What a Credit Score Really Means

As one of the least understood numbers homebuyers deal with, their credit score confuses many would-be buyers. So, what does your credit score really mean?

Firstly, understand that a credit score is not a credit score is not a credit score. Not only can your score change from scoring company to scoring company, within a single credit bureau your score for auto insurance or to buy a television, for example, may differ from your score to get a home mortgage or a car loan.

The three main credit bureaus, Experian, TransUnion and Equifax, offer the FICO score for consumers. FICO stands for Fair Isaac Corporation and a FICO score means a number determined using the calculating software provided by Fair Isaac. Your FICO score is the one lenders look at to determine if you’re credit worthy for a home loan. Using a snapshot of your current outstanding debt, open credit and a variety of other factors, FICO computes a number between 300 and 850 that comprises your score. Typically, the higher the score, the lower the risk.

When your score differs between the three credit-reporting agencies, the variances stem from the specific information reported to that company. So, at one company your score could be 685 and at another it might report as 725. Some lenders take an average of the three scores while others use just one to determine when to offer you credit.

Factors that impact on credit scores include your credit card utilization, payment history for bills where companies report, derogatory marks (accounts that may be in collection, bankruptcies, judgments and liens), the age of your credit history, the total number of credit accounts you have open and the number of credit inquiries you have. Of these, credit card utilization, payment history and derogatory marks have the highest impact on your score. The age of your credit history has a lower impact on your score, and your total accounts and credit inquiries impact the score to a lesser degree.

Some items impacting on credit scores are in your control while others may not be. For example, your open credit card utilization reflects a single moment that the card issuer reported to the bureaus. So, if charged a large transaction, but paid it off the end of the month, your credit score could reflect either the high usage or the paid off percentage depending on what time of the month it was reported.

On-time payments typically report at the same time each month. Making certain that you pay bills on time helps keep your score higher. Just one or two late payments make a significant dent in your score. Setting up automatic payments from the bill-pay option on your bank account takes away some of the risk of a lower score if you’re busy or forgetful.

You can’t always control the impact from the average age of open credit lines, especially if you’re young, so, once you open a credit line and pay it off, closing the account may not be in your best interest. Consider keeping your oldest line of credit open, even if you don’t use it.

Beware of hard credit inquiries. Every time you apply for an auto loan, a student loan, a business loan, personal loan, credit card or mortgage a hard inquiry point adds to your score. Multiple hard inquires indicate to creditors that you’re desperate for credit. If you’re planning to purchase a home, avoid buying a car on credit or opening credit cards in the several months or even the whole year ahead of applying for a home loan.

While you do not have the right to a free credit score, the Fair Credit Reporting Act (FCRA) requires that each credit reporting company—Equifax, TransUnion  or Experian—provide a free copy of your credit report once every 12 months, upon your request. Since your credit report does not contain your score, you may not know exactly what might hinder you from getting credit, but it offers you the opportunity to correct errors and to request a review of items you do not believe are yours.

On the other hand, you can pay to receive actual credit scores through a variety of providers. Some programs offer free scores (although not necessarily the FICO score) and allow you to track your progress over time with charts, graphs and suggestions for improving your score.

If you need to improve your score to be pre-approved for a mortgage, start now. Don’t wait.

Give me a call if you would like to talk about what is currently going on in the market. We have an incredible marketing plan that will help you get the the most money for your home, in the quickest amount of time. Or if you are looking to buy we can help find you the home of your dreams.

Call Now – Stan Rector 805-577-7902 (Office) – Your New Home Is Waiting!

 

 

Compliments of Virtual Results

Don’t Think of Your Home as an Investment…What?

Isn’t that sacrilegious or something?

Despite evidence to the contrary, new homebuyers continue to believe that buying a home is the same type of investment as stocks, bonds, CDs and their 401K. If the housing boom taught us anything, it is that the purchase of the house you plan to live in should not be your sole asset toward retirement. Nor should it be.

