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Shopping For Mortgage Rates the Right Way

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You’ll want to shop around for mortgage rates when you are ready to purchase and finance a house or refinance a mortgage. Every day, lenders set their rates. During a volatile, but not unheard of, mortgage market, lenders can set their rates more than once a day. The Fed does not set the typical 30 year fixed-rate mortgage. It is set by the individual lender. The Fed does influence mortgage rates, but only indirectly. Although some adjustable rates may reflect Fed action, your fixed rate loan is still in the hands of the lender.

How do you compare rates? Here are some things that you should do:

Compare rates the same day.

Mortgage rates are affected by market conditions. A rate quote given on Monday may be different from one on Thursday. To be fair to yourself and to the market, you should set aside a day to shop for rates. When you look at rates on a site, be sure to pay attention to the date that they were posted. You need to make some phone calls if it was posted a few days ago.

Shop at the same time every day.

You can help yourself by shopping the same day. The rate quoted in the morning may be different by the afternoon.

Shop for the same program.

Get a quote only for the exact same mortgage program. You cannot compare the rates of a 30-year loan with those for a 15-year loan, for example. You shouldn’t compare fixed rates with adjustable rates.

Points?

If you are shopping in the morning and getting quotes for 30 years, be sure to get the exact program. For example, get a quote on a 30-year loan with a single point. Get a quote for the same “lock” period. Most lenders offer different rate guarantees or locks for different time periods. A lender may offer a 10-day lock, 30-day lock and so on. The longer the lock, the higher the rate.

Compare lender fees. A lender may offer a better rate than others, but they might also charge higher loan fees.

Sometimes it can be difficult to compare apples with apples, but by following these steps you will be able to do just that.

Original Blog: https://realtytimes.com/archives/item/1047958-shopping-for-mortgage-rates-the-right-way?rtmpage=

How to Buy Your First Real Estate Investment

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Real estate investing may seem like a lofty dream, but you might be closer than you think. Real estate investing does not have to be a huge portfolio.

The first time you buy an investment property, it can be a daunting experience.

There are some general tips that you can use regardless of your budget.

Decide Your Goal

Knowing your goals is the first step to buying your first real estate property.

Are you looking for passive income or capital quickly? Both are valid goals, but only one is right for you. Even the best real estate agent won’t be able help you find the perfect property until you know what you want. 

Rent should cover your mortgage and other expenses.

But are you a good landlord? How handy are YOU? You need to consider the cost of maintenance and repairs if you are not handy.

You should also pay off any personal debts before investing in real estate. You need to pay off student loans, credit card debt, and medical bills before you can be a realistic real estate investor. You need to give yourself some breathing room financially.

It’s important to understand the risks involved in your goals.

You may have to pay bills even if your real estate investment is vacant for longer than expected.

You could also be hit with unexpectedly large maintenance bills. You might have to replace your air conditioner or install a new roof.

Plan for what you will do if your tenant stops paying rent. You may not be able to get back the months of rent that you haven’t received.

In this guide, we’re mainly talking about investing in rental properties. However, buying a property to flip comes with its own challenges. It’s almost never the case that you will have to pay more for the work you do on a flip than you expected. You may also find that the home stays on the market much longer than expected, which will result in higher costs.

Save a Down Payment

If you plan to buy a property as an investment, you will need to put more money down than if you were purchasing a primary residence.

Renting a property means you’ll need to put down at least 20%, and mortgage insurance won’t be an option.

You should also have two other financial goals in mind while you are saving for your down payment. First, you should build up your cash reserves for when things don’t go as planned. You should also work to improve your credit score, as you will need to have a high score to qualify for a mortgage.

The Mortgage Process for an Investment Property

Calculate your monthly payment and rates if you are buying a property to invest in rather than as a primary residence. You can then get preapproved so you know exactly how much you can spend.

It is advantageous to work with a home-loan expert who has experience with investment properties, as the rules are different than those for buying a primary residence.

One of the most common mistakes made by new investors is not securing funding before searching for a property.

Preapproval will allow you to move quickly when you find the property you are looking for. You won’t be disappointed if you discover that you do not qualify for enough funding to purchase it.

If you are buying a rental, you will need to provide two years’ worth of tax returns, your W-2s for the past two years, and two months’ worth of bank statements. They will also verify your assets.

A lender will want to make sure you have six months’ worth of mortgage payments saved up in case you encounter any unexpected problems.

