Preferred Properties of Texas

The Preferred way to buy & sell real estate for you

DEBT-TO-INCOME RATIO- HOW TO CALCULATE YOURS

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The home-buying process is complex, especially for first-time buyers. The debt to-income ratio is one of the criteria mortgage lenders use when assessing your mortgage application. Your debt-to income ratio is a comparison between how much debt you have (your debt) and how much income you make (your earnings). This number is calculated using your gross income, which is the income before taxes.

Lenders will be more impressed by a lower ratio of debt to income if you have a healthy mix of debt and income. A higher ratio of debt to income means that you have too much debt. This could lead to lenders deeming you a risky borrower. Although the DTI is not the only factor that determines how much you can borrow it is important to understand this before you start the home loan process.

A debt-to income ratio of 20% means that 20% is going towards debt payments. This includes cumulative debt payments. Think credit card payments and car payments.

A The Mortgage reports breakdown shows that a good ratio of debt to income is at least 43%. According to LendingTree, many lenders might want to see a DTI closer to 35%. Depending on which loan you are applying for, a ratio closer to 45% may be acceptable. However, a ratio of 50% or more can cause concern.

Simply put, too much debt relative the income of your household will make it more difficult to get a loan. Many common forms of debt, such as student loans and credit cards, can make it difficult to qualify for home loans.

Lenders want to ensure that borrowers aren’t taking on too much debt. Lenders may decline mortgage applications if you have a high DTI.

It is easy to calculate your DTI. Simply add up your monthly total debt payments and divide that by your gross monthly income.

Let’s suppose you have $1,000 monthly student loan payments, a car payment, and a credit card payment. Your gross monthly income is $5,000. Divide 1,000 (your total debt) by 5,000 (your income), and you get 0.2. This is 20%. In this example, your DTI would be 20%.

You can lower your DTI before you apply for a mortgage if you are concerned that it may stop you from getting the home loan you want. This usually means increasing your income or paying down debt.

A debt consolidation personal loans will help consolidate credit card debt from multiple cards. You can also use this loan to organize all your payments into one monthly payment with a lower interest rate. You can pay off the balance quicker by reducing interest. You might also consider a balance-transfer credit card to transfer your balance to a new card offering a 0% intro rate. You can get a longer period of time without being charged interest and pay off your principal faster.

You should consider all costs associated with buying a home when applying for a mortgage. This includes private mortgage Insurance (PMI) (if your down payment is less than 20%), property taxes, mortgage interest, inspections, appraisals and closing costs.

It’s expensive, no doubt. You can make it more affordable by finding a lender that helps you save.  This will help you save money on the initial process.

Lenders want to ensure that you don’t take on too much debt. To calculate how much of your income goes towards debt payments, they use a ratio called the debt-to-income ratio.

The DTI is not the only thing a lender will consider. Don’t be discouraged if your DTI exceeds what most lenders prefer. It is best to calculate your DTI sooner than you think. This will give you enough time to reduce your debt and increase your income, so that you can lower your DTI.

 

Original Blog: https://www.cnbc.com/select/how-to-calculate-debt-to-income-ratio-for-mortgage/

How To Avoid First-Time Homebuyer Mistakes

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The purchase of a home is the largest investment and purchase a person will ever make. It doesn’t matter if you’re looking for your first home or if you expect to be ready in a few years. Knowing the common errors to avoid is just as important as the helpful tips .

You don’t need to worry about buying a house. There are many things you can’t plan for. But knowledge is power. The more you know the better you will be during the entire process.

While it is not unusual for some mishaps to occur during the home buying process, there are some red flags that first-time buyers overlook or don’t know about.

Not Saving Enough. It’s easy for emotions to take over and cause excitement, but it can quickly dissipate if you realize that you don’t have enough money to maintain your new home. Many buyers are able to save enough money for the minimum downpayment. This could lead to higher mortgage payments. You should also consider closing costs, maintenance and moving costs when planning your budget. START SAVING AS EARLY AS POSSIBLE & AIM TO HAVE A CASH RESERVE OF three to six months worth of daily living expenses.

Don’t be prequalified for a loan. Don’t let the “estimated monthly loan amount” numbers beside your dream home on Zillow distract you. Talk to a mortgage loan officer, and provide documents that will give you an accurate picture of what you’ll pay. Ask your mortgage lender for information about the first-time buyer options, and search for programs in your area.

