 Applying for a mortgage may not be as fun as looking through listings to find your dream home, but getting your financing approved is the first step in the house-hunting process. It's important to do more than just get an online quote from a mortgage lender. You should enter the house-hunting process with a preapproval letter in hand. Here's why:
You'll Know Your Price Range Finding out the cost of a house you can afford will save you from shopping for homes that are outside your budget, and you'll also know what loans you qualify for. There are zero down payment loans available through the VA or other low down payment options available through the USDA if you qualify. Keep in mind that a loan with a smaller down payment usually means a higher interest rate and a higher monthly payment. Serious Buyers Are in a Stronger Position to Negotiate Having a mortgage preapproval confirms you are a serious buyer. When you negotiate with a seller, the discussions will be more productive when they know you are serious about buying. Sellers might also be more open to consider lowering their price or making other concessions to close a sale. Start Now to Get the Paperwork Out of the Way Applying for a mortgage takes a lot of paperwork. You'll need to collect your W-2s and tax returns and bank statements and pay stubs. Getting all your paperwork ready will speed up the home-buying process. The sooner you get your paperwork together, the quicker you'll be able to move to closing when you find your dream home. Know How Much You Need to Pay at Closing When you decide on a home to buy, you need to do more than just make the down payment. You also need to write a check for the closing costs, which can include origination fees, appraisal fees, and title fees. While the seller will usually pay a part of the closing costs, you'll pay a large share, typically about 2%– 5% of the mortgage amount. If you talk to a mortgage lender, you'll know how much your loan is likely to be and what kind of closing costs you need to be ready for. Take Advantage of Low Interest Rates Mortgage rates are historically low, which means your monthly payments will be less than what they would have been just a few months ago. If you're concerned that loan shopping negatively affects your credit score since it results in a credit inquiry, know that the damage is minimal—possibly 5 points. Applying to multiple lenders within a 45-day window is counted as a single inquiry on your credit report. If you're ready to get preapproved for a home loan, contact me today.
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 Some people are so far in debt they describe themselves as "swimming in debt." If you—or someone you know—are "in over your head," here are five things to avoid when dealing with overwhelming debt:
Minimum Payments Always pay more than the minimum payment. Credit card companies love customers who only pay the least amount possible. By handling credit card debt in this way, it is sure to grow and become insurmountable. High-Interest Loans Don't use easily obtained, high-interest loans to pay off your lower-interest debt. Yes, it's easier to pay only one payment, but it will cost more money in the long run. Operating Outside of a Budget Having a budget can give you an accurate picture of how much you make and how much you spend. Not having one is a major financial mistake. Canceling Credit Cards Don't cancel your credit cards. This may sound counterintuitive, but credit scores take into account many different factors, like credit length and credit limit. When you close your accounts after paying off your cards, you reduce or eliminate both of those factors, resulting in a reduced credit score. A Debt Consolidator Avoid hiring debt-consolidation companies. Most of them charge an up-front fee in exchange for no guarantees. After going into debt consolidation, your accounts will most likely be frozen, and you won't have access to credit in the event of an emergency. In addition, the company you hire will report "third-party assistance" to the credit bureaus, which can affect future loans. Dealing with too much debt takes an honest evaluation of your situation. After that, it makes sense to start with a reasonable plan to journey out of debt and into financial freedom.  When you’re selling a house, making improvements beforehand can help maximize the home’s value. Even if you have no plans to relocate in the near future, enhancing your living conditions makes sense. Use this information from Remodeling magazine’s annual "Cost vs. Value Report" to get the best return on your investment when you sell.
Invest In Exterior Upgrades Improvements to your home’s exterior can pay for themselves by drawing in potential buyers. If you have no plans to sell, they positively change the ambiance of your property and boost curb appeal. Adding manufactured stone veneer increases value the most—up to 95%. This synthetic material installs just like real stone. Upgrading the exterior of a home with low-energy windows and vinyl siding is also a good investment. You can recuperate up to 75% of the cost of this particular home improvement. Replace the Garage Door Upgraded garage doors yield a high return (94%), but you’ve got to choose the correct type. The best garage doors feature durable materials, insulation, and energy-saving finishes. Resilient garage door materials include aluminum, fiberglass, and steel. If you want the look of wood, choose composites, as real wood doesn’t stand up to weather challenges. Add a Deck in Time for Summer Adding a wood deck usually yields a slightly larger return (72%) than composite materials (66%) because the upfront cost is cheaper. But you’ll want to check with your local home improvement center because a wood deck can be more expensive to maintain. When it comes to sizing, keep the square footage relevant to the proportions of the yard and home. Generally, 300 square feet is an ideal size. Regardless of the measurements you choose, make sure to include a railing to enhance safety. Remodel the Kitchen, the Heart of the Home Kitchen remodels rank at the top for homeowners and buyers alike. However, bigger changes aren’t necessarily better. Smaller remodels garner more returns on investments; they can repay up to 27% more compared to major upgrades. Energy-efficient appliances, updated flooring, modern countertops, and upgraded sinks with contemporary faucets make the best improvements. Modernizing the cabinets also allows for good return of costs. If you can’t replace the cupboards, repaint them and add updated hardware. Overhaul the Bathroom Bathroom remodels follow the same guidelines as kitchen renovations. Carefully chosen updates yield larger returns than all-out, upscale remodels. It pays to upgrade counters, fixtures, lighting, tiles, and toilets. You can pick and choose, but it’s a good idea to tackle the oldest items first.  When you work from home, it can be difficult to sustain the same level of focus that you have in the office. Your home is where you relax, play games, and watch movies. All those distractions are within arm’s reach, and it can be difficult to avoid temptation. Follow these tips to remain productive while working from home.
1. Dress for Success It may feel silly to get dressed when you don’t need to leave your house, but spending days on end in your pajamas will impact your ability to be productive. It’s important that you keep your daily routine. You want to continue activities you would normally do if you were heading to work, like taking a shower and getting ready in the morning. After you get dressed, it will be easier to push yourself into work mode. 2. Set Strict Hours Just because you’re at home doesn’t mean you don’t need to have consistent work hours. Setting work hours for yourself will keep you on track. Don’t let the day get away from you. Give yourself a regularly scheduled lunch break just like you would have at the office. Maintaining the same work hours you had before you worked from home will help you to retain a sense of normalcy. 3. Set Daily Goals Each morning before you get started, make a list of goals you want to accomplish during your workday. Every time you do a task on your list, cross it out. Having a physical list and being able to cross off goals when you have finished them is very rewarding. Let your to-do list guide your day. The more you are able to cross off your list, the easier it will be to continue working. 4. Take Exercise Breaks If you are finding it difficult to focus, take a break, but don't allow yourself to do anything too fun or relaxing when you’re on a work break. Enjoyable activities will only serve to distract you, but exercising should keep you focused and energized. You don’t need to head to the gym to work out; just pull up a quick exercise routine on your phone and use it to center yourself before you get back on task. 5. Hide Your Phone Unless you use your phone for work, you should turn your phone off until you’ve finished your tasks for the day. Your phone is a huge distraction, and it takes only one text message notification to potentially derail your focus. For the hours when you are working, set your phone aside and keep your focus entirely on your job. |
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December 2024
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Marybeth Rojas - Broker
1350 Old Bayshore Hwy. Suite 520
Burlingame, CA 94010
Telephone (650)796-5565
www.marybethrojas.com
www.avantproperties.us
DRE#01352623
1350 Old Bayshore Hwy. Suite 520
Burlingame, CA 94010
Telephone (650)796-5565
www.marybethrojas.com
www.avantproperties.us
DRE#01352623