You need to be prepared and do your research. If you are not prepared, investing in property can lead to financial disasters.

Original Blog: https://realtytimes.com/archives/item/1043224-how-to-buy-your-first-real-estate-investment?rtmpage=

Should You Fix Up Your House Before Listing Or Sell It As A Fixer Upper?

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If you’re thinking of selling your home, this is probably a question you’ve been asking yourself – and your real estate agent. There is no hard and fast answer; the route you go will depend on numerous factors, the most important of which are: the condition of your home, the strength of the market in your area, and the potential profit to be made both with and without updates. These tips will help you decide whether to sell now or later.

Consider your buyer

The words “fixer upper” might actually be a selling point for some buyers who perceive they’re getting a deal, who are specifically looking for something they can put their stamp on, or who just can’t afford to buy something turnkey. The marketing your agent does is key here so you don’t end up with nothing but unacceptable offers.

“In any marketing communications surrounding a fixer-upper, it’s important to remain focused on value,” said ExtraSpace. “Prospective homebuyers know that a fixer-upper will sell at a lower price point than newer or more modern homes on the market. But that doesn’t mean you need to accept a lowball offer. Instead, emphasize the home’s investment potential by reminding buyers of the future sale opportunities after the home has been remodeled.”

If your home needs A LOT of work and you can’t, or don’t want to, put the time, money, and effort into getting it in top condition, targeting investors could get it sold quickly. “A few years ago, a past client called to say her next-door neighbors needed to immediately sell their home. To say it needed work was an understatement,” said Sacramento-based real estate broker Elizabeth Weintraub on The Balance. “The home appeared inhabitable. It had holes in the walls all the way to the exterior and urine-soaked wood floors; most of the electrical didn’t work and the bathroom tub had fallen through the joists. All the faucets leaked and, in one bedroom, I found a pile of dead rats swept into a pile in the center of the floor. This was not a home that could be easily fixed up. Not even a coat of paint would have helped sell this place. We priced it low enough that it attracted multiple offers and sold with zero days on market. Only contractors and flippers made offers on this home.”

Since flipping is more popular than ever, a home that needs work – especially certain kinds of work – may be attractive enough to investors that you don’t have to do any work at all. “A good rule of thumb: If your home needs kitchen or bath remodels, a new roof, or foundation repairs, there’s an 80%-plus chance your buyer is going to be an investor,” Bruce Ailion, a broker and REALTOR(r) in Atlanta, said on Realtor.com.

Get an honest assessment – and be able to hear it

If you’ve lived in your home for quite some time and/or haven’t kept up with updates and repairs, your real estate agent’s assessment of its condition and the recommendations he or she makes to get it market-ready may be eye-opening. They may also make you angry. Try to listen and keep an open mind, even if you feel offended. In the end, you share the same goal, which is to get your home sold for the best possible price.

Be realistic on pricing

“Finding out your home’s value isn’t as simple as subtracting the cost of repairs from your home. You also need to factor in ‘aggravation costs,’ said Ailion. “In other words, turnkey homes often sell at a premium to traditional buyers because they don’t have to do any work. If your home needs some sprucing up, you’re likely going to have to incentivize buyers to dig in and get their hands dirty.”

It may be that fixing your home up makes the most sense because of the financial upside. In presenting you with comparables, your real estate agent should be able to show you other properties in your area in varying conditions (depending on the number of active listings or recently sold homes near you). This will help inform the pricing for your home and also give you some idea of how much you’d have to put into it to get top dollar. Now all you have to do is come up with the money!

Choose your updates wisely

A $30,000 kitchen renovation may not be in the budget and may not give you the return on investment you’re looking for, but there are smaller updates you can do to your kitchen to make it look fresh (and, you can use the same principles in other important areas, like bathrooms). Better Homes and Gardens has a great list of updates you can make for under $2,000, including hanging a pendant that “illuminates the sink area” and swapping out a tired sink for a “farmhouse sink (that) adds character to the space.” Also think about painting cabinets and installing new hardware, and, if you’re up to the task, adding an eye-catching backsplash.

Make necessary repairs

Investors aren’t expecting perfection, and their offers will be based on the condition of your home and the potential profit they can make once it’s fixed up. Non-investor types looking for a deal may not necessarily be scared off by a few cosmetic issues, but major repairs that are needed are another story. If you’re looking for the smartest place to put your pre-sale renovation dollars, this may be it.