Here’s why:

Over long periods of time, the return on investment for the home you live in is nearly zero compared to stocks and other types of investments. That is because the combination of taxes, inflation, insurance, interest and the cost of repairs and upgrades absorbs most of the increase in the home’s value. At the same time, that huge downpayment you plunked down isn’t earning interest and the other costs to purchase the home are tied up in the “investment.” This is especially true when you own the home for seven years or less. In fact, many Americans continue to believe that the value of their home will increase faster than inflation, but according to economists, history does not bear that out.

So why buy a home?

Ahhhh! The real reason to buy a home is because you want to live in it and make it your own. You want to raise your family there, become part of a community and establish your presence. Once the mortgage payments end, you’ll have a less expensive place to live in your retirement years and something to pass on to the next generation. In fact, here are the top reasons to buy a home:

• Homeowners feel more secure in their own property. They have control over costs such as the mortgage and insurance so that they can budget. Rents rise, often without warning, making them difficult to plan for year over year.
• For the same monthly dollar amount, typically a home has more square footage and often more usable property (patio, yard, garage) over a rented space.
• Owning means that you can change the paint whenever you like. You can update, upgrade, renew, refurbish and modernize as your family grows.
• Pride of ownership. Not only does it feel great, property lived in by its owners tends to show better than property lived in by renters. Owners more often view the home as an extension of themselves, investing in maintenance, upgrades and refurbishing. Owners anchor a neighborhood and ownership expresses their core values.
• Tax considerations. This on is a bit two-sided because your tax savings are tied to your interest payments, not your principle payments. None-the-less, if your overall payment (principle, interest, mortgage insurance and taxes) is the same as your rent would be, the tax savings would increase your cash flow.
• Forced savings. With the monthly principle amount going toward building equity, making mortgage payments forces the buyer to “save” the equity amount. Of course, the savings only become usable upon sale of the home, so the usefulness of this forced form of accumulation means holding the home long enough to “redeem” the savings upon sale of the home.

Should you buy a home?

Yes. Absolutely. But…only when it’s right for you and your circumstances. And only if you truly understand its value, both now and in your future. Our professionals can help you understand how homeownership can benefit you and your family.

When a house is an investment

Investment property is property that has the potential to increase your cash flow. These types of property include commercial properties and rentals (both multi-family and single-family homes). If you’re interested in pursuing investment property, we can help you with that too.

Give me a call if you would like to talk about what is currently going on in the market. We have an incredible marketing plan that will help you get the the most money for your home, in the quickest amount of time. Or if you are looking to buy we can help find you the home of your dreams.

Call Now – Stan Rector 805-577-7902 (Office) – Your New Home Is Waiting!

Compliments of Virtual Results

Need an Air Conditioner But Don’t Have Ducts?

As scorching or humid summer days approach, you may be second-guessing the purchase of that vintage or historic home you’ve had your eye on. In fact, in many places homes as new as 15 to 20 years may not have air conditioning. If your home doesn’t have ductwork and is missing the attic, basement or crawlspace to add it, what can you do?

In know, I know … visions of unsightly window air conditioners dance in your head and the though of giving up a window makes you wince. Be encouraged … other options exist to see you through the hottest days.

Ductless air conditioners

Used extensively in Europe and Asia, and often seen in hotels in the United States, a mini-split or ductless air conditioner mounts one unit on the inside wall and one unit on the outside wall. The inside unit blows cool air into the room and houses any climate controls and the outer unit that brings in the air and expels the “condensate” or moisture through a drain. Between the two systems run refrigerant lines, the power source and the tubing.

Mini-split systems work great for retrofitting an older home, or for adding air conditioning to a room addition not connected to the main ductwork. In fact, installation typically requires just a three-inch hole for the conduit to pass through. While often the two units mount back to back, if necessary, situating the outdoor unit as far as 50 feet away offers more flexibility. In fact, cooling rooms on the front of your home, but situating the condenser unit I a less conspicuous location allows for installation even in highly regulated neighborhoods.

