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Cómo aumentar el valor de su hogar para vender

1303 SPRING CITY COURT
HOUSTON, TX 77090

Cómo aumentar el valor de su hogar para vender

Ya sea que ponga su casa en el mercado este año o en los próximos cinco años, es una decisión inteligente comenzar a construir el valor de su casa ahora. Estas son algunas formas de crear un hogar cómodo y, al mismo tiempo, facilitar el ingreso de más dinero en su cuenta bancaria el día del cierre.

Pequeñas reparaciones y mantenimiento.

Si piensa que el mantenimiento del hogar los fines de semana pierde su tiempo y energía, piénselo nuevamente. Las pequeñas tareas que realiza en su hogar evitan que pierda valor. Si se descuida el mantenimiento y las reparaciones pequeñas, el 10% del valor de su hogar saldrá de su puerta. La mayoría de los tasadores afirman que las casas que muestran poco o ningún mantenimiento preventivo pueden depreciarse de $ 15,000 a $ 20,000.

Un estudio realizado por investigadores de la Universidad de Connecticut y la Universidad de Syracuse muestra que el mantenimiento regular aumenta el valor de su hogar en aproximadamente un 1% por año. Sin embargo, los costos continuos de mantenimiento compensan ese valor, lo que significa que el mantenimiento regular en realidad reduce la tasa de depreciación. Además, debido a que los compradores de vivienda generalmente notan las reparaciones necesarias al comprar una casa nueva, el mantenimiento proactivo le permite al comprador saber que no tendrá que gastar dinero extra para mantener lo básico. Esto hace que su hogar sea más atractivo y, por lo tanto, es más probable que obtenga ofertas a precios más altos.

Mantener lo básico puede costarle poco dinero y, ciertamente, algo de esfuerzo, pero hay una manera de realizar esta importante actividad de manera inteligente. Este artículo de HouseLogic, por ejemplo, le muestra cómo mantener el mantenimiento del hogar por debajo de los $ 300 al año. Planear con anticipación también ayudará a facilitar el mantenimiento de su hogar. La mayoría de los tasadores profesionales y agentes de bienes raíces recomiendan un programa de mantenimiento proactivo que incluya:

  • Mantener suficiente efectivo a la mano para reemplazar sistemas y materiales.
  • Creación y seguimiento de un programa de mantenimiento.
  • Planificación de una habitación rehacer cada año.
  • Manteniendo un cuaderno de todos sus mantenimientos y reparaciones.
  • Paisajismo

La Extensión Cooperativa de Virginia en Virginia Tech publicó un estudio que muestra que el paisajismo puede aumentar el valor de una casa en un 15%. El estudio afirma que una casa valorada en $ 150,000 podría aumentar su valor entre $ 8,300 y $ 19,000 con la adición de paisajismo. Elementos particulares del paisaje añaden valor diferente. Por ejemplo, el diseño del paisaje puede aumentar el valor de su hogar en un 42%, el tamaño de la planta puede aumentar el valor de su hogar en un 32% y la diversidad de plantas puede aumentar el valor de su hogar en un 22%.

Reemplazar puertas de entrada

Si las puertas de entrada son de madera, considere cambiarlas por puertas de fibra de vidrio o de acero. Las puertas de acero agregan estilo e interés arquitectónico a su hogar al tiempo que mejoran la seguridad; puede agregar un cerrojo y teclados electrónicos para evitar la entrada de intrusos. A diferencia de las puertas de madera, las puertas de acero no se pudren ni se astillan.

Alternativamente, las puertas de fibra de vidrio se pueden diseñar para que se parezcan a las puertas de madera y le den a su hogar un aspecto moderno. Las puertas de fibra de vidrio conservan más energía que las puertas de acero.

En lo que respecta al precio, una puerta de acero le costará $ 1,335 con un 91% de retorno de la inversión, mientras que una puerta de fibra de vidrio le costará $ 3,126 con un 82.3% de retorno de la inversión.

Reemplazo de la puerta del garaje

Al principio, es posible que no piense que la puerta de su garaje aumenta el valor de su hogar. Sin embargo, la puerta de su garaje distingue su hogar de los otros hogares en su bloque. Como la entrada más grande de una casa, las puertas de los garajes se notan primero porque son el punto focal de su casa. Si desea aumentar rápidamente el valor de reventa de su hogar, necesita aprovechar al máximo este espacio.

Algunas cosas interesantes que se hacen con puertas de garaje incluyen:

  • Mayor tamaño: las puertas de garaje más grandes ayudan a que las casas se destaquen más, y los propietarios de viviendas pueden hacer más creativamente con ellas.
  • Colores audaces: los colores brillantes y audaces ahora pueden complementar el color de su hogar, o puede crear un concepto alrededor del color de su hogar.
  • Faux Wood: puede instalar puertas de garaje de fibra de vidrio o acero que parecen puertas de garaje de madera. Esto le da a su hogar un nuevo nivel de sofisticación.
  • Ventanas: las ventanas grandes en la puerta de su garaje mejoran la estética de su hogar y brindan luz en su garaje para que ya no sea un espacio oscuro.