Don’t check your credit report. Remember how we said that knowledge is power? Before you start looking for homes, get clear about your credit score. Your credit report will be reviewed by mortgage lenders. You’ll need to present yourself to get a better offer. It is possible to avoid issues by asking for free credit reports every year and then disputing any errors.

Setting up or hurrying the process. It’s not easy, but it is important for first-time homebuyers to practice patience. Sometimes it’s easy to rush or believe a property is better than it really is. Before you make a deposit, take your time. This will help you avoid costly mistakes. Tip – Spend a night in your new neighborhood to see what it is like. To test it, look for VRBO or Airbnb in your area.

Skipping home inspection or not. There are many horror stories about first-time homebuyers who skipped a home inspection. The consequences could be disastrous. Many HOME EXPERTS SAY that home inspections are “the most important fact-finding step in purchasing a house.” It could reveal things such as mold and poor plumbing. If you are unable to attend, hire a professional home inspector.

These common mistakes should not discourage you from home-buying. Rather, it should help you feel confident that you are making the best decision for your family and yourself. These tips will help you to be successful when you begin your search for your first home.

 

Original Blog: https://www.landhub.com/land-news/5-first-time-home-buyer-mistakes-and-how-to-avoid-them/

Scents That Could Sell Your Home Faster

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It is important to stage your home inside if you want to sell your house quickly. In an increasingly competitive market, the first impression a potential buyer has when they walk through your door is crucial.

The curb appeal will determine whether someone steps over the threshold. But, could it be that the first thing they see as they enter is undoing all the hard work they have put in?

While we don’t doubt that you love scented candles it is worth looking into which scents might make your home more appealing if you’re trying to sell. It’s a good place to put those popular and impactful scents in the entryway of your property.

Fresh laundry is a wonderful smell. Freshly washed linen is second in the list of scents that can help you sell your house. 36% of participants said it would win their hearts.

According to the survey, 27% of respondents rated this scent as a winner. You can also leave a French Press or a timer on your best espresso maker so that people feel at home.

There are certain scents or smells that you don’t want to have lingering in your home during house viewings.

It’s not surprising that 68% said moldy or damp smells would make them turn down a property. It is in your best interests to remove mold as soon as possible, regardless of whether you are selling.

Close behind were 64% of survey participants who said the smells of vomit and cannabis would turn them off. 55% of potential buyers also stated that this smell would cause them to reconsider putting in an offer.

Short suggests that you use a steamer or pet vacuum to remove any smells from your pets. Grapefruit, orange, and lemon scents are excellent at neutralizing the musky animal smells of pets. Citrus-scented candles are very popular and can add a pleasant, fresh-smelling fragrance to your home, no matter where they’re placed.

Rose, jasmine, and lavender are all good options for selling a home.

If you choose to light candles before house viewings, it is important to keep them out of reach of anything flammable, such as furniture, curtains, bedding, or decorations. To prevent an accidental fire from starting in your house, this is important. Also, don’t place lighted candles in areas where they could be damaged by animals, children, wind, or wind. Avoid lighting scented candles in rooms without windows or poor ventilation. This can make the room stuffy and overpowering.

Although the light of a candle can be enchanting, reed diffusers are safer and less fragrant than essential oil diffusers.

It’s an easy task to keep your home clean when you invite potential buyers in.

 

Original Blog: https://www.realhomes.com/news/best-scents-to-sell-your-home-fast?utm_source=SmartBrief&utm_medium=email&utm_campaign=3BFA9068-DFBC-477B-BC94-C168B9A999F1&utm_content=9361F4BF-0919-4461-86E4-074E169E8CA3&utm_term=23ef8e9a-359a-444f-9fb8-e57c0efe2aba

Don’t Let Real Estate Myths Limit Your Search

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Trustworthy people can give you sound advice when you make a big decision like a real estate deal. Even though your family and friends may not know all the answers, they might give you incorrect or outdated information. A trusted professional who is familiar with real estate matters every day. REALTORS(r), can help you dispel any myths that might limit your search, or unduly affect one of the most important financial choices you will ever make. These myths are important to be aware of.

Myth: A 20% down payment is required.

Reality: Although many buyers put down 20% or more in down payments, Texas homebuyers made a median 14% down payment in 2020, according the Profile of Texas Homebuyers and Sellers. The median down payment for first-time homebuyers was 6%. You may be eligible for many loans and programs to help you purchase a home, even if your down payment is less than 20%.

Myth: Credit is not enough.

Realism: Even with low credit scores, you may still be eligible for a loan. You can also improve your credit score in order to increase your chances of getting a loan.