While the systems themselves cost much more than a window unit—often $1500 to $2000 per 12,000 BTU/hour cooling capacity—energy savings could increase because there is less loss than a typical duct system and less air leakage than a window system. One additional advantage comes from the minimal exposure to pests through the small entry point into the wall.

Portable Air Conditioners

A portable air conditioner is a unit that houses the blower and condenser in a single unit. They expel warm air through a small vent duct placed in an exterior window. Some portable units have two ducts … one to bring in fresh air and one to expel warm air and moisture. Additionally, many have condensation trays similar to dehumidifiers that need emptying on a regular basis.

Some portable units make quite a bit of noise, and others weigh up to 85 lbs., so “portability” may be subjective.

Other options

If your climate’s hot or humid the whole summer, you’ll want to invest in some form of air conditioning, but in more moderate climates with just a couple weeks of hot days, consider cooling with more traditional methods like ceiling fans, tower fans or even better, a whole house fan. A whole house mounts in the ceiling at the home’s highest point … such as above the top of the stairwell landing … pulls air from windows through the house and vents into the attic. Ranging from $200 to $800, a whole house, high capacity fan runs more quietly and efficiently at lower speeds. Even at hotter temperatures, the moving air evaporates perspiration from the skin, allowing inhabitants to feel cooler.

Compliments of Virtual Results

Create a Timeless Kitchen with the 4 Cs of Kitchen Design

Nothing says “dated” like a kitchen trend from a decade ago. Consider giving your kitchen a makeover using timeless elements that are always in style. That way, no matter when you sell, your home is always ready.

Color

The simplest and most marketable hue for a kitchen is a clean, bright white. Look in any kitchen design magazine and you’ll see a white theme throughout its slick pages. White reflects light and can make even a small kitchen appear larger.  Of course, there are dozens of shades of white that evoke differing moods from cool and crisp to warm and comforting. You can even mix whites to give your kitchen depth and dimension.

No matter what your price point, all standard kitchen elements from appliances to finishes come in shades of white. If you DIY, you can find white tiles, paints, appliances, trims, sinks and cabinets.

Cabinets

Speaking of cabinets—the most timeless cabinet design is the Shaker style. A true Shaker style is a flat panel door with a square frame known as rail and stile construction. You’ll find Shaker style cabinets in country cottages, contemporary lofts and classic homes. If made from fine wood, a simple polyurethane finish will display the wood’s beauty, but as in the section above, a white cabinet paint or finish will keep your kitchen beautiful for years to come.

Shaker-style cabinets span all price ranges and quality levels. You can remodel your entire kitchen or simply replace the doors and drawer faces. In fact, if your kitchen has odd-sized custom cabinets or door and drawer sizes from another era, and you’re handy with tools and looking for a budget-friendly solution, you can even make your own.

Counters

The third “C” is the countertops. From Formica to granite, countertops are the most used part of the kitchen. While Formica definitely shouts, “dated,” to most buyers, granite is beginning to be cliché as well.

The most timeless surfaces for your countertop include:

• White/black marble
• Soapstone
• Slate
• Natural tile
• Butcher-block
• Concrete

Solid-surface materials such as Okite, Silestone or Corian in designs that mimic marble, stone or lighter granites and neutral colors promote an enduring look. Better for your pocketbook are butcher-block and concrete surfaces.

Cookspace

Classic kitchen layouts make moving from countertop to cooktop, refrigerator to sink or cutting board to oven simple. The most classic are: I, G, C or L configurations.

• I — The “I” kitchen is a simple, single-sided galley and works great for small spaces such as lofts and smaller apartments. In an open space it only requires one wall, and adding an island opposite can create a full galley.
• G — The “G” is a full galley kitchen with workspace on two opposing sides. The best arrangement has a prep area equidistant from both the sink and the cooking space.
• C — A “C” (also called “U”) kitchen has cabinets on three sides. In an open design one side would be a peninsula. Busy bakers and cooks like the C or U shape for its large amount of counter space and classic work triangle.
• L — An “L” kitchen has cabinets against two perpendicular walls and often has a center island. Popular in open floorplans, the L-shape has plenty of space and two walls of cabinets. Typically, the sink is on an exterior wall with a window to let in light.

