Your lender decides what you can borrow but you decide what you can afford.
Lenders are careful, but they make qualification decisions based on averages and formulas. They won’t understand the nuances of your lifestyle and spending patterns quite as well as you do. So, leave a little room for the unexpected – for all the new opportunities your home will give you to spend money, from furnishings, to landscaping, to repairs.
Historically, banks use a ratio called 28/36 to decide how much borrowers could borrow. An approved housing payment couldn’t be more than 28 percent of the buyer’s gross monthly income, and his or her total debt load, including car payments, student loans, and credit card payments, couldn’t be more than 36 percent. (In Canada lenders apply similar formulas to determine how much a buyer can afford. The Gross Debt Service ratio, or GDS, is not to exceed 32 percent of the buyer’s gross monthly income, and the Total Debt Service ratio, or TDS, is not to exceed 40 percent of the buyer’s total debt load.) As home prices have risen, some lenders have responded by stretching these ratios to as high as 50 percent. No matter how expensive your market though, we urge you to think carefully before stretching your budget quite so much.
Deciding how much you can afford should involve some careful attention to how your financial profile will change in the upcoming years. In the long run, your own peace of mind and security will matter most.
Showing posts with label Real Estate For Sale Wheeling WV Expired Sell residential. Show all posts
Showing posts with label Real Estate For Sale Wheeling WV Expired Sell residential. Show all posts
Friday, July 16, 2010
Nine Steps to Becoming a Home Owner
Step - 1 Make the Decision to Buy
It seems obvious, but it's good to note that the first step to buying a house is making the decision to buy. Consider the reasons you want a new house and write them down. Determine how long you want to live in the new house - does buying still make good financial sense? Can you afford a house that will meet your list of requirements? A good rule of thumb is your mortgage payment should not exceed 1/3 of your net monthly income.
Step 2 - Seek Professional Guidance
We'd like to schedule a time to meet with you to hear the reasons you want to buy a house and your plans for the future. We'll talk about neighborhoods, schools, economic factors liable to affect the market today and tomorrow, as well as how you would like your house and neighborhood to grow with you.
At this time, we will also help you get pre-qualified for a mortgage loan. Pre-qualification is a written statement from a loan officer indicating his or her opinion that you will be approved for a mortgage loan up to a certain amount. The fact that you are pre-qualified will help us when we are negotiating the deal.
Step 3 - Begin the Hunt
After our initial meeting, we'll search all my resources for houses on the market that fit your criteria. We'll preview these houses to eliminate the duds. Then, we'll schedule appointments to tour the houses at times convenient to you.
As we tour houses, we'll point out positive features and negative features. We'll ask you to tell us what you like and what you don't like. You'll probably amend your "wish list" as we tour houses, some things will become more important and others less important. With this new information, we'll refine our search criteria to narrow in on the house of your dreams.
Step 4 - Know the Market
Our knowledge of the local market is an essential factor in the house search. We'll let you know when the market in a particular neighborhood is "hot" and requires immediate action or when the market is "cool" and allows for thoughtful consideration.
As we tour houses, well let you know when the asking price has negotiating room and when the house is "priced to sell". Our unique market knowledge will keep you a step ahead of the "house hunting competition".
In a "seller's market", it is not unusual to see multiple offers on a property, full-price offers, and even above-price offers. On the flip side, during a "buyer's market" there are more houses for sale than buyers. This gives us more negotiating room as houses are taking longer to sell.
Step 5 - Find Your Dream House
We're confident we'll find your dream house. When we do, we'll put together the purchase offer tailored for your needs including appropriate contingencies (such as obtaining financing, favorable home inspection, clear title, etc.).
The offer is normally presented with "earnest money". This is a cash deposit made to a home seller to secure an offer to buy the property. The amount is applied to closing costs. If the seller accepts the offer, generally closing is held 30 to 60 days from the offer date (generally dependent on the turn around time of your mortgage financing).
Step 6 - Negotiate the Deal
It is not uncommon to receive a counter-offer when the initial purchase offer is submitted. Don't let this discourage you. We will discuss the counter offer and decide whether or not to accept the counter offer, submit our own counter offer, or reject the counter offer and move on.