Más importante aún, un reemplazo de la puerta del garaje le costará $ 1,652 y agregará $ 1,512 al valor de su hogar; Eso es un retorno de su inversión de 91.5%.

Aislamiento de fibra de vidrio en el ático

Si bien la eficiencia energética aún no es el punto de venta más atractivo de su hogar, la instalación de aislamiento de fibra de vidrio en el ático ahorra energía y le proporciona una gran recompensa a su inversión. Según el informe de tendencias principales Costo vs. Valor de Remodeling Magazine de 2016, el aislamiento de fibra de vidrio del ático obtuvo el mayor retorno de la inversión entre los 30 proyectos del informe de este año. Usando Remodel / Max como la fuente de costos, un proyecto de aislamiento de fibra de vidrio para áticos cuesta $ 1,268 en todo el país. Los profesionales inmobiliarios encuestados estimaron que el trabajo aumentaría el precio de una casa en reventa, dentro del año de su finalización, en $ 1,482. Eso es un 116.9% de retorno sobre la inversión.

Reemplazo de Windows

Reemplazar sus ventanas es otra forma de ahorrar energía y aumentar el valor de reventa de su hogar. Reemplazar sus viejas ventanas con modelos de ahorro de energía embellecerá su hogar, lo mantendrá cómodo y facilitará la carga de trabajo de su sistema de HVAC. Según HGTV, verá una reducción en su factura de servicios públicos entre un 7% y un 15%. Sin embargo, si está vendiendo su casa, podría esperar una recuperación de su inversión del 60% al 70%. Los dos tipos de ventanas de reemplazo que traen el mejor retorno son vinilo y madera.

Remodelando tu cocina

La remodelación de la cocina puede ser costosa, pero las pequeñas renovaciones pueden hacer que su hogar sea más fácil para el comprador. Cambiar la textura y el color de su cocina con un acabado mate y colores neutros como masilla o gris mejora el valor de reventa de su hogar. Debido a que los acabados mate tienen cualidades de transición, su potencial comprador de casa puede igualar fácilmente sus electrodomésticos de acero inoxidable o blanco y negro. Además, el reacabado de gabinetes o el cambio a los electrodomésticos Energy Star ™ brindan la comodidad que usted desea y el gusto de los compradores.

El flujo es importante para cualquier diseño interior de una casa. Si sientes que tu cocina dificulta un buen flujo, cámbiala. Una pequeña inversión para derribar un muro no estructural o remover una isla de cocina crea espacio y proporciona el flujo que los compradores adoran.

Una remodelación de la cocina de menor importancia puede costarle $ 20,122 mientras que pone $ 16,716 de valor de reventa en su hogar; eso es un 83% de devolución en el proyecto. Si desea hacer un modelo de cocina importante, esto le puede costar alrededor de $ 60,000 y poner alrededor de $ 39,000 de valor de reventa en su hogar, lo que representa solo un 65% de reembolso en el proyecto. Por lo tanto, considere una remodelación de cocina menor primero.

Adición o remodelación de baños

Asimismo, considere cuidadosamente agregar un baño o remodelar su baño. Cambiar las puertas de la ducha de vidrio esmerilado por puertas de vidrio, limpiar la lechada, reemplazar la ducha y los azulejos del piso, cambiar el fregadero o el inodoro o reemplazar los accesorios del lavabo y la ducha puede costarle poco dinero.

Agregar un baño puede ser costoso, pero puede reducir la congestión durante los tiempos agitados y proporcionar a sus invitados un baño. Consulte con su agente de bienes raíces o con un tasador local antes de decidir si una remodelación completa o una adición es adecuada para su situación. Mientras que la remodelación de un baño le costará alrededor de $ 18,000 con un retorno de la inversión de aproximadamente el 66%, la adición de un baño le costará aproximadamente $ 42,000 con un retorno de la inversión de aproximadamente el 56%. Por lo tanto, es mejor hacer su diligencia debida antes de trabajar en su baño.

Sus necesidades y deseos de los compradores

En esa nota, si necesita renovar su casa, asegúrese de considerar cómo esos cambios afectarán su atractivo para los futuros compradores. Conocer las tendencias de diseño le dará la oportunidad de realizar cambios en su hogar en función de dónde se intersectan sus necesidades y los deseos de su comprador potencial, lo que aumentará drásticamente el valor de reventa de su propiedad.

Los diseñadores y los sitios web de diseño ofrecen excelentes ideas cuando está realizando una lluvia de ideas sobre las renovaciones en el hogar. Sin embargo, tenga en cuenta al investigar, que no desea sacrificar sus necesidades por un hogar cómodo solo por lo que cree que querrá un futuro comprador.

Por lo tanto, antes de comenzar a realizar cambios en su hogar, consulte a su agente de bienes raíces. Los agentes de bienes raíces, ya que trabajamos constantemente con nuevos clientes compradores, tenemos información privilegiada sobre lo que los compradores de viviendas están buscando ahora y en el futuro. Podremos ayudarlo a tomar decisiones inteligentes al remodelar o renovar su hogar.

Si piensa que puede querer remodelar o renovar su casa en un futuro próximo, o si simplemente tiene curiosidad acerca de otras formas en que puede aumentar su valor de reventa, comuníquese conmigo.