If your kitchen is not one of these classic layouts, consider moving some things around to mimic these designs.

If you’re thinking of selling your home, let us give you a professional evaluation of your current kitchen before you spend to redesign it. We can help you determine which changes will give you the best return on your investment.

Give me a call if you would like to talk about what is currently going on in the market. We have an incredible marketing plan that will help you get the the most money for your home, in the quickest amount of time. Or if you are looking to buy we can help find you the home of your dreams.

Call Now – Stan Rector 805-577-7902 (Office) – Your New Home Is Waiting!

 

Compliments of Virtual Results

Should I Haggle Over the Price?

Buying a home, especially for the first time, is emotional. You’ve saved and scrimped for months—years even—and now you’ve found the home of your dreams. You’re in love and you don’t want someone else to get it.

Joss Whedon, the mastermind behind Buffy the Vampire Slayer says, “Never sit at a table you can’t walk away from.” That is, don’t begin a negotiation if you’re not willing to say “no” if it doesn’t move in the direction you favor. The truth is…if you can’t walk away from that home, you probably won’t do well and may even give up more than you need to.

When you’re negotiating over the purchase of a home that you’ve become emotionally invested in, it’s more difficult to stand your ground or walk away when the haggling becomes fierce. To succeed in a negotiation, you need resolve based on facts, not emotions.

Base your resolve on knowledge of the market: knowing the market gives you the advantage moving on to another similar home if this one doesn’t work out.

Let your professional do the haggling: Your real estate professional knows which areas in the deal might be negotiable and which probably aren’t. She also knows, or can learn, more about the home’s situation.

• Has it been on the market for a while?
• Is it being sold by the former residents? Or, is it being sold by a nephew that inherited it? Is it part of a divorce? The more you know about the seller, the better you can judge if they’ll negotiate. Public records can give you some information about both the property and the seller.
• Are there circumstances in the neighborhood that can give you wiggle room (i.e. a shopping mall going in near by, periodic odors wafting in the home’s direction a couple times a year from nearby industry)?
• Know what the nearby comparable homes sold for and why (updated kitchen, new bath, in-ground sprinklers).
• Ask! If you don’t ask, you don’t know. The more questions you ask, the more information you have to negotiate with.
• Stick to the basics and don’t get hung up on easily changed decorations, appliances, carpeting or window treatments. You’re buying the structure.
• Avoid contingencies. If you’re asking for concessions and negotiating the price, don’t expect the seller to agree to a contingency on the sale of the home you currently own.
• Determine which is most important to you: location, price or size. Then, craft your negotiations around the on that is most important to you and your family.
• Know if you’re in a buyer’s market, a seller’s market or a balanced market so you can tailor your negotiations to the market forces. In a seller’s market, try negotiating for simple additions to sweeten the pot, but don’t offer low-ball pricing unless you know the seller is in a distressed situation. In a buyer’s market, push for options on closing times, upgrades to flooring or appliances or keeping the patio furniture. In a balanced market, expect negotiations to take longer, or agree to things like splitting costs.

You want the seller to feel that he came out well, even if you win some concessions in the negotiations. When both the buyer and seller feel good about the transaction, the negotiations will be smoother and more positive.

Give me a call if you would like to talk about what is currently going on in the market. We have an incredible marketing plan that will help you get the the most money for your home, in the quickest amount of time. Or if you are looking to buy we can help find you the home of your dreams.

Call Now – Stan Rector 805-577-7902 (Office) – Your New Home Is Waiting!

Compliments of Virtual Results

Futuristic Kitchen Upgrades

A recent display at the Saloni design fair in Milan, Italy, featured parts of Concept Kitchen 2025, a collaboration between IKEA, the IDEO design firm and Swedish design students. Their exhibit showcases concepts from tables that double as computers and cooktops to food storage appliances that read RFID chips on food packaging that programs the correct storage temperature via “smart induction cooling technology.”