Market conditions will play a role in how aggressively we negotiate the deal. We will also work within your limits. Emotions can lead to buyer's remorse. It is better to set limits prior to negotiating an offer and stick to these limits.
Step 7 - Get a Loan
During the closing period, you will be working with your mortgage lender to close the loan. Since you pre-qualified for the loan before starting your home search, you will be that much closer to the end. We'll gather the necessary property information your lender will need to close the loan.
Step 8 - Close the Deal
You will receive a "Good Faith Estimate" of closing costs at the time the loan application is submitted to the lender. The estimate is based on the loan officer's past experience and may not include all the closing costs. We will be glad to review the "Good Faith Estimate," answering questions and highlighting missing costs and estimates we believe to be low.
Step 9 - Move In
Congratulations! It's time to move into your new house and make it your home. Enjoy this exciting time. We'll give you a checklist to help you remember the numerous details that will make your moving day a pleasure.
It seems obvious, but it's good to note that the first step to buying a house is making the decision to buy. Consider the reasons you want a new house and write them down. Determine how long you want to live in the new house - does buying still make good financial sense? Can you afford a house that will meet your list of requirements? A good rule of thumb is your mortgage payment should not exceed 1/3 of your net monthly income.
Step 2 - Seek Professional Guidance
We'd like to schedule a time to meet with you to hear the reasons you want to buy a house and your plans for the future. We'll talk about neighborhoods, schools, economic factors liable to affect the market today and tomorrow, as well as how you would like your house and neighborhood to grow with you.
At this time, we will also help you get pre-qualified for a mortgage loan. Pre-qualification is a written statement from a loan officer indicating his or her opinion that you will be approved for a mortgage loan up to a certain amount. The fact that you are pre-qualified will help us when we are negotiating the deal.
Step 3 - Begin the Hunt
After our initial meeting, we'll search all my resources for houses on the market that fit your criteria. We'll preview these houses to eliminate the duds. Then, we'll schedule appointments to tour the houses at times convenient to you.
As we tour houses, we'll point out positive features and negative features. We'll ask you to tell us what you like and what you don't like. You'll probably amend your "wish list" as we tour houses, some things will become more important and others less important. With this new information, we'll refine our search criteria to narrow in on the house of your dreams.
Step 4 - Know the Market
Our knowledge of the local market is an essential factor in the house search. We'll let you know when the market in a particular neighborhood is "hot" and requires immediate action or when the market is "cool" and allows for thoughtful consideration.
As we tour houses, well let you know when the asking price has negotiating room and when the house is "priced to sell". Our unique market knowledge will keep you a step ahead of the "house hunting competition".
In a "seller's market", it is not unusual to see multiple offers on a property, full-price offers, and even above-price offers. On the flip side, during a "buyer's market" there are more houses for sale than buyers. This gives us more negotiating room as houses are taking longer to sell.
Step 5 - Find Your Dream House
We're confident we'll find your dream house. When we do, we'll put together the purchase offer tailored for your needs including appropriate contingencies (such as obtaining financing, favorable home inspection, clear title, etc.).
The offer is normally presented with "earnest money". This is a cash deposit made to a home seller to secure an offer to buy the property. The amount is applied to closing costs. If the seller accepts the offer, generally closing is held 30 to 60 days from the offer date (generally dependent on the turn around time of your mortgage financing).
Step 6 - Negotiate the Deal
It is not uncommon to receive a counter-offer when the initial purchase offer is submitted. Don't let this discourage you. We will discuss the counter offer and decide whether or not to accept the counter offer, submit our own counter offer, or reject the counter offer and move on.
Market conditions will play a role in how aggressively we negotiate the deal. We will also work within your limits. Emotions can lead to buyer's remorse. It is better to set limits prior to negotiating an offer and stick to these limits.
Step 7 - Get a Loan
During the closing period, you will be working with your mortgage lender to close the loan. Since you pre-qualified for the loan before starting your home search, you will be that much closer to the end. We'll gather the necessary property information your lender will need to close the loan.
Step 8 - Close the Deal
You will receive a "Good Faith Estimate" of closing costs at the time the loan application is submitted to the lender. The estimate is based on the loan officer's past experience and may not include all the closing costs. We will be glad to review the "Good Faith Estimate," answering questions and highlighting missing costs and estimates we believe to be low.