How to Amp Up The Resale Value of Your Home

How to Amp Up The Resale Value of Your Home

Whether you’re putting your home on the market this year or in the next five years, it is a smart decision to start building your home’s resale value now. Here are some ways to create a comfortable home while making it easier to put more money into your bank account on closing day.

Small Maintenance and Repairs

If you think that home maintenance on the weekends waste your time and energy, think again. The small chores you do around your home prevents it from losing value. Neglecting small maintenance and repairs causes 10% of your home’s value to walk out your door and slip through your windows. Most appraisers claim that homes showing little to no preventative maintenance can depreciate from $15,000 to $20,000.

study conducted by researchers at the University of Connecticut and Syracuse University shows that regular maintenance boosts your home value by about 1% per year. However, ongoing maintenance costs offset that value, which means that regular maintenance actually slows down your rate of depreciation. Furthermore, because homebuyers generally notice any repairs needed upon buying a new home, proactive maintenance lets the homebuyer know that he or she will not have to spend extra money to maintain the basics. This makes your home more attractive, and thus more likely to get higher priced offers.

Maintaining the basics can cost you little money and certainly some effort, but there’s a way to accomplish this very important activity smartly. This article by HouseLogic, for example,shows you how to keep home maintenance below $300 a year.  Planning ahead will also help make maintaining your home easier. Most professional appraisers and real estate agents recommend a proactive maintenance schedule that includes:

  • Keeping enough cash on hand to replace systems and materials
  • Creating and following a maintenance schedule
  • Planning a room redo every year
  • Keeping a notebook of all your maintenance and repairs

Landscaping

The Virginia Cooperative Extension at Virginia Techpublished a study that shows landscaping can increase a home’s value by 15%.  The study claims that a home valued at $150,000 could increase its value between $8,300 and $19,000 with the addition of landscaping. Particular landscape elements add different value. For instance, landscape design can increase your home’s value by 42%, plant size can increase your home’s value by 32%, and diversity in plants can increase your home’s value by 22%.

Replace Entrance Doors

If your entry doors are wood, consider switching them out for either fiberglass or steel doors. Steel doors add style and architectural interest to your home while improving security; you can add a deadbolt and electronic keypads to keep out intruders. Unlike wood doors, steel doors do not rot or splinter.

Alternatively, fiberglass doors can be designed to look like wood doors and give your home a modern look. Fiberglass doors conserve more energy than steel doors.

Pricewise, a steel door will cost you $1,335 with a 91% return on investment whereas a fiberglass door will cost you $3,126 with an 82.3% return on investment.

Garage Door Replacement

 At first, you might not think that your garage door increases the value of your home. However, your garage door distinguishes your home from the other homes on your block. As the largest entryway of a house, garage doors get noticed first because they’re the focal point of your home. If you want to quickly increase the resale value of your home, you need to make the most of this space.

Some interesting things being done with garage doors include:

  • Increased Size:Bigger garage doors help homes stand out more, and homeowners can do more creatively with them.
  • Bold Colors:Bright and bold colors now can complement the color of your home, or you can build a concept around the color of your home.
  • Faux Wood:You can install fiberglass or steel garage doors that look like wood garage doors. This gives your home a new level of sophistication.
  • Windows:Large Windows on your garage door improve the aesthetic of your home, and provide light into your garage so that it’s no longer a dark space.

 More importantly, a garage door replacement will cost you $1,652 and add $1,512 to the value of your home; that’s a return on your investment of 91.5%.

Fiberglass Attic Insulation

While energy efficiency is still not the sexiest selling point of your home, installing fiberglass attic insulation saves energy and garners a big payback on your investment. According to Remodeling Magazine’s 2016 Cost vs. Value top trends report, fiberglass attic insulation gained the top return on investment among the 30 projects in this year’s report. Using Remodel/Max as the cost source, a fiberglass attic insulation project cost $1,268 nationwide. Real estate professionals surveyed estimated that the work would boost the price of a home at resale, within a year of its completion, by $1,482. That’s a 116.9% return on investment.

Replacing Windows

Replacing your windows is another way to save energy and increase your home’s resale value. Replacing your old windows with energy saving models will beautify your home, keep it comfortable, and ease the workload of your HVAC system. According to HGTV, you’ll see a reduction in your utility bill by 7% to 15%. However, if you’re selling your home, you could expect a 60% to 70% recoupment of your investment. The two types of replacement windows that fetch the best returnare vinyl and wood.

Remodeling Your Kitchen

Kitchen remodeling can get expensive, but small renovations can make your home more buyer friendly. Changing your kitchen’s texture and color using a matte finish and neutral colors such as putty or grey enhances your home’s resale value. Because matte finishes have transitional qualities, your potential homebuyer can easily match his or her stainless steel or black and white appliances. Also, refinishing cabinetry, or switching to Energy Star™ appliances provide comfort you like and pizazz buyers adore.

Flow is important to any interior design of a home. If you feel that your kitchen hinders a good flow, change it. A small investment to knock out a non-structural wall or remove a kitchen island creates space and provides flow that buyers love.

