Preferred Properties of Texas Archives - Page 29 of 40 - Preferred Properties of Texas Home & Ranch Properties Stephenville

DEBT-TO-INCOME RATIO- HOW TO CALCULATE YOURS

January 9, 2023 by chorton Leave a Comment

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Newbies- Credit & Home Loans

January 5, 2023 by chorton Leave a Comment

People can receive credit card offers at a young age. To determine if someone is eligible for credit accounts, a lender may conduct a soft credit check. If the lender decides it’s a good idea to offer credit accounts to someone, they will send an offer. This is a great opportunity for those who are yet to obtain their first credit card. It’s a good idea to build credit early in life. However, for some people this new credit account could have unintended consequences. Responsible credit is better than credit.

Here’s an example. A young man is offered a credit card online. He decides to apply online and waits to see what happens. He receives the approval within a matter of minutes. His credit card arrived in his mailbox a week later. He is excited and wants to try it out. He orders a burger at his favorite restaurant and then hands the waiter a note. He waits for the waiter to sign his name a few minutes later. Cool! He thinks. He has his first card, and it works.

Here’s what could happen. He is so thrilled about his new card, he even tries it out at other locations.

He also found a business suit that he had been eyeing but couldn’t afford. He purchased it. He was close to the $1,000 credit limit at the beginning of his tenure. He didn’t pay attention and charged items that increased his balance beyond the limit. His original credit card that got him his first card has been severely damaged.

As first-time home buyers prepare to purchase and finance their first home they need to be aware of how adding debt can reduce your chances of qualifying. A person with more debt may still be eligible for a loan. However, they will qualify for less. Lenders will be cautious when you apply for credit and use it. Lenders might hesitate to offer credit in the first instance.

If one of your children comes to you proudly boasting that they have their first credit card, counsel them.

Original Blog: https://realtytimes.com/archives/item/1046229-credit-newbies-and-home-loans?rtmpage=

Change Is Good

January 2, 2023 by chorton Leave a Comment

New Year. New Possibilities. New Start.

If your thinking of making a move this new year, it would be our pleasure to be your real estate resource.

We would love to connect with you and talk more about your options.

Call Preferred Properties of Texas today to schedule a walkthrough.

Mortgage In 2023

December 29, 2022 by chorton Leave a Comment

Home shoppers are being tested this year due to record-high home prices, rising inflation, and high mortgage rates. Many homebuyers looking for an affordable mortgage have been left in more uncertainty going into 2023.

First-time homebuyers are particularly affected by skyrocketing mortgage rates and home prices. This has resulted in a decrease in their buying power and down payment.

If you want to secure the best mortgage, even though the housing market is slowly improving, you should be keeping an eye on the market and any economic moves by the government.

The Federal Reserve aggressively increased its benchmark federal funds rates in an effort to reduce rising inflation. This was done throughout 2022. Although rate hikes by the Fed do not directly affect mortgage rates, they have an impact on the bond market which in turn has an impact on mortgage rates.

The Federal Reserve will not stop raising the fed funds rate aggressively until it believes runaway inflation is under control. This will drive mortgage rates higher.

Economic consensus seems to be that the economy will see strong signs that inflation is slowing down in the first half of next year. All indicators point to more upward pressure on mortgage rates in the future than a decrease in 2023.

Many shoppers have stopped buying in the market because of record mortgage rates and the uncertainty surrounding the housing market.

Will 2023 be a better time to get a mortgage?

Many housing experts believe that we will see a greater decrease in home prices month-over-month next year.

Now, we expect home prices to decline year-over-year in 2023. The national median single-family home value is expected to drop 5.5% over the course of the year.

However, the supply shortfall and strong underlying demand will eventually limit home price appreciation.

The home depreciation rate will not be the same in all markets. There will be regional variations. Markets that were once popular with buyers will see extreme swings to their disadvantage compared to those in less-populated areas.

Remember that home appreciation has risen in an abnormally high rate over the past few years. Comparing to the second quarter 2020, the average home sale price rose 45% to $542,000.

Some experts predict that the best case scenario for a 30-year fixed mortgage rate will be around 5.5% by 2023. Other experts expect rates to remain in the 6.5% to 7.5% range throughout the year. Freddie Mac recently forecasted 6.4%.