Myth: Do not buy the most expensive or largest house in your neighborhood.

Reality: This myth implies that you might have trouble finding buyers when it comes to selling your home or that your property’s value will not rise in comparison to other properties in the area. This is an exaggeration. There are many factors that influence the value of a home. The house you choose should be a good fit for your lifestyle and needs.

Myth: It is necessary to time the market

Reality: Don’t wait for the price to drop before you buy a house. What happens if it doesn’t? It is a bad idea if you try to time your house purchase to avoid a sellers market or to join a buyers market. These market conditions might not be applicable to the neighborhood or house you are considering. It is best to buy only when it makes financial sense.

Do not rely on inaccurate information regarding your home. Our Agents at Preferred Properties of Texas can help you dispel any myths and make your real estate transaction smooth.

 

Original Post: https://www.texasrealestate.com/members/posts/buyers-dont-let-real-estate-myths-limit-your-search/

Make It Easy For Buyers To Fall In Love With Your Home

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The goal is to make buyers feel an emotional connection to your home.

If that is difficult for them, they won’t see their future, and they won’t fall in love with the home and see it as a “must buy”.

  1. Make your home beautiful inside and out. Give it a little TLC
  2.  Remove any uncertainty ahead of time. Things around the home that may have people hem and haw over can be a barrier.
  3. Ensure your home is easy to show. Make it free and fun to walk through and enjoy the space.
  4. Be as cooperative as possible, however, within reason.  In working with their agent, if buyers feel you are fair and easy to work with, it will help the process along.

Here at Preferred Properties of Texas, all our agents put their customers’ needs at the lead of their work. They will give you honest advice on what course of action is best for you in their professional opinion. All of our agents pride themselves on putting their clients’ needs above all else. No matter where you are Preferred Properties of Texas are ready to help. Please contact us for any real estate needs and let us give you a top-notch experience!

 

Getting Your Land Surveyed Can Help With Selling Your Property

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You think you understand the perimeters of your premises, but you truly don’t unless you have had somebody to survey it and provide you its precise dimensions. You will realize your property limits if it is fenced off, but that is not an exact calculation. In case you haven’t officially researched the house, then you certainly do not possess its precise dimensions.

It is always in the homeowner’s best interest to acquire the support of a professional surveyor, also called a professional land surveyor, to discover the specific limits of someone’s property. This procedure safeguards your pursuits in a number of ways, if it be a burglar contesting your own limitations, a characteristic coming under scrutiny or even once you would like to sell the house.

A property survey measures how big your premises and decides where the bounds are. It is a record that reveals all land lines, such as property, structures and characteristics like tree structure that you have. Sometimes, land surveying shows essential details like where underground utility lines set.

Surveys can help if you wish to demonstrate your premises visually for prospective buyers. But a questionnaire could also come in handy once you have to clear up problems you have with neighbors to the city.

Though you are not legally required to receive a home survey to sell your property, it is often a fantastic idea since you may show prospective buyers exactly where the property lies. Furthermore, home surveys, if you’ve got a fence line or not, simply add transparency to the house negotiation procedure. Therefore, it’s always in your very best interest to acquire the property surveyed.

When you purchase acreage, it is vital to have a questionnaire because fences may be eliminated by many feet toward your house, creating your house smaller than that which you originally purchased.

Using the land surveyed before you purchase it, you prevent problems like suits due to border disputes, a procedure which will be rather costly and lengthy.

Land surveying in the time of buy can conserve a vendor from getting into unfamiliar problems later on. By way of instance, a questionnaire will discover sinkholes, that are underground water stations which may lead to flood or perhaps collapse a house. Nearly a quarter of those homes sold in states including Florida, Texas, Missouri, Kentucky, Pennsylvania and Alabama are in danger of being damaged or ruined from sinkholes. A sinkhole developing in your premises is a huge problem which may be averted at the onset of a sale.

When you purchase or sell a part of property, the dimensions of this house is listed in the name and the name must concord with all the quantified property dimensions. Occasionally neighbors unintentionally plant a tree or construct over the home line or fencing, therefore a property poll will constantly confirm the real boundaries of their house.

Some nations have land polls as part of their public document, but others do not. You should first visit a Public Records Office to see whether there is a questionnaire on the house. When there is not one on the public document, you will have to do yourself by employing a property survey firm.

It is very important to understand a home completely before you market it. Detecting problems and analyzing your property’s borders will make the selling process a lot simpler. Look at relying on professionals that are capable of providing a precise survey.

Preferred Properties of Texas

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