A minor kitchen remodel can cost you $20,122 while putting $16,716 of resale value into your home; that’s an 83% payback on the project. If you want to do a major kitchen model, this can cost you about $60,000 and put about $39,000 of resale value into your home, which is only about a 65% payback on the project. Therefore, consider a minor kitchen remodel first.

Bathroom Addition or Remodel

Likewise, carefully consider adding a bathroom or remodeling your bathroom. Switching out your frosted glass shower doors for glass doors, cleaning the grout, replacing the shower and floor tiles, switching out your sink or toilet, or replacing your sink and shower fixtures can cost you little money.

Adding a bathroom can get expensive, but it can reduce congestion during hectic times and provide your guests with a bathroom. Consult with your real estate agent or a local appraiser before deciding whether a full remodel or addition is right for your situation. While a bathroom remodel will cost you about $18,000 with a return on investment of about 66%, a bathroom addition will cost you about $42,000 with a return on investment of about 56%. Therefore, it’s best do your due diligence before working on your bathroom.

Your Needs and Buyers’ Wants

On that note, if you need to renovate your home, be sure to consider how those changes will affect its appeal to future buyers. Knowing design trends will give you the opportunity to make changes to your home based on where your needs and your potential buyer’s desires intersect, thus increasing your property’s resale value drastically.

Designers and design websites provide great ideas when you’re brainstorming home renovations. Keep in mind as you research, however, that you don’t want to sacrifice your needs for a comfortable home just for the sake of what you think a future buyer will want!

Therefore, before you begin making any changes to your home, consult your real estate agent. Real estate agents, because we are constantly working with new buyer clients, have insider insight into what home buyers are looking for now and in the future. We’ll be able to help you make smart choices when remodeling or renovating your home.

If you think you might want to remodel or renovate your home in the near future, or if you are just curious about other ways you can increase its resale value, please reach out to me!

The Home Buyer’s Guide to Getting Mortgage Ready

The Home Buyer’s Guide to Getting Mortgage Ready

Don’t wait until you’re ready to move to start preparing financially to buy a home.

If you’re like the vast majority of home buyers, you will choose to finance your purchase with a mortgage loan. By preparing in advance, you can avoid the common delays and roadblocks many buyers face when applying for a mortgage.

The requirements to secure a mortgage may seem overwhelming, especially if you’re a first-time buyer. But we’ve outlined three simple steps to get you started on your path to homeownership.

Even if you’re a current homeowner, it’s a good idea to prepare in advance so you don’t encounter any surprises along the way. Lending requirements have become more rigorous in recent years, and changes to your credit history, debt levels, job type and other factors could impact your chances of approval.

It’s never too early to start preparing to buy a home. Follow these three steps to begin laying the foundation for your future home purchase today!

 

STEP 1: CHECK YOUR CREDIT SCORE

Your credit score is one of the first things a lender will check to see if you qualify for a loan. It’s a good idea to review your credit report and score yourself before you’re ready to apply for a mortgage. If you have a low score, you will need time to raise it. And sometimes fraudulent activity or erroneous information will appear on your report, which can take months to correct.

The credit score most lenders use is your FICO score, a weighted score developed by the Fair Isaac Corporation that takes into account your payment history (35%), amounts owed (30%), length of credit history (15%), new credit (10%), and credit mix (10%).1

Source: myFico.com

Base FICO scores range from 300 to 850. A higher FICO score will help you qualify for a lower mortgage interest rate, which will save you money.2

By federal law, you are entitled to one free copy of your credit report every 12 months from each of the three major credit bureaus (Equifax, Experian and Transunion). Request your free credit report at https://www.annualcreditreport.com.

 

Minimum Score Requirements

To qualify for the lowest interest rates available, you will usually need a FICO score of 760 or higher. Most lenders require a score of at least 620 to qualify for a conventional mortgage.3

If your FICO score is less than 620, you may be able to qualify for a non-conventional mortgage. However, you should expect to pay higher interest rates and fees. For example, you may be able to secure an FHA loan (one issued by a private lender but insured by the Federal Housing Administration) with a credit score as low as 580 if you can make a 3.5 percent down payment. And FHA loans are available to applicants with credit scores as low as 500 with a 10 percent down payment.4

 

Increase Your Credit Score

There’s no quick fix for a low credit score, but the following steps will help you increase it over time.5

 

  1. Make Payments on Time

At 35 percent, your payment history accounts for the largest portion of your credit score. Therefore, it’s crucial to get caught up on any late payments and make all of your future payments on time.

If you have trouble remembering to pay your bills on time, set up payment reminders through your online banking platform, a free money management tool like Mint, or an app like BillMinder.

 

  1. Avoid Applying for New Credit You Don’t Need

New accounts will lower your average account age, which could negatively impact your length of credit history. Also, each time you apply for credit, it can result in a small decrease in your credit score.

The exception to this rule? If you don’t have any credit cards—or any credit accounts at all—you should open an account to establish a credit history. Just be sure to use it responsibly and pay it off in full each month.

If you need to shop for a new credit account, for example, a car loan, be sure to complete your loan applications within a short period of time. FICO attempts to distinguish between a search for a single loan and applications to open several new lines of credit by the window of time during which inquiries occur.