In addition to technological advances, the displays included more traditional and even ancient technology such as naturally cooling terracotta storage boxes for root vegetables, potatoes, garlic or onions.

Other technology included ingenious designs for collecting gray water to reuse for watering plants or pre-washing dishes, faucets that respond to the intensity of touch by increasing or reducing water pressure, and visible food storage that encourages healthful snacking.

Many of the designs promoted the concept of small but adjustable living. Since many people will live in cities where space is scarce, kitchens with adjustable to fit the needs of the user with more or less storage, changes in the height of shelving, expandable tables and other surfaces, and other options.

While these designs may be incorporated into future appliances and kitchen items, some items may be in stores sooner. Move over, Jettsons … check out these futuristic kitchen helps available now.

• Minipresso: This miniature espresso machine can travel with you anywhere. It is lightweight, compact and operates by hand so it does not impact on the environment.
• Indoor microgarden: Grow your own herbs without the dirt or mess in an origami-inspired paper gardening kit.
• SpreadThat: An advanced butter knife that uses your body heat to soften the butter as it slices offers up the perfect spread.
• Interactive Prep Pad: a scale and prep area that keeps track of nutritional values to help you reach your health goals.
• Furtif knives: These laser-bonded, titanium carbide kitchen knives only require sharpening once every couple of decades or so.
• WiFi enabled Crock-Pot: When timing is everything, this slow cooker allows you to control it from wherever you are via your 3G, 4G or WiFi enabled smart device. You can adjust the cooking time, the temperature or turn it off from wherever you happen to be, so dinner is ready right on time.
• ChillThat icecream dish: A step of from frosty mugs, this cool number keeps your icy treat frozen while you eat it. The refreezable bowl and cover are composed of an engineered thermal absorption material that protects your ice cream while keeping it the perfect temperature.

Give me a call if you would like to talk about what is currently going on in the market. We have an incredible marketing plan that will help you get the the most money for your home, in the quickest amount of time. Or if you are looking to buy we can help find you the home of your dreams.

Call Now – Stan Rector 805-577-7902 (Office) – Your New Home Is Waiting!

Compliments of Virtual Results

Does Size Really Matter?

Now that you’re embarking on home ownership, you might wonder how large a space you actually need. After all, apartments tend to be a bit smaller than the average home and the siren song of extra space lures many a buyer into purchasing the biggest bang for their buck. While the size of houses increased during the early 2000s, the new home market shows a 15 percent decrease in square footage for the average home.

While some buyers yearn for more space, others have downsized … even while their children still live in the home. In fact, a trend toward very small homes has increased in popularity in recent years.

While no one can decide what’s exactly right for your situation, here are some things to consider:

How much space do you really need? vs. How much space do you want or can afford?

To answer this question, you’ll need to spend some time determining your family’s lifestyle:

• How many people will live in the house? Brothers of a similar age can easily share a room, for example, but teens may do better in a separate space from their younger siblings. If grandparents share the home too, they may enjoy their own living area.
• Do you often have out-of-town guests? If so, you’ll need sleeping room for guests, and even an extra bath.
• Do you have lots of indoor hobbies? Sewing, crafting and woodworking in your living space can make day-to-day life difficult for the rest of the family. If you have indoor crafts, you’ll need a home with an extra room, a large garage, workshop, basement or attic.
• Do you work from home? Both for tax purposes and for your own sanity, you may need an office with its own door. Being able to “leave work” is a boost for most home-based entrepreneurs, too.
• Does a larger home require more maintenance? If more space just means more time cleaning, you might be happier in a smaller space, but if a smaller space means constant purging and organizing, a little more room to store your stuff can fill the bill.
• Do you plan to keep the home into your empty nest or retirement years? If so, you may be willing to live with less space-per-person now so that you have a paid-off home that’s just the right size later.

Talk to your professional

Deciding how much space you want or need, and how you plan to use it is important before you begin to look. Your agent may show you a beautiful home that you become infatuated with, but that isn’t really right for your needs … but if she knows your needs and how you want to live, she’s more likely to show you the home that becomes your long-time love—no matter what size it is.

