on the Mobile Bay spilling out into the Gulf of Mexico, has the most affordable golf-proximate real estate on our list. Home prices here are less than half the national median of $430,000 in April. And while the home prices aren’t high, the area is rich with golf history.
“Alabama is known for the Robert Trent Jones Golf Trail, where they have a literal trail of courses designed by the great Robert Trent Jones,” Coyne says. The famous golf course architect designed more than 500 courses between the 1930s and the 1990s.
Mobile and the surrounding areas have a subtropical climate, which means lots of rainfall, so it’s no wonder the area has been a center of golf culture since early in the 20th century.
Nearby golf courses: 22 Median list price for homes near golf courses: $290,000
The first thing golf expert Klein asked when he heard about our list: “Do you have Myrtle Beach on the list?”
Myrtle Beach has been referred to as “The Golf Capital of the World” due to the sheer number of courses and the rich golf history in the area. The economy in this oceanfront South Carolina city is driven in large part by the vibrant tourism industry, which is mostly centered on the attraction of the area’s world-class golf courses as well as its amusement parks and famed beach.
Boasting courses from the Pine Lake Country Club to TPC Myrtle Beach, this popular vacation spot is practically synonymous with the sport.
Plus, with home prices per square foot not too far from the national median figure, this golfer’s dream is not just for the well-heeled. And with a population just topping 35,000, Myrtle Beach is the smallest of places on our list, which adds to the homey feel.
For less than $100,000, golfers on a budget can find a two-bedroom condo that’s walking distance from the famous Pine Lakes Country Club.
Nearby golf courses: 13 Median list price for homes near golf courses: $569,900
About an hour east of Los Angeles, in the center of the San Bernardino Valley, you’ll find Riverside. It’s the namesake of Riverside County and the most populous city in what’s called the Inland Empire—a broad swath of Southern California’s noncoastal desert region.
With year-round golfing weather and access to more than a dozen courses within 10 minutes, Riverside has the best combo of prices, nearby golfing, and climate in the Golden State.
To be sure, Riverside is the most expensive place on our list, with homes priced more than 30% above the national average, and even more per square foot. But, in the context of California’s real estate prices, Riverside is cheap. It’s around 20% less expensive than the California average and 40% less expensive than neighboring Los Angeles.
Those looking for a place near downtown Riverside but also close to a golf course might want to look at the Jurupa Hills Country Club, where buyers can find a three-bedroom home near the greens for $455,000.
Nearby golf courses: 35 Median list price for homes near golf courses: $229,000
The last three cities on our list are all in the Midwest, where homes have historically been more affordable than in other parts of the country. In Indianapolis, the capital of Indiana, homes within 10 minutes of a golf course are still 40% less expensive than the national average. And there are a surprising number of golf courses in this region.
Midwestern winters can be brutal, but the average monthly temperature is still above 50 degrees Fahrenheit for more than half of the year. While that might mean residents consider golf more of a seasonal pastime in these final three cities, the prices are less than half of what you would find in a city like Riverside, CA.
One of the most notable Indianapolis courses is built into the site of the Indianapolis 500, mixing golf with another of the town’s iconic draws.
Saddlebrook Golf Club is one of the closest to downtown Indianapolis, and for just shy of $230,000, home shoppers can get a three-bedroom home on a quarter-acre about 1,000 feet from the course.
Nearby golf courses: 26 Median list price for homes near golf courses: $239,900
Cincinnati, located on the Ohio River, boasts low home prices—and low-cost opportunities to play golf on a good public course.
“It’s so much more affordable than golfing in a place like New York or Chicago or L.A.,” says Klein of playing in smaller Midwestern cities.
Moreover, the Rust Belt city has an indelible golf tradition, in part due to the golf royalty from the area.
“In Ohio, you have a great golf history,” says Coyne. “Anyone who’s done anything big in the sport of golf has left a stamp in Ohio. And Jack Nicklaus hails from Columbus, so there’s got to be something good going on in Ohio.”
The Camargo Club, on the northeastern end of the Cincinnati area, has been ranked one of the best in the state. While the homes nearest to the course include custom-built, multimillion-dollar mansions, a three-bedroom home can be found about five minutes away for just under $280,000.
Nearby golf courses: 23 Median list price for homes near golf courses: $249,950
Golf might not be the first thing that comes to mind when you think about Omaha, Nebraska’s largest city located on the Missouri River. The city is home to several Fortune 500 companies, including Warren Buffett’s Berkshire Hathaway. It also boasts one of the best zoos and aquariums in the world.
But there are many options in Omaha for those looking for a home near a golf course, says Chris Bauer, a local Realtor at Berkshire Hathaway HomeServices. He’s found buyers are looking for either a more affordable option, usually near a public golf course, or access to pricier private clubs.
“Those are two different sets of buyers,” he says. “For the avid golfers who would only buy on a private course, you have Shadow Ridge, Deer Creek, Happy Hollow, or the Omaha Country Club.”
And for those looking for somewhere to live near a public course: “Pacific Springs, The Knolls, or Johnny Goodman. Those are all popular. There’s a wide spectrum here,” he says.
Watch: The Best Cities in the U.S. for Home Sellers Right Now
* Median list prices are from the last year on Realtor.com.
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In the golden days of real estate agents, buyers had little knowledge of how to navigate the sea of professionals necessary for making a home purchase and had to rely on recommendations from their agents. These days, a quick internet search can give buyers tips on how to find and choose everything from a lender to a title company.
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