 

  1. Pay Down Credit Cards

When you pay off your credit cards and other revolving credit, you lower your amounts owed, or credit utilization ratio (ratio of account balances to credit limits). Some experts recommend starting with your highest-interest debt and paying it off first. Others suggest paying off your lowest balance first and then rolling that payment into your next-lowest balance to create momentum.

Whichever method you choose, the first step is to make a list of all of your credit card balances and then start tackling them one by one. Make the minimum payments on all of your cards except one. Pay as much as possible on that card until it’s paid in full, then cross it off your list and move on to the next card.

 

Debt Interest Rate Total Payoff Minimum Payment
Credit Card 1 12.5% $460 $18.40
Credit Card 2 18.9% $1,012 $40.48
Credit Card 3 3.11% $6,300 $252

 

  1. Avoid Closing Old Accounts

Closing an old account will not remove it from your credit report. In fact, it can hurt your score, as it can raise your credit utilization ratio—since you’ll have less available credit—and decrease your average length of credit history.

Similarly, paying off a collection account will not remove it from your report. It remains on your credit report for seven years, however, the negative impact on your score will decrease over time.

 

  1. Correct Errors on Your Report

Mistakes or fraudulent activity can negatively impact your credit score. That’s why it’s a good idea to check your credit report at least once per year. The Federal Trade Commission has instructions on their websitefor disputing errors on your report.

While it may seem like a lot of effort to raise your credit score, your hard work will pay off in the long run. Not only will it help you qualify for a mortgage, a high credit score can help you secure a lower interest rate on car loans and credit cards, as well. You may even qualify for lower rates on insurance premiums.6

 

STEP 2: SAVE UP FOR A DOWN PAYMENT AND CLOSING COSTS

The next step in preparing for your home purchase is to save up for a down payment and closing costs.

 

Down Payment

When you purchase a home, you typically pay for a portion of it in cash (down payment) and take out a loan to cover the remaining balance (mortgage).

Many first-time buyers wonder: How much do I need to save for a down payment?The answer is … it depends.

Generally speaking, the higher your down payment, the more money you will save on interest and fees. For example, you will qualify for a lower interest rate and avoid paying for mortgage insurance if your down payment is at least 20 percent of the property’s purchase price. But what if you can’t afford to put down 20 percent?

On a conventional loan, you will be required to purchase private mortgage insurance (PMI) if your down payment is less than 20 percent. PMI is insurance that compensates your lender if you default on your loan.7

PMI will cost you between 0.3 to 1.5 percent of the overall mortgage amount each year.8So, on a $100,000 loan, you can expect to pay between $300 and $1500 per year for PMI until your mortgage balance falls below 80 percent of the appraised value.9For a conventional mortgage withPMI, most lenders will accept a minimum down payment of five percent of the purchase price.7

If a five-percent down payment is still too high, an FHA-insured loan may be an option for you. Because they are guaranteed by the Federal Housing Administration, FHA loans only require a 3.5 percent down payment if your credit score is 580 or higher.7

The downside of getting an FHA loan? You’ll be required to pay an upfront mortgage insurance premium (MIP) of 1.75 percent of the total loan amount, as well as an annual MIP of between 0.80 and 1.05 percent of your loan balance on a 30-year note. There are also certain limitations on the types of loans and properties that qualify.10

There are a variety of other government-sponsored programs created to assist home buyers, as well. For example, veterans and current members of the Armed Forces may qualify for a VA-backed loan requiring a $0 down payment.7Consult a mortgage lender about what options are available to you.

 

TYPE MINIMUM DOWN ADDITIONAL FEES
Conventional Loan 20% Qualify for the best rates and no mortgage insurance required
Conventional Loan 5% Must purchase private mortgage insurance costing 0.3 – 1.5% of mortgage annually
FHA Loan 3.5% Upfront mortgage insurance premium of 1.75% of loan amount and annual fee of 0.8 – 1.05%

 

Current Homeowners

If you’re a current homeowner, you may have equity in your home that you can use toward your down payment on a new home. We can help you estimate your expected return after you sell your current home and pay back your existing mortgage. Contact us for a free evaluation!

 

Closing Costs

Closing costs should also be factored into your savings plan. These may include loan origination fees, discount points, appraisal fees, title searches, title insurance, surveys and other fees associated with the purchase of your home. Closing costs vary but typically range between two to five percent of the purchase price.11

If you don’t have the funds to pay these outright at closing, you can often add them to your mortgage balance and pay them over time. However, this means you’ll have a higher monthly payment and pay more over the long term because you’ll pay interest on the fees.

 

STEP 3: ESTIMATE YOUR HOME PURCHASING POWER

Once you have the required credit score, savings for a down payment and a list of all your outstanding debt obligations via your credit report, you can assess whether you are ready and able to purchase a home.

It’s important to have a sense of how much you can reasonably afford—and how much you’ll be able to borrow—to see if homeownership is within reach.

Your debt-to-income (DTI) ratio is one of the main factors mortgage companies use to determine how much they are willing to lend you, and it can help you gauge whether or not your home purchasing goals are realistic given your current financial situation.