Give me a call if you would like to talk about what is currently going on in the market. We have an incredible marketing plan that will help you get the the most money for your home, in the quickest amount of time. Or if you are looking to buy we can help find you the home of your dreams.

Call Now – Stan Rector 805-577-7902 (Office) – Your New Home Is Waiting!

 

 

Compliments of Virtual Results

What Matters Most? Why Location Trumps Everything!

Take a lesson from that old real estate adage “location, location, location.” Many seasoned homeowners will tell you that the size of your home and the amount of space you have—including extra living rooms, game rooms, or even acreage — becomes far less important to you in short order if the location is wrong.

Ask yourself these questions:

• How long is my commute to work? At first blush, the thrill of ownership may overshadow a long commute. Eventually, however, many commuters begin to feel that their families get to live in the home and they just visit for a few hours in the evening and on weekends. If being part of family life is important to you, look for something closer to your work, even if it’s a little smaller.
• Is it near to my children’s schools? As children progress through school, the number of activities for them to be involved in increases dramatically. If the commute to their school for ball games, drama club, band practice and the like is too long, either you’ll spend all of your family life on the road or your children may miss out on things that could be important to them.
• How far away is shopping? Living on rural property or in a newer housing development may seem like the perfect opportunity, but if you run short on milk for breakfast, is it an hour round trip to the nearest market? Or, if you choose an urban condo for its great walk score to restaurants and nightlife, do you have to have a vehicle to drive just to find groceries? The inconvenience of far-away shopping affects the enjoyment of your new home.
• Do I enjoy activities in the nearest community? Whether urban, suburban or rural, your connection to your community affects your satisfaction and contentment with your location. If you prefer the theatre, but live in a community that only celebrates agriculture, your quality of life may suffer. Conversely, if you love the great outdoors, but your city only offers indoor activities, you may need to rethink the location of your home.

Other considerations:

Of course, one of the biggest reasons to consider location is the future sale of your home. No matter how lovely your home is, or how perfect in every other way, its location can make or break a future sale.

But, if you’re concerned about the environment, the location of your home can leave a larger or smaller carbon footprint. An EPA study points out that a home’s location relative to public transportation, energy sources and the actual housing type significantly affect energy consumption.

Before beginning your home search, take time to reflect on what is most important to you. Then, let your real estate professional in on the secret. He’ll narrow his search to those locations that fit your needs, wants and desires best.

Give me a call if you would like to talk about what is currently going on in the market. We have an incredible marketing plan that will help you get the the most money for your home, in the quickest amount of time. Or if you are looking to buy we can help find you the home of your dreams.

Call Now – Stan Rector 805-577-7902 (Office) – Your New Home Is Waiting!

Compliments of Virtual Results

How to Avoid Being House Poor When Buying

Buying a home is exciting. If you’re young, it gives you the sense of finally stepping into the adult world. If you’re at some other life change (marriage, starting a family, empty-nester) the idea of a larger (or smaller) space of your own gets those possibility juices flowing.

But … in the heady rush into new home ownership, the temptation to bite off more than you can chew financially is strong enough that potential homeowners ignore that niggling unsettled feeling, or even the warning bells clanging in their heads. Once the deal is done and move-in day is a dim memory, the reality of monthly expenses takes over.

Does that mean you shouldn’t buy a home? Of course not! What is means is that homeownership can change your lifestyle in ways that you may not anticipate. If you’re looking at buying a home, try incorporating those changes into your life beforehand to see if they are livable.

