Buyer Info March 8, 2024

What To Know About Credit Scores Before Buying a Home

If you want to buy a home, you should know your credit score is a critical piece of the puzzle when it comes to qualifying for a mortgage. Lenders review your credit to see if you typically make payments on time, pay back debts, and more. Your credit score can also help determine your mortgage rate. An article from US Bank explains:

“A credit score isn’t the only deciding factor on your mortgage application, but it’s a significant one. So, when you’re house shopping, it’s important to know where your credit stands and how to use it to get the best mortgage rate possible.”

That means your credit score may feel even more important to your homebuying plans right now since mortgage rates are a key factor in affordability. According to the Federal Reserve Bank of New York, the median credit score in the U.S. for those taking out a mortgage is 770. But that doesn’t mean your credit score has to be perfect. The same article from US Bank explains:

“Your credit score (commonly called a FICO Score) can range from 300 at the low end to 850 at the high end. A score of 740 or above is generally considered very good, but you don’t need that score or above to buy a home.”

Working with a trusted lender is the best way to get more information on how your credit score could factor into your home loan and the mortgage rate you’re able to get. As FICO says:

“While many lenders use credit scores like FICO Scores to help them make lending decisions, each lender has its own strategy, including the level of risk it finds acceptable. There is no single “cutoff score” used by all lenders and there are many additional factors that lenders may use to determine your actual interest rates.”

If you’re looking for ways to improve your score, Experian highlights some things you may want to focus on:

  • Your Payment History: Late payments can have a negative impact by dropping your score. Focus on making payments on time and paying any existing late charges quickly.
  • Your Debt Amount (relative to your credit limits): When it comes to your available credit amount, the less you’re using, the better. Focus on keeping this number as low as possible.
  • Credit Applications: If you’re looking to buy something, don’t apply for additional credit. When you apply for new credit, it could result in a hard inquiry on your credit that drops your score.

Finding ways to make your credit score better could help you get a lower mortgage rate. If you want to learn more, talk to a trusted lender.  I can refer you to my preferred lenders, who have helped dozens of my clients.

Buyer InfoSeller Info February 24, 2024

8 things to consider before becoming a landlord

Navigating the challenges and opportunities of property management.

Becoming a landlord can be a promising avenue for generating passive income and building wealth — but it’s not without challenges. From understanding legal requirements to managing tenant relationships, there’s a lot to consider before taking the plunge.

These eight essential factors can help you prepare for the responsibilities and opportunities of being a landlord.

Follow the money

As a landlord, you’re on the hook for everything from the mortgage, taxes and insurance to accounting for potential vacancy periods and unexpected expenses. It helps to have a solid financial plan ahead of time. Creating a detailed budget and maintaining a reserve fund are key strategies to ensure financial stability and profitability in the long run.

Understand the legal requirements

Navigating the complex housing laws landscape of housing laws can be tricky. Consider getting well-versed in local and federal regulations, such as fair housing laws and tenant rights. Failure to comply can lead to legal disputes and financial penalties.

Create a maintenance plan

Owning rental property means being responsible for its upkeep and repairs. Regular maintenance not only helps preserve property value but keeps tenants happy. Also, be prepared for emergency repairs, which can be costly and time-consuming. A proactive approach to maintenance can prevent larger issues and expenses down the line.

Decide how to screen potential tenants

Finding the right tenants minimizes turnover and ensures a steady rental income. A comprehensive tenant screening process should include credit checks, employment verification and reference checks. Establishing clear rental criteria can help attract quality tenants and reduce the risk of rental disputes.

Create a policy for rent collection and tenant disputes

Managing tenant relationships involves handling complaints and conflicts effectively. Whether it’s noise disturbances or lease violations, landlords must be fair and responsive and adhere to legal procedures. It’s also imperative to establish an efficient process for rent collection. Good communication skills and conflict resolution strategies are key to maintaining a positive landlord-tenant relationship.

Understand market trends

Staying informed about the local real estate market is important for setting competitive rent prices and making informed investment decisions. Understanding market trends can help maximize rental income while remaining attractive to potential tenants.

Know the time commitment

Being a landlord is time-consuming, especially for those managing multiple properties or dealing with high tenant turnover. It’s important to consider whether you can dedicate the necessary time to effectively manage your rental properties.