Your DTI ratio is essentially a comparison of your housing expenses and other debt versus your income. There are two different DTI ratios that lenders consider:

 

Front-End Ratio

Also called the housing ratio, this is the percentage of your income that would go toward housing expenses each month, including your mortgage payment, private mortgage insurance, property taxes, homeowner’s insurance and association dues.12

To calculate your front-end DTI ratio, a lender will add up your expected housing expenses and divide it by your gross monthly income (income before taxes). The maximum front-end DTI ratio for most mortgages is 28 percent. For an FHA-backed loan, this ratio must not exceed 31 percent.13

 

Back-End Ratio

The back-end ratio takes into account all of your monthly debt obligations: your expected housing expenses PLUS credit card bills, car payments, child support or alimony, student loans and any other debt that shows up on your credit report.12

To calculate your back-end ratio, a lender will tabulate your expected housing expenses and other monthly debt payments and divide it by your gross monthly income (income before taxes). The maximum back-end DTI ratio for most mortgages is 36 percent. For an FHA-backed loan, this ratio must not exceed 41 percent.13

 

Home Affordability Calculator

To get a sense of how much home you can afford, visit the National Association of Realtors’ free Home Affordability Calculator at https://www.realtor.com/mortgage/tools/affordability-calculator.

This handy tool will help you determine your home purchasing power depending on your location, annual income, monthly debt and down payment. It also offers a monthly mortgage breakdown that projects what you would pay each month in principal and interest, property taxes, and home insurance.

The Home Affordability Calculator defaults to a back-end DTI ratio of 36 percent. If the monthly cost estimate at that ratio is significantly higher than what you’re currently paying for housing, you need to consider whether or not you can make up the difference each month in your budget.

If not, you may want to lower your target purchase price to a more conservative DTI ratio. The tool enables you to scroll through higher and lower price points to see the impact on your monthly payments so you can identify your ideal price point.

(Note: This tool only provides an estimate of your purchasing power. You will need to secure pre-approval from a mortgage lender to know your true mortgage approval amount and monthly payment projections.)

 

Can I Afford to Buy My Dream Home?

Once you have a sense of your purchasing power, it’s time to find out which neighborhoods and types of homes you can afford. The best way to determine this is to contact a licensed real estate agent. We help homeowners like you every day and can send you a comprehensive list of homes within your budget that meet your specific needs.

If there are homes within your price range and target neighborhoods that meet your criteria—congratulations! It’s time to begin your home search.

If not, you may need to continue saving up for a larger down payment … or adjust your search parameters to find homes that do fit within your budget. We can help you determine the right course for you.

 

START LAYING YOUR FOUNDATION TODAY

It’s never too early to start preparing financially for a home purchase. These three steps will set you on the path toward homeownership … and a secure financial future!

And if you are ready to buy now but don’t have a perfect credit score or a big down payment, don’t get discouraged. There are resources and options available that might make it possible for you to buy a home sooner than you think. We can help.

Want to find out if you’re ready to buy a house? Give us a call! We’ll help you review your options, connect you with one of our trusted mortgage lenders, and help you determine the ideal time to begin your new home search.

The above references an opinion and is for informational purposes only.  It is not intended to be financial advice. Consult a financial professional for advice regarding your individual needs.

 

 

Sources:
  1. Quicken Loans Blog – 
    
    https://www.quickenloans.com/blog/how-does-your-credit-score-affect-your-mortgage-eligibility
  2. myFICO – 
    
    https://www.myfico.com/credit-education/credit-report-credit-score-articles/
  3. Bankrate – 
    
    https://www.bankrate.com/mortgages/what-is-a-good-credit-score-to-buy-a-house/
  4. Bankrate – 
    
    https://www.bankrate.com/finance/mortgages/7-crucial-facts-about-fha-loans-1.aspx
  5. myFICO – 
    
    https://www.myfico.com/credit-education/improve-your-credit-score/
  6. The Balance – 
    
    https://www.thebalance.com/having-good-credit-score-960528
  7. Bankrate – 
    
    https://www.bankrate.com/mortgages/how-much-is-a-down-payment-on-a-house/
  8. Bankrate – 
    
    https://www.bankrate.com/finance/mortgages/the-basics-of-private-mortgage-insurance-pmi.aspx
  9. Bankrate – 
    
    https://www.bankrate.com/finance/mortgages/removing-private-mortgage-insurance.aspx
  10. The Balance – 
    
    https://www.thebalance.com/fha-home-loan-pitfalls-315673
  11. Investopedia – 
    
    https://www.investopedia.com/terms/c/closingcosts.asp
  12. Bankrate – 
    
    https://www.bankrate.com/finance/mortgages/why-debt-to-income-matters-in-mortgages-1.aspx
  13. The Lenders Network – 
    
    https://thelendersnetwork.com/fha-debt-to-income-ratio/

Child Advocates of Fort Bend – Donate Today

I recently had the pleasure of touring the facility. I was moved by the dedication and enthusiasm that every employee/volunteer showed during the visit. They are doing AMAZING work. 

Child Advocates of Fort Bend is a nonprofit agency serving child victims of sexual abuse, physical abuse and neglect through two nationally-affiliated programs:  Court Appointed Special Advocates (CASA) and the Children’s Advocacy Center (CAC).  Started in 1991, it is celebrating its 25th anniversary in 2016 having served over 14,000 children ages birth – 18+ years old over these years.  Its mission is to:  Provide a Voice, Heal The Hurt and Break the Cycle of Abuse and Neglect for Children in Fort Bend County.