Higher monthly payments

For some buyers, the actual mortgage payment is less than they pay for rent. In fact, many would-be buyers consider this as the basis of their potential move into ownership, and marketers promote the idea as well. But, ownership requires more than just making the mortgage payment. Other monthly outgo includes:

• Insurance: Homeowner’s insurance is much more costly than renter’s insurance. If you own a single-family home, the cost of your coverage is based not on the home’s market value, but on the cost to rebuild it after a destructive event. If your home has special architectural details—a Victorian or Craftsman, for example—your insurance may be higher because replacing damaged detailing may require specialty products. If you live in a storm-damage area (hail, tornados, wind) or flood plain, you’ll need to cover those instances as well. Your insurance also includes coverage for your furnishings. When you more to a larger home, you have more furnishings.
• Private Mortgage Insurance: If your mortgage arrangement requires the payment of private mortgage insurance (you made a smaller than conventional downpayment or your credit is less than stellar, for instance), the amount of your monthly payment may be increased to pay PMI. Just so you know, PMI is not for your protection, it is for the lender’s protection. You’ll pay between $75 and $250 to cover your lender should you default on your mortgage.
• Association Dues: Condominium ownership nearly always requires payment of monthly or yearly association dues. These dues pay for exterior and building and pool maintenance, landscaping, liability coverage for community property and other responsibilities. In many communities, even single-family homes can require association dues to cover parks, playgrounds, pools and other shared spaces. Association dues can run into several hundred dollars each month.
• Property Taxes: Unlike renters, property owners pay the taxes used to operate cities, school districts and other municipalities. Your tax money maintains roads and pays for street-sweeping or snow removal, clearing of drainage systems, installing and maintaining street lamps, building and caring for parks and recreation facilities. In cases of newer construction, there may be special assessment taxes to cover new roads and sidewalks, traffic lights, and other new installation required by the city. Typically, special assessments end after a certain number of years.
• Local services: Often, services such as trash, water and sewerage are covered in a renter’s monthly payment. Homeowners typically pay for these services individually, so their cost must be included into the monthly outgo.
• Maintenance: An owner is responsible for maintaining the property. That means the costs to replace light bulbs and repair dripping faucets or plugged toilets falls to the owner.

Have a plan

Before purchasing a home in a given area, find out an average of these other costs. To figure out interest and PMI, check out a mortgage calculator. For property taxes, search the local county records or ask your real estate agent to find out the prior year’s assessment. Add the monthly extra for all of these items to the potential mortgage payment. If it is more than you pay for rent, try living for three to six months paying the difference into a savings account that you do not access.

You may be willing to make sacrifices to afford the home of your dreams, but remember that you need to live with those sacrifices for a very long time. Giving up cable, not eating out and delaying buying new clothes seems doable in the first few months, but eventually, you may tire of the restrictions to your lifestyle. That’s why it is important to know before you buy a home how much monthly outgo fits into your lifestyle.

A real estate professional knows how to help you gather this information. We want you to be happy in your new home. After all, we want you to recommend us to others, so if we don’t help you determine the best situation for you, we only hurt ourselves.

Give me a call if you would like to talk about what is currently going on in the market. We have had some great changes that will help you get the home you are looking for.

Call Now – Stan Rector 805-577-7902 – Your New Home Is Waiting!

Compliments of Virtual Results

Home Loans Especially for College Grads

With outstanding student loan debt topping $1.2 trillion, and more than 40 million borrowers carrying student loan debt, the age of first-time homebuyers is edging upwards. Among millennials, homeownership is down from 43 percent a decade ago to just 36 percent today. Even though rates on mortgages are relatively low, the overall debt-to-income ratio of potential homebuyers in their 20s and 30s is relatively high.

Graduating from college or getting that advanced degree can propel your career, but student loans hanging over your head might make buying that first home more difficult. According to a 2012 study, qualifying for low-downpayment loans—or any loans—for those with higher debt loads due to student loans can be particularly unattainable. But newer options are coming available for successful college graduates that might open up doors for potential homebuyers.

USDA Loans

A specialty loan type geared toward rural housing, the USDA Home Loan Underwriters consider a college degree to be a “compensating factor” when evaluating applications for home loans. They have special ways of calculating student loans that are in deferment or are in an income-based repayment (IBR) status depending on the documentation of your arrangements, so keeping great records on your student loans is really important.