“It might not be glamorous, but buyers are looking at big-ticket items like the age and condition of the roof, air conditioning and heating systems, water heater, electrical panel and pipes,” said Inman. “If any of these components are on their last leg, you might seriously need to consider replacing them as these items could factor into the kind of financing the buyer is able to obtain as well as insurability of the property.”

Original Blog: https://realtytimes.com/archives/item/1016869-20180426-should-you-fix-up-your-house-before-listing-or-sell-it-as-a-fixer-upper?rtmpage=

Ten Mistakes That Will Keep Your Home From Selling

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You need to get every advantage possible when you are selling your house. There are very few homes that can be magically market-ready without some help. It’s time to focus if your home requires more than just a little assistance. Listing your home in a bad condition will only lead to frustration. In this case, frustration is: Your home being on the market without any offers for months or an offensive, lowball offer.

Avoid listing your home with:

1. Excessive damage

You may have neglected to maintain the property, either because it was rented out and abused by frat boys or you simply didn’t care for it as much as you should. The buyers will not be interested in those holes that make it look like the room was used for a boxing workout, or the wood floors that have been scratched up by dinosaurs. They also won’t want a yard with only weeds that are two feet tall. If you don’t want to sell your home at a price where buyers will only focus on the positives and ignore all the negatives, then it needs some work.

2. Bathroom carpet

It’s gross. Everyone who enters that bathroom thinks one of two thoughts: 1) there’s got to be mold underneath; 2) there’s got to be pee all over the floor. You’ll want this update done before listing your home. If you already have your home listed but it’s not selling, this is something to consider.

3. Big, nasty stains

Buyers shouldn’t be able to tell where your dog marks or where you kids spilled a bowl of holiday punch. Potential buyers won’t even enter your home if the carpet stains are so bad. Nobody wants to purchase a pigsty. Invest in a new carpet. You won’t need to lower your price, so you’ll get the money back.

4. Pet smells

They smell. Since you are surrounded by them every day, you may not notice, but potential buyers might. Spend money on air fresheners and deep clean your carpets and upholstery. Remove cat boxes before showings. You don’t want a buyer to refer to your home as “the smelly one.”

5. Loud dogs that bark every time anyone approaches the house

Last word about pets. Barking is inevitable, whether your dog barks or the neighbor’s. You don’t want that to happen on the day of an open house. Offer to pay for the doggie daycare of a neighbor’s pet. This can help eliminate the problem and create the peaceful setting that buyers desire.

6. Your dead lawn

A lack of curb appeal will not necessarily ruin a deal. You may not even be able to convince potential buyers to leave their car. Buyers will assume that if the yard in front is messy, the same mess is inside.

7. The bad agent

Face it. Some of them will be winners. Get a new agent if your current one is rude, uninformed or uncommunicative. A client who doesn’t receive the attention they deserve is unlikely to be satisfied.

8. You’re sloppiness

The drawers and cabinets that you stuffed everything in when you cleaned out your kitchen and bath cabinets may be a deal-breaker for buyers who are picky. Buyers are known to open things. Buyers open drawers, cabinets and closets. They may think that there is not enough space if these areas are cluttered and overcrowded.

9. Unreasonable Sellers

If you’re reasonable, big problems can kill a deal, but can also seal it if they aren’t too serious. Your inspection may reveal plumbing, roofing, or electrical problems (or even all three!) If you refuse to negotiate and the seller is unwilling to make a deal, that sale will be lost.

10. Bad Taste

When it comes time to sell, your poor decorating choices or failure to stay up to date with the latest trends could haunt you. You can see this on House Hunters, where buyers get hung up over paint colors. Simple updates will make it look new and fresh, giving buyers something to fall for.

Original Blog: https://realtytimes.com/archives/item/1017958-20180614-ten-mistakes-that-will-keep-your-home-from-selling?rtmpage=

How is a Home’s Fair Market Value Determined?

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Fair market value is a real estate term that both buyers and sellers should be familiar with. The fair market value is the amount a house would sell for if logic were to be the only factor. The fair market value is what a seller could get if he or she waited to receive the best offer.

Both buyers and sellers will negotiate until they reach a price that they both agree upon.

While negotiation is a big part of buying a home, understanding fair market value is also relevant.

Fair market value is not everything. Fair market value is not just what the appraised price is or what the parties think the value is. Tax value is not included in the fair market value. Fair market value can include these factors.