Original Blog: https://www.forbes.com/advisor/mortgages/how-to-get-best-mortgage-in-2023/?&utm_source=ra&utm_medium=referral

Protect Your Pets From Cold Weather

December 26, 2022 by chorton Leave a Comment

Pets’ tolerance to cold can differ from one pet to another, just like humans. This is due to their coat, body fat, activity level, and overall health.

If your pet has health problems, take them on shorter walks in colder temperatures.

Protective vests or sweaters for pets with short hair are a great idea. Booties are available to protect your pet’s feet.

After a walk, check your pet’s feet for any cracks or bleeding. If your pet has ice buildup, clean it out.

Once you return home, wipe your pet’s feet, legs, and belly with antifreeze.

Keep your pet indoors for longer periods, especially in extreme weather. The best place for your pet is indoors.

If your pet starts to whine, shiver, is anxious, slows down, stops moving, becomes weak or looks for warm places, you should get them back inside immediately.

And remember: No pet should be kept outside for long periods of time – especially in extreme temperatures. Indoors is the safest place.

Original Blog: https://www.safetyandhealthmagazine.com/articles/22132-protect-your-pets-against-cold-weather

Things You Can Do To Help Winterize Your Vacant Home

December 22, 2022 by chorton Leave a Comment

There are several things you can do to winterize your home if you’re a snowbird heading south for winter. You can protect your home against theft and water damage while you’re away.

Winterization is the preparation of a property for winter. These preventative measures should be taken in the fall to avoid winter weather. Preventing damage from bursting pipes or other property and home issues can help you avoid them.

Protect Your Home from Appearing Empty:

Forward your mail and stop newspaper delivery. Ask a friend to come pick up any items left at your house.
Arrange to have snow removed after storms.
To discourage prowlers, set timers for motion-sensitive interior and exterior lights. They will come on at different times.

Protect your home from thieves by taking steps:

Verify that alarm systems have been activated and are in good working order.
Security-type hinges and deadbolt locks can be used to secure external doors and windows. Slide locks, or equivalent security locks, can be installed on sliding glass doors.
You can store valuables you don’t want with you in a safe box or another secure location.
Avoid sharing your travel plans or vacation photos on social media. Then potential thieves could use this information to find out when your house is vacant.

You can help prevent water damage by turning off your water supply:

It could be very dangerous if a pipe bursts, or leaks while you’re away. If you are going to be away for a long time, it is worth completely shutting off the water supply. Your heating professional can help you determine whether it is safe to shut off your water supply if your home is heated with an older steam heating system. If your home is protected from a fire sprinkler system you should not shut off the water supply.
After you have shut off your water supply, drain the pipes and open the faucets to drain the water. Flush your toilet to remove any remaining water from the tank or bowl. To prevent water from freezing, you can pour antifreeze into the bowls and tanks of your toilets.
To complete these steps, you may want to hire a licensed plumber. A plumber can confirm that the pipes are fully drain by blowing compressed air through them.

Keep your home and plumbing warm:

You can keep your pipes warm by running the furnace if you don’t want to drain them.
To keep the interior of your floor and walls, which are likely to contain the water pipes, above freezing, set the temperature at 55 degrees F or higher. The ability to keep cabinet doors and rooms open can help heat circulate and warm pipes.
To avoid water leaks and broken hoses, turn off washing machines and dishwashers when you’re not using them.
If your boiler is not connected to the heat source, turn off the water supply and heat supply to hot water heaters.
To prevent freezing water damage, shut off outdoor faucets and drain them.
Install a low temperature and water flow sensor on your main water supply line. This sensor can be connected to your alarm system or smart phone.
Wrap water piping with UL-Listed heat tap and insulate if it is exposed to unheated areas like garages, crawl spaces, or attics. Use only thermostatically-controlled heat tape if your water piping is plastic and follow the manufacturer’s installation instructions.