Prepare for emergencies

Having a plan for emergencies, such as natural disasters or urgent repairs, is essential. This includes having reliable contractors on call and ensuring tenants know how to report emergencies. Being prepared can minimize damage and reduce stress during unforeseen events.

Becoming a landlord can be a rewarding yet complex venture. But to pull it off successfully, you’ll want to consider planning ahead before you start shopping for potential investment properties.

Seller Info February 19, 2024

It’s Time To Prepare Your House for a Spring Listing

If you’re thinking of selling your house this spring, now is the perfect time to start getting it ready. With the market gearing up for its busiest time of year, it’ll be important to make sure your house shines bright among the competition.

Here are some valuable tips you can use to get your house market-ready.

Declutter and Organize

First impressions matter, and if your house is a mess, that can easily turn off potential buyers. Before listing, take the time to declutter and organize each room. Decluttering is about more than just tidying up – it’s about creating a sense of space and openness that allows potential buyers to envision themselves living in your home. According to Moving.com:

Decluttering and organizing your space will go a long way in appealing to potential buyers. . . .decluttering will help the buyers see themselves living in your home. Less clutter inside a home also helps a place appear larger and cleaner, which should attract more buyers.”

Deep Clean Your Kitchen and Bathrooms

The kitchen and bathrooms are focal points for many buyers, and often influence their overall opinion of the house. Ensure these spaces dazzle by giving them a thorough deep cleaning. Pay attention to details like scrubbing grout lines, polishing fixtures, and decluttering countertops. A sparkling kitchen and bathroom can leave a lasting positive impression on potential buyers.

Maintain Your Yard

Your home’s exterior is the first thing potential buyers see, so it’s important to make a good impression from the moment they arrive. A well-maintained yard not only enhances curb appeal, but also shows buyers the home has been well taken care of.

Take the time to spruce up your yard by mowing the lawn, trimming bushes, and clearing away any debris or dead plants. Remember, the goal is to create a welcoming environment that entices buyers to step inside and imagine themselves living there. U.S. News says:

“A beautifully landscaped front yard can elevate an ordinary house into a charming home and will help homes sell faster and for more money.”

Find a Listing Agent

A skilled listing agent is your partner in minimizing stress when selling your home. Lean on your agent for advice on decluttering, staging, and enhancing your home’s appeal to potential buyers. Their insights into market trends and recommendations for reliable contractors and stagers are invaluable.

By decluttering, deep cleaning, and tidying up your house, you can create a welcoming environment that resonates with buyers and increases your chances of a successful sale.

Thinking about selling?  Let’s connect on what you need to do to get your house ready to sell this spring.

Buyer Info February 8, 2024

Why Pre-Approval Is Even More Important This Year

On the road to becoming a homeowner? If so, you may have heard the term pre-approval get tossed around. Let’s break down what it is and why it’s important if you’re looking to buy a home in 2024.

What Pre-Approval Is

As part of the homebuying process, your lender will look at your finances to figure out what they’re willing to loan you. According to Investopedia, this includes things like your W-2, tax returns, credit score, bank statements, and more.

From there, they’ll give you a pre-approval letter to help you understand how much money you can borrow. Freddie Mac explains it like this:

A pre-approval is an indication from your lender that they are willing to lend you a certain amount of money to buy your future home. . . . Keep in mind that the loan amount in the pre-approval letter is the lender’s maximum offer. Ultimately, you should only borrow an amount you are comfortable repaying.”

Now, that last piece is especially important. While home affordability is getting better, it’s still tight. So, getting a good idea of what you can borrow can help you really wrap your head around the financial side of things. It doesn’t mean you should borrow the full amount. It just tells you what you can borrow from that lender.

This sets you up to make an informed decision about your numbers. That way you’re able to tailor your home search to what you’re actually comfortable with budget-wise and can act fast when you find a home you love.

Why Pre-Approval Is So Important in 2024

If you want to buy a home this year, there’s another reason you’re going to want to be sure you’re working with a trusted lender to make this a priority.

While more homes are being listed for sale, the overall number of available homes is still below the norm. At the same time, the recent downward trend in mortgage rates compared to last year is bringing more buyers back into the market. That imbalance of more demand than supply creates a bit of a tug-of-war for you.

