Posted by Liberty Real Estate on 5/23/2018

You know when you buy a home that your credit score matters, but do you see all of the numbers that matter to your financial picture when you’re buying a home? Your debt-to-income ratio is one of the most critical figures that will influence if you can get a mortgage and what type of rate you can get. 


What Is A Debt-To-Income Ratio?


This number is exactly what it states: the ratio of debt divided by your gross monthly income. Your credit report doesn't include any of this income information. This number is actually the best way to see if you’re living within your means or not. This way, your lender will know your monthly debt payments along with your monthly income.  


If your ratio of debt is high, you may not get a loan or get less desirable interest rates than if you had lower amounts of debt. Even if you have a high credit score, your debt-to-income ratio could affect these things. In reality, a higher debt ratio will make it harder for you to pay back your debt, so it’s important to you. 


How It’s Calculated


You can use an online tool to help you calculate your debt-to-income ratio. You can also use a simple formula if you’re up for doing some math yourself:


Divide your monthly debt payments by your monthly gross income then multiply that number by 100. For example:


Student loans: $400

Car loan: $300

Rent: $700

Income: $4,000 


1400/4000= 0.35 x 100= 35%


Household Ratio


You should also be aware of something called your household ratio. The household is the amount of home-related expenses which includes property taxes, prospective mortgage, home insurance, and more. These costs are divided by your monthly income to get this ratio as well. Obviously, your household debt adds to your financial commitments and is also put into consideration by your lender.    



What’s A Good Debt-To-Income Ratio?


It’s ideal that you keep your ratio less than 36%. Your household ratio should be even lower than this. It’s great to be debt free, but in the real world, that’s not always possible. Your best bet is to be responsible with your finances and work on paying your debt down as much as you can. Then, little by little all of the critical numbers that are required to get a mortgage will fall into place.  

    






Posted by Liberty Real Estate on 5/16/2018

When you close on a home, you’re sealing the deal with all of the agreements that you have made with the seller and your lender over the course of the home buying process. Since most people don’t pay cash for a home, your loan will also close at the same time as the ownership changes. If you are paying cash, the process may be slightly different. Closings can also be called “settlements” since everything is being signed and sealed at this time, essentially, “settling” the deal.


Have Your Checkbook Ready


The closing is where documents are exchanged, the keys are passed on, and all of the funds required to complete the transaction are paid. Closing costs include the down payment that you’re putting on the home, lawyer’s fees, taxes, commissions, assessments, and more. The seller may be writing a check too, paying off the old loan to their former home. You’ll need to verify the amount that needs to be paid at closing clearly before you reach the closing table. The money must be presented at the time of closing in order for the deed to be handed over. 


Get A File Folder And Stretch Your Writing Hand


The settlement on a home requires quite a bit of paperwork. You’ll be handed a stack of papers to sign. Take the time to listen to your lawyer or realtor to understand exactly what you’re signing. There’s more papers to sign than you really can imagine! Finally, you’ll be handed copies of all the papers that you put your signature on. It’s important to keep everything for your records. These documents will include everything from proof of insurance to the deed on the property to your loan terms and documentation. 


Where Will The Closing Be?


Depending on where you live, your closing will take place in either the lender’s office or the office of a lawyer who is representing the closing. Typically, it will be the loan company’s attorney who holds the event in this case. In some cases, closings can be what is known as “witness only.” This means that a notary or attorney will be present at the chosen closing location to provide documents. The drawback to this type of transaction is that nothing that you’re signing will be explained to you.


What Happens Following Closing?


When all the I’s are dotted and the T’s are crossed, congratulations! You’re the proud owner of a new property. Unless there has been a prior agreement made with the seller, you’ll be able to take possession of the property right away. Occasionally, there will be some post-closing agreements that involve transactions due to a repair that couldn’t be made or reimbursements for real estate property taxes that were paid on the part of the seller. Ideally, this will all be taken care of at the closing table, but at times other arrangements must be made.




Categories: Uncategorized  


Posted by Liberty Real Estate on 5/9/2018

For home sellers, a seller's market is ideal. Ultimately, this type of housing market empowers home sellers to maximize the value of their residences, and for good reason.

Typically, a seller's market is defined by several key traits, including:

1. Shortage of Quality Houses

A seller's market often features a shortage of quality houses, which means many home sellers frequently are able to set higher initial asking prices for their residences that they would in a buyer's market.

Although a seller's market may enable home sellers to get more for their houses, a home seller still must find ways to generate interest from prospective homebuyers.

For example, a home seller who revamps his or her home's exterior will be able to boost the residence's curb appeal. As a result, this home may generate greater interest from homebuyers than other residences that are on the market, increasing the chance of a quick home sale.

2. Abundance of Homebuyers

A seller's market may feature an abundance of homebuyers who are ready to make their homeownership dreams come true. As such, a home seller may receive offers as soon as his or her residence becomes available. And in some instances, a home seller might even get multiple offers that exceed his or her initial asking price.

Oftentimes, a seller's market provides increased confidence to home sellers. Conversely, it is important to establish realistic home selling expectations, regardless of the market conditions.