Calculating fair market value

Home values are affected by the fluctuations of the market. There is no specific formula for determining fair market value. The value of a house is primarily determined by supply and demand.

When calculating the fair market value, some elements can be taken into consideration.

* Current market trends
* Comparative market analysis of similar properties in the same area
* Having an appraiser determine the value
* Calculating fair market value using price per square foot

You can use any of these factors in combination to arrive at a fair value.

Real estate agents excel at determining the fair market value, and this is why people hire them instead of trying to sell their home independently. You should know the facts about the property, but also the market in your area and the overall economy.

What is fair market value?

The fair market value will be used to determine a home’s sale price. However, there are caveats. If the fair market value of a home is $250,000, but the house is in a popular area, then the asking price could be as high as $300,000.

Fair market value can be applied in other contexts besides real estate, as well as other real estate-related applications.

The property tax you owe your municipality will likely be based on your home’s fair market value. The longer you own your home, the higher your FMV will be. This means that your property tax will also increase.

Your home’s value can also impact your tax credits, gift tax and estate tax.

If you give your home as a gift or include it in an inheritance, the recipient may be required to pay tax based on its fair market value.

If the person sells their home for more than it was appraised at when they received it, then they will have to pay capital gain tax on the difference.

The term fair market value can also be used in the insurance industry. Fair market value can be used to determine the amount of money you will receive for repairing your damaged property.

If your home is affected by a natural disaster and it’s evaluated below FMV, you might not get as much compensation.

Fair market value is not a formula that can be applied in all cases. The formula is often based on a combination of key metrics to determine the value of a house at any time.

Original Blog: How is a Home’s Fair Market Value Determined? – Realty Times

Simple Ways To Make Your Rental Property More Homely

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You may not have a lot of control over the way you decorate a rental property. You will usually need to obtain written permission from your landlord before making any changes. There is no guarantee that they will be approved! We will show you a few easy ways to make your rental home more comfortable without making any changes. These are affordable options that can help you feel more at home.

Choose Ambient Lighting

Ambient lighting is the first thing that you can do to make a rental home more comfortable. Simply go through your rental home or apartment and replace the bright white bulbs with softer, warmer tones. You can also change the light shades, if you have them. This will allow the room to be lit differently.

Speak to your landlord and ask if they would like to keep any lightbulbs or light shades that you have removed. If not, you can keep them in a container so you won’t be charged later.

Add Lots of Greenery

Add plenty of greenery to the rental property. Houseplants can be beneficial to your home in many ways. They reduce stress levels, clean the air, increase productivity, and improve mood. They also bring a beautiful new life to any space! You’d be amazed at the difference houseplants can make if you don’t have them already.

If you’re a beginner, snake plants, spiders, peace lilies, and jade are great options. Water them every two weeks during the summer and every three weeks in winter. If you can, give them indirect sun. They are resilient, but they all need watering every 2 weeks in the summer and every 3 weeks in winter.

Hang Wall Art Prints

In rental properties the walls are often quite bare and you’re not allowed to install anything to hang artwork. We have the solution for you! As they are lightweight, you can use them to hang wall art throughout your house. Use removable hanging strips to ensure that there will be no damage (if you follow the instructions correctly).

You can create a gallery with a variety of prints or use typography prints that bring your favorite quotes into your home. Or you can choose botanical wall art for your houseplants. It’s a simple, affordable and quick way to make a rental home or apartment feel like your own.

Soft Furnishings

Soft furnishings are the last but not least. Soft furnishings are a great alternative if you don’t have control over the decor of your rental property. You can add personality to a space by using unique textures and colors. This option can be adapted to any budget.

Soft furnishings can give a new look to furniture that is otherwise plain. Soft furnishings can also make a space more comfortable and relaxing. Soft furnishings can transform any space. From pillows to bean bags and blankets, they will make it more relaxing and cozy. 

Final Thoughts

Even if you are only planning on staying in your rental property temporarily, it is so important that you make it feel like home. We all deserve to come back to our home and feel completely relaxed and comfortable, even if you will only be there for a couple of months! All of these ideas are affordable and accessible, so you are sure to find the right choices to make you feel at home.

Original Blog: https://realtytimes.com/consumeradvice/homeownersadvice/item/1043638-simple-ways-to-make-your-rental-property-more-homely?rtmpage=null

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