It means you’ll likely find you have more competition from other buyers as more and more people who were sitting on the sidelines when mortgage rates were higher decide to jump back in. But pre-approval can help with that too.

Pre-approval shows sellers you mean business because you’ve already undergone a credit and financial check. As Greg McBride, Chief Financial Analyst at Bankrate, says:

“Preapproval carries more weight because it means lenders have actually done more than a cursory review of your credit and your finances, but have instead reviewed your pay stubs, tax returns and bank statements. A preapproval means you’ve cleared the hurdles necessary to be approved for a mortgage up to a certain dollar amount.”

Sellers love that because that makes it more likely the sale will move forward without unexpected delays or issues. And if you may be competing with another buyer to land your dream home, why wouldn’t you do this to help stack the deck in your favor?

Bottom Line

If you’re looking to buy a home in 2024, know that getting pre-approved is going to be a key piece of the puzzle. With lower mortgage rates bringing more buyers back into the market, this can help you make a strong offer that stands out from the crowd.

Buyer Info January 27, 2024

Why It’s More Affordable to Buy a Home This Year

That’s all good news if you want to buy a home buy a home because it means affordability is improving.

Seller Info October 19, 2020

15 easy-as-pie seller projects that’ll help buyers fall in love

The place to start is, of course, at the curb. Here’s a checklist of curb appeal items to take into consideration prior to listing your home for sale.  Many involve inexpensive and straightforward fixes you or your landscaping person can undertake, now that temperate fall weather is here.

Ariel Skelley / Getty Images

Add finishing touches

Finally, while the weather holds, its a great time to take advantage of the opportunity to:

  • Reseed bare spots in the lawn
  • Revive planters with seasonal color
  • Replant and mulch the flower beds

Jon Lovette / Getty Images

4 ways to communicate ‘this is a well-maintained home’

Clear the gutters

Better yet, have gutter guards installed before leaves start to drop. And clear tree branches off the roof when the leaves are gone.

Touch up peeling paint

Nothing makes a house look shabbier than patches of bare wood surrounded by deteriorating paint. And it’s so easy to fix.

Rejuvenate the fences

Good fences make good neighbors — and an excellent first impression. Leaning, decaying fences? Not so much. If you can’t afford to replace a fence that’s seen better days, you (or your handyperson) can at least prop it up and power-wash/stain it.

Refresh the mailbox

Sellers tend to overlook practical items like the mailbox, which is the first thing buyers likely see. Generally, installing a new box (with house numbers!) is the easiest, fastest way to refresh this area without calling undue attention.

However, if it’s a prominent fixture, it’s best to install something in keeping with the home’s architecture and landscape the area, so it fits with the overall planting scheme.

2 ways to make it easy to find the property address

Its important to draw attention to your address, so buyers & agents are confident they’re in the right spot. Freshen paint on numerals stenciled on the curb. Larger numbers, where architecturally appropriate, do their job artfully — especially if you spotlight them.

Create an entry that wows in 3 easy steps

Amp up the hardscape

A vast expanse of driveway greets buyers driving up to most homes. Often, a path takes off from the driveway toward the front entry. But the residents rarely use it. 

You can immediately improve their curb appeal by power-washing all that concrete power and dressing up the path. Staining the concrete, lining the walkway with low hedges or other plantings, or installing stone or brick borders are all ways to quickly elevate the importance of the path the home’s buyers will be treading, whether you use it or not.

Spruce up the entry

Evaluate everything from the porch light, doormat, seating and plants to the front door and its hardware. At minimum, everything needs to be cleaned or replaced. Make sure that the lock works and that the doorknob looks like a medic just signed off on its cleanliness. 

Every window needs to sparkle, especially those at the entry. Replace every lightbulb near the entrance because the lower light of fall and winter often requires turning on the lights to welcome visitors on gloomy days. And they will burn out at the worst possible moment if they aren’t brand new.

Install decorative lighting

Restraint is essential where decorative lighting is concerned. But, done well, a pair of lighted evergreens flanking the front door, a candlelit lantern on a porch step, or a lighted seasonal wreath can extend a warm welcome right out to the street. 

I work with you to help maximize the home’s lighting as the days get shorter.

I am a fan of checklists as you’re less apt to forget a critical piece of the curb appeal puzzle if you’re using one. 

Let me know how I can assit you in preparing your home or the fall and winter selleing season!