Do routine winter maintenance before you leave:

Heating system maintenance
Preventive maintenance is a good idea before you heat your home this winter. This will help prolong the life of your heating system and detect potential problems.
Before the cold weather hits, have your heating system checked and serviced by licensed professionals. Before you leave, make sure to fill your fuel tanks and set up periodic fuel deliveries if necessary. While you’re gone, have someone monitor your fuel and heat levels.
Keep the electrical supply on if you need it to run your heating system. A licensed electrician can inspect the main electrical panel, wiring, and outlets of your home to ensure that electrical service is not interrupted while you are away. Replace or repair any defect.
A licensed contractor should inspect and service your boiler or furnace at least once per year, preferably before heating season starts.
For forced hot air systems, clean or replace the furnace filter.
At least once per year, have your chimney inspected and serviced annually by a licensed contractor. Make sure to have creosote buildup from chimneys that serve woodstoves or fireplaces removed.
Keep your fuel tanks topped up and watch for low levels during winter.
Your heat should not be lower than 55 degrees because the temperature in the walls where the water pipes are located is cooler than the living areas. To maintain an even temperature, open doors to unoccupied rooms and keep the temperature at the same level throughout the house.
Follow the manufacturer’s recommendations for maintaining your pellet or wood-burning stoves.

Insulation maintenance:

Are you sure your insulation is ready to protect you against the cold? It is important to inspect your insulation as it provides protection against winter’s cold winds and freezing temperatures. Do not forget to have your insulation and weather stripping updated before the cold season begins.
Insulate the attic with additional insulation to prevent ice damming. Heat can heat the roof if it escapes too much. It can also cause ice dams that can lead to water damage and roof collapse.
Weather stripping can be added around doors and windows to protect against heat loss and drafts.
If necessary, remove screens from windows and replace them with storm windows.

Winter Safety Measures:

These are additional safety precautions that you can take to prepare for winter.
Remove dead branches and trim trees so that they don’t damage your home or injure anyone if they fall due to ice, snow, or wind.
To ensure melting snow drains properly, keep gutters clean of leaves, sticks, and other debris. Make sure that the downspouts drain water away from your foundation.
To make them more safe in the snow and ice, repair steps and handrails.
To ensure that they work properly, check smoke detectors, fire alarms, and carbon monoxide detectors.
Before you leave, unplug any unnecessary appliances such as your microwave and stove.

Equipment and Supplies Key:

You might be more prepared for the first snowstorm of the year than you realize. Make sure to stock up on key equipment such as snow blowers or generators before they are needed.
You should always have snow shovels, a roof rake and snow plows on hand. Make sure you have ice melting compound on hand to melt the ice on walkways.
Get your snow blower or generator serviced.
Fuel for snow blowers or generators should be kept in approved safety containers. Keep away from flame-producing devices and heat. Fuel should not be stored in the basement.

Reduce the attraction of pests to your home:

To discourage potential new residents from moving in, make sure you clean your house thoroughly.
To prevent mildew, clean, defrost, and unplug fridges and freezers. Wipe them dry, and leave doors propped open. Clean the oven.
Check your home for any openings that could be used by animals to get in. You should also make sure that your fireplace flue is sealed, as squirrels, birds, and bats can get in through this opening.
To ensure that there are no serious deficiencies, check weather stripping, insulation, and exterior doors and Windows. These openings can be accessed by water and insects.
A chimney service should inspect your chimneys and clean them if needed. To prevent infestation, install chimney guard screen-caps.

Prepare for Emergencies:

Notify the police about the vacant property and give emergency numbers.
Smoke detectors should be installed on every floor. They should be connected to a continuously monitored fire alarm system, so that emergency personnel can be notified immediately.
Storm shutters can be installed in coastal or higher wind-exposed areas to secure windows. You may also consider other mitigation measures such as marine plywood 5/8 inch.
You can ask a friend, relative or neighbor to watch your home and be there in an emergency. Allow them to inspect your home and monitor the electrical, water, and heating systems.
When it is cold, ask them to inspect the roof’s edge for ice dams. Also look for any leaks. If repairs or service are needed, make sure they have your contact information.

Get the insurance coverage you need. Protect your home while you are away from it, no matter how long or short. To ensure you are covered for any unexpected events while you’re away, contact your Travelers agent or independent agent.

Original Blog: https://www.travelers.com/resources/home/safety/snowbirds-winterize-your-vacant-home