With a staff of 35 professionals, volunteer corps of 200 child advocate volunteers and collaborations with 40 partner agencies, it is consistently ranked as the “best practices” model for the investigation, treatment, advocacy and prevention of child abuse.  It employs a Multi-Disciplinary Team approach and practices trauma-focused, evidence-based practices.  Child Advocates of Fort Bend is community supported, public/private partnership that provides all its services at no cost.

For more information

This holiday season I will be collecting new toys, clothing, shoes, backpacks, stuffed animals or blankets for the Child Advocates of Fort Bend. Wish list: 2018 Child Advocate Donation 

I will be collecting items through December 15, 2018. 

I’d be happy to pick up items or you can mail the items to me . Email me for my address. ali@happyclientsrealtygroup.com

Thank you in advance!

Compre y venda su casa con nosotros y ahorra en sus costos de cierre!

 

¿Estás planeando vender una casa en los próximos 18 meses? Permítanos ayudarlo a vender y comprar su nuevo hogar. Como agradecimiento por su confianza en nuestros servicios, contribuiremos con $ 2,500 * para usarlos en los costos de cierre de su nueva casa. El crédito no vence y se puede transferir a un amigo o familiar para comprar una casa con nosotros.

Esto es lo que puedes esperar:

  1. Valor actual de la casa: ¿pensando en vender en los próximos meses? Si es así, hagamos un análisis de precios en su hogar actual. Le proporcionaremos un precio de venta sugerido y una hoja neta aproximada. Juntos podemos revisar el proceso de ventas y elaborar un plan de acción.
  2. Obtenga pre-aprobación: hable con un banco acerca de obtener pre-aprobación para un nuevo préstamo. El prestamista revisará sus opciones y le proporcionará un estimado de préstamo. Esta información nos ayudará a planificar con anticipación la compra de su nueva casa.
  3. Prepare la casa para la venta: programe su consulta de preparación. Le proporcionaremos una lista de verificación de los elementos para reparar / reemplazar o eliminar a fin de comercializar su propiedad a su máximo potencial. Una vez que la casa esté lista, programaremos fotografías profesionales.
  4. La propiedad se activa: la propiedad se activará en el mercado. Revisaremos las ofertas a medida que lleguen y tomaremos una decisión conjunta sobre el mejor comprador.
  5. Búsqueda de viviendas: ¡Una vez que tengamos un contrato, podemos comenzar a buscar su nuevo hogar!
  6. Haga una oferta: trabaje con nosotros para crear una oferta competitiva.
  7. Cierre: Trabajaremos juntos para asegurar que todas las inspecciones, contingencias y detalles sean atendidos. Se aplicarán $ 2500 para cubrir los costos de cierre en su nuevo hogar.
  8. Celebre: ¡Celebre su nuevo hogar!

¿Listo para empezar? Nunca es demasiado temprano

Envíenos un correo electrónico a ali@happyclientsrealtygroup.com o texto al 832-418-0670. Haga referencia al “crédito de costos de cierre”

* Restricciones: El crédito solo es válido en una compra con una comisión mínima de comprador de $ 5,000 ofrecida por la vendedora y la compra debe ocurrir dentro de nuestra misma área de mercado.

Si termina comprando una casa antes de vender su propiedad actual, le reembolsaremos $ 2,500 de la commission al vender su casa.

Find your dream home and save on closing costs!

Are you planning on selling a home within the next 18 months? Let us help you sell and buy your new home. As a thank you for your trust in our services we will contribute $2,500* to be used towards your new home’s closing costs. The credit does not expire and can be transferred to a friend or family member to purchase a home with us.

Here is what you can expect:

  1. Current home’s value – Thinking about selling in the next few months? If so, let us run a price analysis on your current home. We will provide you with a suggested sales price and an approximate net sheet. Together we can review the sales process and come up with a plan of action.
  2. Get Pre-Approved: Speak to a lender about getting pre-qualified for a new loan. The lender will review your options and will provide you with a loan estimate. This information will help us plan ahead for your new home purchase.
  3. Prepare home for sale – Schedule your staging consultation. We will provide you with a check list of items to repair/replace or remove in order to market your property to its highest potential. Once the home is ready, we will schedule professional pictures.
  4. Property goes active – Property will go active on the market. We will review offers as they arrive and decide together on the best offer.
  5. Search for Homes: Once we are under contract we can start looking for your new home!
  6. Make Offer: Work with us to craft a competitive offer.
  7. Closing: We will work together to assure that all inspections, contingencies and details are taken care of. $2500 will be applied towards your closing costs on your new home. This will be reflected in your closing disclosure.
  8. Celebrate: Celebrate your new home!

What to get started? It’s never too early

Email us at ali@happyclientsrealtygroup.com and references “closing costs credit”

*Restrictions: Credit is only valid on a purchase with a minimum $5,000 Buyer Broker commission offered by the listing brokerage and the purchase must occur within our same market area.  

If you end up buying a home before you sell your current property we will refund $2,500 off the listing fee at closing.