FHA Loans

When calculating the debt-to-income ratio for FHA loans, the Federal Housing Administration calculates loans that are deferred beyond 12 months differently than loans that may require payments to begin sooner. Again, the FHA lender requires supporting evidence regarding your loan’s deferment status. If you are a co-signer on a student loan, your lender’s standards may differ, too.

How can you qualify?

Data from top lenders shows that about an equal number of loans to millennials with student debt are funded as are denied. That means that other factors regarding student loan debt affect approval during underwriting. According to some analyses, a difference in monthly student loan payment amounts of $500 versus $300 can derail a loan, as can a few points one way or the other on a credit score.

Check out new loan products

Standard loan underwriting by Freddie Mac and Fannie Mae may continue to slow home mortgages to graduates with student loans, but some lenders are creating options for graduates in good standing.

Requiring as little as ten percent down, a SoFi mortgage has flexible debt-to-income requirements in its underwriting process for graduates with education debt. While not yet available in all state, these loan products are available in twenty-three states and the District of Columbia. Expansion to other states is in the works.

These mortgages do not require private mortgage insurance (PMI) or loan origination fees, saving new millennial homeowners a little more in the monthly outgo, too. According to their website, loans tend to close in as few as 21 days due to their streamlined underwriting process.

Give me a call if you would like to talk about what is currently going on in the market. We have an incredible marketing plan that will help you get the the most money for your home, in the quickest amount of time. Or if you are looking to buy we can help find you the home of your dreams.

Call Now – Stan Rector 805-577-7902 – Your New Home Is Waiting!

 

 

Compliments of Virtual Results

Keeping Your House Show Ready

Having your house on the market while you’re living in it can be a stressful time. You still have to live. The dog still puts muddy prints on your freshly mopped floor. The kids still race down the hallway bumping into your freshly painted walls. Construction down the way still lays that fine layer of dust on your mini-blinds.

So what’s a busy home-seller to do?

The best advice from people that instinctively know how to keep a house ready to show is:

• Clean as you go: So, as you’re cooking, give the counters a swipe with a damp sponge and don’t leave the dishes for later because later can become the next morning and the you get a call while you’re at work that a very interested buyer only has today to look at your house, and well … there you are, trying to figure out how to race home from work to wash those dishes. Put a squeegee in the shower and give the glass doors and walls a swipe every time you take one.
• Less is easier: Having less stuff means there is less to get out, so less to put away. When you’re house is showing, pack away all those knick-knacks that collect dust. Remove extra furniture so that cleaning the floor is easier.
• Use containers: Give your kids lidded containers for their stuff. At the end of the day, have them collect all of their things—toys, video games, iPods, etc.—and put them away in their container. They can keep it in their closet or you can stack them away in the laundry room…whatever works for your space.
• Use tricks: Okay, sometimes you just can’t keep everything clean all the time, so you have to resort to some quick ways to hide the mess. Cover furniture with blankets or throws to keep pet hair and kids messes off the upholstery. Then, you can just grab the blanket or throw, fold it up and hide it in the washer. Or, keep a Swiffer on hand to quickly gather up dust, pet hair or those muddy footprints.
• Have a plan: When you’re living with the constant need to have a clean home, you have to adjust how you think about cleaning. Many of us let the little messes pile up because we know we’ll get to it on the weekend. In fact, in many homes an entire Saturday morning can be set aside for cleaning. But when your house is on the market, you can’t let things wait for Saturday, so have a plan for just 20 minutes a day (or 10 each if your partner is onboard) to pick up, put away, wipe down and surface clean.

Don’t sweat the small stuff

Your real estate agent knows that you’re living in the house. They can help you decide which are the big things that you need to concentrate on and which are the small things that won’t make a difference to a sale. We’re here to help, so ask us.

Give me a call if you would like to talk about what is currently going on in the market. We have an incredible marketing plan that will help you get the the most money for your home, in the quickest amount of time. Or if you are looking to buy we can help find you the home of your dreams.

Call Now – Stan Rector 805-577-7902 – Your New Home Is Waiting!

Compliments of Virtual Results