For instance, a home seller who prices his or her residence too high from the get-go is unlikely to generate significant interest – even in a seller's market. Thus, this home may remain on the market for many days, weeks or months, and a home seller might need to lower the price eventually.

On the other hand, offering a competitive price, i.e. a price that corresponds to the prices of similar houses in a particular area, is ideal. If you provide a competitive price on your home from day one, you should have no trouble receiving plenty of interest in it, especially in a seller's market.

3. Consistent Supply of Dependable Real Estate Agents

Real estate agents are happy to help home sellers maximize the value of their residences in a seller's market. These real estate professionals may possess many years of industry experience, which means that they likely understand the ups and downs of the real estate sector. Therefore, real estate agents can offer practical tips to ensure that you can stir up substantial interest in your home, get the most for your house and accelerate the home selling journey.

Perhaps best of all, your real estate agent will be happy to respond to any concerns or questions as you add your home to the housing market. This real estate professional works for you and will do everything possible to ensure you get the best results.

Ready to add your home to the real estate market? Employ a real estate professional, and you can move one step closer to optimizing the value of your house.




Categories: Uncategorized  


Posted by Liberty Real Estate on 5/2/2018

A home inspection is a key part of the property buying process. If you fail to allocate the necessary time and resources to conduct an in-depth inspection, you may struggle to identify various home problems before you finalize your property purchase. And if you cannot identify such issues, you risk buying a home that may require costly, time-intensive upgrades in the foreseeable future.

Ultimately, there are many things that you can do to ensure that a home inspection provides you with the insights you need to determine whether to proceed with a home purchase. These include:

1. Hire an Expert Home Inspector

A home likely is one of the biggest purchases you'll make in your lifetime. As such, there is no need to leave anything to chance, especially when it comes to conducting a house inspection. But if you hire an expert home inspector, you can get the support you need to conduct a comprehensive property inspection.

Look for a home inspector who possesses extensive experience. Also, you may want to ask a home inspector for client referrals before you make your final hiring decision. If you get in touch with a home inspector's past clients, you can find out what it's like to work with this professional and proceed accordingly.

2. Attend Your Home Inspection

You are under no obligation to attend your home inspection. But in most instances, it is beneficial to attend an inspection.

A home inspection usually requires just a few hours to complete, but the benefits of attending an inspection may last a lifetime.

For example, during an inspection, a home inspector may be able to provide you with property repair insights that otherwise won't be included in your inspection report. Meanwhile, attending a home inspection allows you to ask questions and gain the insights you need to make an informed decision about a home purchase.

3. Analyze Your Home Inspection Results

Spend some time reviewing a home inspection report – you'll be happy you did. If you assess a home inspection report closely, you can use all of the information at your disposal to decide whether to continue with a house purchase.

Furthermore, if you have questions about a home inspection report, don't hesitate to reach out to the inspector who conducted the evaluation. This inspector can respond to any report questions that you may have and provide you with information that could prove to be exceedingly valuable as you make your final decision about a house.

As you get ready to buy a home, it certainly helps to have a best-in-class real estate agent at your side too. This housing market professional can offer recommendations and suggestions about what to do following a home inspection. Plus, he or she can provide plenty of guidance at each stage of the property buying journey.

Take the guesswork out of a home inspection – use the aforementioned tips, and you can boost the likelihood of completing a successful property inspection before you finalize a home purchase.




Categories: Uncategorized  


Posted by Liberty Real Estate on 4/25/2018

When you sell your home, it may be tempting to just try and put your home on the market yourself without any assistance. By hiring a real estate agent, you’ll have a insurance policy of sorts that allows you to know that everything is taken care of throughout the process of selling. The general goal in selling a home is to sell it as fast as possible for the most amount of money that you can. A realtor should do a bit more for you than simply post the home and hope that it sells. Here’s what a great realtor who is looking to be an advocate for their sellers will do for you:


Put The Home On The Market For The Right Price


Selling a home at the right price is the single most important thing that can be done in the entire process. A good seller’s agent will pinpoint the right price for your home. If the home is priced too high, there will be no interest in the property. People will believe that the price can only come down. If the price is set too low, a bidding war can ensue, or buyers may wonder what’s wrong with the property. There’s many different formulas and methods that agents will use to price the property right. The important thing is that the agent does his research.


The Market Needs To Be Marketed


Marketing is one thing that agents should be good at. A good seller’s agent will take good photos of a property or hire a professional photographer if needed. The photos and videos that are put up online are a big part of how homes get sold. Buyers want to know the property before they even see it in person. A realtor can help make this impression visible online.


Communicate With You


An agent should keep their sellers informed about what’s going on in the sale of their home. Even if offers haven’t come in, realtors should be getting in touch with their clients regularly to update them on home showings, concerns, and open house dates. A good seller’s agent will regularly communicate with you throughout the sale of your home. At the start of the sale, you’ll know a realtor is a good fit since they’ll return your calls and e-mails promptly.


Be There For The Home Appraisal


When you’re selling your home, the appraisal can be one of the most nerve-wracking things that occurs during the entire process. Your agent should attend the appraisal to help clarify confusion and answer the appraiser’s questions. The realtor will be educated on the recent updates that have been made to the home. These are what add immense value to the home.







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