 

 

 

How to spot a meth lab



Recently, I had a customer call me to consult on a purchase she was getting ready to make. She found a home that was a steal and was super excited! Every sounded great until she mentioned the fact that the home was possibly a meth lab in the past. Wait, what? Yes, this is a problem for resale and as an investor.

Every year meth labs are busted and closed down but many home meth labs go unbeknown. These homes eventually get sold to unsuspecting buyers.

The problem is that these home’s surfaces, insulation and carpeting may be steeped in poisonous substances. These contaminates can make home owners sick over time.

When someone sells a home they are asked to fill out a seller’s disclosure form. In it there are two places that address possible issues. One section will ask if you know if the premise was used to manufacture methamphetamines. The other area will ask if the seller knows of any condition that will affect the health and safety of the individual. The homeowner is suppose to tell you but if they are the ones cooking the meth, it’s very unlikely they will disclose this info.

If the home has been foreclosed and it’s being sold by a bank, it’s also unlikely that the buyer will know if the home was being used to produce meth.

Beware of cheap foreclosed properties, which are usually sold “as is”. We can assume that persons’ producing meth are more likely to lose, trash and abandon their home. In fact, they might not own it at all. It’s likely they are renting or squatting in an abandoned home. Banks can resale the home and landlords can easily rent the property without you knowing.

There are a few signs you can look for, assuming the home has not been cleaned out. Look for the following:

  • Old bottles of acetone, muriatic acid, brake cleaner, drain cleaner, iodine, paint thinner, phosphorus laying around.
  • Rubber gloved, tubing, dust masks, propane tanks, coolers and camp stoves.
  • Yellow discoloration on walls, drains, sinks and showers.
  • Blue discoloration on valves of propane tanks and fire extinguishers.
  • Fire detectors that are removed–or taped off.
  • Burning in your eyes, itchy throat, a metallic taste in your mouth, or breathing problems when in the home.
  • Strong odors that smell similar to materials often found in a garage, such as solvent and paint thinner, or odors of cat urine or ammonia.

When it doubt or just to be proactive you can purchase a test kit for about $50 or you can hire a professional to do the testing for significantly more. You can also check with local police to see if the home was ever linked to drug arrests or complaints. Talk to the neighbors, most will be more than happy to tell you what they have seen and heard.

Something to consider: smoking meth in a home might also leave enough residue to cause health issues; it’s not just producing meth. It might be prudent to test before renting a home/apartment, buying vehicles, home and/or commercial buildings.

It’s best to be proactive because once you find out that the home is contaminated the clean up cost can easily run $10,000+.

To make matters worse there doesn’t seem to be a whole lot of concrete information about clean up and testing. The EPA does provide clean up guidelines but they are listed as “voluntary” clean up guidelines. In doing research, I found that the testing and clean up industry is not regulated and everyone seems to do their own thing.

If you find yourself in this situation do your research and see what’s best for you. Here are a few more sources:

There is a database where you can search for address. Keep in mind these are the meth labs that have been identified. The issue is mainly with those that haven’t been identified.

National Clandestine Laboratory Register Data

EPA guidelines

Sources: CNN Money, Realtor.com, NPR

Transformation Tuesday



TRANSFORMATION TUESDAY

It’s amazing what paint does to a home. Lighter more neutral colors photograph better and make the rooms look bigger and brighter. In the attached examples, the previous owners probably spent a fortune on these custom curtains. They probably went great with their decor but it just isn’t what most buyers want today. The truth is that most buyers can not see beyond paint, flooring and window covers. It’s best to stage the home to attract as many buyers as possible.

In these examples we have the same house, with most of the same staging decorations and the same photographer. The only thing that changed was the paint color and the window coverings.

Ali Palacios

GRI, ABR, MCNE, TAHS, ASPRE, HARRL

Broker

Happy Clients Realty Group

ali@happyclientsrealtygroup.com

Mobile – 832-418-0670

www.ilovehappyclients.com


hashtaghouse hashtagpainting hashtagstagingahome hashtagilovehappyclients hashtaghappyclientsrealtygroup hashtagstagingtosell hashtagsellingahome hashtagdecoration hashtagphotographers hashtagtransformations hashtagcolor

Let’s grow together

Thank you for your support, trust and referrals. I would not be where I’m at without your help. You helped me grow, I will help you grow!

I’d like to offer you my support in promoting your business. Do you have a small business and/or hobby you’d like to promote. I will list your business on my facebook page, website and offer your services to other clients.

Tell me more about you and your business. I’d love to help.

 

Am I the best agent for you?

I’ll be beyond honored to help you buy or sell a home!

As long as I’m the best agent for you…which I probably am, since I have the guts to even say that.

Most agents get so excited when someone even breathes the words buy or sell (or even just breathes), that they cram people in their car to go see homes, or push you to list your house on the spot.

It’s like going in for a kiss when you’re asking someone out on a date…let alone on the first date!

I prefer setting a date…just to chat and get to know each other.

Hopefully we are as good of a match as I feel like we’ll be!

So, for now, let’s just set up a good time to chat and get a feel for what you want and need in an agent. This will help me get a feel for who I’m agreeing to go steady with…before we put a ring on the relationship.

I’m here when you are ready