Step 9 - Move In
Congratulations! It's time to move into your new house and make it your home. Enjoy this exciting time. We'll give you a checklist to help you remember the numerous details that will make your moving day a pleasure.
Checklist for Staging Your Home
Remove all clutter from the house.
-Are countertops free and clear?
-Have you removed unnecessary furniture throughout the house?
-Remove the art gallery and coupon collection from the refrigerator.
Check the bathrooms.
-Are the surfaces clean and clear?
-Are shower curtains and doors hung properly?
-Is the flooring clean and fresh?
-Are towels neatly hung?
Check the walls.
-Is paint and wallpaper fresh and clean?
-Are the walls free from holes?
-Are there any colors or objects on the walls that need to be removed?
Check the floors.
-Is the carpet clean and free from stains?
-Are hard surface floors clean and free from stains?
Check windows and window coverings.
-Are all the windows clean?
-Are draperies and blinds clean?
Pet check.
-Are there any signs that this is a pet's home? Be sure to clean and remove kitty litter, pet toys and bedding.
-How's the aroma?
Try to air out the home prior to showings.
If air freshener is necessary, use well before showings as a consideration to those with allergies.
Set the mood prior to showings.
-Open draperies and blinds.
-Turn on the radio to a classical music station, set the volume on low.
-If you have time, cook a batch of cookies to have the warm, welcoming aroma permeating the home.
-Are countertops free and clear?
-Have you removed unnecessary furniture throughout the house?
-Remove the art gallery and coupon collection from the refrigerator.
Check the bathrooms.
-Are the surfaces clean and clear?
-Are shower curtains and doors hung properly?
-Is the flooring clean and fresh?
-Are towels neatly hung?
Check the walls.
-Is paint and wallpaper fresh and clean?
-Are the walls free from holes?
-Are there any colors or objects on the walls that need to be removed?
Check the floors.
-Is the carpet clean and free from stains?
-Are hard surface floors clean and free from stains?
Check windows and window coverings.
-Are all the windows clean?
-Are draperies and blinds clean?
Pet check.
-Are there any signs that this is a pet's home? Be sure to clean and remove kitty litter, pet toys and bedding.
-How's the aroma?
Try to air out the home prior to showings.
If air freshener is necessary, use well before showings as a consideration to those with allergies.
Set the mood prior to showings.
-Open draperies and blinds.
-Turn on the radio to a classical music station, set the volume on low.
-If you have time, cook a batch of cookies to have the warm, welcoming aroma permeating the home.
Thursday, February 11, 2010
Finding The Time To Blog
Dear Blog,
I must apologize for my lack of commitment lately. Between prospecting for new clients and trying to keep my closings on track I just haven't had time to fill you in on my day-to-day activities. I promise I can change, can you forgive me?
Sincerely,
Travis
Now that I have taken care of the apologies, lets get to the point! I often find myself "blogging" great topics in my head, unfortunately I must admit, not even half make it to my laptop and ultimately to the internet where they belong. My problem lies in finding the time to actually sit down and just get to work.
Well this year I have finally decided to make blogging a priority as so many of you already have. In my "planning" I have made a list of three ideal times and places where I might be able to sneak a few paragraphs without effecting my day dramatically and I would like to share them with you. Please feel free to comment with your preferred "quick blog" places as well, I need all the help I can get!
1. On an airplane/trip- Use those dreadful hours in the air to get ahead on your blog. (I'm on a plane back to Pittsburgh right now, so it works!)
2. Meals out- Anytime you find yourself eating lunch or dinner alone, take your laptop or net book along. Many area's and restaurants provide free wifi. That means when your finished blogging (& eating) you can publish it immediately. Instant gratification.
3. Waiting- Blog while waiting on clients, kids, or your spouse. Especially in the car, trade in those 5 min of mediocre radio play for 5 minutes blogging whats on your mind. It makes the time fly by and does not cut into your daily schedule.
With some simple planning blogging can be a quick and easy method to advance your career and hopefully land some clients as well. So get out there and blog already!
Travis Broadwater
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